CONTEMPORARY THOUGHTS ON TELECOM SECTOR REFORM

The Bangladesh Telecommunication Regulatory Commission (BTRC) has initiated a restructuring of telecom policies under the title "Network Topology and Licensing Regime", organizing two workshops in quick succession. However, industry experts and stakeholders have raised concerns over the one-sided approach in drafting the proposed topology, which includes the cancellation of existing licenses for IGW (International Gateway), ICX (Interconnection Exchange), IIG (International Internet Gateway), and several other domestic operators. The majority of these licenses are planned to be transferred to Mobile Network Operators (MNOs), primarily benefiting multinational corporations through a unified license framework.

In 2007, the International Long-Distance Telecommunication Services (ILTDS) Policy was introduced with the primary goals of encouraging local entrepreneurs, preventing capital flight, safeguarding national interests, and generating employment. Over the past two decades, this policy has successfully ensured uninterrupted telecom operations in Bangladesh without compromising service quality or national interests. License holders have continuously upgraded their infrastructure, reinvested in future-ready technologies such as 5G, and contributed to digital transformation projects without significant regulatory obstacles. Critics argue that when the government's telecom objectives are being met successfully, such a drastic shift in policy appears unnecessary and seems to favor multinational interests.

Stakeholder Concerns and Industry Implications

The recently held workshops were heavily influenced by think tanks, academics, and external consultants, who proposed significant changes to the telecom network topology. However, critics argue that these proposals fail to recognize the crucial role of existing license holders. Unlike other countries, Bangladesh developed its IGW, ICX, and IIG infrastructure not just as intermediaries but as a core part of the national telecom framework. This system has achieved key regulatory objectives, including:

1. Enhancing service quality and reducing network congestion through structured interconnection.

2. Ensuring transparency and accountability in call detail records (CDRs) and data traffic monitoring.

3. Providing employment opportunities for thousands of skilled telecom professionals.

4. Significantly increasing government revenue, which rose from BDT 3,600 crore in 2008 to BDT 50,000 crore in 2018. Despite the decline in international voice traffic, this policy has sustained revenue at approximately BDT 57,000 crore.

If the existing license holders have successfully met ILTDS policy objectives, complied with BTRC regulations, and maintained uninterrupted services for two decades, critics question why a sudden change in network topology is necessary. Many fear that such changes could destabilize the industry, create uncertainty, and put thousands of telecom professionals at risk of losing their jobs.

During the workshops, BTRC’s stance appeared to be heavily inclined towards MNOs, most of which are foreign operators. Despite strong opposition from various stakeholders (excluding MNOs), BTRC surprisingly declared that the "proposed network topology received positive feedback."

Historical Context and Regulatory Restrictions

Several historical regulatory measures aimed at preventing MNO dominance are worth noting:

• The ILTDS policy was the only regulatory barrier preventing MNOs from monopolizing the telecom market.

• It restricted MNOs from directly operating gateways or infrastructure at the international level.

• Interconnection services were removed from MNOs due to their previous regulatory violations and reassigned to local private companies.

While efficiency and service quality improvements are cited as justifications for restructuring, critics highlight key counterarguments:

1. Granting MNOs access to additional sectors does not necessarily improve efficiency. MNOs have yet to deliver international-standard mobile services, as high call charges, frequent call drops, and network congestion remain prevalent.

2. Telecom service challenges primarily stem from access network operators (ANS), which fall under MNOs' responsibility.

3. MNOs already generate nearly 80% of total telecom revenue, so any sectoral improvements should first focus on enhancing MNO performance rather than eliminating existing infrastructure.

Key Questions and Future Considerations

Given these concerns, several critical questions emerge:

• Has any research been conducted to identify flaws in the existing telecom structure? If so, why hasn’t it been made public?

• Why were key stakeholders excluded from discussions before proposing such a major policy shift? Instead of a collaborative approach, a predetermined framework appears to have been imposed.

• Why pursue a complete overhaul rather than refining the existing system through integration?

Before implementing changes to the licensing regime, fundamental policy questions must be addressed:

1. What is Bangladesh’s long-term telecom strategy? Should the country rely on Foreign Direct Investment (FDI) for rapid growth, or should it focus on strengthening local enterprises to reduce dependence on foreign companies?

2. If the goal is to empower domestic companies, what strategic measures will the government adopt? This strategy should shape the licensing framework.

3. A comprehensive study of the current licensing system is essential to determine whether it serves national interests or merely facilitates multinational dominance.

The proposed telecom restructuring raises significant concerns about the future of local telecom operators and professionals. Experts argue that a transparent, inclusive policy discussion is necessary before introducing any major changes to the licensing system. The government must balance technological advancements with national interests, ensuring that policies benefit the broader economy rather than a select few multinational corporations.