Telecom Transformation: BTRC Unveils Comprehensive Licensing Reform Blueprint

Apr 23, 2025
Apr 23, 2025
Telecom Transformation: BTRC Unveils Comprehensive Licensing Reform Blueprint

In a major move to restructure the telecommunications sector, the Bangladesh Telecommunication Regulatory Commission (BTRC) has published the draft of a comprehensive policy titled Telecommunication Network and Licensing Framework Reform Policy 2025. The proposed framework introduces sweeping changes to the existing network and licensing system, aiming for a technology-neutral approach and streamlining the licensing categories from multiple types to three core ones. It also allows operators to offer a wider range of services under a single license.

Under the new policy, operators will be able to provide voice, data, internet, value-added services, and over-the-top (OTT) digital services within a single license framework. To attract foreign investment, the draft policy proposes allowing up to 70% foreign ownership under the National Infrastructure and Connectivity Service Provider (NICSP) license and up to 49% under the International Connectivity Service Provider (ICSP) license.

The draft was officially released on Tuesday and outlines substantial amendments to outdated regulatory frameworks. It is expected to come into force immediately following government approval.

The policy proposes three main licensing categories: Access Network Service Provider (ANSP) for mobile and fixed operators, NICSP for fiber, tower, and backhaul networks, and ICSP for international voice and data connectivity. Additionally, two enlistment categories have been proposed for small-scale, local internet and telecom service providers—Small ISP Service and Small Telecom Service.

The draft policy also emphasizes promoting domestic Content Delivery Networks (CDNs), hyperscalers, and data centers by ensuring special connectivity privileges. Implementation is planned in three phases. The first phase will focus on enhancing market competition, rational integration among licensees, and creating an investment-friendly environment. Necessary statutory and regulatory adjustments will follow the government’s approval.

In the second phase, new license applications will be accepted only under the updated categories. Existing licensees may renew under the new structure and will be offered pathways to transition accordingly.

The third phase of implementation will begin in 2027, by which time all existing licensees must migrate to the new framework. However, for those categories completing migration earlier, the phase may be activated ahead of schedule. Final deadlines for each license category will be determined based on their current validity periods.

According to BTRC sources, stakeholders—including business entities, entrepreneurs, industry experts, investors, and the general public—are invited to provide feedback on the draft by April 30. Opinions may be submitted via email or by post to the Commissioner (E&O), BTRC, Plot E-5/A, Agargaon Administrative Area, Sher-e-Bangla Nagar, Dhaka. A copy of the draft policy is available online.

In an earlier meeting, BTRC Chairman Emdadul Bari stated that existing licenses for Interconnection Exchange (ICX), International Gateway (IGW), and International Internet Gateway (IIG) will be discontinued upon expiry. This will allow direct interconnection among operators, improving service quality and reducing operational costs.

Commenting on the reform initiative, Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser of the Ministry of Posts, Telecommunications and Information Technology, said, “Although this reform will radically change the current licensing structure, it will also ease service delivery, foster fair market competition, and encourage innovation and international investment.”