Telecom Transformation Triumphs with Transparent Framework

Telecom Transformation Triumphs with Transparent Framework
Sep 25, 2025 23:59
Sep 26, 2025 00:02

For the first time in Bangladesh’s telecom policy, the newly unveiled framework recognizes the internationally practiced Mobile Virtual Network Operator (MVNO), aiming to simplify the licensing system by consolidating a dozen separate licenses into a four-tier structure. The policy adopts a “technology-neutral” model to ensure necessary license compliance while enhancing service quality and consumer experience, responding to rapid technological change and the need for regulatory independence, according to government sources.

Under the new policy, mobile operators, internet service providers, submarine cable operators, tower companies, and satellite service providers will be integrated under a single cohesive framework. As a result, access networks (mobile and broadband operators), national infrastructure (telecom towers and fiber optic networks), international connections (submarine cables), and non-terrestrial networks can now operate ‘telecom-enabled services’ either through registration or under a simplified licensing process.

Commenting on the policy, Special Assistant for Posts, Telecommunications and IT, Faiz Ahmed Taiyeb, said, “The current licensing system has been modernized and streamlined by removing intermediary layers. This policy obliges telecom businesses to guarantee service quality. Thirdly, it promotes competitive expansion while keeping the cost of voice and data services within the public’s purchasing power over the long term.”

To further simplify implementation, the Bangladesh Telecommunication Regulatory Commission (BTRC) is drafting an independent policy to replace the now-defunct ILDTS guidelines.

BTRC Chairman Emdad Ul Bari noted, “Last week, following the gazette publication, BTRC began preparing new guidelines under the effective telecommunications network and licensing framework. The 2010 ILDTS policy was initially introduced to regulate international gateways and curb illegal internet-based Voice over IP (VoIP) calls. However, technological advances have rendered it outdated.”

Responding to why such a comprehensive reform was necessary, he said, “BTRC was created as an independent commission to ensure fair resource allocation and competitive market balance. Yet, the 2010 law required prior government approval for many actions, allowing the government to shut down telecom services during events like the July movement. Although six international gateway licenses would have sufficed, 28 were issued, creating inefficiencies and unethical practices. The monopoly in licensing led to inequities, particularly in VoIP services. Hence, we are returning to the 2001 legal framework while updating it for a data-driven, modern telecom environment.”

The new policy also stipulates foreign and local ownership limits: mobile operators can hold up to 85% foreign ownership with at least 15% local, infrastructure entities up to 65%, and international connectivity up to 49%.

Strict quality standards have been imposed under the policy. Mobile operators must connect 50% of towers via fiber within 18 months and 80% within three years. National fiber backbones must extend to each union council meeting telecom-grade standards, with at least one-quarter of towers in disaster-prone areas equipped with diesel generators as backup.

For monitoring, BTRC will launch a “National Quality of Service Dashboard” providing near real-time data on accessibility, coverage, throughput, and reliability. Operators with significant market power (SMP) will face regulatory measures including tariff control, mandatory infrastructure sharing, prohibition of cross-subsidies, and enhanced financial transparency. The policy notes, “Any licensee—individually or jointly—able to distort market balance, limit effective competition, or abuse dominance will be subject to SMP regulation.”

Operators are also mandated to use renewable energy, manage e-waste responsibly, and reduce carbon emissions. Legal intervention will only occur under valid authorization or judicial orders.

Welcoming the policy, Banglalink Chief Corporate & Regulatory Affairs Officer Taimur Rahman said, “We appreciate the government’s commitment to regulatory reform and recognize positive steps like active network and spectrum-sharing provisions. However, foreign ownership limits may discourage investment. Nevertheless, we are committed to working with authorities to reduce digital divide and achieve a future-ready Bangladesh through further consultation.”

Grameenphone Chief Corporate Affairs Officer Tanvir Mohammad added, “The new licensing policy is a positive step toward license consolidation, moving away from fragmented structures. We believe it will benefit the telecom sector. At the same time, we urge the government to finalize and publish practical guidelines promptly, as effective implementation is equally critical.”