Network Nexus: BTRC Unveils New Licensing Framework for National Infrastructure and Connectivity Services
Under the Telecommunications Act of 2001, the Bangladesh Telecommunication Regulatory Commission (BTRC) holds the authority to grant permissions for telecom operations. Exercising this power, the Commission has issued a new licensing guideline titled “National Infrastructure and Connectivity Service Provider (NICSP)”, allowing direct foreign investment under the new telecom policy framework.
However, to be eligible for the license, applicants must be companies or partnerships registered in Bangladesh, with mandatory local participation even if foreign partners are involved. The directive also requires license holders to go public within five years of obtaining the license and to install at least 2,500 towers across the country within the same period.
The 15-year NICSP license aims to unify the country’s fiber-optic and tower infrastructure, reduce operational costs, enhance competition, and promote the development of an environment-friendly network nationwide.
According to the new guideline, by 2027, all mobile and internet service providers must transfer their existing fiber or tower infrastructure under NICSP management. While these operators will not be allowed to rent or share infrastructure with each other directly, licensed NICSP entities will have the right to build, lease, or rent fiber-optic backbone and tower infrastructure nationwide. They may also deploy new technologies, such as wireless backhaul links, but in both cases, BTRC approval will be required.
The directive further stipulates that existing license holders—including National Telecommunication Transmission Network (NTTN) operators and tower-sharing companies—must ensure at least 15 percent local investment within three years. Foreign investment will be capped at 65 percent, though it may be extended up to 85 percent in special circumstances such as intergovernmental agreements or WTO obligations.
To obtain the license, applicants must provide a bank guarantee of BDT 10 crore, along with a license acquisition fee of BDT 10 crore, an annual fee of BDT 3 crore, and an application fee of BDT 5 lakh. Licensees will also be required to contribute 3 percent of their annual gross revenue to the government and 1 percent to the Social Obligation Fund (SOF).
As part of the licensing conditions, operators must ensure network access up to the union level and maintain equal opportunities for all operators through a Service Level Agreement (SLA) and Reference Infrastructure Offer (RIO), both of which must be approved by BTRC.
Applicants for the NICSP license must be Bangladesh-registered companies or partnerships with a minimum of three years’ experience in building tower or backhaul fiber networks—covering at least 50,000 kilometers of fiber or 5,000 towers. They must also commit to investing at least BDT 200 crore within the first three years.
While foreign ownership cannot exceed 65 percent, certain relaxations have been granted for Non-Resident Bangladeshis (NRBs). However, no single entity will be permitted to hold more than one NICSP license at a time.
Industry experts believe that the new licensing regime will open a new chapter in Bangladesh’s digital infrastructure development, paving the way for greater investment, competitiveness, and sustainable connectivity.
