Satellite Not a Substitute for Submarine Cables, Data Sovereignty at Risk

* Satellites cannot replace broadband or undersea optical cables
* Consortia models reduce heavy international submarine infrastructure costs
* Aging submarine cables increase bandwidth maintenance operational expenses

Satellite Not a Substitute for Submarine Cables, Data Sovereignty at Risk
Aug 31, 2026 11:45
Aug 31, 2026 12:28

Satellite technology can never fully replace submarine cables or broadband for internet services, while Bangladesh’s reliance on ITC connectivity is also creating risks to the country’s data sovereignty, said Mashiur Rahman, CEO of CDNet.

He made the remarks on Monday (August 31, 2026) at a workshop titled “The Need for New Submarine Cables to Protect Digital Sovereignty and Meet Future Bandwidth Demand”, held at Chhuti Resort in Gazipur.

Rahman explained that satellite connectivity does not serve as a substitute for submarine cables in internet backhaul and distribution. Instead, ISPs ultimately depend on submarine cable connections to distribute internet services. He claimed that Bangladesh’s reliance on ITC connections for around 60% of its international connectivity not only results in foreign-currency outflows but also creates risks to data security. He therefore stressed that new submarine cables are essential to protect the country’s data sovereignty.

High Investment and Consortium Model

The workshop highlighted the enormous investment required for submarine cable projects. An international submarine cable can require $700 million to $1 billion, while even a smaller cable may cost around $200 million. Since such investment is difficult for a single company to undertake, around 95% of submarine cables worldwide operate under consortium models involving multiple partners.

Such partnerships allow companies to share costs, secure landing rights in multiple countries, obtain regulatory approvals in strategically sensitive areas such as the Strait of Malacca, and divide maintenance expenses. In Bangladesh, CDNet, Metaco and Summit have formed a private local consortium for this purpose.

Ageing Cable and the Need for New Capacity

The workshop also noted that the submarine cable commissioned in 2002 reached the end of its approximately 20-year economic lifespan in 2025. As older fiber deteriorates, signal loss increases and repeaters fail more frequently, raising maintenance and vessel-repair costs substantially.

Rahman said a new submarine cable would increase bandwidth diversity, encourage international data centers to invest in Bangladesh and potentially reach break-even within five years. Greater capacity and competition could subsequently help reduce internet prices.

The workshop was chaired by S. M. Masuduzzaman Robin, president of the Telecom and Technology Reporters Network Bangladesh (TRNB). Faruk Hossain delivered the welcome address, while Metaco CEO Aminul Hakim attended the event and Metaco project lead Mahmud Shahed delivered the main presentation. In his closing remarks, Robin said digital connectivity and sovereignty are key government priorities and that technical knowledge of this kind would help Bangladesh meet future targets in line with international demand.


//DBTech/Reporter/sub-Editor//