Bangladesh is preparing a major restructuring of its telecommunications industry, with a proposed overhaul of international connectivity, internet bandwidth distribution, network infrastructure and access services. The Bangladesh Telecommunication Regulatory Commission (BTRC) has proposed replacing the existing multi-layered licensing structure with five major licence categories and a separate enlistment framework.

The proposed changes include phasing out International Internet Gateway (IIG), International Gateway (IGW) and Interconnection Exchange (ICX) licences upon expiry, allowing mobile operators to share active network infrastructure and spectrum, opening nationwide internet licensing and introducing new opportunities for international connectivity businesses.

The revised draft, titled Telecommunication Network and Licensing Policy 2026, has been sent by BTRC to the Ministry of Posts, Telecommunications and ICT. According to ministry-related sources on November 2, 2026, the draft is expected to undergo review before being finalised. The proposals are not yet final and may change before approval and publication in the Gazette.

IIG licences to end, new international bandwidth model proposed

One of the most significant changes concerns the future of International Internet Gateways.

Under the draft, existing IIG licences will be discontinued upon expiry of their current terms. However, existing operators will be allowed to apply for licences under the proposed framework, subject to eligibility requirements and regulatory approval.

The proposed International Connectivity Service Provider (ICSP) category will introduce two business models:

• Facility-based ICSP: Companies operating submarine cable, terrestrial cable and other international connectivity infrastructure
• Non-facility-based ICSP: Companies providing international IP transit, carrier contracts, voice call and SMS termination without owning physical international cable infrastructure

This means international bandwidth businesses will no longer be limited to companies owning submarine or terrestrial cable infrastructure.

ICSP licensees will be allowed to provide international leased circuits, IP transit, carrier interconnection, international voice and SMS routing, and international peering services.

Foreign investors may hold up to 80% equity in ICSP companies, subject to the proposed provisions. The Government may review this limit on a case-by-case basis.

Importantly, the draft does not provide for automatic conversion of existing IIG licences into ICSP licences. Existing operators must apply under the new framework and meet the relevant eligibility conditions. 

Five new licence categories

The proposed framework will consist of five major licence categories and one enlistment category.

The Telecom Enabled Service Provider (TESP) category will cover services such as SMS aggregation and other emerging telecom-enabled businesses.

Which existing licences will be discontinued?

The draft proposes discontinuing several legacy licensing categories upon expiry of their existing terms.

Existing IIG, IGW and ICX operators may apply for new licences if they meet the prescribed conditions.

NIX licensing will also end, but domestic internet peering will remain mandatory for access network operators through the same or functionally equivalent arrangements.

Call centre, Telecom Value-Added Services (TVAS) and Vehicle Tracking Services (VTS) licensing and registration categories will be deregulated. Interested businesses will be able to provide these services through collaboration with Access Network Service Providers (ANSPs), subject to basic regulatory monitoring.

Mobile operators gain active network and spectrum-sharing opportunities

Mobile operators stand to receive significant operational flexibility under the proposed framework.

Unlike the existing emphasis on passive infrastructure sharing, the draft permits both passive and active infrastructure sharing.

This includes:

• Core network sharing
• Radio network sharing
• Last-mile fibre sharing
• Spectrum sharing, subject to prior BTRC approval
• Sharing of other relevant network facilities

These arrangements could help operators reduce infrastructure investment and operational costs while improving network utilisation.

Mobile operators will also be permitted to deploy micro, pico and femtocells, Massive MIMO and microwave links where necessary. They will be authorised to use different cellular technologies for voice, SMS, data and value-added services.

The proposed framework also introduces Mobile Virtual Network Operators (MVNOs), subject to separate licensing guidelines.

However, mobile licences will remain limited in number, with BTRC determining the number based on spectrum availability, competition and consumer interests.

New opportunities for tower and fibre businesses

Existing Nationwide Telecommunications Transmission Network (NTTN) and Tower Sharing licences will be migrated to the proposed Tower and Connectivity Service Provider (TCSP) category.

TCSP operators will be authorised to build and operate optical fibre networks, towers, poles, ducts and other transmission infrastructure.

They may lease dark fibre and transmission capacity to other licensed operators and extend fibre infrastructure up to the Union Parishad level.

The framework will also allow TCSP operators to provide mobile tower last-mile fibre connectivity and high-capacity wireless backhaul, subject to regulatory approval.

The TCSP category will follow an open licensing framework, allowing eligible new investors to enter the market.

Nationwide ISP licensing and opportunities for local SMEs

Internet Service Provider licences will also follow an open licensing model.

ISPs will be permitted to provide nationwide services using wired, optical fibre and fixed-wireless technologies.

Existing nationwide and divisional ISPs, as well as PSTN operators, will be eligible to migrate to the new ISP category. IPTSP licences will be merged with corresponding ISP licences.

A separate District ISP category will accommodate district and Upazila-level operators. The draft specifically encourages local SMEs and technology entrepreneurs to participate in this market.

Satellite connectivity gets a dedicated licence

Satellite operators, VSAT providers, fixed satellite services, non-geostationary satellite systems, Earth Stations and High-Altitude Platforms will come under the proposed Non-Terrestrial Networks and Service Provider (NTNSP) category.

The framework will cover satellite broadband, backhaul, maritime and aeronautical connectivity, and other non-terrestrial network services.

Separate provisions will govern spectrum allocation, landing rights and lawful interception requirements.

Foreign ownership limits

The proposed foreign ownership limits are:

The draft proposes minimum domestic equity participation of 10% for mobile operators and 20% for ISPs. TCSP companies will also have to maintain 20% local participation under the applicable provisions.

Domestic investors will be allowed to retain 100% ownership in these categories.

Three-stage migration, final phase targeted by June 2027

The transition will follow three stages:

• Stage One: Government approval, regulatory amendments and preparation of new licensing guidelines
• Stage Two: Introduction of new licences and migration opportunities for existing operators
• Stage Three: Transition towards the new licensing framework as the only available option

The final migration stage is scheduled to commence no later than June 30, 2027, as a soft cut-off date.

Existing licences will be allowed to overlap with new categories during the transition. Individual cut-off dates will be determined according to licence validity and regulatory requirements.

Operators migrating early will be allowed to carry forward the remaining validity of their existing licences into the new licence period.

However, the Government will not provide migration subsidies, financial incentives or fee waivers.

Stricter network rollout and quality obligations

The proposed framework also introduces new investment and service-quality requirements.

Mobile operators will have to fibre-connect 50% of their towers within 18 months and 80% within three years of policy issuance.

Other requirements include:

• Extending backbone fibre networks to Union Parishad level

• Maintaining diesel generators at 25% of tower sites in disaster-prone areas.

• Completing IPv4-to-IPv6 migration for new and renewing licensees

• Meeting rollout obligations within two years of licence issuance

• Meeting specified performance indicators within one year

Failure to comply may result in financial penalties, spectrum claw-back, licence suspension or revocation.

BTRC proposes new market-power monitoring

The draft proposes establishing a Significant Market Power (SMP) Monitoring Unit to oversee market dominance and anti-competitive practices.

BTRC may impose infrastructure-sharing requirements, wholesale pricing regulations, interconnection obligations and financial transparency measures on entities found to possess significant market power.

The monitoring framework may extend across network infrastructure, international connectivity, access networks, data centres and cloud facilities.

A new business structure for Bangladesh's telecom sector

The proposed policy represents a significant restructuring of Bangladesh's telecommunications industry.

By removing several legacy licensing layers, introducing a unified international connectivity framework, expanding active network-sharing opportunities and opening new technology-based service categories, BTRC aims to create a more flexible licensing environment.

However, the actual impact will depend on the final licensing guidelines, migration conditions, wholesale bandwidth pricing, spectrum-sharing approvals and effective competition safeguards.

The future position of existing IIG operators and the structure of Bangladesh's international bandwidth market will be particularly important as the proposed framework moves towards final approval.

According to sources, the final version of the guidelines may be released on November 5. Business stakeholders have urged for consultations regarding these guidelines, though it appears unlikely that such discussions will take place. Given that the guidelines have undergone multiple revisions over the past few months, telecom operators and broadband internet service providers have yet to offer any formal comments.

Nevertheless, Saiful Islam Siddique, Senior Vice President of the Internet Service Providers Association of Bangladesh (ISPAB), expressed hope that the government will prioritize public convenience and the expansion of internet services. He noted that the news of the guidelines nearing finalization is promising. Previously, a duopoly in the licensing regime hindered the expansion of networks at the grassroots level. By issuing national and district-level TCSP (Telecommunication Service Provider) licenses under the new guidelines, this barrier can be overcome, facilitating the rapid extension of broadband networks to rural areas. This will also provide local entrepreneurs with the opportunity to contribute to the accelerated rollout of fiber-optic infrastructure. According to research by the World Economic Forum, every 10 percent increase in broadband internet penetration contributes to a 1.38 percent growth in GDP. Furthermore, every 1,000 broadband connections generate employment for approximately 10 people. Consequently, by fostering the expansion of fiber-optic infrastructure, the government can pave the way for both GDP growth and increased employment opportunities.

//DBTech/IH/SME/MIST//