In a landmark move to reform Bangladesh’s telecommunications sector, the government has enforced a new policy—“Telecommunication Network and Licensing Policy”—introducing sweeping changes aimed at simplifying licensing, encouraging local ownership, and improving infrastructure sharing.
One of the most notable provisions is the reduction of the foreign ownership cap in telecom companies from 100% to 85%. As a result, Banglalink will be required to divest 15% of its shares, while Robi must offload an additional 5%. Grameenphone, already maintaining a level of domestic ownership, will not be significantly affected.
Government officials state that this shift is intended to create opportunities for local investors and strengthen the country’s capital market.
The policy also opens new investment opportunities in telecom infrastructure such as fiber optics and mobile towers, though with restrictions. Foreign ownership in tower and fiber operations will be capped at 65%, and 49% for international connectivity services, ensuring a continued domestic presence.
The licensing system has been overhauled as well. The previous 26 categories have been consolidated into four primary license types:
- Access Network Service Provider
- National Infrastructure and Connectivity Provider
- International Connectivity Provider
- Non-Terrestrial Network Provider
A separate registration process will be maintained for certain telecom-enabled services.
Despite the intended benefits, concerns have arisen among local entrepreneurs. Several industry associations warn that over 100 domestic license holders could be forced out of business, potentially leading to market domination by large foreign operators. Critics argue that the policy favors foreign investors at the expense of small and medium-sized local businesses.
The government, however, emphasizes consumer benefit and service quality. The policy mandates infrastructure sharing, aiming to reduce costs and improve internet and voice services. A strategic goal has also been set to connect 80% of mobile towers to fiber networks within three years, with additional targets for expanding coverage in education, healthcare, coastal, and remote areas.
The policy further outlines environmental and cybersecurity measures, including:
- Use of solar power in towers and data centers
- E-waste management
- Carbon emission controls
- Stronger cybersecurity protocols
Experts caution that the real challenge lies in effective implementation. While many policies have previously remained theoretical, successful enforcement this time could result in significant positive impacts for consumers, the government, and industry stakeholders alike.
