MAHMUDUL HASAN

The Bangladesh Telecommunication Regulatory Commission’s (BTRC) draft policy to reform its complex licensing regime arrives with bold promises — streamlining processes, encouraging competition, and attracting foreign investment.

Yet, beneath the surface, certain clauses lack clarity and may safeguard existing market inequalities, empower dominant players, sideline local entrepreneurs, and, in some cases, discourage foreign ownership, said experts.

At the core of the proposed reforms is the consolidation of the licensing structure in the telecommunications sector — where there are over 20 types of licences — into three broad categories: National Infrastructure & Connectivity Service Provider (NICSP), International Connectivity Service Provider (ICSP), and Access Network Service Provider (ANSP).

However, despite its aim to “promote local entrepreneurship by fostering fair competition,” the draft guidelines place no limitations on foreign partners acquiring ownership stakes in any other BTRC licensees, which may end up opening the door to cross-ownership and foreign control across all segments — without offering similar leverage to local entities.

Experts warn that this imbalance could lead to anti-competitive consolidation, policy loopholes, and further erosion of domestic participation in a sector vital to national digital sovereignty.

For instance, Axiata Group, which owns Robi Axiata; Telenor, which holds a majority stake in Grameenphone; and Veon, owner of Banglalink, will be eligible to simultaneously hold a stake in licensees from all three categories.

BTRC Chairman Md Emdad ul Bari said the policy had been designed this way to attract traceable foreign investment.

As an example, he cited Axiata Group’s investment in edotco Bangladesh despite its existing stake in Robi Axiata.

However, experts have warned that this move could lead to discrimination, discourage local entrepreneurship, and potentially result in monopolistic practices.

Notably, this provision contradicts a clause in the draft itself, which prohibits ANSPs from holding ICSP licences.