PHOTO: STAR/FILE

MAHMUDUL HASAN

Over the past year, the interim government has pushed reforms in the telecom sector to improve service, remove unnecessary layers, and lower costs for consumers.

Some initiatives are already in place, while others remain on paper. Authorities say full implementation could bring the sector in line with international standards.

At the centre of the overhaul is the draft “Telecom Network and Licensing Reform Policy 2025”, prepared by the Ministry of Posts and Telecommunications and the Bangladesh Telecommunication Regulatory Commission (BTRC). The draft is yet to be finalised.

It proposes a simplified licensing system, limits on foreign ownership, and the removal of costly intermediary layers that inflate prices.

Currently, the sector operates a confusing network of six or seven licensing layers. The draft reduces this to three: international, national, and service.

Foreign ownership would be capped at 49 percent for the international layer and 55-60 percent for the national layer. Internet service providers (ISPs) would benefit from a “light-touch” regime with less paperwork.

The biggest change is the planned removal of middle-layer companies, including Interconnection Exchanges (ICXs), International Gateways (IGWs), and International Internet Gateways (IIGs).

Introduced in 2008 to stop illegal internet calls (known as VoIP), these companies often acted as middlemen, charging fees without adding value.

Mobile operators were banned from connecting calls from each other directly, forcing them through ICXs.

A cartel was formed by some of these companies in 2014, called the IGW Operators Forum, controlling call termination and funnelling Tk 631 crore to a Beximco-linked account. The BTRC cancelled their authority earlier this year.

IIGs, originally to manage international internet traffic, are now redundant as ISPs and mobile operators can handle bandwidth directly.

“Despite minimal infrastructure investment, often with just a few crores of taka, licensees extracted hundreds of crores through strategic positioning and regulatory shielding,” said Faiz Ahmad Taiyeb, special assistant to the chief adviser for posts and telecom.

With many ICX and IGW licences expiring in 2027, the BTRC says it will not renew them. Removing these layers should lower prices and improve efficiency without harming security or monitoring.

Telecom operators have cautiously welcomed the changes.

“Overall, the policy is a good start, and we welcome it,” said Shahed Alam, chief corporate and regulatory affairs officer at Robi Axiata.

“However, we have raised some concerns, like curbing foreign shareholding, and introducing irrelevant parameters such as rollout obligations, spectrum configuration, and fibre rollout obligations,” he added.

FIBRE FOR ALL

Another major reform targets the country’s internet “motorways”. Until now, Fibre@Home and Summit Communications dominated the national network.

Mobile companies were barred from installing their own equipment on these cables, making them reliant on these providers.

That restriction has been lifted, allowing mobile operators to install data transmission equipment on leased fibre networks.

The government also aims to create a national “fibre optic The