Government Dismisses Revival of Former Telecom Licensing Framework

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Dhaka: The government has dismissed any potential return to the previous telecom licensing structure, describing it as ineffective and a hindrance to growth within the sector. A new system is being implemented under the Telecommunication Network and Licensing Policy 2025, which has been published as a gazette and will subject over 3,000 previously issued legal and illegal licenses to review.

According to Bangladesh Sangbad Sangstha, the newly introduced guidelines concerning fees, charges, and revenue-sharing are currently in draft form and will be finalized following consultations with stakeholders and economists. The government has promised that the updated policy will not lead to an increase in internet prices. The previous licensing system did not succeed in broadening access to internet services, devices, or fiber connectivity. Fiber links remain limited in households, businesses, and industries, with only 22 percent of mobile towers currently connected to fiber.

As a consequence, Bangladesh's per capita data usage is significantly lower, at one-fiftieth of India's. The sector must move away from connection-based services towards digital service-based offerings. Despite an increase in mobile and ISP packages, the country has not experienced substantial growth in digital products such as EdTech, HealthTech, AgriTech, FinTech, or logistics technology.

Operators, including ISPs, mobile carriers, NTTNs, and IIGs, have yet to adopt secure or quality-of-service-based systems and many still lack adequate security measures. To foster digital economic growth, the government has eliminated 26 categories of licenses, replacing them with a simplified four-tier structure. This streamlined system aims to remove intermediaries, prevent monopolistic practices, and boost competition without diminishing government revenue.