A heated debate has emerged surrounding the government's proposed 'Telecommunication Network and Licensing Reform Policy-2025,' aimed at overhauling the nation's telecom licensing framework.
Stakeholders are divided on its potential to modernise the sector versus concerns over regulatory changes.
Entrepreneurs and related organisations have expressed their anger over the draft being finalised without any discussion with stakeholders.
Bangladesh Nationalist Party (BNP)has also taken a strong stance on this issue and has urged the government to withdraw the draft policy.
On the other hand, the government states that this policy has been designed to reduce consumer costs and attract foreign investment.
The Department of Posts and Telecommunications has developed the 'Telecommunication Network and Licensing Reform Policy-2025' to bring major changes to the country's telecom licence system.
The draft proposes gradually cancelling old licences such as IGW, IIG, ICX, and NIX, and introducing new licences at both international and national levels. This move is feared to give more control to foreign-owned mobile companies, while small local entrepreneurs worry about losing their businesses.
Organisations like ICX, ISPAB, and other entrepreneurs have protested against the draft. BNP has also publicly asked the government to withdraw the policy, with their Secretary General Mirza Fakhrul Islam Alamgir criticising the government for making decisions quickly without consulting stakeholders.
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Fakhrul warned that this could hinder fair competition and sustainable growth.
The government claimed that the main goal of the policy is to improve customer service and lower costs. However, questions have also been raised about its impartiality as the 11-member committee formed to review the draft includes only officials from state-owned institutions.
Experts warned that the new framework might lead to a monopoly by large mobile operators, harming thousands of small local businesses that depend on employment in the sector.
"If the policy is implemented without proper discussion and thorough analysis, it could negatively affect the country's economy and technological development," experts added.
Mohammad Aminul Hakim, President of Internet Service Provider Association Of Bangladesh (ISPAB), told UNB that small local telecom operators are being affected by frequent policy changes.
He said that most of these operators are small entrepreneurs holding fixed telecom licences, and the new policy seems to threaten their existing licences and operations, especially in the fibre optic sector.
So, there is little protection for local entrepreneurs under these changes, he added.
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Expressing solidarity with the concerns raised by ISPAB and ICX, BNP criticised the government's decision during a press conference.
Mirza Fakhrul Islam Alamgir said that rushing the draft without stakeholder input could harm small businesses and create monopolies for big operators.
He added that lifting restrictions on ownership across multiple sectors could allow large companies to dominate multiple areas, reducing competition and hurting smaller firms.
In response, Faiz Ahmad Taiyeb, special assistant to the Chief Adviser on Ministry of Posts, Telecommunications and Information Technology, said that even if foreign investment is encouraged, local entrepreneurs will still be protected.
He welcomed opinions from political parties and assured that existing licences won’t be taken away. Those wishing to continue in the new system will need to obtain new licences.
Taiyeb also mentioned that the new policy aims to break the influence of past corrupt practices and mafia syndicates controlling the telecom sector.
He emphasised that the government is developing this policy through a transparent and democratic process, aiming for a fairer and more competitive industry.
Contents of the Draft Policy
The proposed ‘Telecommunication Network and Licensing Reform Policy-2025’ outlines significant changes to the licensing system in the telecom sector.
It introduces five new types of licences:
1. Access Network Service Provider (ANSP) Licence: For cellular mobile and fixed telecom services. ANSPs will also handle services directly at the customer level.
2. National Infrastructure and Connectivity Service Provider (NICSP) Licence: For operating infrastructure such as fibre optics, towers, and transmission networks at the national level.
3. International Connectivity Service Provider (ICSP) Licence: For international voice, internet, and data connections.
4. Non-Terrestrial Networks and Service Provider (NTNSP) Licence: For satellite services, non-terrestrial networks (NTN), and high-altitude platforms (HAP).
5. Telecom Enabled Service Provider: For services like SMS aggregators and OTT platforms.
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Once the policy is implemented, licences such as IGW, IIG, ICX, NIX, and MNP will be phased out, and companies will need to obtain new licences by 30 June 2027.
Foreign ownership limits are proposed as follows:
* ANSP: up to 80%
* NICSP: up to 55% (or 80% in special cases)
* ICSP: up to 49%
Debate Over Telecom Policy: Stakeholders Criticise Lack of Consultation While Government Defends the PolicyThe policy also proposes to encourage the launch of Mobile Virtual Network Operators (MVNOs), with increased scrutiny of dominant companies to prevent monopolies.
Infrastructure sharing will be made mandatory.
Additional plans include expanding services to rural and underdeveloped areas, adhering to cybersecurity and data protection laws, enabling lawful wiretapping, and offering subsidies and discounts based on performance.
The framework aims to be fully operational through amendments to existing rules, new licensing, and phased cancellation of old licences by June 2027.