2025 telecom reset: Policy rewritten, but fault lines remain

As 2025 draws to a close, Bangladesh's telecommunications sector stands at a pivotal juncture, reshaped by a wave of policy interventions that have altered how connectivity is regulated, owned and governed.

Over the year, the government rolled out sweeping reforms to telecom licensing, amended decades-old surveillance laws, fast-tracked the entry of satellite internet through Starlink and revived plans to block unauthorised handsets through the National Equipment Identity Register (NEIR).

Faiz Ahmad Taiyeb, special assistant to the chief adviser for telecom and ICT, who led much of the reform drive, has argued that under the previous regime the sector had descended into what he described as "anarchy".

According to him, thousands of licences were issued on political considerations, while intermediaries extracted large sums without adding meaningful value.

Industry leaders and policy experts broadly agree that reform was overdue. But many warn that several provisions risk undermining competition, discouraging investment and entrenching the dominance of large multinational players.

Telecom expert Abu Nazam M Tanveer Hossain said the changes were being pursued without a coherent long-term roadmap. "There should first be a national telecom policy with a 10-year vision, followed by revisions of the act and then the licensing guidelines, rules and regulations."

NEW LICENSING ARCHITECTURE, OLD FEARS

The centrepiece of the year's reform agenda was the new Telecommunication Licensing Policy, approved in September.

The policy dismantles a patchwork of over 20 licence categories and replaces it with four core licence types: access networks, national infrastructure, international connectivity and non-terrestrial networks. Telecom-enabled services will require registration rather than licensing.

Mobile, internet and satellite service and submarine cable operators, are to be brought under this framework. Existing licences -- such as for international internet gateway, interconnection exchange, national internet exchange and internet gateway -- will be allowed to expire naturally, with most set to lapse by 2027.

"We have already drafted guidelines accordingly, and these guidelines are awaiting government approval," said Bangladesh Telecommunication Regulatory Commission Chairman Maj Gen (retd) Md Emdad ul Bari.

Yet the policy has triggered unease within the industry, particularly over ownership rules. It caps foreign equity in mobile operators at 85 percent, effectively requiring at least 15 percent local ownership.

Among private mobile operators, only Grameenphone already meets this threshold. Malaysia-based Axiata holds 61.82 percent of Robi, India's Bharti Airtel 28.18 percent, while Banglalink is fully foreign-owned by Dubai-based VEON.

Shahed Alam, Robi's chief corporate and regulatory affairs officer, warned that mandating a 15 percent local share offload "may concern investors who have already invested billions with long-term plans."

Taimur Rahman, Banglalink's chief corporate and regulatory affairs officer, welcomed provisions for active network and spectrum sharing, but warned ownership mandates could discourage foreign investment.

Critics, meanwhile, also point to another asymmetry: multinational companies with up to 65 percent foreign direct investment can obtain cross-layer licences, while similar opportunities remain constrained for local firms.

Sumon Ahmed Sabir, deputy managing director of Fiber@Home, said this could marginalise domestic entrepreneurs and entrench market dominance.

Policy expert Tanveer Hossain added that weak cross-ownership limits could distort competition.

SURVEILLANCE LAW REFORM

Another major development came with the approval of the Bangladesh Telecommunication (Amendment) Ordinance, 2025. It bars state-led internet shutdowns and introduces limited transparency and accountability measures in lawful interception.

Under the amended framework, interception requests will be overseen by a three-member quasi-judicial council composed entirely of executive officials, with the minister of law, justice and parliamentary affairs as chair. It must document all decisions, allow appeals and file complaints over unlawful interception.

Unauthorised interception or misuse of data will carry penalties of up to five years' imprisonment, a fine of Tk 1 crore, or both. Budgetary sanctions of up to Tk 99 crore may be recommended against offending agencies.
Tanveer Hossain said although safeguards that were absent in the 2010 law have been introduced in the ordinance, the council's composition may not ensure independent assessment.

The National Telecommunication Monitoring Centre will be abolished and replaced by a Centre for Information Support under the home ministry. Lawful interception will be limited to national security, law and order, emergencies, judicial or investigative needs, and cross-border matters.

Crucially, the amendment restores some balance between the ministry and the regulator. The ministry will approve only nationally significant licences, while the BTRC regains authority over others.

Even so, BTRC Chairman Bari has cautioned that certain accountability provisions may still encroach on regulatory independence.

THE NEIR STALEMATE

Few telecom initiatives have generated as much controversy as the launch of NEIR. Revived again in 2025, NEIR was announced amid strong resistance from small handset traders, prompting authorities to retreat from immediate enforcement.

Although the system is designed to block unauthorised mobile phones, enforcement has been deferred until late March next year in the face of continued protests. The BTRC has extended the deadline for registering unauthorised devices until year-end, and no handsets will be disconnected before enforcement begins.

The system aims to curb illegal handset imports in a market where grey-channel phones account for an estimated 50 to 60 percent of sales.

STARLINK CHANGES EQUATION

The arrival of Starlink added a new dimension to Bangladesh's connectivity landscape. The satellite internet provider received fast-track approvals through a three-month accelerated process.

Starlink obtained its operating licence on April 29, began test operations on May 8, and officially launched on May 20. Residential packages were priced at Tk 6,000 and Tk 4,200. Gateways were established in Gazipur, Rajshahi and Jashore, supported by local data centres and fibre partners.

Commercial momentum increased after Robi Axiata PLC and Bangladesh Satellite Company Limited signed reseller agreements worth $2.5 million.