New telecom policy threatens SMEs, jobs

Local small and medium telecom operators have urged the government to revise the new telecom licensing policy, claiming that it threatens local companies, employment, investment, and government revenue.

They expressed their concern yesterday at a views exchange event titled "New Telecom Policy: Question of Local Entrepreneurs' Existence" at RAOWA Complex in Mohakhali, organised by the Telecom and Technologies Reporters' Network Bangladesh (TRNB).

The Internet Service Providers Association of Bangladesh (ISPAB) has welcomed the new policy but expressed concern that several clauses restrict the scope of district and upazila ISPs despite their two decades of experience in last-mile connectivity.

This, they warned, risks excluding them from mainstream opportunities while favouring larger players.

The association's President Aminul Hakim said they had already conveyed their observations to the authorities and would soon approach the chief adviser.

"If our demands for protecting local entrepreneurs are ignored, we will have no choice but to pursue legal action," he said.

International Gateway (IGW) operators said the Bangladesh Telecommunication Regulatory Commission (BTRC) excluded many local operators from the expert panel that formulated the new policy.

They termed the workshops for formulating the policy "a farce" and called the rules contradictory, claiming that deregulation empowers foreign mobile operators to dominate Bangladesh's telecom sector.

IGW Operators Forum (IOF) President Asif Rabbani said they would seek the chief adviser's intervention in this regard.

The concern came as the cabinet earlier this month approved a new telecom licensing policy aimed at abolishing the fragmented licensing regime.

The policy simplifies the sector by consolidating more than 20 types of licences into three main categories: national infrastructure, international connectivity, and network access service providers.

Under the previous system, voice and internet services in Bangladesh had to pass through multiple intermediary operators, a structure long criticised by experts for inefficiency and higher costs.

Under the new framework, operators of International Internet Gateways (IIG), Interconnection Exchanges (ICX), National Internet Exchanges (NIX), and the IGWs will be phased out as their existing licences expire.

Bangladesh currently hosts around 20 IGWs, over 30 IIGs, and more than 20 ICXs, with almost all licences due to expire by 2027.

Representatives of these companies, along with top ISPAB officials, warned the new telecom policy risks capital flight, favours telecom operators dominated by foreign ownership, and eliminates local entrepreneurs.

IIG operators said they have played a vital role in Bangladesh's digital progress, significantly contributing to the national economy through revenue sharing, VAT, and taxes.

However, under BTRC's 2025 licensing policy, IIGs face discontinuation. They strongly oppose this discrimination, noting IIGs' proven financial contribution, infrastructure, technical expertise, and longstanding industry experience.

They urged policymakers to ensure fair competition and allow IIGs' conversion to the new framework of licensing rather than abolition.

ICX operators also strongly protested the government's decision to abolish the ICX layer in the new telecom policy.

They said the move threatens the telecom industry, employment, investment, and government revenue, while risking monopoly by large operators, loss of over Tk 4,000 crore investment, job cuts, and rising VoIP crimes.