Bangladesh is set for a major overhaul of its telecommunications licensing regime as regulators move to modernize the sector, expand high-speed broadband access and attract investment.
As part of the initiative, the Bangladesh Telecommunication Regulatory Commission (BTRC) has finalized a revised draft of the “Telecommunications Network and Licensing Reform Policy 2025,” introducing sweeping changes across several licensing categories.
The draft was sent to the Posts and Telecommunications Division on May 24 for prior government approval, according to officials familiar with the matter.
Industry insiders said the proposed reform seeks to streamline the country’s fragmented telecom licensing framework, encourage infrastructure expansion and draw greater investment into the sector. However, concerns have emerged that some obligations could disproportionately affect small and medium internet service providers (ISPs).
The revised framework was prepared following five special meetings at the BTRC chaired by Rehan Asif Asad, adviser to the chief adviser on ICT and telecommunications affairs, sources said.
The draft introduces major amendments to four key licensing categories: Content Management Service Provider (CMSP), Internet Service Provider (ISP), Tower and Connectivity Service Provider (TCSP), and International Connectivity Service Provider (ICSP).
One of the key structural changes involves the reorganization of the existing Fixed Telecom Service Provider (FTSP) licence.
Under the new framework, FTSP licences would be reclassified into “Internet Peering or Internet Service Provider (Nationwide)” and “Internet Service Provider (District)” categories.
The proposal also allows district-level ISPs to appoint resellers under larger nationwide operators, a move regulators believe could improve internet penetration and service delivery in underserved areas.
However, the proposal has already drawn criticism from industry stakeholders.
When asked about this, MA Hakim, president of the Internet Service Providers Association of Bangladesh (ISPAB), questioned the practicality of several proposed conditions.
“The obligations related to resellers and rollout targets are not realistic,” he said.
Hakim said mandatory expansion requirements that do not reflect the financial capacity and operational realities of district-level providers could pressure smaller ISPs and threaten long-term sustainability.
The draft introduces phased network expansion obligations for district-level ISPs.
Under the proposal, providers would be required to expand operations to at least 4, 8, 16, 24 and 36 districts respectively over the first five years of the licence term.
In addition, ISPs must establish Points of Presence (PoP) covering at least 70% of each area and ensuring 20% household coverage, introducing stricter service delivery benchmarks.
Industry observers said the targets could accelerate broadband expansion, particularly outside urban centers, though concerns remain over higher operational costs in less commercially viable areas.
The proposed reform also seeks to rename the existing Nationwide Internet Communication Service Provider (NICSP) licence as Tower and Connectivity Service Provider (TCSP).
Meanwhile, International Connectivity Service Provider (ICSP) licences would be divided into facility-based and non-facility-based categories.
Although fees for non-facility-based operators are expected to be comparatively lower, the draft requires them to purchase a minimum amount of bandwidth from domestic submarine cable operators, as determined by the commission.
The reform also proposes extending the validity period of TCSP and CMSP licences from 15 years to 20 years.
Additionally, acquisition and renewal fees for TCSP licences would rise from Tk10 crore to Tk14 crore, while annual licence fees would increase from Tk3 crore to Tk4 crore.
To attract foreign investment and strengthen telecom infrastructure, the framework also revises foreign ownership limits.
Under the draft policy, foreign entities may hold up to 80% ownership in ISP, TCSP, CMSP and facility-based ICSP licences.
However, citing national strategic interests, the BTRC has reportedly favored maintaining majority local ownership in ICSP licences due to their role in international connectivity infrastructure.
By contrast, the commission views majority foreign ownership in TCSP licences as potentially beneficial for accelerating infrastructure development.
The revised policy also introduces stricter eligibility requirements aimed at preventing monopolistic influence and ownership concentration.
Under Section 36 of the Bangladesh Telecommunication Act, 2001 (Amendment 2026), individuals or members of the same family would not be allowed to hold multiple active licences, directly or indirectly.
As a result, individuals or families identified as beneficiaries of multiple telecom licences would become ineligible for new ICSP licences.
Telecom analysts said the proposed reform could bring Bangladesh’s digital ecosystem under a more integrated and investment-friendly framework, potentially improving broadband expansion and infrastructure sharing.
At the same time, questions remain over whether the new licensing structure could increase reliance on larger operators and reduce competition in the market.
Industry stakeholders have called for broader consultation before final approval, saying feedback from ISPs, telecom infrastructure companies and technology experts will be essential to ensure a balanced transition.
