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Dhaka Tribune

Govt to introduce satellite internet to bridge digital divide

Mobile phone operators and other stakeholders have welcomed the initiative, seeing it as a game-changer for data services in the country

Update : 15 Nov 2024, 06:17 PM

The present government is on track to introduce satellite internet, as the telecom regulator has sought public opinion to finalize the draft guidelines, allowing the country to honor the sacrifice of the martyrs in the July-August mass uprising.

Officials familiar with the process said that the move could open up new opportunities for bridging the digital divide, alongside enhancing backhauling, disaster management, and customer data utilization.

It may also pave the way for global leaders, such as Elon Musk's Starlink, to enter the Bangladeshi market.

On October 29, the Bangladesh Telecommunication Regulatory Commission (BTRC) uploaded the draft regulatory and licensing guidelines for NGSO Satellite Service Operators on its website, seeking feedback until Monday to finalize the guidelines.

Meanwhile, mobile phone operators and other stakeholders have welcomed the initiative to introduce satellite internet, seeing it as a game-changer for data services in the country.

They believe this move could unlock new opportunities for bridging the digital divide.

According to the draft guidelines, proprietorships, partnerships, and companies registered under the Companies Act 1994 with the "Registrar of Joint Stock Companies and Firms" are eligible to apply for licenses to build, own, maintain, and operate NGSO Satellite systems and services in Bangladesh.

The guidelines also say that 100% foreign direct investment (FDI), foreign partnerships, joint ventures, or investments from Non-Resident Bangladeshis (NRBs) are permitted to build, own, maintain, and operate NGSO Satellite systems and services.

The license, as outlined in the draft, will be valid for five years and grants the licensee the authority to provide the following NGSO satellite services: broadband internet, intranet services (domestic data communications), Internet of Things (IoT) and machine-to-machine communication, earth station-in-motion services, earth exploration satellite services, remote sensing/meteorological services, and any other services approved by the BTRC.

However, operators will not be authorized to offer direct-to-home (DTH) services, broadcasting services, satellite IMT-based services, or telecommunications services.

The application/processing fee is set at Tk5 lakh, with an acquisition fee of $10,000 and an annual fee of $50,000.

Additionally, an annual station/terminal fee of $20 per terminal will be charged.

Licensees will also be required to share 5.5% of their annual audited gross revenue with the BTRC, and another 1% of the gross revenue must be allocated as a "contribution to space industry development and management."

The licensee must establish at least one gateway system within Bangladesh before commencing services.

The BTRC encourages licensees to establish additional gateways.

Any user terminal located within Bangladesh's geographical boundary must be authenticated and served through this local gateway.

All traffic from these terminals must be routed through the local gateway for services within Bangladesh, as per the draft guidelines.

The NGSO gateway will be connected to international internet gateways to handle international internet data traffic.

Shahed Alam, Chief Corporate and Regulatory Officer of Robi Axiata, said: “We welcome the initiative to introduce satellite internet in our country, recognizing its potential to revolutionize data services.”

He said that this advancement could open new opportunities in areas such as backhauling, disaster management, and customer data utilization.

Taimur Rahman, Chief Corporate and Regulatory Affairs Officer at Banglalink, said: "We commend the regulator’s initiative to conduct a public consultation before introducing this new service. We appreciate it."

He added: “We’re confident that this process will provide valuable insights to shape its future direction.”

Sharfuddin Ahmed Chowdhury, Head of Communications at Grameenphone, said: "Grameenphone welcomes any new technology that brings positive changes to people’s lives, society, the economy, and the country as a whole."

However, he added that the introduction of any new license should ensure non-discriminatory treatment that promotes market competitiveness among all players, including existing ones, across the entire value chain.

The Internet Service Providers Association of Bangladesh (ISPAB), a platform for firms providing internet services to customers, is also ready to embrace new technologies.

However, it emphasized the importance of first determining the necessity of such technology before implementation.

ISPAB President Md Emdadul Hoque said: “We always welcome new technologies if they are suitable for the country and the industry as a whole.”

“We have no objections to welcoming new technologies, but the priority should first be whether the technology is suitable for the country and its people,” he added.

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