Bangladesh Satellite Company eyes Starlink partnership

Highlights

• BSCL says its move intends resource utilisation
• BTRC unlikely to make it mandatory for NGSO operators
• Regulator says complying with BSCL request could deter Starlink
• Starlink is the first mover to enter Bangladesh
• Several other global firms also in talks with BTRC

Bangladesh Satellite Company Limited (BSCL) through the Posts and Telecom Division (PTD) has requested the telecom regulator to compel satellite internet providers, including Starlink, to route bandwidth through the BSCL ground station.

The BSCL move, among others, intends the state-owned satellite company's resource utilisation and revenue growth, according to documents seen by The Business Standard.

However, the Bangladesh Telecommunication Regulatory Commission (BTRC) is unlikely to make it mandatory for non-geostationary satellite orbit (NGSO) operators as it might deter global satellite internet giants like Elon Musk's company SpaceX that operates Starlink, according to regulatory sources.

Chief Adviser Professor Muhammad Yunus, in his 19 February letter to Musk welcomed him to Bangladesh for launching Starlink in Bangladesh together in 90 working days.

The BTRC is going to submit the final "Regulatory and Licensing Guidelines for Non-Geostationary Orbit (NGSO) Satellite Services Operator" to the PTD this week, BTRC Chairman Major General (rtd) Md Emdad ul Bari said in a media interview.

Bari did not respond to calls and SMS requesting for a comment on the government's wish to on-board BSCL in the NGSO journey.

However, several BTRC senior officials told TBS that the Telecom Act allows 100% foreign ownership of operators. Hence, there is no way to push local ownership within a foreign NGSO operator company.

On the other hand, the telecom regulator should not dictate an NGSO operator which it would choose as business partner, they added citing the BTRC's internal discussions.

BSCL General Manager and Head of Sales and Marketing Shah Ahmedul Kabir said as per the published draft of the guidelines, NGSO operators must procure bandwidth from local international internet gateways (IIGs) and route it to their satellites via a gateway station established in Bangladesh to be in line with country's telecom law.

These satellites will then deliver bandwidth directly to customer devices, eliminating spatial barriers and ensuring high-quality internet access for remote communities, he added.

"BSCL has well-equipped ground station facilities that can support NGSO operators like Starlink, helping them reduce capital expenditure. Additionally, given our expertise in satellite operations, we are keen to serve as their distribution partner in Bangladesh," Kabir said.

The PTD, following the Indian ISRO's way, suggested for a scope in the guidelines to make BSCL a gateway for NGSO-licence holders that would let a better visibility of NGSO internet alongside some business for the state-owned company.

Telecom experts, however, say BSCL's ground station is equipped for its geostationary satellite set at some 35,000km above the earth. On the other hand, NGSO satellites are hovering around 500-2,000km above. The two need different antennas and frequencies to connect.

Another senior BSCL official, seeking anonymity, said the major resources are already here and the BSCL ground station might be equipped with some additional investment in antenna for the right frequency to connect with the NGSO satellites.

BSCL already accomplished successful testing of Starlink internet through five receivers for end users.

BTRC since the beginning of 2024 started policy formulation to introduce the NGSO satellite for a boost in remote connectivity, a robust redundancy for urban users.

The draft guidelines, however, frustrated the observers dreaming of surveillance-free internet as it made local IIG routing and local ground station mandatory for NGSO operators.

This will remain as most of the countries did it for the sake of national security, according to BTRC and PTD officials.

Starlink is the first mover to enter Bangladesh, while several other global companies also are in talks with the BTRC.

Speculation over the impact and popularity of satellite internet is on the rise.

Experts, however, are saying popularity will depend on the affordability of the new mode of internet connectivity.

To use Starlink internet a user may need some $500-700 equipment and around $120 per month for a 100 Mbps connection, and less for slower connections.

Remote areas where fibre optic cable or mobile internet is yet to be strong enough would see a boost as users might show interest in Starlink, especially the internet service providers (ISPs) which can resell the internet to several dozen end users for a profit.   

If Starlink equipment rental, like that in some African countries, is introduced in Bangladesh, rural ISPs may be more interested.

Also, institutional users across the country will have NGSO connections for the sake of redundancy.

Telecom Policy Analyst Mustafa Mahmud Hussain is counting on a possible Starlink boost in the grassroots connectivity scenario if implemented in a cost-effective and user-friendly way.

"From remote education to healthcare, rural digital economy, women empowerment, connectivity during natural disasters everything should be benefitted, especially in the remote areas," he said.      

Local internet service providers urged for a level playing field including equal tax, tariffs for the co-existence of satellite and non-satellite internet.