Will new regulations drive out ISPs in favour of telcos?

In the near future, mobile operators might be able to offer broadband internet services, just like ISP companies.

Wonder how? 

Bangladesh Telecommunication Regulatory Commission (BTRC) is set to allow mobile operators to use DWDM (Dense Wavelength Division Multiplexing) equipment soon. Once this permission is granted, mobile operators will initially be able to build their own transmission networks and later offer broadband internet services like ISP companies.

The government has decided to introduce a "single" or "unified licence" for internet providers, regardless of the technology they use. According to BTRC officials, the move aims to make the licensing system more inclusive and updated.

The question now is—should this be seen as good news or bad? For internet users across the country, it might be a win in the short term. But for the local ISP entrepreneurs, it's definitely not.

Telecom experts are concerned that this move could drive local companies involved in transmission and broadband services toward extinction.

"Bangladesh's broadband success is built by local companies like NTTNS and ISPs, connecting every village. Handing this over to foreign or East Indian companies risks draining our economy and undermining local capability," said Mustafa Mahmud Hussain, a telecom and technology analyst.

The shift puts thousands of Bangladeshi engineers and telecom workers at risk of unemployment. Moreover, it could lead to the entire telecommunications industry becoming dominated by foreign-owned companies, closing the door to local investment and stifling the growth of local entrepreneurs.

"We must prioritise Bangladeshi companies to protect our digital sovereignty and ensure the benefits stay within the country. We support foreign investment but have to save our local entrepreneurship first," Mustafa added.

Although this move might initially reduce internet prices, experts warn that the country's entire internet infrastructure could eventually fall under the control of foreign syndicates. This would give them the power to manipulate prices at will, potentially leading to price hikes in the future.

Internet Service Providers (ISPs) have long been offering the service in the country under government guidelines. There are four categories of licences: nationwide, divisional, district and upazila. If an ISP wants to provide internet service at the district or upazila level for any specific area, they will have to take a licence in that specific category.

Notably, BTRC has issued nearly 3,300 licenses including 2200 ISPs to provide 26 types of telecommunication and relevant services.

Now they fear that mobile operators could potentially establish a monopoly in the market.

They believe some leading internet service providers (ISPs) have joined hands with the mobile operators to drive out the local ISP entrepreneurs from the market. The decision to introduce a single licence is to favour the four leading nationwide ISPs and the three mobile operators (Grameenphone, Robi Axiata, and Banglalink), ultimately giving them full control over the market in the name of transforming the broadband internet sector.

However, Fahim Mashroor, CEO of bdjobs.com and coordinator of the Technology Industry Policy Advocacy Platform (TIPAP), views the issue from a user perspective. He believes that a single licence is a positive decision.

"I believe that instead of granting so many different licenses, it would be more convenient to give a single license. Moreover, it wouldn't be feasible for mobile operators to provide cable broadband; they will work with wireless systems."

"Another thing to note is that regular broadband lines haven't reached rural areas. In that case, if mobile operators can provide broadband internet service to the villages through this system, it would definitely be a positive step in bridging our digital divide."

According to BTRC officials, the committee will analyse the possibility of the unified license as the mobile operators are seeking self-reliance in the network. 

However, the BTRC chairman ensures that the new telecom regime will not create services for the sake of business, instead it will let businesses serve and survive. Where a limited number of licenses is hurting competition the regulator would eye more players and in cases of too many licenses threatening industry sustainability, it might prefer a smaller number of competitors.

"The regulatory committee will finalise their strategy to reform the country's telecommunications network topology and the licensing regime by the end of March and submit to the government," Major General (retd) Md Emdad ul Bari, chairman of BTRC said at a press briefing on 21 January.

"The network topology became too complex and fragmented because of too many layers that raised costs. We want a simple and cost-effective topology," he noted.

Most of the telecom licenses will expire by 2027 and the new reform strategy with an implementation roadmap will be key to the upcoming transition to the future telecom landscape.