Dhaka, October 29, 2025 — The Bangladesh Telecommunication Regulatory Commission (BTRC) has proposed a new licensing framework that would require broadband and fixed-line operators to share 5.5% of their annual revenue with the regulator, alongside a 1% contribution to the Social Obligation Fund (SOF) to support telecom expansion in underserved areas.
The proposed “Regulatory and Licensing Guidelines for Fixed Telecom Service Provider” aim to streamline operations, attract investment, and advance digital inclusion. However, broadband operators warn that the policy could threaten the sector’s sustainability by eroding already thin profit margins.
“ISPs operate on margins of just 5–6%. If we must contribute 6.5% in total, we’ll be forced to run at a loss,” said Mohammad Aminul Hakim, President of the Internet Service Providers Association of Bangladesh (ISPAB). He urged the BTRC to reconsider the provisions, cautioning that higher costs may ultimately burden consumers with increased internet bills or degraded service quality.
The framework introduces two new types of licences:
- Fixed Telecom Service Provider (FTSP): For nationwide operations covering broadband, IP telephony, leased lines, and IoT services.
- District FTSP: For local ISPs operating within a single district, encouraging SME participation in connectivity services.
Both licences would be valid for 10 years and renewable, with the FTSP licence costing Tk 25 lakh upfront and Tk 10 lakh annually, while the District FTSP licence costs Tk 2 lakh initially and Tk 1 lakh annually. Licensees must also meet rollout targets and maintain fair competition, as cross-ownership between FTSP and District FTSP licences will be prohibited.
The policy allows up to 85% foreign ownership in licensed entities, provided that 15% remains with local investors. Companies exceeding this limit would have three years to comply.
While the BTRC believes the framework will foster innovation and bridge the digital divide, industry stakeholders warn that excessive levies could hinder affordability and contradict the government’s pledge to lower internet costs. Public feedback on the draft is open until November 8, 2025, on the BTRC website.
