Bangladesh blocks vessel clearance for privately funded submarine cable project

Bangladesh’s Posts and Telecommunications Division has instructed authorities not to clear two cable-laying vessels for the country’s first privately funded submarine cable project unless the initiative receives a formal recommendation from the division, delaying the planned installation.

The directive affects the vessels CS Blue and Endeavour and prevents them from entering Bangladesh’s territorial waters for cable deployment until the required approval process is completed.

Division intervenes over clearance process

According to a letter signed by Deputy Secretary Kaniz Fatema, CdNet Communications approached the National Security Intelligence directly to seek permission for the two vessels to enter Bangladesh.

The Posts and Telecommunications Division subsequently instructed relevant authorities not to issue a no-objection certificate or other clearance without a formal forwarding letter from the division.

The intervention effectively places the marine installation phase of the project on hold.

National security and licence conditions cited

The division cited several concerns behind its position, including compliance with licence conditions, national security considerations and the protection of government and shareholder investment in Bangladesh Submarine Cables PLC.

Bangladesh Submarine Cables PLC is the state-backed submarine cable operator under the Posts and Telecommunications Division.

The letter also stated that the division has not yet made a final decision on whether to approve a privately developed submarine cable.

That leaves the broader regulatory status of the project unresolved beyond the immediate vessel clearance issue.

Consortium has already invested around $53 million

The Bangladesh Private Cable System consortium includes Summit Communications, CdNet Communications and Metacore Subcom.

The group has invested around $53 million, equivalent to approximately Tk650 crore, in preparatory work for the project.

However, the consortium has faced delays linked to approvals involving multiple ministries and government agencies.

It had separately sought permission for CS Blue and Endeavour to enter Bangladesh’s territorial waters and begin installation work.

The latest directive means that process cannot proceed until the Posts and Telecommunications Division formally recommends the project.

Private cable project faces regulatory uncertainty

The project is significant because it is intended to become Bangladesh’s first privately funded submarine cable system.

Private investment in international connectivity infrastructure could potentially introduce additional capacity, resilience and competition into Bangladesh’s submarine cable market.

However, the government’s concerns indicate that policymakers are weighing those potential benefits against national security, licensing and the commercial position of the state-backed submarine cable operator.

The source does not indicate when the division expects to reach a final decision.

Why this matters

The delay highlights the tension between private investment in critical digital infrastructure and government oversight of strategically sensitive telecom assets.

Submarine cables are fundamental to international internet connectivity, making their ownership, landing arrangements and operation a matter of both economic policy and national security.

For Bangladesh, the decision will have implications beyond a single project. It could shape the regulatory framework for future private-sector participation in international connectivity infrastructure.

Editor’s note

The most important issue is not the temporary delay to the two vessels, but the absence of a final policy position on privately developed submarine cables.

The consortium has already committed substantial capital, yet the project remains dependent on approvals across multiple agencies and on a formal recommendation from the Posts and Telecommunications Division.

For investors, that creates regulatory uncertainty. For policymakers, the challenge is to establish a clear framework that protects national security and public investment without discouraging private capital that could expand capacity and improve international connectivity resilience.