The telecom sector will not revert to its old licence regime as the government dismantles what it considers an outdated and distortion-ridden framework that slowed the industry’s growth for years, said Chief Adviser’s Special Assistant for Posts, Telecommunications and ICT Faiz Ahmad Taiyeb.
The Telecommunication Network and Licensing policy 2025, published in the government gazette, clears the way for a review of more than 3,000 licences issued over different periods, including those approved under a politically influenced structure that undermined the economy, he said in a press release.
The newly issued guidelines on licence fees, charges and revenue sharing will remain in draft form until discussions with stakeholders and economists are completed, and none of the provisions will raise internet prices, he added.
Access to the internet, devices and fibre could not be ensured under the previous structure. Fibre connectivity is still absent from homes, businesses and industrial hubs, while only 22% of mobile towers are connected through fibre, keeping per-capita data usage at one-fiftieth of India’s, he said.
The industry remains trapped in connection-based services instead of digital-service models. Mobile operators rely on device bundles and internet service providers on package-driven products, while sectors such as education technology, health technology, agriculture technology, financial technology and logistics technology have been unable to expand under the old regime, he said.
Quality-of-service-based internet or digital services have yet to be introduced by internet service providers, mobile operators, nationwide telecommunication transmission network operators or international internet gateway operators. Most operators still lack secure internet infrastructure, operating without hardware security modules, password and access management, essential software or firewalls, he said.
Ending the system of 26 licence categories is critical for building the digital economy, and a simplified, converged licence model is necessary. The new framework introduces four tiers of licences to expand operating scopes across the sector, even though full convergence was avoided due to market realities and monopoly concerns, he said.
Preventing the previous practice where seven layers of licences could be captured by a single company remains a central motive of the new policy, as the old model weakened competition and sector governance, he said.
Reducing unnecessary layers and eliminating intermediaries will help deliver competitive services without lowering government revenue, allowing consumers to access better services at affordable prices, he said.
The earlier system allowed companies to invest minimal amounts and still collect tolls, creating widespread rent-seeking. Many extracted hundreds of crores while sharing only 45–50% of revenue, even though no losses occurred when sharing up to 90%, and the new policy eliminates these middle-layer licences, he said.
Revenue challenges persist, but the latest quality-of-service report shows improvement in internet speed and overall performance, he said.
Existing investors will be issued new licences so they can continue operations with fresh investment, he said.
Applications for international gateways and interconnection exchanges have fallen as equipment used in these services approaches the end of its life cycle. Businesses should avoid investing in outdated switching systems and move toward modern technologies, he said.
The new policy requires nationwide telecommunication transmission network operators to open 35% of shares, interconnection service providers 51% and mobile network operators 15% to domestic stakeholders—through joint ventures, equity or other arrangements—while allowing Bangladeshi investors to retain 100% ownership if they choose, he said.
Opportunities in private fifth-generation mobile services and mobile virtual network operations are now open, enabling domestic investors to enter new areas of the telecom market, he said.
With no technological blocks in place, the policy encourages investors to avoid outdated systems and channel capital into next-generation telecommunications and digital service models, he added.
