A Tk1,500 crore private submarine cable investment remains stranded as Bangladesh continues importing more internet bandwidth from India to meet rising demand, delaying the prospect of cheaper and faster internet for consumers.
The country’s first private submarine cable project, involving three local companies, has been held up at the final stage of cable laying for nearly three years due to pending clearances.
The interim government halted the final phase of subsea cable laying and capped bandwidth imports at 50 per cent of demand. However, the High Court later stayed the cap following a writ petition by an importing firm.
Meanwhile, imported bandwidth has climbed to a five-year high, accounting for nearly 70 per cent of total demand, up from around 60 per cent.
The delay has prevented three private submarine cables, with a combined capacity of 51 terabits per second (Tbps), planned by Metacore Subcom, Summit Communications, and CdNet Communications, from becoming operational despite the August deadline.
The project, originally scheduled for completion by March 2025, remains stalled.
The companies now fear that the 1,300-kilometre branch cable-laying project from Cox’s Bazar to connect with an international consortium cable could miss a third consecutive year, despite rented ships and technical experts waiting for approval.
The cable-laying ship requires nod from all the relevant government offices to operate in Bangladeshi waters. This is where the country’s first private submarine cable project remains stuck.
“The ships cannot enter our territory as the needed home ministry and National Security Intelligence (NSI) clearances are still pending,” Aminul Hakim, CEO of Metacore Subcom, told TIMES.
“We do not deserve this as our investments were approved by the Bangladesh regulator, regardless of who runs the government.”
TIMES reviewed a 29 July 2026 letter from the Posts and Telecommunications Division (PTD) to the Ministries of Home Affairs and Foreign Affairs and the NSI chief. Marked “Urgent, Confidential”, the letter requested a halt to issuing no-objection certificates (NOCs) for the arrival of fibre-laying ships CS Blue and ENDEVOUR.
The letter was issued after private companies sought clearance from the three offices.
The PTD said in the letter that Bangladesh Submarine Cable Company PLC (BSCPLC) required financial protection. It also alleged that private operators had advanced by violating licence conditions and cited national security concerns as reasons for withholding approval for the private submarine cables.
“We request you not to give any NOC without PTD proceedings,” the letter said.
Hakim rejected the allegation of licence violations, describing it as “unacceptable”.
During the foreign currency crisis, the three companies operating three pairs of cables under the same network only merged their external coating, not the entire cable, he said.
The move was made following regulatory advice and approval to save foreign currency, he added.
“The government’s relevant arm allows you to do something, another office confronts and supersedes it. Where will you go?” he said.
At a seminar in Dhaka on Tuesday, private-sector players alleged that PTD was delaying private investment to protect the state monopoly in the submarine cable business.
“Government companies are profit-makers only in a monopolistic market,” Hakim told TIMES, claiming BSCPLC was benefiting from such a position.
“The publicly traded company invested only Tk820 crore since 2008 for its 7.2 Tbps capacity and made more than Tk1,362 crore in cumulative net profits, with a rare net profit margin of around 45 per cent, depriving people of affordable internet,” he said.
“As rational private investors, we are happy with a low double-digit profit margin as per the country’s business environment,” he added.
Hakim said greater capacity and competition would gradually reduce bandwidth prices and improve internet affordability.
“Under BSCPLC’s monopoly, bandwidth currently costs Tk120 per Mbps. We can bring it down to Tk60-70 if rollout is allowed next year,” he said.
Bangladesh, which significantly lags behind peers in per capita internet use, needs faster expansion of affordable, high-speed internet services. Fixed broadband penetration in the country stands at 8.1 per cent, compared with 24 per cent in Vietnam.
Through BSCPLC, Bangladesh is connected to only two submarine cables, compared with six in Vietnam, more than 20 in India, over 24 in Malaysia and more than 12 in Thailand.
Private entrepreneurs said the situation contradicts Bangladesh’s digital ambitions.
They also claimed BSCPLC employees received more than Tk72 crore in cumulative profit shares, in addition to returns received by the government through dividends.
“They do not want to sacrifice those sums by allowing competition from the private sector,” Hakim said.
He also questioned the dual role of the PTD secretary as chairperson of the BSCPLC board, saying the arrangement influenced the division’s position.
TIMES contacted BSCPLC Managing Director Md Sajjad Bin Moustainoor Rahman for comments but received no response.
A senior BSCPLC official, seeking anonymity, said the company was currently selling bandwidth at around half the prices cited by private cable owners through promotional offers.
BSCPLC, after securing 7.2 Tbps capacity through the SMW 4 and SMW 5 cables, is set to add around 34 Tbps capacity through the upcoming SMW 6 cable next year, with a Tk1,300 crore investment.
Members of the private consortium said demand patterns and Bangladesh’s digital ambitions indicate that the country will require 420-450 Tbps of bandwidth by 2036.
Hakim said concerns over BSCPLC losing its monopoly were misplaced, arguing that the company would remain viable even with a lower profit margin.
“It is unfortunate that the gigantic private investments have been deprived of rollout despite the major parts of the investment already being completed,” said another senior official from the submarine cable consortium.
“Several instances have been created where the state, following political regime changes, deviates from its stance, which global investors treat as a breach of contract,” he added.
Bangladesh needs investment more than anything to revive growth and achieve the trillion-dollar economy target, he said, adding that creating difficulties for investors would send negative signals.
Mashiur Rahman, CEO of CdNet, told TIMES that the sharp rise in bandwidth imports was the biggest concern.
“In the past five years, we never saw imported Indian bandwidth reaching as high as 70 per cent, which is the case now,” he said.
He said three years’ bandwidth import bills would have been sufficient to build a submarine cable with much higher capacity, similar to that of the private consortium.
During the interim government, there were concerns that the Asian Cable system could face opposition from the United States. However, that argument is no longer being raised as the consortium has shown that active equipment is sourced from Western companies to connect with Singapore, another US partner in the region.
The debate over state monopoly has raised another concern among private investors — whether Bangladesh can attract global technology companies to invest in digital infrastructure.
“No Western player is comfortable with state monopoly,” Hakim said, adding that he had discussed the issue with several global technology companies.
He warned that bandwidth imports could account for up to 90 per cent of demand within a few years if the import cap remains unenforced and the state monopoly continues.
Large infrastructure investments by companies such as Meta and Google can involve $2 billion to $35 billion, and Bangladesh needs to provide a supportive environment, including access to more than 50 Tbps of high-quality bandwidth, he said.
“Against the bureaucratic hindrances, we have no way but praying to the prime minister for a remedy,” Hakim said.
With the rollout deadline missed, consortium members will have to pay penalties against bank guarantees. The delayed launch is also creating financial risks as expected revenues remain unrealised.
Fibre laying must be completed during winter, when the sea remains calm. Missing approval within a month would mean losing another season for laying the branch cables – the final part of the project originally scheduled for completion at the end of 2024.
PTD Secretary Bilquis Jahan Rimi, who is also chairperson of the BSCPLC board, did not respond to TIMES’ request for comment.
Bangladesh is currently consuming around 13.5 Tbps of bandwidth, while BSCPLC is providing at most one-third of the demand, private-sector players said.
