FICCI Stories

In an exclusive and wide-ranging interview, the Chairman of the Bangladesh Telecommunication Regulato- ry Commission (BTRC) Major General Md Emdad ul Bari, OSP, NDC, psc, te (retd) outlines the country's strategic vision for building a resilient, inclusive, and innovation-driven telecom and digital ecosystem by 2030. From long-term digital transformation goals aligned with the UN SDGs to sweeping licensing reforms, market competition, cybersecurity collaboration, affordability challenges, and foreign investment policies, the Chairman provides deep insights into the opportunities and complexities shaping Bangla- desh's telecom landscape. This conversation offers a comprehensive look at how regulatory moderniza- tion, infrastructure democratization, and coordinated stakeholder engagement will accelerate the nation's journey toward a digitally empowered future.

BANGLADESH'S TELECOM & DIGITAL SECTOR:

VISION, REFORMS AND THE ROAD TO 2030

Q1. What is your long-term vision for Bangladesh's telecom and digital sector by 2030, especially in helping the country achieve the UN Sustainable Development Goals (SDGs) through accelerated digital transformation?

BTRC Chairman: To explain our long-term vision, it is important to understand from where we started. When mobile phones first entered Bangladesh, they were not introduced primarily for mobility but for connectivity. For nearly two decades, our national telecom priority focused on expanding voice connectivity to enhance inclusiveness. In this regard, our achievements have been significant, we have connected a vast segment of the population, covering almost 98-99% of the country.

Today, technology has evolved, but the objective remains similar: enhancing inclusiveness, now with the aim of empowering people through digital services. With more advanced tools and platforms, telecom has become the backbone of digital transformation.

Our vision is to make the telecom industry efficient enough to serve as the primary conveyor of digital services. By 2030-2035, I envision a Bangladesh where every corner of the country is connected with reliable, high-quality data, enabling meaningful digital services to flourish nationwide.

Q2: What key reforms has BTRC introduced in its licensing framework to attract foreign investment and improve ease of doing business?

BTRC Chairman: As a country that largely adopts rather than invents technology, Bangladesh will continue to depend on foreign investment. At the same time, we are an innovative nation with strong aspirations, so we must maintain a balance between foreign and local investments.

Previously, our licensing regime was highly fragmented, with narrow scopes and multiple categories. We are now consolidating and regrouping licenses, widening their scope and clearly defining where foreign investment is viable. This clarity combined with broader and more rational licensing structures is central to creating a more conducive investment environment.

Q3: With ongoing market consolidation, how is BTRC ensuring healthy competition and a level playing field for both large and small operators?

BTRC Chairman: Ensuring fair competition is one of the regulator's core responsibilities. Historically, two major issues held the sector back: excessive fragmentation of licenses and a conservative approach to resource sharing.

We are now restructuring the licensing framework into three layers with broader scopes for each license, while maintaining clear boundaries between layers. More importantly, we are separating infrastructure layers to democratize key resources such as towers and transmission so that small operators have equal access.

For the first time, active infrastructure sharing has been opened up in policy, and guidelines are underway. Democratization combined with active sharing will create a healthier competitive environment.

Q4: Globally, radio communication often follows a unified licensing model, while Bangladesh uses a bifurcated system. In your view, which approach better serves the sector's growth and efficiency and why?

BTRC Chairman: Unified licensing works best for countries that invent technologies or rely entirely on imported solutions. Bangladesh is neither; we have a technologically resilient and highly tech-sawy population, as seen from our global standing in online freelancing despite limited formal training. This capacity for innovation must be preserved.

Historically, we started with a unified license, but it did not produce the desired results. To correct it, we over- fragmented the market. Now, we are adopting a hybrid model, neither fully unified nor excessively fragmented. This approach reflects our aspiration for self-reliance, which is also evident in the gradual increase in mandatory local investment provisions.

Q5: As digital connectivity expands, what collaborative steps is BTRC taking to strengthen cyber security and safeguard user data? How does BTRC engage with industry bodies like FICCI to promote transparent communication, policy alignment, and inclusive growth?

BTRC Chairman: Cybersecurity and data protection are shared national responsibilities. BTRC provides regulatory guidance, but the overall ecosystem includes the ICT Division, ETT, law-enforcement agencies, and others. The national cybersecurity responsibility matrix needs more clarity, which would strengthen BTRC's role further.

Regarding collaboration with FICCI, we see significant scope, particularly in research and policy impact studies. Three priority areas require joint effort:

a) Infrastructure: We still lack sufficient infrastructure in coverage and quality. Regulatory measures alone are not enough; incentivization strategies must be developed, where collaboration is essential.

b) Access Devices: Smartphone penetration remains lower than reported. Affordability is an issue. Business-model innovations, such as those involving manufacturers, import tax rationalization, and EMI-based handset provisioning, require multi-stakeholder engagement.

c) Digital Services: Bangladesh produces many digital services, but they remain small, siloed, and lack integration. The absence of key digital "laterals" identity services, financial integration, and access to demographic/economic data blocks scale-up. For example, platforms like PayPal hesitate to enter due to the absence of robust identity-linked systems.

Here, collaboration, investment scoping, and startup support are vital, and FICCI can play a meaningful role. Startups can do the reconnaissance, but large organizations must drive scale.

Q6: Despite reforms, many users still face high costs for calls, data, and devices. What practical measures is BTRC pursuing to improve affordability?

BTRC Chairman: Affordability must be viewed across two timelines.
Long-term measures:

• Reducing the number of license categories and consolidating scopes to lower overall costs.

• Promoting infrastructure democratization to reduce capital expenditure.

These steps will gradually bring down prices.

Immediate measures: We have already achieved a 20-25% reduction in fixed broadband costs and are working to reduce them further. Mobile tariffs are more complex because 93-94% of government revenue comes from cellular telecommunications, and around 80% of operator costs relate to spectrum and licensing, areas where immediate reduction is not feasible.

While operators remain within approved tariffs, recent increases in package prices may reflect inflation and attempts to recover losses from last year. We are working with MNOS to ensure prices remain at a bearable level.

Q7: In Bangladesh, as you were saying 99 percent of the people are connected. But we can see that smartphone penetration, through which people are availing digital service, is yet to be 100 percent or 98 percent. 40 to 45 percent of people still use feature phones. Do you have any suggestions about providing digital service to those grassroots people? In that regard affordability or accessibility is very important.

BTRC Chairman: Affordability and accessibility must go hand-in-hand. We have engaged with local manufacturers to reduce handset prices, consulted with NBR for tax adjustments, and requested studies on optimizing revenue through lower import duties.

To expand affordability, we introduced EMI-based handset purchases. Initially, the challenge was ensuring repayment security. Operators wanted SIM-locking, but smaller players were hesitant. We facilitated industry consensus: handset locking through manufacturers was insufficient, so we have now allowed SIM-locking based on agreement through AMTOB. This has encouraged both MNOS and financial institutions to participate in EMI-based schemes.

However, devices alone are not enough. MNOS must also focus on meaningful digital services. Currently, entertainment dominates because it is easy to deliver. But entertainment alone does not create regenerative value or empowerment. Scaling and integrating digital platforms requires strong leadership from large operators, supported by smaller innovators.

Q8: The telecom sector's foreign ownership cap (65-85%) is unique, which is not seen in other indus- tries, some people think it affects smaller operators more than larger ones How does BTRC justify this policy while ensuring fairness and attracting foreign investment?

BTRC Chairman: The ownership caps reflect government policy. BTRC's proposal focused on enabling invest- ment where it is most needed primarily in infrastructure. We recommended no cap at the infrastructure level, except ensuring at least 51% foreign ownership where foreign capital is involved. For gateways, we advised keeping foreign ownership below 50% due to national security and strategic considerations.

The government added specific caps aligned with broader national policies. I view this as a bold declaration of Bangladesh's long-term aspiration for self-reliance. Over time, this approach aims to strike a balance between encouraging foreign investment and fostering local capacity.

Q9: Given the government's emphasis on reforms across sectors and the critical role of connectivity and ICT in enabling those reforms, is there a plan to provide incentives for investment in the telecom industry to accelerate digital adoption in Bangladesh? Additionally, how does the government intend to address the current imbalance in the telecommunications market, where one operator holds a dominant share, through more effective regulation?

BTRC Chairman: The answers lie within the broader reforms already discussed. Let me summarize:

• We are redefining roles and removing overlapping mandates. For example, BCC's involvement in transmission under certain projects blurred responsibilities. Clarifying these roles provides certainty to investors.

• We are redefining collaboration scopes. Historically, the Information Ministry oversaw transmission and the Telecom Ministry oversaw telecom. With convergence of IT-based technologies, closer coordination is now essential, and we are working to enable that technologically and regulatorily.

• We are democratizing resources to enhance clarity for both large and small investors.

• The government is considering establishing a data governance authority to strengthen digital services and public digital infrastructure.

Regarding market imbalance, SMP regulations already apply to two operators. SMP is not ideal it is a corrective tool for abnormal market situations but necessary at this stage. Over time, we aim to move toward healthier competition through broader reforms, infrastructure democratization, and a more balanced investment environment.