TL;DR:
- Bangladesh’s telecom regulator drafts guidelines allowing 100% foreign investment in satellite internet services, potentially opening doors for global providers like Starlink.
- The new guidelines set a five-year license period and require operators to establish at least one gateway system within Bangladesh before starting services.
- While the move promises expanded connectivity, especially in remote areas, concerns remain about the affordability of satellite internet services compared to local providers.
- Global tech giants like SpaceX, OneWeb, and Amazon are competing in the satellite internet market, with Starlink already covering over 60 countries.
The Bangladesh Telecommunication Regulatory Commission (BTRC) has taken a significant step towards revolutionizing the country’s internet landscape. The regulatory body has drafted new guidelines that could pave the way for international satellite internet providers, including Elon Musk’s Starlink, to enter the Bangladeshi market.
The newly drafted “Regulatory and Licensing Guidelines for Non-Geostationary Orbit (NGSO) Satellite Services Operators in Bangladesh” allows for 100% foreign direct investment in the sector. This move comes as a response to the growing interest from global players in Bangladesh’s telecommunications market.
Under the new guidelines, foreign companies will be permitted to “build, own, maintain and operate NGSO satellite systems and services” in Bangladesh. However, these companies must adhere to the government’s FDI policies and regulations set by the Bangladesh Bank and the Bangladesh Investment Development Authority (BIDA).
The BTRC has outlined a comprehensive framework for potential operators. Licenses will be valid for five years, with providers authorized to offer a range of services including broadband internet, intranet services, IoT, and machine-to-machine communication. The guidelines also stipulate financial obligations, including an application fee of Tk 5 lakh, an acquisition fee of $10,000, and an annual fee of $50,000.
To ensure local involvement and data sovereignty, the guidelines mandate that operators establish at least one gateway system within Bangladesh before commencing services. This local gateway will be crucial for authenticating and routing all traffic from user terminals within the country.
The move has generated excitement in the tech community, with telecom policy analyst Mustafa Mahmud Hussain stating, “Bangladesh will soon experience a transformative shift with the introduction of NGSO satellite internet.” He emphasized the potential for expanding connectivity in remote areas, empowering students, and driving business growth.
However, challenges remain, particularly regarding affordability. Starlink’s services, for instance, are priced at approximately $120 per month, with initial hardware costs ranging from $350 to $599. This is significantly higher than local internet service providers, who offer 5 Mbps broadband for about Tk 500 per month.
The BTRC’s move comes at a time when global tech giants are racing to dominate the satellite internet market. SpaceX’s Starlink already provides coverage to over 60 countries with 4,519 satellites in orbit. Competitors like OneWeb and Amazon’s Project Kuiper are also making strides in the sector.
As Bangladesh prepares to welcome these global players, the country stands on the brink of a potential internet revolution. The success of this initiative will depend on striking a balance between attracting foreign investment and ensuring affordable access for the Bangladeshi population.
