The Bangladesh Telecommunication Regulatory Commission (BTRC) has proposed a new licensing framework that would require broadband operators and fixed-line telephone service providers to share 5.5 percent of their annual revenue with the regulator -- similar to the system already in place for mobile operators.
According to the draft guideline, the companies would also need to contribute 1 percent of their annual gross revenue to the "Social Obligation Fund", which is meant for financing the expansion of telecom infrastructure and services in underserved or unprofitable areas.
According to the BTRC, the proposed "Regulatory and Licensing Guidelines for Fixed Telecom Service Provider" will streamline operations, attract investment, and promote digital inclusion.
But broadband operators argue that the revenue-sharing model will eat into their already thin profit margins and could discourage smaller providers from formalising their operations.
They say the financial pressure may eventually be passed on to consumers through higher bills or poorer service quality.
The draft guideline has been published on the BTRC website for public consultation. Stakeholders can submit their feedback till November 8.
"ISPs operate on very thin profit margins, roughly around 5 to 6 percent. If we are required to share 5.5 percent of our annual revenue with the regulator and contribute another 1 percent to the Social Obligation Fund, there will be no profit left," said Mohammad Aminul Hakim, president of the Internet Service Providers Association of Bangladesh (ISPAB).
"We will be forced to run at a loss," he added.
He urged the regulator to remove those two provisions from the draft, saying they would severely damage the broadband sector. "This contradicts the government's commitment to lowering internet prices and expanding connectivity, as such levies will ultimately increase costs for end users."
TWO TYPES OF LICENCES
The proposed framework introduces two types of licences to accommodate different players in the market.
The Fixed Telecom Service Provider (FTSP) licence would cover nationwide operations, allowing companies to build, operate, and maintain fixed telecommunication networks across Bangladesh.
FTSP licensees could offer a wide range of services, including fixed broadband, domestic and international voice calls, leased lines, IP telephony, Internet of Things (IoT) services, and IP-based video services.
The District Fixed Telecom Service Provider (District FTSP) licence, designed to encourage local entrepreneurship and support small and medium-sized enterprises (SMEs), would limit operations to a single district.
These licensees could provide internet and data services, along with related value-added services, but not voice calls.
Both licences would be issued for ten years and could be renewed later.
FEES AND ROLLOUT CONDITIONS
The guideline sets out a new fee structure. The FTSP licence would require a Tk 25 lakh acquisition fee and an annual fee of Tk 10 lakh.
The District FTSP licence would cost Tk 2 lakh to obtain and Tk 1 lakh annually.
Licensees would also need to provide bank guarantees and meet strict rollout targets, including expanding coverage and increasing subscriber numbers over five years.
To prevent monopolies and ensure fair competition, the BTRC has proposed restrictions on cross-ownership. A single legal entity may hold only one FTSP or District FTSP licence, but not both.
Firms that already hold licences for cellular mobile services, national infrastructure, or international connectivity would be ineligible for fixed telecom licences.
This separation is intended to maintain competition and prevent dominance across multiple sectors.
The draft also allows up to 85 percent foreign ownership in FTSP and District FTSP entities, with at least 15 percent reserved for domestic investors.
Companies with existing foreign investment beyond this limit would have three years to comply.
The FTSP licence offers broad and technology-neutral coverage, allowing providers to offer emerging services such as IoT, video on demand, and triple-play packages combining data, voice, and video, subject to BTRC approval.
The narrower District FTSP licence would still enable local operators to deliver essential internet and data services.
Through the new framework, the BTRC says it hopes to bridge the digital divide, improve service quality, and strengthen the position of the country in the regional digital economy.
Source: https://www.thedailystar.net/business/news/btrc-wants-55-revenue-broadband-operators-4021556
