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'SAMENA Daily' - News

Bangladesh plans regulatory shift for private cable investment

Bangladesh is set to introduce regulatory changes that would allow for increased private and international investment in new submarine cable systems, as reported. The new framework aims to facilitate partnerships between international and local entities, potentially moving the country away from its predominantly state-led connectivity model.

Rehan Asif Asad, Prime Minister’s Adviser for ICT, telecommunications, science, and technology, said he aims to finalize the revised regulations within four weeks.

As of now, these changes have not been implemented, making the four-week timeline the next key policy goal.

This proposal comes as the country’s first significant private cable project still faces delays. In 2022, Summit Communications, CdNet Communications, and Metacore Subcom were granted licenses for submarine cables and later joined forces under the Bangladesh Private Cable System (BPCS) consortium. BPCS aims to deliver at least 45 Tbps of capacity through a branch landing at Cox’s Bazar. As of April, the project has received about USD 53 million in investment, but it remains hampered by pending regulatory approvals and vessel clearances. This gap between licensing and construction will serve as a practical test for the planned reforms.

Currently, Bangladesh relies on state-managed submarine connectivity via SEA-ME-WE-4 and SEA-ME-WE-5, both operated by Bangladesh Submarine Cables PLC. When SEA-ME-WE-6 becomes operational, it is expected to add around 30 Tbps, while Asad indicated that the national demand could exceed 50 Tbps by 2030 due to growth in artificial intelligence, cloud services, and data center investments.

Mohammad Aminul Hakim, CEO of Metacore Subcom, suggested that heightened competition might reduce bandwidth costs and enhance service quality, although these benefits remain speculative at this stage.

For cable owners and investors, the regulatory changes could open up new opportunities in a market that requires additional international capacity, redundancy, and diverse landing options. However, how well these changes are implemented will be crucial. The government needs to convert the announced intentions into effective licensing amendments and reliable deployment approvals. Its immediate objective is to finalize the framework within the designated four-week period. Additionally, the BPCS consortium still needs to resolve issues related to its cable-laying vessel clearances before construction can progress, making its advancement a key indicator of whether the new policies lead to tangible infrastructure rather than just licenses.



Source: https://www.telecomreviewasia.com/news/policy-news/30222-bangladesh-plans-regulatory-shift-for-private-cable-investment/

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