New telecom policy won’t force foreign firms to share ownership

The government's new telecom licensing policy will not compel mobile operators to dispose of 15 percent of their ownership to local partners, said Faiz Ahmad Taiyeb, special assistant to the chief adviser with executive authority over posts, telecommunications, and ICT.

"It's not an act. I'm not forcing you to dispose of the ownership. It's a direction. I'm just making a suggestion. When a company has both foreign and local ownership, it performs better," he told a roundtable yesterday.

The roundtable, titled "Telecom Network and Licensing Policy Reform," was organised by the Telecom and Technology Reporters' Network Bangladesh at a hotel in Dhaka.

The statement comes against the backdrop of leading foreign investors in Bangladesh's telecommunications sector urging the government to reconsider proposed restrictions on foreign ownership in the upcoming Telecommunications Network and Licensing Reform Policy 2025.

In the latest version of the policy, it was mentioned that the maximum foreign ownership limit for mobile network operators is set at 85 percent.

Taiyeb further noted that while the earlier International Long Distance Telecommunication Services (ILDTS) policy was introduced to meet the needs of the time, it was grossly abused by previous governments.

"A total of 3,400 licences were issued under the ILDTS—one of the worst cases of abuse in global telecom history," he remarked.

Under the new policy, many of the licensing layers introduced by the ILDTS will be discontinued.

However, existing licensees will be allowed to operate until their current licences expire.

Sumon Ahmed Sabir, chief technology officer at Fiber@Home Ltd, said, "We must come to a conclusion on how long we'll continue depending on foreign companies for such a sensitive sector like telecom."

"At the infrastructure level, there should not be open licensing—just as roads aren't built everywhere without planning," he said.

"If the same foreign investor is allowed to invest across all layers of telecom, a single foreign entity could end up controlling the entire telecom ecosystem in Bangladesh," he said.

TIM Nurul Kabir, executive director of the Foreign Investors' Chamber of Commerce and Industry, emphasised the need for strategic direction.

"Bangladesh needs a holistic roadmap to define where the telecom and ICT sectors will go in the next five years. This clarity is crucial for foreign investors," he said.

Mahtab Uddin Ahmed, former CEO of Robi Axiata, welcomed several aspects of the draft policy.

"Active sharing is a good move, as are incentives for meeting rollout obligations and promoting innovation. But my concern is the lack of clear SMP [significant market power] regulation," he said.

Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, noted, "We still need to think more deeply about setting caps on foreign investment in telecom. Bangladesh continues to need FDI, but there should be a balance."

Aminul Hakim, president of the Internet Service Providers Association of Bangladesh, criticised the lack of fair competition.

"Telecom operators enjoy both floor and ceiling prices for their packages, but ISPs don't even have a floor price. Transmission costs are fixed for ISPs, while mobile operators can negotiate," he said.

Maj Gen (retd) Md Emdad ul Bari, chairman of the Bangladesh Telecommunication Regulatory Commission, said, "The ILDTS policy was well-intentioned, but it was severely abused."

"The number of licences for IIG, ICX, and IGW far exceeded actual demand. Some companies secured licences across multiple layers," he said.

He emphasised that the new policy aims to simplify regulation, ensure competition, and prevent market monopolies.

Banglalink CEO Johan Buse said the main objective of the policy should be to ensure better service quality for customers.

Grameenphone CEO Yasir Azman also spoke at the event.