Thousands of small and medium broadband internet service providers (ISPs), is on the cusp of a seismic shift for potential policy changes that could favour larger companies, increased regulations and competition from mobile operators and satellite internet providers. These threats could lead to difficulties for small ISPs, potentially impacting local entrepreneurship and consumer affordability.
The Bangladesh Telecommunication Regulatory Commission (BTRC) has given initial approval to Starlink to provide satellite internet services in Bangladesh.
Rubel Hossan a small ISP businessman told The daily Observer on Tuesday that the ISP sector in Bangladesh employs over 500,000 people and generates an annual revenue of Tk 100 billion. According to the Internet Service Providers Association of Bangladesh (ISPAB), the top ten ISPs alone contribute nearly Tk 10 billion to this figure, while mid-level operators account for Tk 54 billion.
However, with mobile operators now poised to capture 40 to 50 per cent of the fixed wireless access FWA market, many smaller ISPs face the grim prospect of being edged out.
Mobile operators' fixed wireless access is pushing the country's internet entrepreneurs to the brink of extinction. Local entrepreneurs, who have painstakingly built networks over time, are on the verge of losing them to multinational and foreign investors. The country's interests are not being taken into account in the face of an unknown force trying to dominate not just the mobile domain but also the fixed domain.
Several members of the current licensing evaluation committee of BTRC (Bangladesh Telecommunication Regulatory Commission) have expressed their frustration on the matter, on condition of anonymity.
The government has decided to introduce a 'single' or 'unified licence' for internet providers, regardless of the technology they use. According to BTRC officials, the move aims to make the licensing system more inclusive and updated.
Mobile operators can import and install data transmission amplifier equipment for their leased fibre optic networks to transmit more data at lower costs, the telecom regulator decided in its last commission meeting.
The entry of three telecom giants-Grameenphone, Robi, and Banglalink-into the fixed wireless access (FWA) arena promises to rewrite the rules of the game, leaving smaller players grappling with an uncertain future. Once this permission is granted, mobile operators will initially be able to build their own transmission networks and later offer broadband internet services like ISP companies.
Telecom experts are concerned that this move could drive local companies involved in transmission and broadband services toward extinction.
"Bangladesh's broadband success is built by local companies like NTTNS and ISPs, connecting every village.
Handing this over to foreign or East Indian companies risks draining our economy and undermining local capability," said Alamgir Hossan, a telecom and technology analyst.
The shift puts thousands of Bangladeshi engineers and telecom workers at risk of unemployment. Moreover, it could lead to the entire telecommunications industry becoming dominated by foreign-owned companies, closing the door to local investment and stifling the growth of local entrepreneurs.
"We must prioritise Bangladeshi companies to protect our digital sovereignty and ensure the benefits stay within the country. We support foreign investment but have to save our local entrepreneurship first," Alamgir added.
Notably, BTRC has issued nearly 3,300 licences including 2,200 ISPs to provide 26 types of telecommunication and relevant services. Now they fear that mobile operators could potentially establish a monopoly in the market. Most of the telecom licences will expire by 2027 and the new reform strategy with an implementation roadmap will be key to the upcoming transition to the future telecom landscape.
The BTRC, which has issued the FWA licences, insists that its goal is to foster competition and innovation in this fastest-growing sector of what is defined as knowledge economy. "While FWA and Wi-Fi services may appear similar, they serve different purposes," says a BTRC Commissioner.
A high official of BTRC told this correspondent that thousands of families whose livelihoods depend on the ISP sector, the stakes couldn't be higher. And for a nation striving to bridge its digital divide, the promise of FWA might just be worth the risk.
