The BTRC’s draft satellite internet guideline is in danger of becoming a digital gatekeeper

Bangladesh’s ambitious new policy design, aimed at regulating non-geostationary satellite operators such as Elon Musk’s Starlink, is as innovative as it is restrictive. The draft guidelines of the Bangladesh Telecommunication Regulatory Commission (BTRC), called Regulatory and Licensing Guidelines for Non-Geostationary Orbit (NGSO) Satellite Services Operators in Bangladesh, outline a bold plan to connect the country’s digital space with satellite internet connectivity. However, this draft policy hides a central duality in plain sight: Bangladesh is eager to welcome cutting-edge satellite technology, but seems equally determined to tightly control its operation.

A restrictive embrace of satellite connectivity

Satellite internet, especially Starlink, has long been sought after by the country’s IT community. Starlink itself has been trying to get in for the past two years. The draft guidelines are a welcome step, but there is a risk that this technology will become entangled in regulatory restrictions. For example, requiring all satellite data to pass through local gateways connected to the country’s International Internet Gateway (IIG) undermines one of the key benefits of satellite internet: its independence from national infrastructure. This dependence could mean that even satellite users face government-imposed shutdowns, as happened in Bangladesh during the July uprising, a scenario that seems counterproductive for a country striving to modernize its digital landscape.

The guidelines are equally strict when it comes to national security and data monitoring, where the government’s intention to exercise control is unmistakable. Satellite companies, such as Starlink, are required to comply with local data sharing laws, including compliance with the Cyber ​​Security Act, effectively granting access to the National Telecommunication Monitoring Center (NTMC). The NTMC’s surveillance powers have been expanded, allowing user data to be monitored, stored and even blocked, ostensibly in the name of security. Satellite operators must keep user data – specifically Internet Protocol Detail Records (IPDR) and Call Detail Records (CDR) – for up to a year, a burdensome requirement that could deter operators from entering the market.

This emphasis on surveillance reflects recent controversies surrounding Bangladesh’s cybersecurity policies, which critics say are sometimes used to suppress dissent rather than protect citizens. Such a regulatory landscape stands in stark contrast to the privacy-focused, decentralized model championed by satellite operators. Starlink’s entry into other markets has placed an emphasis on user privacy and minimal government intervention – features that could conflict with Bangladesh’s approach.

Even for companies willing to navigate Bangladesh’s complex regulatory environment, financial barriers remain high. The guidelines prescribe a non-refundable application fee of BDT 5 lakh, an annual license fee of $50,000 USD and an annual revenue share of 5.5%, along with a 1% revenue contribution to a space industry development fund. These fees are a formidable entry cost, perhaps manageable for Starlink, but prohibitively expensive for smaller operators, limiting competition and market diversity.

Operational restrictions add further limitations. The draft prohibits satellite providers from offering services beyond those described in Article 16.4, which lists standard satellite offers but excludes options such as direct broadcasts to the home or satellite-based mobile communications. This stifles the ability of satellite operators to adapt their services to the changing needs of Bangladesh’s digital landscape, reducing the competitive and innovative value that these services could otherwise deliver.

Suppressing the benefits of global connectivity

Bangladesh’s guidelines reflect an emerging trend in Bangladesh’s digital governance: embracing technology, but under controlled conditions. The key question remains whether these strict measures effectively balance national security and digital progress, or risk isolating the nation from the benefits of global connectivity. The recent history of internet shutdowns in Bangladesh underlines the potential of sweeping shutdown powers. Extending this authority to satellite internet could hamper Bangladesh’s digital aspirations, potentially cutting the country off from global communications channels at critical times.

The BTRC has opened the guidelines for public input until November 18 and is inviting citizens, businesses and experts to have their say on the merits and challenges of the policy. This consultation phase provides a crucial opportunity for stakeholders to advocate for a more balanced regulatory approach – one that prioritizes safety without stifling innovation.

To realize the transformative potential of satellite internet, the BTRC should consider moderating its more restrictive measures. Adopting a more flexible regulatory stance – giving satellite operators a degree of operational independence within defined security frameworks – could create an open market where companies of all sizes can contribute to a digitally inclusive Bangladesh. Revisiting data sharing requirements and valuing privacy as a trust-building measure among international operators will also be critical to creating a mutually beneficial regulatory environment.

Zarif Faiaz is responsible for The Daily Star’s Tech & Startup section.