Bangladesh's telecom overhaul faces acid test

In a move that has sent ripples across South Asia's technology and investment landscape, Bangladesh interim government's advisory council has given the final approval for the Bangladesh Telecommunication (Amendment) Ordinance 2025. Framed by the government as a long-overdue modernisation of the country's digital-governance framework, the ordinance was passed with striking speed -- prompting both cautious optimism and deep unease among industry stakeholders.

At the heart of the debate lies a fundamental question: does the new law mark a bold step towards safeguarding digital rights and economic stability, or does it represent a rushed regulatory overhaul by a transitional government with a limited democratic mandate? Everything put aside, one thing is for sure that the draft law provides a historic nemesis for the 'politics of blackouts' that would render the information superhighway unnavigable all on a sudden.

Thus, the most consequential provision of the ordinance happens to be the permanent prohibition of internet shutdowns. For the first time in Bangladesh's regulatory history, the state has legally stripped itself of the authority to suspend internet services -- even temporarily.

"Internet services cannot be suspended even for one minute in the future," Press Secretary Shafiqul Alam said while announcing the decision.

This provision directly addresses one of the most contentious issues affecting Bangladesh's digital economy. Past internet blackouts, often imposed during periods of political unrest, inflicted heavy financial losses on businesses, disrupted emergency services, and eroded investor confidence. For technology firms, freelancers, fintech operators and e-commerce platforms, internet-blackout ban offers a long-awaited guarantee of operational continuity.

In an era when digital reliability underpins economic credibility, this clause alone has been hailed by many as a turning point -- one that could reposition Bangladesh as a safer destination for global technology investment.

Beyond the shutdown ban, the ordinance also reconfigures the balance of power between the government and the Bangladesh Telecommunication Regulatory Commission (BTRC). The 2010 amendment had centralised most licensing authority within the ministry, significantly weakening the regulator's autonomy. The new law reverses that shift. Under the revised framework, the BTRC regains primary authority to issue licences, while the ministry's role is limited to projects of national strategic importance, such as submarine cable systems and satellite operations. These decisions must now be supported by independent technical studies, reinforcing procedural accountability.

The ordinance also introduces mandatory public hearings every four months, obliging the regulator to address consumer grievances in an open forum. In addition, financial penalties have been recalibrated to reduce the compliance burden on operators, a move intended to attract foreign investment at a time when regional competition is intensifying.

A most significant matter with the development is that the reform takes place under an interim government, mandated by a mass uprising to push through radical reforms. Despite its progressive elements, the ordinance has ignited controversy due to its political timing. The interim government led by Nobel laureate Muhammad Yunus is operating under a transitional mandate, with national elections scheduled for 12 February 2026 -- less than three months away.

Opposition parties, particularly the Bangladesh Nationalist Party (BNP), argue that such a sweeping and permanent reform should be left to an elected parliament. Their concern is not merely procedural but structural: the ordinance expands regulatory authority into emerging domains such as artificial intelligence, over-the-top (OTT) platforms, and social media -- areas with profound implications for freedom of expression, innovation, and economic sovereignty.

Critics also point to the speed of the process. The ordinance moved from in-principle approval to final enactment in roughly 30 days, leaving little room for comprehensive stakeholder consultation or rigorous impact assessments. For global investors, this haste creates uncertainty. Laws enacted by interim administrations are often revisited, amended or reversed by successor governments, making long-term planning difficult.

A market in transition: From a commercial perspective, the ordinance presents both opportunity and risk. The introduction of a technology-neutral licensing regime-condensing more than a dozen categories into four -- could dramatically simplify market entry. The inclusion of mobile virtual network operators (MVNOs) and the retention of an 85-percent foreign- ownership cap signal a willingness to open the sector further.

Yet this liberalisation also implies intensified competition, potentially squeezing existing operators while attracting new global players. For investors, the question is not whether the reforms are progressive, but whether they will endure.

A paradox of urgency and legitimacy underlines the action in bringing about such a comprehensive change through ordinance in the interregnum. The 2025

Telecommunications Ordinance reflects an ambitious attempt to align Bangladesh with international digital-governance norms. By outlawing shutdowns and strengthening regulatory independence, it heals longstanding structural weaknesses. However, its durability remains uncertain.

With elections looming, the telecom sector now finds itself suspended between reform and risk. Whether this ordinance becomes a foundation for long-term digital stability or a contested legacy of a transitional government will ultimately depend on the political will of the next elected leadership. Until then, Bangladesh's digital future remains promising -- but unresolved.