ICX operators demand data-driven review of new licensing policy

Industry stakeholders have expressed strong reservations over a telecom licensing policy proposed in April that seeks to phase out interconnection exchange (ICX) operators.

ICX operators are providers of switching systems that facilitate interconnection between different telecommunication networks of operators.

They act as a central hub, connecting various networks like mobile, fixed line, and international gateways, enabling seamless communication and routing of calls.

Speaking at a workshop and briefing session at ROAWA Complex in Dhaka yesterday, the ICX operators alleged that the proposed changes lacked data-driven analysis.

Before making major structural shifts in the voice network, there must be pilot projects and data-backed assessments, they said. They recommended a trial approach to regulating the international SMS sector—currently open and unregulated—by introducing a structured ICX model and evaluating its outcomes.

While the number of ICX licence holders may seem high, ICX operations across the country have already been streamlined and consolidated into five key Points of Interconnection in Dhaka, Chattogram, Khulna, Bogura, and Sylhet, they added.

This consolidation has effectively created an integrated national ICX platform, significantly reducing technical complexity for telecom operators, said the operators.

Operationally, the current ICX structure already functions as if there were a single ICX. Further administrative refinements can be made if necessary, they said.

But the proposed reforms in the voice layer are not innovative—they simply attempt to revert to a pre-International Long Distance Telecommunications Services policy framework.

The draft policy notes that "mandatory interconnection exchanges at both domestic and international levels no longer add value to the telecom ecosystem; rather, they increase costs, degrade quality of service, and hinder market innovation."

It echoes longstanding criticism by some experts who have viewed ICXs as intermediaries which are no longer necessary.

However, ICX operators pushed back, saying that there is no proper definition of "value" in the draft, nor any evidence presented to support the claims made against ICXs.

The policy statement on ICXs in the new draft is not only inaccurate but also often driven by misleading marketing narratives, they added.