The government has formulated the draft of a fresh telecommunications act, which would bring social media platforms, online platforms, and all internet protocol-based services under the purview of the law.

The draft of the Bangladesh Telecommunication Act, 2024, has already been shared for consultation with some entities, including the Bangladesh Telecommunication Regulatory Commission (BTRC), AMTOB (Association of Mobile Telecom Operators of Bangladesh), and Internet Service Provider Association of Bangladesh (ISPAB).

The new act will replace the Bangladesh Telecommunication Act, 2001, which was amended twice -- in 2006 and 2010.

Experts warned that bringing online-based platforms under the law would create complexities, bar new companies from growing, and obstruct innovation.

Fahim Mashroor, former president of the Bangladesh Association of Software and Information Services (BASIS), said nearly all activities and businesses operate through online platforms in today's digital landscape. This includes financial services, education, transportation, and even healthcare.

"Therefore, it's neither practical nor desirable to subject these sectors to the telecom act. Instead, they should be regulated by laws specifically tailored to their respective industries," he added.

The law also introduced punishment for the violation of the act or any regulation under the act through mobile courts in the presence of an inspector of the commission.

In its feedback, AMTOB said this provision should be removed. Considering the depth of telecom service sophistication and technicalities, applying mobile court modality of instant assessment and subsequent application is not feasible or justified, it said.

"It is just an initial draft. There will be thorough stakeholder conversations and seeking of public opinion before finalising the law," Zunaid Ahmed Palak, state minister for telecom and ICT, told The Daily Star.

"The aim of this law is to foster the application of modern technology, facilitate business opportunities, attract investment, and generate employment."

In the original telecom law enacted in 2001, a fine of Tk 10 lakh or maximum imprisonment of 10 years was set if anyone without a licence established or operated a telecommunication system in Bangladesh or outside or undertook any construction work of such systems or any construction work for providing internet services or installed or operated any apparatus for such services.

The government increased the fine for such offences to Tk 300 crore in 2010 in an amendment to the law.

The new draft also includes a Tk 300 crore fine for such violations.

Broadband internet service providers, most of them small and medium-sized businesses, demanded a different punishment.

"This punishment should not be meant for broadband service providers, whose revenues are meagre compared to those of mobile operators," Md Emdadul Hoque, president of ISPAB, said.

"The revenue of some of our village-level internet services providers could be just Tk 10 lakh. So, it's not reasonable to keep a provision that could fine them Tk 300 crore for a violation," he added.

He said the law ignored the broadband sector, including their long-standing demand for active sharing of last-mile fibre and infrastructure, adding that telecom and broadband law should be separate ones.

The AMTOB also requested the inclusion of additional provisions related to merger, demerger, acquisition, and amalgamation. It also demanded the incorporation of the Arbitration Act 2001 to resolve disputes between the BTRC and licensees.

The draft of the new law introduced a regulatory sandbox aimed at fostering innovation and technological advancement.

The commission is authorised to establish one or more regulatory sandboxes, following specified procedures and for designated durations, with the aim of promoting and streamlining innovation and technological progress within the telecommunications sector.

The law defines a sandbox as a controlled testing environment wherein new products, services, processes, and business models can be introduced without being fully subjected to the provisions of the act.

This testing occurs for a defined period and with a set number of users, with certain conditions being relaxed to facilitate experimentation and development.