Bangladesh's ambitious new policy draft, aimed at regulating non-geostationary satellite operators like Elon Musk's Starlink, is as innovative as it is restrictive. The draft guidelines from the Bangladesh Telecommunication Regulatory Commission (BTRC), named 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 is hiding a central duality in plain sight: Bangladesh is eager to welcome cutting-edge satellite technology, yet appears equally intent on tightly controlling its operation.

A restrictive embrace of satellite connectivity

Satellite internet, particularly Starlink, has been long sought after by the country's IT community. Starlink itself is trying to get in for the last 2 years. The draft guidelines beacon a welcome move, but it risks entangling this technology in regulatory limitations. For instance, the requirement that all satellite data pass through local gateways connected to the country's International Internet Gateway (IIG) undermines one of satellite internet's primary benefits: its independence from national infrastructure. This dependency could mean that even satellite users might experience government-mandated shutdowns, as happened in Bangladesh during the July uprising, a scenario that seems counterproductive for a nation striving to modernise its digital landscape.

The guidelines are equally rigorous regarding national security and data monitoring, where the government's intent to exert control is unmistakable. Satellite companies, such as Starlink, are required to adhere to 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 are extensive, allowing for monitoring, storage, and even blocking of user data, ostensibly in the name of security. Satellite operators must store user data—specifically Internet Protocol Detail Records (IPDR) and Call Detail Records (CDR)—for up to a year, a burdensome requirement that may deter operators from entering the market.

This emphasis on surveillance echoes recent controversies around Bangladesh's cybersecurity policies, which critics argue are sometimes used to suppress dissent rather than protect citizens. Such a regulatory landscape contrasts sharply with the privacy-focused, decentralised model championed by satellite operators. Starlink's entry into other markets has emphasised user privacy and minimal governmental intervention—characteristics that could be at odds with Bangladesh's approach.

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

Operational restrictions add further limitations. The draft prohibits satellite providers from offering services beyond those outlined in Clause 16.4, which lists standard satellite offerings but excludes options like direct-to-home broadcasting or satellite-based mobile communications. This stifles the potential for satellite operators to adapt their services to meet the evolving needs of Bangladesh's digital landscape, reducing the competitive and innovative value that these services might otherwise bring.

Stifling the benefits of global connectivity

Bangladesh's guidelines reflect an emerging trend in its digital governance—embracing technology, but on controlled terms. The central question remains whether these strict measures balance national security and digital progress effectively or risk isolating the nation from the benefits of global connectivity. Bangladesh's recent history of internet shutdowns underlines the potential for sweeping shutdown powers. Extending this authority to satellite internet could hinder Bangladesh's digital aspirations, potentially severing the country from global communication channels during critical times.

The BTRC has opened the guidelines for public input until November 18, inviting citizens, businesses, and experts to voice their opinions on the policy's merits and challenges. This consultation phase offers a crucial opportunity for stakeholders to advocate for a more balanced regulatory approach—one that prioritises security without stifling innovation.

To realise the transformative potential of satellite internet, the BTRC must consider moderating its more restrictive measures. Adopting a more flexible regulatory stance—allowing 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 with international operators will also be key to creating a mutually beneficial regulatory environment.

Zarif Faiaz is the In-Charge at The Daily Star's Tech & Startup section.