Bangladesh Moves to Open Subsea Cable Market to Private and Foreign Investment

Bangladesh is preparing regulatory amendments that would open licensing for new submarine cable systems to greater private and international participation, signaling a potential shift from its long-standing state-led connectivity model. The proposed framework, reported by The Financial Express on September 7, would permit international-local partnerships and aims to attract more diverse investment into the country's digital infrastructure backbone.

Rehan Asif Asad, adviser to the prime minister for ICT, telecommunications, science and technology, said he wants the amended rules finalized within four weeks. The government has not yet enacted the changes, making that timeline the next critical policy milestone for stakeholders watching the market's liberalization prospects.

The reform push comes as Bangladesh's first major private cable initiative remains stalled. Summit Communications, CdNet Communications and Metacore Subcom received submarine cable licenses in 2022 and later consolidated their efforts through the Bangladesh Private Cable System (BPCS) consortium. BPCS is planning at least 45 Tbps of capacity via a branch landing at Cox's Bazar. According to The Financial Express, roughly US$53 million had been invested by April, but outstanding regulatory approvals and vessel clearances continue to delay deployment. This gap between licensing and construction gives the proposed reform an immediate practical test of whether policy changes can translate into tangible infrastructure progress.

Bangladesh currently relies on state-operated submarine connectivity through the SEA-ME-WE-4 and SEA-ME-WE-5 cables, both managed by Bangladesh Submarine Cables PLC. SEA-ME-WE-6 is expected to add approximately 30 Tbps when it enters service, while Asad noted that national demand could surpass 50 Tbps by 2030 as artificial intelligence, cloud services and data-center investment expand. Mohammad Aminul Hakim, chief executive of Metacore Subcom, argued that additional competition could lower bandwidth prices and improve service quality, though these benefits remain industry projections rather than confirmed outcomes of the proposed policy.

For international cable owners and investors, the change could open new pathways into a market seeking greater capacity, redundancy and landing diversity. However, implementation will be as crucial as market access itself. The government must convert its stated direction into workable licensing amendments and predictable deployment approvals, with an immediate commitment to finalize the framework within four weeks. Separately, BPCS still requires resolution of its cable-laying vessel clearances before construction can advance, so the consortium's progress will serve as an early indicator of whether the market opening produces deployable infrastructure rather than licenses alone.