BSCL Seeks Partnership with Starlink for Satellite Internet in BD

Bangladesh Satellite Company Limited (BSCL), through the Posts and Telecom Division (PTD), has approached the telecom regulator to require satellite internet providers, including Starlink, to route bandwidth through BSCL's ground station. This move is aimed at enhancing the resource utilization and revenue growth of the state-owned satellite company, according to documents reviewed by The Business Standard.

However, sources within the Bangladesh Telecommunication Regulatory Commission (BTRC) suggest that the regulator is unlikely to make this a mandatory requirement for non-geostationary satellite orbit (NGSO) operators, as such a move could deter global satellite internet giants like SpaceX's Starlink from operating in Bangladesh.

In February, Chief Adviser Professor Muhammad Yunus sent a letter to Elon Musk, welcoming him to launch Starlink in Bangladesh within 90 working days.

The BTRC is expected to submit the final "Regulatory and Licensing Guidelines for Non-Geostationary Orbit (NGSO) Satellite Services Operators" to the PTD this week, BTRC Chairman Major General (rtd) Md Emdad ul Bari confirmed in a media interview. However, Bari did not respond to calls or messages seeking clarification on the government's plans for BSCL's involvement in the NGSO market.

Several BTRC senior officials stated that the Telecom Act permits 100% foreign ownership for operators, and therefore, local ownership cannot be mandated within foreign NGSO operators. Additionally, the BTRC should not dictate which business partner an NGSO operator selects, they explained, citing internal discussions.

BSCL General Manager and Head of Sales and Marketing Shah Ahmedul Kabir emphasized that the draft guidelines stipulate that NGSO operators must procure bandwidth from local international internet gateways (IIGs) and route it to their satellites via a local gateway station. This requirement aligns with the country's telecom laws and aims to facilitate improved connectivity, particularly for remote communities.

"BSCL has well-equipped ground station facilities that can support NGSO operators like Starlink, helping them reduce capital expenditures. With our expertise in satellite operations, we are eager to serve as a distribution partner for Starlink in Bangladesh," Kabir said.

The PTD has suggested, following India's ISRO model, that the guidelines could include making BSCL a gateway for NGSO-licensed operators, offering better visibility for NGSO internet services while benefiting the state-owned company.

However, telecom experts point out that BSCL's ground station is designed for its geostationary satellite, positioned approximately 35,000 km above Earth, while NGSO satellites orbit at much lower altitudes, between 500 and 2,000 km. This difference in altitude requires distinct antennas and frequencies to establish a connection.

A senior BSCL official, speaking anonymously, noted that although BSCL's current infrastructure is tailored for geostationary satellites, the ground station could be adapted to support NGSO satellites with additional investment in antennas to accommodate the different frequencies.

BSCL has already successfully tested Starlink internet with five receivers for end users, a significant milestone in its efforts to become a key player in the NGSO satellite ecosystem.

The BTRC began formulating policies for the introduction of NGSO satellites in early 2024, aiming to improve remote connectivity and provide a reliable backup for urban users. However, the draft guidelines have raised concerns among some observers, particularly regarding the mandatory local IIG routing and ground station requirements for NGSO operators. These measures are intended to ensure national security, as seen in many other countries.

Starlink is the first major company to enter Bangladesh's satellite internet market, but several other global players are also in discussions with the BTRC. The growing interest in satellite internet has sparked speculation about its potential impact on the market.

Experts believe the success of satellite internet will depend largely on affordability. Starlink users may need to invest $500-700 for equipment and pay around $120 per month for a 100 Mbps connection, with lower costs for slower speeds. This could be especially beneficial for remote areas where fiber optic and mobile internet services are limited. Local internet service providers (ISPs) could also capitalize on the opportunity by reselling satellite internet to multiple end users.

The introduction of equipment rental options, as seen in some African countries, could further drive interest from rural ISPs, making satellite internet more accessible.

Telecom Policy Analyst Mustafa Mahmud Hussain believes that Starlink could significantly improve grassroots connectivity if implemented in a cost-effective and user-friendly manner. "From remote education and healthcare to rural digital economies and disaster relief, the benefits for remote areas could be immense," he said.

Local ISPs have also called for a level playing field, urging equal tax and tariff structures to support the coexistence of satellite and non-satellite internet services in the country.