The government is preparing to open Bangladesh's submarine cable market to more private and international investment as it seeks to build the connectivity infrastructure needed for a coming surge in data demand from artificial intelligence (AI), cloud computing and data centres.
The government would open the licensing process for new submarine cable systems, including through international-local partnerships, after necessary amendments to the existing regulatory framework.
"We have to open up. Just by using government agencies I won't be able to meet my capacity [needs]," said Rehan Asif Asad, adviser to the Prime Minister for ICT, Telecommunications, Science and Technology, adding that he wanted to finalise the framework within the next four weeks.
"I personally want to open the submarine cable ... in the sense of international-local partnership," he said.
The move would mark a significant shift from Bangladesh's predominantly state-led submarine connectivity model, centred on Bangladesh Submarine Cables PLC (BSCPLC).
But the proposed fresh opening comes even as the country's first major private submarine cable initiative remains stalled.
Private cable project still waiting
In 2022, the government awarded submarine cable licences to Summit Communications, CdNet Communications and Metacore Subcom, allowing them to establish, operate and maintain submarine cable systems.
The three companies initially planned separate projects but later joined forces as the Bangladesh Private Cable System (BPCS) consortium amid difficulties in securing US dollars.
The consortium subsequently planned a privately owned cable with at least 45 Tbps of capacity, connecting Bangladesh with an international submarine cable system through a branch from Cox's Bazar.
The project has moved through planning and preparatory stages, but deployment has been delayed by regulatory approvals. By April this year, the consortium had reportedly invested around US$53 million, or about Tk 6.50 billion while key clearances for cable-laying remained pending.
The delay continued into September, when clearances for cable-laying vessels were still being withheld, leaving the country's first private submarine cable project in limbo.
The experience presents an immediate test for the government's proposed new policy: whether new investors will be able to move from obtaining a licence to actually deploying infrastructure within a predictable timeframe.
Private sector sees competition lowering costs
Mohammad Aminul Hakim, chief executive officer of Metacore Subcom, welcomed the proposed opening, saying greater private participation would strengthen Bangladesh's digital sovereignty by creating competition in the international bandwidth market.
"Internet prices would fall by 50 per cent, while quality of service would improve by 25-30 per cent and latency would decrease," he said.
Cheaper connectivity could increase internet usage by 20-30 per cent, he added.
Mr Hakim said the biggest competitor for submarine cable operators was not another submarine cable company but international terrestrial cable (ITC) links importing bandwidth from India.
He also pointed to Bangladesh's limited submarine cable diversity as a major vulnerability.
India is connected to around 20 submarine cables, Malaysia to 24, Thailand to 12 and Singapore to 30, whereas Bangladesh currently has only two state-operated submarine cable systems.
He said the upcoming SEA-ME-WE-6 would provide substantial additional capacity, but would not eliminate the need for further systems, particularly as SEA-ME-WE-4 is expected to approach the end of its operational life around 2030.
Mr Hakim urged the government to accelerate approvals and deployment of private submarine cables, warning that delays could leave Bangladesh facing a projected bandwidth deficit of about 20 Tbps by 2028.
Capacity, not politics
Mr Asad said the new policy would focus on Bangladesh's actual connectivity requirements rather than political considerations.
"The submarine issue is not about political interest, it's purely about capacity interest. My country's demand is what I need to prepare for," he said.
"There is no political interest, only capacity interest," he told industry stakeholders.
"Right now, we need more than one submarine cable. I will personally keep no restrictions in this regard. By saying I will open it up, it means I am inviting new players to the market," he said.
He also pointed to the possibility of global technology companies such as Google and Meta investing directly in submarine connectivity.
"If Google comes to me tomorrow and says, 'I want to lay a submarine cable,' will I not give Google permission?" he asked, arguing that direct connectivity by global technology companies could substantially change Bangladesh's international traffic pattern.
A race against future demand
Bangladesh currently has two operational submarine cable systems, SEA-ME-WE-4 and SEA-ME-WE-5, operated by BSCPLC. Both have undergone successive capacity upgrades.
The third system, SEA-ME-WE-6, is expected to add roughly 30 Tbps of capacity when it enters service.
But the government is looking beyond today's bandwidth requirements.
Mr Asad said Bangladesh's demand could exceed 50 Tbps by 2030 as internet usage grows and the country seeks to attract AI and data-centre investment.
"Our submarine cable capacity might change drastically if we want to play in this global data centre market," he said.
The calculation is increasingly being driven by workloads that did not exist when Bangladesh's submarine cable infrastructure was originally planned.
AI computing, cloud services, high-performance computing and large-scale data centres require not only massive bandwidth but also low latency and highly resilient international connectivity.
For Bangladesh to become a regional data-centre or AI hub, it will need multiple submarine cable routes, redundant landing stations, extensive domestic fibre networks, reliable electricity, carrier-neutral data centres, cloud connectivity and resilient international links.
From state-led to competitive connectivity
The proposed regulatory changes could therefore reshape the submarine cable industry from a predominantly state-led model into a multi-player market involving local investors, international technology companies and global cable operators.
The challenge, however, will be to ensure that the regulatory framework supports actual investment and deployment.
As Bangladesh prepares for the AI and data-centre economy, the government's stated objective is to build capacity before demand overwhelms the existing infrastructure.
"I have to create what is necessary for the demand of my country," Mr Asad added.
