Concerns Over Removal of Interconnection Exchange (ICX) in Bangladesh’s Telecom Sector
Removing the Interconnection Exchange (ICX) from Bangladesh’s telecommunications framework poses significant risks, potentially harming national interests, decreasing government income, escalating unemployment, and jeopardizing digital security, according to industry experts and stakeholders. These issues were highlighted during a workshop titled ‘Draft Telecom Reform Policy 2025: Relevance of ICX,’ held by the Telecom and Technology Reporters Network Bangladesh (TRNB) at a city venue. The gathering united policymakers, engineers, telecom operators, and various stakeholders to discuss the future of the telecommunications sector. The discussion was led by TRNB President Samir Kumar Dey, with General Secretary Masuduzzaman Robin officially opening the event.
ICX: A Critical Component of Bangladesh’s Telecom Infrastructure
Brigadier General (Retd) Mustafizur Rahman, who heads the Association of Interconnection Exchange Operators of Bangladesh (AIOB), emphasized the importance of the ICX, referring to it as the “third eye” of the telecom industry. He cautioned that transferring this essential infrastructure to foreign entities could threaten the country’s revenue, stifle domestic innovation, and compromise national security. “Our telecom infrastructure was built by world-class engineers, but now it is being handed over to foreign interests. New telecom frameworks are being introduced at the expense of local stakeholders,” he stated. “This shift could lead to reduced government revenue, increased unemployment, and even a national security crisis.”
Financial Implications of Policy Changes
AIOB Treasurer Brig Gen (Retd) Khurshid Alam expressed similar concerns, noting that the industry had invested Tk 1.3 billion (approximately Tk 130 crore) in enhancing telecom technology in accordance with government directives just four months prior. “Now, this investment is at risk of being squandered due to this sudden policy change,” he remarked. The proposed amendment to the Telecommunications Act, which is currently being evaluated by the Bangladesh Telecommunication Regulatory Commission (BTRC), seeks to abolish the ICX licensing framework, permitting mobile operators to connect directly at the gateway level. Stakeholders believe this would lead to a surge in illegal VoIP activities, reduce transparency, and weaken existing revenue collection systems.
Revenue Losses Due to ICX Bypassing
Ahmed-ur Rahman Romel, Operations Head at Agni Systems Limited, pointed out that the government is already incurring losses of Tk 740 million each year due to untracked SMS traffic resulting from ICX bypassing. “Since July, hundreds of crores of SMS have been exchanged daily through ICX, which has deprived the government of Tk 11.5 million in daily revenue. If properly routed through ICX, the government could recover an additional Tk 740 million annually,” he noted.
The Role of ICX in Maintaining Telecommunications Integrity
The ICX is crucial for directing international voice calls from International Gateways (IGWs) to domestic networks while ensuring oversight through digital monitoring. Experts emphasized that this system is vital for combating grey traffic and illegal VoIP calls, thereby safeguarding revenue and protecting national interests.
Economic Viability Challenges for ICX Operators
Speakers at the workshop also addressed the economic viability issues faced by ICX operators. From the Tk 2.40 earned per mobile call, ICX operators receive a mere 4 paisa, of which 2 paisa goes to the BTRC, leaving only 1 paisa per call for the operators, which is inadequate for covering operational expenses. If the ICX framework is dismantled, over 50 access network operators in the country would need to set up individual interconnections, leading to increased costs and technical difficulties. Experts warned that such fragmentation could pave the way for more illegal and unregulated telecom traffic.
Industry Leaders Call for Preservation of ICX Framework
The event attracted prominent figures in the industry, including Mustafa Mahmud Hossain, Chief Operating Officer of VoiceTel Limited; Hasibur Rashid, Director General of Bangla ICX Limited; Brig Gen (Retd) Md Abdul Hannan, CEO of BanglaTelecom Limited; and M Nurul Alam, CEO of Imam Network Limited, along with representatives from major ICX companies. The speakers collectively advocated for the retention of the ICX structure and urged policymakers to reassess the proposed reforms, promoting a balanced and secure approach to telecom development.
