Concerns Over Removal of Interconnection Exchange in Bangladesh
The potential removal of the Interconnection Exchange (ICX) from Bangladesh’s telecommunications framework poses significant risks, according to industry experts and stakeholders. They assert that such a move could jeopardize national interests, diminish government revenue, lead to higher unemployment rates, and threaten digital security. These issues were highlighted during a workshop entitled ‘Draft Telecom Reform Policy 2025: Relevance of ICX,’ organized by the Telecom and Technology Reporters Network Bangladesh (TRNB) at a local restaurant. The event facilitated discussions among policymakers, engineers, telecom operators, and other key figures about the future of the telecom sector. TRNB President Samir Kumar Dey led the conversation, with General Secretary Masuduzzaman Robin officially opening the session.
ICX as a Critical Infrastructure Element
Brigadier General (Retd) Mustafizur Rahman, President of the Association of Interconnection Exchange Operators of Bangladesh (AIOB), referred to the ICX as the “third eye” of the telecom industry. He cautioned that handing over this essential infrastructure to foreign entities could threaten the nation’s revenue, stifle local innovation, and compromise national security. “Our telecom infrastructure was developed by world-class engineers, but now it’s being handed over to international interests. New telecom frameworks are emerging at the expense of local stakeholders,” he remarked. Rahman warned that such shifts could lead to decreased government revenue, rising unemployment, and even potential national security threats.
Investment Risks Due to Policy Changes
Echoing Rahman’s concerns, AIOB Treasurer Brig Gen (Retd) Khurshid Alam emphasized that the industry had invested Tk 1.3 billion in upgrading technology in accordance with government directives just four months ago. “This investment now faces the risk of being wasted due to sudden policy changes,” he stated. The draft amendment to the Telecommunications Act, which is currently under examination by the Bangladesh Telecommunication Regulatory Commission (BTRC), suggests eliminating the ICX licensing framework, thereby enabling mobile operators to engage directly at the gateway level. Stakeholders fear that such a change could lead to an uptick in illegal VoIP activities, diminish transparency, and weaken existing revenue collection systems.
Revenue Losses from ICX Bypass
Ahmed-ur Rahman Romel, Head of Operations at Agni Systems Limited, highlighted the financial impact of ICX bypassing, noting that the government is losing Tk 740 million each year due to unaccounted SMS traffic. “Since July, there have been daily exchanges of SMS worth hundreds of crores through ICX, depriving the government of Tk 11.5 million in revenue each day,” he explained. Properly routing traffic through the ICX could potentially generate an additional Tk 740 million for the government annually.
The Role of ICX in Telecommunications
Currently, ICX plays a crucial role in managing the routing of international voice calls from International Gateways (IGWs) to domestic networks, while ensuring monitoring through digital surveillance. Experts affirmed that this system is vital for combating grey traffic and illegal VoIP calls, thereby safeguarding revenue and national interests.
Challenges Facing ICX Operators
Speakers also pointed out the economic difficulties ICX operators face. From the Tk 2.40 earned per mobile call, ICX operators receive merely 4 paisa—of which 2 paisa goes to BTRC—leaving only 1 paisa per call for the operators themselves, which is deemed inadequate for covering operational expenses. If the ICX framework is dismantled, over 50 access network operators in the country would need to establish individual interconnections, leading to higher costs and increased technical complications. Experts warn that this fragmentation could facilitate the rise of illegal and unmonitored telecom traffic.
Call for Preservation of the ICX Framework
The workshop also featured prominent industry leaders, 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 entities. The speakers collectively urged for the retention of the ICX framework and implored policymakers to rethink the proposed reforms in favor of a balanced and secure approach to telecom development.
