Legal · Bangladesh

Legal authority & ISP permission in Bangladesh

A detailed operator guide to BTRC ISP licensing: permission categories, fees, rollout duties, tariffs, reporting, consumer rules and enforcement.

Bangladesh · BTRC Updated 12 November 2026 ISPNeuron operator guide
Important notice

This page is a practical operator guide based on publicly published BTRC ISP licensing materials and related Bangladesh telecom law. It is not legal advice and does not replace the Bangladesh Telecommunication Regulation Act, BTRC guidelines, licence schedules, directives, show-cause orders or advice from your own counsel.

Fees, application windows, conversion rules and policy reforms change. Always confirm the latest text on btrc.gov.bd and lims.btrc.gov.bd before applying, renewing, changing ownership or launching services.

Internet Service Provider (ISP) operations in Bangladesh are regulated by the Bangladesh Telecommunication Regulatory Commission (BTRC).

Under the Bangladesh Telecommunication Regulation Act, 2001 (as amended), BTRC may issue licences (with prior Government approval), set eligibility and licence conditions, supervise operators, inspect systems, and take enforcement action.

Principal instruments operators should read together:

  • Bangladesh Telecommunication Regulation Act, 2001 (as amended)
  • Bangladesh Telecommunication Regulation (Licence) Regulations / licensing procedure rules in force
  • Regulatory and Licensing Guideline for Internet Service Provider (ISP) in Bangladesh
  • Infrastructure Sharing Guidelines and related interconnection instructions
  • Tariff, QoS, cyber-security, LI and consumer directives issued from time to time
  • Wireless Telegraphy Act, 1933 and Telegraph Act, 1885 where matters are not covered by the 2001 Act

Providing telecommunication / internet systems or services without a valid licence is an offence and may attract imprisonment, fine, or both. Guidelines may be withdrawn, revised or amended—including for public health, national security or court orders.

These are different activities under Bangladesh practice:

Activity Typical BTRC ISP licence? Notes
Selling / hosting ISP management software (billing, CRM, reports) Usually no Still needs normal company / tax / trade registrations
Building, maintaining and selling internet / data access to end users Yes — ISP licence required Core BTRC ISP permission
Reselling bandwidth, operating gateways, NTTN, IGW/IIG-type systems Separate telecom licences Not covered by a software SaaS arrangement
Using software inside a licensed ISP Software ≠ licence Tools help compliance work; they do not create legal permission

ISPNeuron is ISP workspace software. It does not issue BTRC licences and does not make an unlicensed operator lawful.

Under the ISP guideline framework, no person or business entity may build, maintain and operate ISP systems and services without a licence.

In practice you need an ISP licence if you will:

  • Provide fixed internet / data connectivity to subscribers in Bangladesh
  • Operate ISP access networks, POPs and customer last-mile for retail or wholesale internet access in a licensed area
  • Offer IP-based internet services listed in the guideline as ISP services

Government / Commission may limit how many licences are issued and may temporarily control new issuance to keep markets competitive. At times, new applications have been accepted only for areas where ISP service is not yet available. Check current LIMS circulars before preparing an application.

Licences are categorised by authorised geographic coverage:

Licence type Authorised service area Key limit
Nationwide ISP Anywhere in Bangladesh Broadest coverage; FDI rules apply specially
Divisional ISP One administrative division One Divisional licence per entity
District ISP One administrative district One District licence per entity
Upazila / Thana ISP One Upazila / Thana Local-area authorisation only

4.1 Conversion from older categories

When newer guidelines take effect, existing licensees may be required to convert, for example:

  • Nationwide → Nationwide
  • Older Zonal licences → Divisional (subject to conversion limits stated in the guideline)
  • Older Category A/B/C style licences → Upazila / Thana (subject to conversion limits)

Conversion applications, deadlines and fee treatment follow the then-current guideline clauses. Draft reforms (for example proposals to simplify fixed telecom licensing into fewer layers) may change categories in future—treat any draft policy as non-final until Government / BTRC notifies otherwise.

5.1 Who may apply

  • Proprietorships, partnerships and companies registered under the Companies Act / Joint Stock of Companies & Firms framework are generally eligible to apply to build, maintain and operate ISP systems.
  • Foreign Direct Investment (FDI) is treated specially for Nationwide ISP licensees and must follow Government FDI policy plus Bangladesh Bank, BIDA and other competent-authority rules.

5.2 Common ineligibility / conflict examples

  • Entities (except where Government entities are excepted) holding certain other licences such as NTTN / IIG / IGW / submarine cable / ITC may be barred from also holding an ISP licence under guideline conflict rules.
  • Cellular mobile operators, and persons / companies connected through shareholding / partnership / directorship with licensed mobile operators, are generally ineligible for this ISP licence category.
  • Satellite broadcasting / cable broadcasting operators may be restricted; existing dual-service situations may require surrender of one permission within stated deadlines.
  • Cross-holding rules also restrict applying for additional ISP licences when the same ownership group already holds ISP licences (subject to conversion exceptions).

5.3 Personal / entity disqualification grounds (illustrative)

Applicants (or owners / directors / partners) may be disqualified for reasons such as:

  • Insanity / legal incapacity under applicable law
  • Serious criminal conviction within the look-back period stated in the guideline
  • Bankruptcy / insolvency situations described in the guideline
  • Prior licence cancellation by the Commission within the stated period
  • Wilful misrepresentation, corrupt practice, or improper influence during evaluation
  • Failure to pay Licence Acquisition Fee within the stipulated time after award notification (commonly 30 days in published guideline text)
  1. Obtain the current application form and checklist from BTRC / LIMS (forms and required annexures can change).
  2. Submit the application with attested company documents, declarations / undertakings, technical / commercial information and prescribed evaluation charge.
  3. BTRC evaluates submitted documents/information. Untrue or inaccurate material can lead to rejection or later cancellation.
  4. Selection for award is subject to Government approval.
  5. After approval notification, deposit the Licence Acquisition Fee within the stated deadline or the award may be cancelled.
  6. Provide bank guarantee / pay order where required, unless annual fees for the full licence term are deposited in advance under the option that waives the guarantee.
  7. Receive the licence document and commence operation within the commencement window (see section 8).

Renewals use the renewal pathway in LIMS / guideline appendices and must be started before expiry, with renewal fees and then-current conditions.

  • Initial term: commonly 5 years, unless cancelled earlier.
  • Renewal term: commonly further 5-year terms, with prior Government approval, payment of fees/charges, and compliance with conditions then in force.
  • Late fees: delayed payment of prescribed fees can attract additional late charges (published guideline text has used an annual percentage-based late fee). Prolonged default can trigger guarantee encashment or enforcement.

7.1 Illustrative fee classes from published ISP guideline tables

Amounts below are from publicly published ISP guideline fee tables and are shown for operator planning awareness. They may already have been revised—verify live BTRC / LIMS figures before remitting. Figures are in BDT and exclude other taxes / charges of other authorities.

Charge Nationwide Divisional District Upazila / Thana
Evaluation charge 25,000 10,000 10,000 5,000
Licence Acquisition Fee 500,000 200,000 100,000 25,000
Annual Fee 250,000 100,000 50,000 10,000
Licence Renewal Fee 500,000 200,000 100,000 25,000
Bank Guarantee / Pay Order 500,000 200,000 100,000 25,000

Annual fees are typically payable in advance. Existing licensees may have transitional fee treatment under conversion clauses—read those carefully.

  • Commencement: commence operation within about 6 months of licence issuance (extensions may be considered on reasoned application; otherwise cancellation risk).
  • Hard stop risk: published guideline text also provides that licence may be cancelled if operation is not commenced within 1 year.
  • Rollout coverage targets (illustrative published schedule): Year 1 ≥ 25% of licensed area; Year 2 ≥ 50%; Year 3 ≥ 75%; Year 4 ≥ 100%.
  • At least about 10% of total subscribers should come from local / sparsely populated areas under the published rollout clause.
  • Failure to meet rollout obligations can lead to cancellation.

9.1 Services commonly allowed

ISP licensees may provide internet / data and IP-based services such as internet connectivity, email, newsgroups, IRC, FTP-based services, instant messaging and innovative IP-bundled services—subject to later directives.

9.2 Services needing prior Commission approval / extra conditions

  • Certain OTT services and video conference offerings (prior approval under published clauses)
  • OTT / IoT offerings until superseded by newer regulations
  • Triple-play (data, voice & video) as directed by Commission instructions
  • IPTV subject to Ministry of Information conditions
  • Any new internet-related service class requiring prior permission

9.3 Last mile & local authority rules

  • Fixed internet / data and permitted fixed Wi‑Fi-based data services
  • Last-mile length commonly limited to about 3 km in metropolitan areas and about 6 km elsewhere
  • Must follow local-authority instructions for rights of way, digging, poles and related civil works
  • Wi‑Fi technology use requires following Commission instructions and obtaining required prior approval
  • Connect to licensed IIG for international bandwidth lease
  • Take transmission / backhaul on lease / sub-lease from NTTN (or follow Infrastructure Sharing Guidelines where NTTN is unavailable)
  • Connect to NIX for domestic inter-operator data traffic; submit interconnection agreements for Commission intimation as required
  • Do not use VSAT for internet / data without a separate VSAT licence
  • NIX interconnection is for domestic internet / data only
  • Comply with National Frequency Allocation Plan / re-farming directives if spectrum is involved
  • Maintain Quality of Service (QoS); persistent QoS failure can lead to licence cancellation
  • Keep systems / access networks compatible with NGN / IPv6 migration instructions
  • Maintain cyber-threat protections, child-protection capabilities, and follow Cyber Security guidelines / directives
  • Share facilities only under Infrastructure Sharing Guidelines and Act conditions
  • BTRC may determine tariffs when necessary and issues binding tariff directives.
  • Before launching any new service, submit in writing: proposed max/min charges with justification; service description; customer terms; and publishable information that is current and easy to understand.
  • Do not start a service before written tariff approval.
  • Obtain written approval again before changing approved tariff charges.
  • Innovative slab / bundled / capacity-based tariff models may be encouraged when consistent with directives.
  • Furnish information sought by BTRC in prescribed formats on monthly and quarterly bases (and otherwise as directed).
  • Provide online and offline access for Commission monitoring of systems and services; web-based monitoring access may be required.
  • Allow unfettered inspection of installations / equipment and cooperation including suitable accommodation for tests.
  • Preserve user history, system-failure records, SNMP traffic and per-user bandwidth utilisation logs as daily logs for at least 3 months (and longer—commonly 6 months for a particular case—if LEA / Commission requests).
  • Submit audited financial statements / yearly audited accounts (commonly 3 copies) within about 3 months after each financial year end.
  • Submit annual information on operations, client list, updated trade licence, latest income-tax clearance and similar items as directed.
  • Keep licence scope, coverage claims and marketed services aligned.
  • Publish a Customer Code of Practice with prior Commission approval covering complaints handling, dispute settlement, service termination and usage policy.
  • Use common subscriber registration forms / conditions issued by the Commission.
  • Submit an annual self-evaluation report on Code of Practice compliance (within about one month after the accounting period ends in published text).
  • Provide free parental-control capability for subscribers (block sites / chat / IM, filter media, view activity, alerts on setting changes, time limits, etc.).
  • Inform subscribers that internet can be misused by underage users and promote safer browser / OS / ISP control settings.
  • Seek prior written Commission approval before ownership changes; unapproved changes are ineffective.
  • Do not transfer shares or issue new shares without prior written permission.
  • Do not transfer / assign the licence (wholly or partly) without prior Government permission; unapproved transfers are void.
  • Notify the Commission regarding loans for network deployment; licence and radio equipment shall not be pledged as security in the manner prohibited by the guideline.
  • Spectrum, if assigned, is governed by assignment letters; BTRC may assign, cancel, revoke, re-farm or withdraw spectrum.
  • In national emergencies / security situations, Government may use systems, require cooperation for traffic continuity, or suspend particular activities within legal limits.
  • Use energy-efficient / environmentally safer equipment and manage radiation / health-hazard precautions for installations.
  • Operational systems must be Lawful Interception (LI) compatible and connect only with authorised LI monitoring arrangements at LEA premises as required.
  • For Wi‑Fi subscribers, ensure identification, verification, authorisation and monitoring compliance as directed.
  • Follow all LI Rules / Regulations / Directives / Guidelines issued by Government or Commission.
  • Cooperate with relevant agencies for continuity of traffic during national emergencies.

BTRC may suspend or cancel a licence (in whole or part) and/or impose fines under the Act (including relevant sections on licence breach and related offences), typically with prior Government permission where the Act so requires.

Common trigger paths include:

  • Violation of guideline / licence conditions after show-cause process
  • Failure to commence / roll out as required
  • Persistent QoS non-compliance
  • Fee default and related enforcement
  • Misrepresentation or unlawful conduct in licensing / operations

Operators should treat every show-cause notice as time-critical: reply with facts, remediation plans and supporting records.

Even with (or without) a BTRC ISP licence, operators and software companies commonly still need ordinary business compliance, for example:

  • RJSC company / firm registration
  • Trade licence from the relevant city corporation / pourashava / local authority
  • e-TIN and VAT / BIN registrations as applicable
  • Income-tax compliance and clearance certificates when demanded by BTRC reporting rules
  • Municipal / local permissions for civil works and site installations
  • BASIS or other industry memberships where useful (not a substitute for BTRC)
  1. Confirm whether your activity is software-only or regulated ISP connectivity.
  2. If ISP: choose the correct licence category for intended coverage.
  3. Clear eligibility / ownership conflicts before spending on evaluation fees.
  4. Budget evaluation, acquisition, annual, renewal and guarantee amounts using live BTRC figures.
  5. Design IIG + NTTN + NIX architecture; avoid prohibited VSAT use.
  6. Map last-mile design to 3 km / 6 km limits and local-authority permits.
  7. Prepare tariff filings before launch; never go live on unapproved charges.
  8. Build monthly / quarterly reporting, log retention (≥ 3 months) and audit calendars.
  9. Implement Code of Practice, complaint desk and free parental controls.
  10. Validate LI readiness and cyber / child-protection controls.
  11. Track commencement (6 months / 1 year risks) and yearly rollout coverage targets.
  12. Get prior written approval for ownership, share issue or licence transfer events.
  13. Store licence, guarantees, interconnection agreements, tariff approvals and inspection replies securely.
  14. Use operational software to keep customer, billing and report trails organised—without treating software as legal permission.

ISPNeuron provides ISP workspace software for customers, billing, network context, team access, reporting and day-to-day operations (including reporting workflows such as BTRC monthly report support where enabled in a plan).

  • ISPNeuron does not issue, renew or transfer BTRC licences.
  • Using ISPNeuron does not replace Government / BTRC permission.
  • Licensed operators can use the workspace to keep subscriber, collection and reporting records organised so compliance tasks are easier to execute.

Need software onboarding while you handle licensing with BTRC? Request a quote or email [email protected].

For ISPNeuron software questions:

For licence applications, renewals, fees, ownership approvals or formal interpretations, contact BTRC through official channels only.