Private Submarine Cable Awaits Home Ministry NOC

The Telecom and Technology Reporters Association of Bangladesh (TRNB) recently organized a specialized workshop at a resort located on the outskirts of Dhaka on August 31, 2024. The event brought together prominent industry figures, including Moshiur Rahman, Mahmud Shahed, Ahmed Junaid, Mohammad Aminul Hakim, Masuduzzaman Robin, and Faruk Hossain, to discuss the critical state of the nation's digital infrastructure and telecommunications landscape.

Amid discussions on connectivity, crucial updates regarding the country's first private sector submarine cable project were revealed. Organizers noted that the initiative is currently awaiting a final no-objection certificate (NOC) from the Ministry of Home Affairs. Significant administrative progress has already been achieved, with approvals successfully secured from several key government bodies, including the Ministry of Power, Energy and Mineral Resources, the Ministry of Shipping, the Ministry of Fisheries and Livestock, and the Ministry of Defence. Additional clearances have also been officially granted by the Armed Forces Division, the Ministry of Foreign Affairs, and the Ministry of Environment.

Project timelines and financial projections for the private venture indicate substantial economic benefits for end users. The marine route survey was successfully completed in the early part of 2024, paving the way for the physical installation of cables slated to begin toward the end of 2026. Commercial launch and service delivery to regular consumers were originally scheduled to reach the public by the middle of 2027. Financially, the private cable presents a stark contrast to existing infrastructure: while utilizing the government submarine cable SMW-5 costs approximately 24.4 million dollars per terabit for bandwidth acquisition, the private alternative will reduce this massive expense to just 4.2 million dollars for the exact same amount.

These dramatic cost reductions are projected to trigger widespread positive changes across the digital economy, including the strong possibility of cutting consumer internet prices by roughly 50 percent. Furthermore, overall internet service quality, measured as QoS, is anticipated to improve by at least 25 percent. Such enhancements are desperately needed to counteract the current limitations of the nation's digital network, which experts noted is currently resulting in the loss of approximately 15 percent of potential employment opportunities within the broader ICT sector.

Compounding these employment challenges, the severe impact of slow internet speeds is actively hindering national economic output, causing annual Gross Domestic Product growth to be suppressed by 0.5 to 1.2 percent. The urgency for the private cable is further underscored by alarming capacity forecasts for the coming years. By 2026, the national demand for bandwidth is projected to surge to 13.5 terabits. In contrast, existing government-run cables currently supply a mere 7.1 terabits, leaving the country facing a staggering deficit of 6.4 terabits in 2026 alone, with this acute bandwidth shortage projected to widen further to an immense 19.9 terabits by the year 2028.