PSTN Licence in Bangladesh

Executive Summary

The Public Switched Telephone Network (PSTN) licence historically allowed operators to provide fixed-line (landline) voice services in Bangladesh. In 2025, the market reality is stark: state-owned BTCL is the lone nationwide PSTN operator (since 2018) and the regulator revoked seven PSTN licences on 20–23 January 2025 for non-renewal. As of today, new PSTN licensing windows are not openly advertised, and the Bangladesh Telecommunication Regulatory Commission (BTRC) guideline index does not list a live PSTN guideline for applications. In practice, companies needing fixed voice services now usually pursue IP Telephony via IPTSP (for ISPs), enterprise voice over fibre, or sector-specific authorisations rather than classic PSTN. (The Daily Star, The Business Standard, lims.btrc.gov.bd)

This guide explains (1) what a PSTN licence is, (2) the current licensing landscape and viability in 2025, (3) credible alternatives that get you to the same business outcome, (4) process, costs, timelines, and compliance if a window opens or you need a regulatory strategy now, and (5) how TRW Law Firm can help end-to-end.

1) What exactly is a PSTN licence?

A PSTN licence authorises fixed, circuit-switched telephony—traditional landlines—under the national numbering plan. Bangladesh’s numbering rules reserve ranges for PSTN and are managed by BTRC under the Telecommunication Act, 2001 and the National Numbering Plan (NNP). (ITU, btrc.portal.gov.bd)

Key characteristics (conceptual):

• Geographic numbering (district/zila-based blocks under the NNP).
• Interconnection with other national networks through designated exchange points and adherence to BTRC interconnection regulations.
• Lawful interception, consumer protection, quality of service (QoS), billing/charging and complaint-handling obligations.

Note: The NNP is periodically updated, including a 2017 refresh that BTRC enacted to modernise allocations across mobile, PSTN, and short codes. (New Age)

2) The 2025 reality: is PSTN licensing viable?

2.1 Market structure today

• BTCL is the sole nationwide PSTN operator (since 2018). Private PSTN footprints dwindled over the last decade, driven by mobile substitution and regulatory compliance pressures. (The Daily Star)
• On 23 January 2025, BTRC revoked seven PSTN licences (Tele Barta, Ranks Telecom, National Telecom, Bangla Phone, Westech, One Tel, Integrated Services) for failing to submit renewal applications. After these cancellations, BTCL remained the only national PSTN licensee; a small number of regional PSTN licences survived on paper. (The Business Standard)

2.2 Is BTRC issuing new PSTN licences now?

• BTRC’s public Guidelines index (its live repository) does not list a PSTN operator guideline or an open application window in 2025. When BTRC does license infrastructure or access services, it typically issues category-specific guidelines or invitation of offers (RFP/auction) with explicit application windows; PSTN is not currently featured. (lims.btrc.gov.bd)

Bottom line: In 2025, classic PSTN entry is not a practical path for new private entrants. If your goal is to offer fixed voice to enterprises/consumers, you should pivot to modern licensing routes (see Section 3).

3) What to get instead: practical alternatives to reach the same business outcome

3.1 IPTSP (Internet Protocol Telephony Service Provider) – for ISPs

• Who it’s for: Licensed ISPs that want to add IP-based voice (SIP, softphone, IP-PBX, hosted voice) with BTRC-assigned numbering for voice applications and inter-operability with PSTN and mobile networks.
• Regulatory anchor: Amended IPTSP Guidelines; they address numbering assignment, inter-operability (with PSTN/mobile), interconnection agreements, QoS and lawful intercept. Eligibility is restricted to ISP licensees. (lims.btrc.gov.bd)
• Use cases: Hosted PBX for SMEs, enterprise SIP trunks, contact centres, and “fixed voice over fibre” offers bundled with broadband.

3.2 Enterprise voice without public numbering

• Private voice inside campuses via enterprise PBX over your own fibre (or via NTTN leases). No public numbering; used for internal calling, hotlines, and integrated UC. (Where public calling is required, couple PBX with an IPTSP partner or licensed operator.)

3.3 Sectoral registrations and add-ons

• TVAS Registration (Value-Added Services) for certain voice-adjacent applications (IVR/alerts integrated with licensed carriers). This does not replace a telephony licence but enables compliant service layers on top of licensed networks. (lims.btrc.gov.bd)

3.4 Why this route is better (2025)

• Commercial reality: Landline retail demand is low; enterprises prefer IP voice and SIP trunks over fibre. Regulators are active against illegal VoIP; it’s essential to stay within formal, current-generation frameworks. (The Business Standard)
• Speed to market: IPTSP (for ISPs) or partnering with an IPTSP is generally faster and more future-proof than hoping for a PSTN window to open.

4) If BTRC ever opens a PSTN window again: what would the process look like?

While there is no current window, BTRC’s licensing procedure regulations and historic practice show consistent patterns that TRW uses to build strategies:

4.1 Typical selection mechanics

• Formal guideline & invitation: BTRC issues a guideline/RFP with scope, coverage (national/zonal/rural), technology, and timelines.
• Competitive selection: Evaluation and/or auction/beauty-contest format, using eligibility filters and scoring on technical, financial, rollout, and compliance plans. (amtob.org.bd)

4.2 Usual eligibility filters (indicative)

• Corporate standing: Incorporated entity in Bangladesh (or to be incorporated), clean legal and tax records, audited financials.
• Financial capacity: Minimum paid-up capital/net worth thresholds; Performance Bank Guarantee (PBG) post-award. (btrc.gov.bd)
• Technical plan: Class-4/5 softswitch/IMS, numbering demand plan, lawful intercept, 999 emergency call routing, CLI integrity, fraud controls.
• Rollout: Coverage commitments (exchanges, last-mile over copper/fibre, or fixed wireless where permitted), NOC/ROW planning, disaster recovery.

4.3 High-level steps (what to expect)

1. Regulatory watch & pre-filing
   – Track BTRC notices; assemble consortium capability, choose nationwide vs. zonal focus; commission feasibility and spectrum/numbering due-diligence.
2. Application preparation
   – Draft the technical & financial proposal, OSS/BSS, customer care, tariff framework, interconnection plan, numbering block needs under the NNP, and compliance commitments. (btrc.portal.gov.bd)
3. Submission & evaluation
   – Respond to RFP; attend clarifications; potentially deposit bid security/EMD if auctioned.
4. Letter of Intent (LoI) & PBG
   – Satisfy LoI conditions, submit PBG, pay initial licence/acquisition charges as per guideline. (btrc.gov.bd)
5. Licence grant & numbering allocation
   – Obtain operator code(s) and blocks; publish dial plans; implement interconnection. (btrc.portal.gov.bd)
6. Network rollout and testing
   – Interconnect with ICX/other operators, complete QoS testing, activate lawful intercept, open customer care and billing.
7. Commercial launch & compliance reporting
   – Start services; file periodic reports, pay regulatory dues.

5) Cost heads (what to budget for)

Exact figures depend on the specific guideline (and whether a PSTN window opens or you pursue IPTSP). Expect these cost components:

• Application & evaluation fees (non-refundable).
• Licence acquisition fee (fixed or auction-determined), annual licence fee, and where relevant revenue share percentages.
• Performance Bank Guarantee (PBG) and other bank instruments required by BTRC. (btrc.gov.bd)
• Numbering resource fees (block application/maintenance under the NNP). (btrc.portal.gov.bd)
• Spectrum fees if any wireless element is authorised (older PSTN licences sometimes used CDMA bands).
• Interconnection charges (to ICX/other operators) and port charges.
• NTTN leases/ROW: Fibre lease or rights-of-way costs with city corporations, highways authorities, utilities.
• CAPEX/OPEX: Softswitch/IMS, SBCs, SBC licences, SBC HA, CPE/ATAs, last-mile build, OSS/BSS, billing/mediation, LI probes, fraud systems, DRC sites.
• Compliance operations: QoS testing, audit, security, lawful interception operations, data retention infrastructure.

Advisory note: In 2025, many operators find IPTSP (for ISPs) + enterprise SIP a more capital-efficient route than legacy PSTN, especially given low landline demand and stricter compliance around illegal VoIP. (The Business Standard)

6) Timelines you can plan around

• IPTSP (if you are already an ISP licensee): Dossier preparation (3–6 weeks), BTRC processing (variable; historically a few months), numbering + interconnects (4–8 weeks).
• Classic PSTN (if a window opens): Pre-RFP planning (4–8 weeks), submission window (typically 3–6 weeks), evaluation (2–4 months), LoI to licence (1–2 months), rollout readiness (3–9 months).

Treat these as planning baselines, not commitments; actual durations depend on the specific guideline, completeness of documents, and interconnection/testing schedules.

7) Compliance obligations (the “always-on” responsibilities)

Whether PSTN or IPTSP, expect BTRC to require:

• NNP compliance: Use and stewardship of number blocks as per the National Numbering Plan, including future portability obligations as directed. (btrc.portal.gov.bd)
• Inter-operability/interconnection: Agreements with other licensees; adherence to interconnection regulations and interoperability clauses (explicit for IPTSP). (lims.btrc.gov.bd)
• Lawful intercept & security: LI interfaces, data retention, incident reporting, fraud control (anti-SIMBOX/anti-grey traffic).
• Emergency services: Routing access to 999 and location/routing practices as directed.
• QoS: Metrics for call completion, ASR, NER, post-dial delay, jitter/latency (IP), complaint resolution.
• Consumer protection & tariffs: Clear tariff publication, bill accuracy, dispute processes.
• Reporting & fees: Periodic reports, annual fees, audits.

8) Numbering, interconnection & routing — what changes in an IP era?

• Numbering: PSTN and IP telephony both rely on BTRC-assigned numbering resources; IPTSP guidelines explicitly provide for voice application numbering and NNP compliance. (lims.btrc.gov.bd)
• Interconnection: Traditional PSTN relies on time-division exchanges and SS7; IPTSP uses SIP interconnects, SBCs and softswitches/IMS, but must still inter-operate with PSTN and mobile. (lims.btrc.gov.bd)
• International calls: Subject to the ILDTS framework and must traverse authorised gateways—do not attempt to shortcut via illegal VoIP; the regulator actively penalises violations. (Mobile World Live)

9) Risk map and how to avoid pitfalls

• Regulatory timing risk: Betting on a PSTN window reopening can stall business plans for years. Design a dual-track plan (IPTSP or partnership) that can launch now.
• Grey traffic exposure: Zero tolerance for illegal VoIP; implement fraud management from day one. Enforcement is active. (Mobile World Live)
• Commercial viability: Retail landline demand is structurally low; build a B2B-first model (hosted PBX, SIP trunks, call centre voice) on fibre. (The Daily Star)
• Numbering shortages: Ask early for adequate blocks under the NNP; justify forecasts with real pipelines. (btrc.portal.gov.bd)
• Interconnect delays: Start interconnection negotiations in parallel with licensing to prevent launch bottlenecks.
• Compliance ops: Budget for LI, QoS probes, security, and periodic audits—these are not optional.

10) How TRW Law Firm helps (end-to-end)

• Strategy: We benchmark your plan against the current licensing climate, advising whether IPTSP (for ISPs), partnerships, or sectoral registrations are optimal.
• Licensing execution: Dossier drafting, eligibility checks, numbering plans, interconnection frameworks, tariff schedules, and PBG/banking instruments.
• Regulatory interface: We coordinate clarifications with BTRC, prepare responses, and support hearings.
• Commercialisation: Interconnection negotiations, wholesale agreements, NTTN leases/ROW planning, and consumer-facing compliance (T\&Cs, privacy, complaint handling).
• Governance & audit: Compliance dashboards, annual filings, policy updates, and regulatory change watch.

Explore our telecom-focused legal insights at TRW Law Firm: tahmidurrahman.com (internal link).

11) FAQs (client-ready)

Q1. Can I get a new PSTN licence in 2025?
Short answer: There is no public PSTN window right now; BTCL remains the sole nationwide PSTN operator and several private PSTN licences were revoked in January 2025. Consider IPTSP or partnering with an existing licensee. (The Business Standard, lims.btrc.gov.bd)

Q2. I’m an ISP. Can I add voice with my own numbers?
Yes—apply for IPTSP. The guideline covers numbering, inter-operability with PSTN/mobile, and interconnection. (lims.btrc.gov.bd)

Q3. How are phone numbers allocated?
BTRC assigns number blocks under the National Numbering Plan; you must justify forecasts, use numbers efficiently, and follow all NNP rules. (btrc.portal.gov.bd)

Q4. What are the biggest compliance risks?
Illegal VoIP exposure, weak LI/security, and poor numbering/interconnect planning. Bangladesh’s regulator actively enforces—design robust controls from day one. (Mobile World Live)

Q5. What timeline should I plan for?
For IPTSP (if you already hold an ISP licence): ~3–6 weeks to prepare, a few months for processing, and another 1–2 months for numbering and interconnects. For PSTN, plan longer and only if a new window opens.

12) Client checklist — documents & decisions to fast-track

Corporate & financial

• Certificate of incorporation, MoA/AoA, latest trade licence, TIN/VAT.
• Board resolutions authorising the application and PBG issuance.
• Audited financials (3 years, if available) and bank solvency letters.

Technical & operations

• Network architecture (core, SBCs, LI, DRC), interconnect topology.
• Numbering demand plan and dial plan under NNP. (btrc.portal.gov.bd)
• QoS plan (KPIs, monitoring), complaint handling SOPs.
• Cybersecurity, fraud control (anti-SIMBOX/anti-grey), data retention.

Commercial

• Tariff framework, wholesale agreements, enterprise offers (SIP trunk, hosted PBX).
• Marketing/consumer disclosures compliant with BTRC rules.

Regulatory instruments

• Application forms per the operative guideline (e.g., IPTSP for ISPs). (lims.btrc.gov.bd)
• Performance Bank Guarantee drafts (bank-vetted). (btrc.gov.bd)

13) Sample roadmaps (what we typically implement)

A) You are an established ISP expanding into voice

1. Gap-assessment vs. IPTSP eligibility and technical stack.
2. Prepare the IPTSP dossier (numbering, interconnects, QoS, LI). (lims.btrc.gov.bd)
3. Parallel-track interconnect MOUs with mobile/PSTN for faster go-live.
4. Launch with B2B SIP trunks + hosted PBX; add consumer bundles where viable.

B) You are a new entrant (no ISP licence)

1. Evaluate acquisition/partnership with an existing ISP; or apply for ISP first.
2. Phase-2: Apply for IPTSP through the ISP entity; build enterprise voice offers.

C) You are a utility/estate/campus wanting landline-style phones

1. Deploy fibre-based private voice (IP-PBX) for internal calling.
2. For off-net calling, integrate with an IPTSP partner providing numbering.

14) Quick Facts — PSTN vs. IPTSP (2025)

Sources: BTRC guideline index; Daily Star (BTCL sole since 2018); TBS (licence revocations Jan 2025); IPTSP guideline. (lims.btrc.gov.bd, The Daily Star, The Business Standard)

15) Summary Table — “Everything you need to know” (2025)

16) Work with TRW Law Firm

We combine telecom regulatory depth with execution—from licence design to commercial launch. If you’re considering fixed voice in Bangladesh, we’ll map a PSTN-vs-IP strategy that gets you to market fast and compliant.

Contact TRW Law Firm
Phone: +8801708000660, +8801847220062, +8801708080817
Email: info@trfirm.com, info@trwbd.com, info@tahmidur.com
Dhaka: House 410, Road 29, Mohakhali DOHS
Dubai: Rolex Building, L-12 Sheikh Zayed Road.

References (select)

• BTCL sole PSTN operator since 2018; landline trends — The Daily Star, “Landline use down drastically,” 20 Apr 2023. (The Daily Star)
• BTRC revoked seven PSTN licences (Jan 2025) — The Business Standard, 23 Jan 2025. (The Business Standard)
• BTRC live Guidelines index (no PSTN guideline listed in 2025) — BTRC LIMS guideline page. (lims.btrc.gov.bd)
• National Numbering Plan (baseline framework; NNP 2005; 2017 update enacted) — BTRC NNP 2005 PDF; New Age report on NNP 2017. (btrc.portal.gov.bd, New Age)
• IPTSP guideline (eligibility, numbering, inter-operability) — BTRC IPTSP Guideline. (lims.btrc.gov.bd)

Prepared by TRW Law Firm’s Telecoms, Media & Technology practice.