Bangladesh’s Bandwidth Debate: Shortage Ahead or Enough Capacity?
Bangladesh’s internet capacity has become the subject of a dispute between private submarine cable investors and the state-owned Bangladesh Submarine Cables PLC (BSCPLC). While private operators warn of a possible bandwidth shortage by 2028, BSCPLC says the country will have enough capacity to meet future demand.
In a Nutshell
- On August 31, Summit Communications, CdNet Communications and Metacore Subcom, the companies behind the Bangladesh Private Cable System (BPCS), warned that Bangladesh could face a bandwidth shortage by 2028.
- They estimate international bandwidth demand could rise from 13.5 Tbps today to 19.1 Tbps in 2027 and nearly 27 Tbps by 2028.
- The consortium argues Bangladesh needs additional submarine cables and has been seeking approval for its privately operated BPCS cable.
- On September 2, BSCPLC rejected the warning, saying Bangladesh has enough existing and planned capacity to meet future demand.
- BSCPLC says its two existing cables have around 7,200 Gbps of combined capacity, with another 3,200 Gbps available, while SEA-ME-WE-6 is expected to bring state-linked capacity to around 34,000 Gbps in 2027.
- So, the disagreement is not about whether bandwidth demand will grow, but whether Bangladesh’s planned capacity will be enough to keep up with that growth.
Context
Currently, the nation’s digital infrastructure depends on the SEA-ME-WE-4 and SEA-ME-WE-5 cables, alongside cost-effective terrestrial bandwidth imported from India. This reliance persists even as domestic state-owned submarine capacity remains underutilised. In an effort to diversify connectivity, regulators have implemented a 50% ceiling on Indian imports with a long-term goal of 30%, while proponents of expansion suggest that additional cables are vital for maintaining sovereign routes and protecting against external price volatility or technical failures.
In the private sector, BPCS has already committed $53 million and teamed up with Nokia to develop the country’s inaugural private submarine link. However, progress has stalled as vessel permits remain held up by regulatory hurdles, security considerations, and investment disputes. Despite these private-sector initiatives, BSCPLC maintains that existing infrastructure and the upcoming SEA-ME-WE-6 will be sufficient. This leaves a critical question: is the country truly facing a volume deficit, or is the real necessity centered on achieving redundancy and geographic route diversity?
Why It Matters
For Bangladesh, international bandwidth is essential for banking, e-commerce, freelancing, cloud services, businesses and everyday online activity. Having multiple submarine cables can also improve redundancy, reducing the risk of widespread disruption if one cable fails.
But the issue goes beyond having enough bandwidth. Heavy reliance on a single foreign source for connectivity can leave Bangladesh exposed to price increases, technical disruptions or changes outside its control. Past submarine cable faults have already shown how quickly connectivity can be affected.
At the same time, building excess capacity requires significant investment. The government therefore has to balance future demand, national security, competition and the cost of infrastructure when deciding whether more private cables should enter the market.
What We Think
The two sides view the issue differently: private operators emphasize rapid demand growth and the need for backup routes, while BSCPLC relies on the vast capacity of its upcoming state infrastructure.
While an immediate bandwidth crisis isn't certain, the private sector's concerns regarding redundancy remain valid. To resolve this, Bangladesh needs an independent assessment of its projected 2027–28 bandwidth demand versus total available capacity.
An objective evaluation would determine if new private submarine cables are genuinely necessary, moving the debate beyond the competing claims of interested parties.