To accelerate the growth of Internet of Things (IoT) services in Bangladesh, a new framework has been introduced to foster innovation and regulate the industry by BTRC. This initiative aims to build a secure, efficient, and cost-effective IoT ecosystem while encouraging investment and supporting startups stated in a report.
The proposed guidelines formalize the operations of IoT service providers through an enlistment certification process. By bringing providers under regulatory oversight, the framework ensures compliance with proper standards and promotes a level playing field for domestic companies. This positions local businesses to compete effectively in the IoT sector while attracting both international and local investments.
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Central to the framework is a certification process requiring IoT service providers to obtain an enlistment certificate. Initially valid for one year, the certificate is renewable annually. However, some stakeholders have suggested extending the validity period to three years to reduce administrative burdens for startups.
The guidelines envision a thriving IoT ecosystem by encouraging young engineers and technologists to create innovative startups leveraging cutting-edge technologies. The introduction of a Regulatory Sandboxing Guideline further supports this vision, protecting smaller players from anti-competitive practices and fostering creativity.
Eligibility requirements for service providers include registration with the Registrar of Joint Stock Companies and Firms, possession of a trade license, and compliance with the Companies Act of 1994. Financial obligations include an application fee, enlistment fee, and annual renewal fee. For large-scale providers, these fees are set at Tk. 5,000 for application and processing, with a Tk. 20,000 enlistment fee and annual renewals at the same rate. Revenue-sharing begins after the first two operational quarters, with 5.5% of annual income directed to the Commission and 1% to the Social Obligation Fund (SOF).
Startups benefit from a more accessible fee structure, with uniform fees of Tk. 5,000 for application, enlistment, and renewals. To nurture innovation, early-stage startups are exempted from revenue-sharing and SOF contributions during their initial operational period. This incentive aims to create a supportive environment for developing groundbreaking IoT solutions.
All payments must be made within stipulated deadlines, with penalties of 15% per annum imposed on late fees. Non-compliance may lead to the cancellation of enlistment and further legal action. These measures are designed to balance compliance with innovation, ensuring the industry’s sustainable growth.
The guidelines reflect the country’s readiness to embrace Fourth Industrial Revolution technologies, transforming industries through intelligent systems powered by sensors, data analytics, and remote management platforms. By fostering a supportive environment for startups, Bangladesh is poised to unlock the full potential of IoT and position itself as a leader in this transformative field.
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