India’s Push for Faster Internet in Northeast Hits Roadblock Amid Policy Reversal in Bangladesh

India’s plans to improve internet connectivity in the Northeast have suffered a blow following a decision by Bangladesh's interim government, led by Muhammad Yunus, to reverse a key policy of the former Sheikh Hasina administration. The move, seen as aligning more closely with Pakistan, halts the use of Bangladesh as a transit point for routing internet bandwidth to India’s connectivity-challenged Northeastern states.

What Was the Proposal?

The now-canceled proposal aimed to use the Akhaura border in Tripura as a transit route, allowing Bharti Airtel’s network to channel bandwidth from Singapore to Northeast India via Bangladesh. This arrangement was expected to provide a faster, more reliable alternative to the existing infrastructure. Currently, the Northeast depends on submarine cables landing in Chennai, over 5,500 km away, which results in slower speeds and frequent outages.

Why Was the Proposal Reversed?

The Bangladesh Telecommunication Regulatory Commission (BTRC) argued that the deal would undermine its ambitions to become a regional internet hub. By allowing Indian telecom providers to route international traffic through its network, Bangladesh feared it would lose its strategic edge in hosting major global content delivery networks (CDNs) like Meta, Google, and Amazon.

The decision also follows increasing scrutiny of political influence in Bangladesh’s telecom sector, particularly around Summit Communications, whose executives are under investigation for alleged financial misconduct.

The State of Internet in Northeast India

Limited Access and Slow Speeds

·       Low Internet Penetration: While states like Sikkim boast 90% urban internet usage, others like Tripura lag at 36.3% among urban women.

·       Rural Disparities: Internet penetration remains below 50% in most rural areas, limiting digital inclusion.

·       Performance Issues: A survey revealed that 56% of internet users in the Northeast are dissatisfied with slow speeds and frequent disruptions, even in areas with 5G access.

Challenges in Infrastructure

The region’s mountainous terrain and frequent natural calamities make it difficult to maintain fiber-optic networks. Connectivity issues often lead to prolonged outages, further exacerbating the digital divide.

What Could Have Changed?

Benefits of the Transit Deal

·       Faster Speeds: Direct connectivity to Singapore via Bangladesh could have reduced latency and improved internet reliability.

·       Economic Growth: Enhanced digital access could catalyze sectors like e-commerce, telemedicine, and education in the Northeast.

·       Regional Integration: Better internet connectivity could bridge the Northeast’s gap with the rest of India, fostering socio-economic development.Political and Regulatory Backdrop

The decision comes amid political scrutiny in Bangladesh’s telecom sector. Summit Communications, one of the firms involved in the proposal, has ties to the Awami League, raising questions about favoritism under the previous government. In recent months, Summit Communications has faced controversy, including a fee waiver criticized as politically motivated and allegations of financial misconduct.

In October, Bangladesh’s Financial Intelligence Unit froze the bank accounts of Summit executives as part of a money laundering investigation, signaling heightened regulatory oversight.

Implications for India and the Region

The reversal is a setback for India’s efforts to bridge the digital divide in its Northeastern states, which remain underserved in terms of internet connectivity. Without the transit arrangement, the region will continue to rely on the slower, more fragile connection through Chennai, hindering economic development and digital initiatives.

For Bangladesh, the decision underscores a strategic shift in its foreign and economic policy, possibly recalibrating its regional alliances. However, critics argue that rejecting the deal sacrifices immediate financial benefits, such as foreign exchange earnings, while delaying its ambition to become a regional internet hub.

Broader Impact

The move may strain India-Bangladesh relations, especially as Indian Foreign Secretary Vikram Misri prepares to visit Dhaka. It also highlights the increasingly competitive geopolitics of digital infrastructure in South Asia, with countries vying to assert dominance as key internet transit hubs.

This development serves as a reminder of the intricate balance between national ambitions, regional cooperation, and the growing significance of digital infrastructure in shaping geopolitical alliances.