Subsea Cable Consortium, Landing-Party and Capacity Agreements in Bangladesh

by Barrister Tahmidur Rahman | Sep 20, 2026

Technology, IP & DataContracts for Bangladesh's digital lifelines8 min read

Subsea Cable Consortium, Landing-Party and Capacity Agreements in Bangladesh

Subsea cable advice for operators, investors, carriers, data centre owners and content networks connecting to Bangladesh, covering consortium and construction and maintenance agreements, landing-party arrangements, IRU and capacity contracts, BTRC licensing, landing station land, permits and cross-border risk allocation between all parties.

Overview

Our subsea cable practice in Bangladesh

Almost all of Bangladesh's international internet traffic travels through a small number of subsea cable systems landing on the Bay of Bengal coast, supplemented by terrestrial links across the Indian border. Demand from mobile operators, data centres, cloud platforms and the outsourcing sector keeps growing, and new systems and private landing stations are being planned. We advise operators, investors, carriers and large capacity buyers on the contracts and approvals that sit behind every subsea cable connection, as part of our technology, IP and data practice in Bangladesh, so that the commercial deal and the regulatory position work together.

A modern subsea cable rarely belongs to one company. Systems are typically built by a consortium of carriers under a construction and maintenance agreement, or by a private developer that sells capacity to customers. Each landing country needs a landing party to own or operate the landing station, hold the local licences and connect the system to domestic networks. Capacity is then sold through indefeasible rights of use, leases or wholesale service contracts. These documents must work together, because a gap in one, such as an unclear maintenance obligation or landing right, can affect the value of all the others.

In Bangladesh, international connectivity is a licensed activity regulated by the Bangladesh Telecommunication Regulatory Commission under the Bangladesh Telecommunication Act 2001 and related licensing policies, which have been under review since 2025. The state-owned Bangladesh Submarine Cable Company Limited participates in international consortium systems, and private operators have also been licensed to build landing stations. Licence scope, foreign ownership rules, revenue sharing, lawful interception and security conditions all shape what a new entrant or partner can do. We advise on the current licensing position and on how licence terms should be reflected in the subsea cable agreements.

Landing a subsea cable also involves practical questions of land, coast and sea. Landing stations need secure title or long leases, beach manholes and cable routes need permissions, and marine works raise environmental, fisheries and navigation issues. Bangladesh's maritime boundaries with Myanmar and India were settled by international tribunals in 2012 and 2014, which gives route planners more certainty, but permits for works in territorial waters and the coastal zone still require careful coordination. We work with engineers and marine survey contractors to make sure permits, land rights, insurance and contract milestones line up from the start.

Our team combines telecom regulatory, project, finance and disputes experience. We negotiate with international carriers, system suppliers and lenders, often with counsel in Singapore, the UK, the UAE or India, and we advise on foreign exchange approvals for capacity payments, tax on cross-border charges and the Personal Data Protection Act 2026 where cable infrastructure carries regulated data. Where foreign investment is involved, we coordinate approvals through Invest Bangladesh. If a cable fault, payment default or consortium disagreement turns into a dispute, our dispute resolution lawyers handle arbitration, enforcement and court proceedings.

01 · What we handle

Core workstreams

  • Consortium and C&MA negotiation
  • Landing-party arrangements
  • IRU and capacity contracts
  • BTRC licensing and compliance
02 · How it runs

Four clear stages

  1. 01Define the project
  2. 02Check licences and permits
  3. 03Negotiate the documents
  4. 04Support operations
03 · Start here

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Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

Subsea cable agreements and approvals we handle

Workstream 01Technology, IP & Data

Consortium and C&MA negotiation

  • Define the project
  • Check licences and permits
  • Negotiate the documents
  • Support operations
Workstream 02Technology, IP & Data

Landing-party arrangements

  • Define the project
  • Check licences and permits
  • Negotiate the documents
  • Support operations
Workstream 03Technology, IP & Data

IRU and capacity contracts

  • Define the project
  • Check licences and permits
  • Negotiate the documents
  • Support operations
Workstream 04Technology, IP & Data

BTRC licensing and compliance

  • Define the project
  • Check licences and permits
  • Negotiate the documents
  • Support operations
Workstream 05Technology, IP & Data

Landing station land and permits

  • Define the project
  • Check licences and permits
  • Negotiate the documents
  • Support operations
Workstream 06Technology, IP & Data

Faults, repairs and disputes

  • Define the project
  • Check licences and permits
  • Negotiate the documents
  • Support operations
01

Consortium and C&MA negotiation

We advise parties joining or forming a subsea cable consortium on memoranda of understanding, construction and maintenance agreements, voting and management committee rules, cost sharing formulas, supply contract oversight, upgrades, new parties and exit. We pay particular attention to how Bangladeshi licence conditions, payment approvals and landing obligations interact with consortium decisions taken by majority vote outside the country, and on protecting a minority member's position when budgets, routes or suppliers change.

02

Landing-party arrangements

We structure the landing party role for Bangladesh, including landing station ownership or lease, operation and maintenance, backhaul connections, access for other parties, security, power and redundancy. We draft landing party agreements and station access terms that allocate costs, liabilities and service levels fairly between the landing party, the consortium or developer, and the carriers that connect at the station, including clear procedures for emergencies, outages and planned maintenance windows.

03

IRU and capacity contracts

We draft and negotiate indefeasible right of use agreements, capacity leases, wholesale bandwidth and spectrum agreements for subsea cable capacity, with attention to delivery and acceptance, operation and maintenance charges, restoration priorities, upgrades, termination and transfer. We also advise on the accounting and tax treatment that buyers and sellers in Bangladesh usually raise during negotiations, working closely with their accountants and tax advisers so that the commercial terms and the reporting position are consistent.

04

BTRC licensing and compliance

We advise on licence categories for international gateway, cable landing and terrestrial connectivity services, licence applications and renewals, foreign ownership and partner rules, revenue sharing, tariff approvals, lawful interception and network security obligations. Where a licence condition is unclear or a regulatory change affects an existing project, we prepare submissions and engage with the Commission and the relevant ministry, aiming for a practical solution that keeps the service running.

05

Landing station land and permits

We conduct land due diligence for landing station sites in Cox's Bazar, Kuakata or elsewhere on the coast, negotiate acquisition or long leases, and coordinate permits for beach works, coastal construction, environmental clearance and marine operations. We also review contractor and survey agreements so that permit risk is allocated sensibly and works do not start before approvals are in place, avoiding stop orders, penalties and disputes with local communities.

06

Faults, repairs and disputes

Cable faults caused by anchors, fishing or seabed movement disrupt traffic and raise questions about repair costs, service credits and insurance. We advise on maintenance agreements, repair ship arrangements, force majeure and claims against third parties. When disputes arise between consortium members, capacity buyers or contractors, we act in negotiation, arbitration and Bangladeshi court proceedings, including urgent interim relief to protect assets, evidence and continuity of service for customers.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Technology, IP & Data matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

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01

Can a foreign company own or operate a subsea cable landing station in Bangladesh?

Operating a landing station requires a licence from the Bangladesh Telecommunication Regulatory Commission, and licensing policy sets conditions on who may apply, foreign shareholding and local partners. These rules have been revised in recent years and further reform has been under discussion, so the position must be checked for each project. A foreign company may nonetheless be able to participate through a licensed local entity, a joint venture or a capacity arrangement. We review the current licensing framework, structure the investment and prepare the subsea cable agreements so that ownership, control and licence obligations are consistent.

02

What is a landing party and why does it matter for a subsea cable system?

The landing party is the entity in each country that owns or operates the landing station, holds local licences and connects the system to domestic networks. It is the legal and practical bridge between an international subsea cable and the national telecom market. Its duties usually include station operation, power, security, maintenance coordination and access for other parties. Because the landing party often has local regulatory obligations that the consortium does not share, its agreement must address cost recovery, service levels, liability limits and what happens if its licence is suspended or changed.

03

How is subsea cable capacity usually bought and sold by Bangladeshi operators and buyers?

Capacity is commonly sold through indefeasible rights of use, which give the buyer long-term exclusive use of defined capacity for most of the system's design life, usually with an upfront price and annual operation and maintenance charges. Shorter leases and managed wholesale services are also used, particularly by smaller buyers. The key terms are delivery dates, acceptance testing, restoration priority, upgrade rights, transferability and termination. In Bangladesh, buyers also need to consider foreign exchange approval for cross-border payments, withholding tax and the licence conditions that govern resale of international bandwidth.

04

What does a construction and maintenance agreement for a subsea cable usually cover?

A construction and maintenance agreement, often called a C&MA, governs how consortium members fund, build, own and maintain the system. It sets out each party's share of costs and capacity, the management committee and voting rules, the supply contract with the system manufacturer, maintenance arrangements, upgrades, admission of new parties, default and withdrawal. For a Bangladeshi participant, the practical issues include payment timing against foreign exchange approvals, the effect of majority decisions on local obligations and licence conditions, and dispute resolution provisions, which often specify arbitration in a foreign seat such as Singapore.

05

Which government approvals are needed for marine survey, cable laying and beach works?

Approvals depend on the route and the landing site. Typically they involve environmental clearance from the Department of Environment, permissions affecting territorial waters and navigation, coastal and local government approvals for beach and land works, and coordination with ports, the navy or coast guard where relevant. Fisheries and protected area issues may also arise near sensitive coastal habitats and mangroves. We prepare a permit plan early, coordinate with the marine survey and installation contractors, and make sure the subsea cable supply contract allows for realistic approval timelines rather than penalising delays outside the parties' control.

06

How are cable faults, repair costs and service interruptions usually handled?

Most systems are covered by maintenance agreements with specialist cable ship operators, and consortium documents set out how repair costs are shared. A capacity contract should state restoration obligations, service credits and whether the seller must provide alternative routing. Where a third party, such as a vessel dragging its anchor, causes the fault, there may be a claim against the shipowner, which can involve admiralty proceedings and evidence from vessel tracking. We advise on preserving evidence quickly, including vessel data and repair reports, notifying insurers and pursuing recovery so that subsea cable owners are not left bearing avoidable losses.

07

Does the Personal Data Protection Act 2026 affect subsea cable operators?

Infrastructure operators that simply carry traffic are in a different position from service providers that process personal data for their own purposes. However, landing station operators and capacity sellers still handle customer records, network logs and security data, and licence conditions on lawful interception and data handling continue to apply alongside the new Act. We review how the 2026 Act and its implementing rules affect your operations, customer contracts and cross-border data flows, and help align subsea cable agreements with your privacy and security obligations without unnecessary cost.

08

How are disputes under subsea cable agreements usually resolved?

International consortium and capacity agreements usually provide for arbitration, often seated in Singapore, London or another established centre, with English or New York law governing the contract. Disputes with Bangladeshi licensees, landowners or contractors may instead come before local courts or domestic arbitration. Enforcement in Bangladesh of a foreign award is governed by the Arbitration Act 2001. We advise on dispute clauses at the drafting stage, act in negotiations and proceedings, and coordinate with foreign counsel so that any subsea cable award can be enforced effectively where the assets are.

How a matter runs

From first call to resolution.

  1. 01

    Define the project

    We first confirm your role, whether consortium member, landing party, developer, carrier or capacity buyer, and review the system design, landing sites, existing licences, investors and commercial timetable before drafting begins, so that the advice fits the real commercial structure.

  2. 02

    Check licences and permits

    We map the BTRC licences, foreign investment, foreign exchange, environmental and coastal approvals required, identify who must hold each one, and build them into the subsea cable project timetable with realistic lead times for each authority.

  3. 03

    Negotiate the documents

    We draft and negotiate the consortium, financing, landing party, supply, IRU and station access agreements so that costs, obligations, liabilities and dispute clauses are consistent across every document in the structure, avoiding gaps that could later cause disputes between parties.

  4. 04

    Support operations

    After the system is ready for service, we continue to advise on capacity sales, licence compliance, faults and repairs, upgrades, new parties and disputes throughout the life of the subsea cable system, which often runs for twenty years or more.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

Who regulates subsea cable landing stations and international gateways in Bangladesh?
The Bangladesh Telecommunication Regulatory Commission licenses international connectivity services, including cable landing stations, under the Bangladesh Telecommunication Act 2001, with policy direction from the ministry responsible for telecommunications. Other approvals, such as environmental clearance and land permissions, come from different authorities, so a project usually deals with several government bodies at once and needs a coordinated plan for applications, inspections and ongoing compliance reporting. We help clients prepare that plan and maintain it as rules change.
What is an IRU in the subsea cable industry?
An indefeasible right of use is a long-term contractual right to use specified capacity on a cable system, usually for most of its design life. The buyer typically pays upfront and contributes annually to operation and maintenance costs. It is not ownership of the cable itself, so the contract terms, including restoration, termination and transfer rights, decide what the buyer actually receives and how the right is treated for tax and accounts. We review IRU terms carefully for both buyers and sellers in Bangladesh.
Can Bangladeshi companies pay foreign consortium partners in foreign currency?
Payments for capacity, construction contributions and maintenance charges abroad are subject to Bangladesh's foreign exchange rules and may require documentation or approval through the authorised dealer bank and, in some cases, Bangladesh Bank. Withholding tax may also apply to certain payments to non-residents. Planning payment mechanics early avoids delays in meeting subsea cable consortium calls and prevents default notices caused by approval timing rather than any real inability to pay. We work with banks to settle the documentation in advance.
How long does it take to land a new subsea cable in Bangladesh?
Timelines depend on licensing, land acquisition, environmental and marine permits, system manufacturing and installation vessel availability. Large international systems are planned over several years, and the Bangladeshi landing works must fit the consortium schedule. We cannot promise a fixed period, but early regulatory mapping and well-drafted contracts usually reduce avoidable delay and help the landing party meet the milestones agreed with the consortium or developer. We also help negotiate realistic milestone and delay provisions at the outset.
Do terrestrial cross-border links with India need different agreements and licences?
Yes. Terrestrial links across the border with India, for example, use separate licences and interconnection or capacity agreements, though many commercial terms resemble subsea cable contracts. Customers often buy both to obtain route diversity. We review how terrestrial and subsea arrangements fit together, particularly on restoration obligations, service levels, pricing, licence conditions and the allocation of liability when one route fails and traffic is moved to another. Consistent terms across both routes make outages far easier to manage commercially.
Can capacity bought on a subsea cable be resold to other operators in Bangladesh?
Resale depends on the capacity contract and on the buyer's licence. Many IRU agreements permit transfer or resale with notice or consent, while licence conditions may limit who can sell international bandwidth in Bangladesh and on what terms. We review both before a resale or wholesale arrangement is agreed, so that the transaction does not breach the original contract, trigger a regulatory penalty or leave the seller with obligations it cannot meet. Careful drafting at the purchase stage preserves flexibility for later resale.
What happens to subsea cable agreements if the regulatory framework changes?
Well-drafted agreements include change-in-law provisions that allow renegotiation, cost adjustment or, in serious cases, termination when new rules materially affect a party. Bangladesh's telecom licensing framework has been under active review, so these clauses matter. We help clients assess new rules, engage with the regulator where appropriate, and use the contract mechanisms to protect their commercial position while maintaining the service relationship with customers and partners. Early legal input often avoids a dispute altogether.
Does TRW work with foreign counsel on subsea cable transactions?
Yes. International cable agreements are usually governed by foreign law and negotiated with parties in several countries. We work with counsel in Singapore, the UK, the UAE, India, the US and China, advising on Bangladeshi law, licensing, land, tax and enforcement while foreign counsel cover their own jurisdictions. This keeps the subsea cable documents consistent and avoids duplicated work and conflicting advice. We agree a clear division of responsibility with foreign counsel at the outset of each transaction.

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