The government has unveiled a sweeping reform plan for its telecommunications sector, proposing a new licensing and network framework to replace rules in place since 2010.

The draft Telecommunications Network and Licensing Policy 2025, published on Thursday, seeks to streamline regulation, reduce inefficiencies, and align the industry with current technological and market needs. It will replace the International Long-Distance Telecommunications Services (ILDTS) Policy 2010, which officials described as “outdated and fragmented.”

The new framework consolidates multiple existing licence types, including interconnection exchanges, international gateways, and internet gateways, into four main categories, alongside one enlistment category.

International Connectivity Service Providers (ICSPs) will oversee all international voice, internet, and data links, while National Infrastructure and Connectivity Service Providers (NICSPs) will build and manage domestic transmission networks such as fibre and telecom towers. End-user services will be grouped under Access Network Service Providers, split into Cellular Mobile and Fixed Telecom Service licences. A separate category will govern satellite and other non-terrestrial networks.

A Telecom Enabled Service Provider enlistment will cover entities such as SMS aggregators.

The draft outlines a phased migration process, with existing licence holders absorbed into the new system by June 2027. Some categories, including internet exchanges, call centres, and value-added services, will be deregulated.

Foreign ownership caps will also be revised: mobile service providers may hold up to 85% foreign equity, NICSPs up to 65% with fresh foreign direct investment, and ICSPs up to 49%.

The proposal has been opened for public consultation before final adoption.