Bangladesh’s interim government, led by Abdus Sattar, has cancelled a deal with India to provide bandwidth transit for improved internet connectivity in India’s northeastern states.

The Bangladesh Telecommunication Regulatory Commission (BTRC) cited a lack of economic benefit to Bangladesh and concerns about hindering its own ambitions to become a regional internet hub.

The decision, however, is widely seen as influenced by deteriorating India-Bangladesh relations following the ouster of Sheikh Hasina’s government and subsequent unrest, including violence against minority groups.

The cancelled agreement, involving Summit Communications and Fiber@Home (companies with alleged ties to the Awami League), aimed to route high-speed bandwidth from Singapore through Bangladesh to northeastern India.

This move is expected to significantly impact India’s connectivity plans and further strain bilateral ties.