Regulator moves to fix mobile data price

The government has taken a fresh step to fix the ceiling and floor prices for mobile data with a view to controlling the charge for browsing internet thought smart devices.

Currently, price of per megabyte of data ranges from Tk 0.09 to Tk 0.14. However, according to a cost modelling study by the International Telecommunication Union, the minimum price for per MB should be Tk 0.26.

Bangladesh Telecommunication Regulatory Commission has already heard out the mobile operators' point of view on the matter and will soon make a call.

“The government is very adamant about the issue and has directed us to do something about it as soon as possible,” said a senior official of the telecom regulator.

However, the mobile operators are divided: the top two players are on board with an upper and lower limit for mobile data tariffs, while the other two want just the ceiling price and not the floor price.

Given the current state of digitalisation in Bangladesh, it is too early to impose data floor pricing, Ankit Sureka, spokesperson of Banglalink, told The Daily Star.

The use of internet is increasing and people are gradually adopting the digital mode of life. If data floor pricing is implemented now for all operators, it will impede fair competition among mobile operators and ultimately result in higher prices of the internet.

“This will discourage people who are yet to embrace digitalisation,” he said, adding that the operator has given its recommendations with proper justifications to the regulator.

Teletalk declined to comment on-the-record, but they echoed the same.

Both Grameenphone and Robi said the upper and lower limits for mobile data rates are needed to stop the ongoing 'price war'. There is price regulation for voice service but none for data service, said Shahed Alam, executive vice-president and head of regulatory affairs at Robi.

“It is obvious that the absence of price regulation on data is triggering cross-subsidy and predatory pricing.”

Access to affordable internet is one of the key enablers of digital Bangladesh but over the last five years, mobile internet price has been slashed 80 percent though the spectrum price, regulatory fees, taxes and the overall cost have increased substantially, he said.

In order to ensure quality internet service and to promote adoption of new technology, the government should look at the sustainability of ecosystem.

“Hence, data price regulation should be implemented at the earliest,” Alam added.

Currently, there are a wide variety of data packages available to customers, with some giving away data virtually for free, said a senior executive of one of the top two players.

“If a customer buys 1 GB data for one week, the price will be lesser than if he/she takes it for a month. This complexity needs to be considered before declaring any pricing model,” he added.

The government has no other option but to fix the floor and ceiling prices with a clear margin to bring down the mobile data usage costs, said Mustafa Jabbar, minister for telecom and ICT.

“Our main target is to protect the customers and create a business-friendly environment,” Jabbar told The Daily Star recently.