Telcos expected to lower prices of internet

The interim government expects that mobile operators will reduce prices of mobile internet services soon as there were a series of wholesale-level price drops across different layers of the internet value chain in Bangladesh, said Faiz Ahmad Taiyeb, the chief adviser's special assistant with executive authority over the ICT and telecom sectors.

"The government has extended policy support to the mobile network operators and, through public-private collaboration, has already reduced internet prices at both international and national wholesale levels. Now, it is their turn to join this national initiative," Taiyeb said in a post on his Facebook page on Sunday.

He said the government has already facilitated significant reductions at three critical layers of the internet distribution network.

According to the latest confirmation from Fiber@Home management, wholesale prices will drop by 10 percent at the International Terrestrial Cable (ITC) level, 10 percent at the International Internet Gateway (IIG) level, and 15 percent at the National Telecommunication Transmission Network (NTTN) level.

In addition, the Internet Service Providers Association has committed to offering 10 Mbps connections at Tk 500 — doubling the speed previously available at the same price point.

 He said the only remaining segment yet to respond is the three mobile network operators (MNOs).

 And with the government's recent decision to grant MNOs access to Dark Fiber and DWDM (Dense Wavelength Division Multiplexing) infrastructure, Taiyeb emphasised that there is no longer any valid justification for mobile companies to delay passing on the benefits to consumers.

 He further noted that lowering mobile internet prices would offer slight relief from the current high inflation and directly benefit millions of users.

 Taiyeb stressed that the current pricing of mobile internet in Bangladesh is disproportionately high given its quality.

 He said the government is committed to protecting consumer interests and will take logical steps to ensure that.

 The mobile operators did not immediately respond to The Daily Star's request for comment.

 However, an official of a mobile operator, speaking on condition of anonymity, said the price of mobile internet only slightly depends on bandwidth, and that DWDM has not yet been installed since the government granted the facility.

 According to the official, pricing is primarily driven by taxation, spectrum costs, and revenue-sharing obligations.