Broadband tariffs set to drop 20pc

The broadband internet tariffs at the consumers' end are set to decline by up to 20 percent after the telecom ministry recently signed off on the internet regulator's proposal to that end.

On December 3 last year, Bangladesh Telecommunication Regulatory Commission sent the proposal to bring down the internet tariff at the end-user level to the telecom ministry for the preapproval, a prerequisite for the commission to approve key decisions, documents show.

"We have sent the proposal to the finance ministry for final approval," Nahid Islam, the adviser for Posts, Telecommunications and Information Technology to the interim government, told The Daily Star yesterday.

Approval from the finance ministry is necessary to change tariffs.

Now, a 5Mbps broadband internet connection would cost Tk 400 a month, down from the Tk 500 fixed by the BTRC in 2021.

For 10 Mbps, the rate would be Tk 700, down from Tk 800. For 20 Mbps, the tariff would be Tk 1,100 instead of Tk 1,200.

BTRC Chairman Emdad ul Bari, who assumed the role in September last year, repeatedly emphasised the need to bring down the internet prices. Accordingly, the BTRC began a comprehensive analysis of the entire internet supply ecosystem.

"We have thoroughly analysed the entire internet market ecosystem and identified opportunities to reduce prices at various stages," Bari said.

In Bangladesh, internet connectivity begins with international submarine cables and International Terrestrial Cables (ITCs) supplying bandwidth to International Internet Gateways (IIGs) and distributed to Internet Service Providers (ISPs) through Nationwide Telecommunication Transmission Networks (NTTNs). ISPs deliver internet to consumers.

"So, we have decreased the prices for IIG and ISPs," said Bari, previously the director general of the BTRC's systems and services department.

The commission found that the internet bandwidth consumption has tripled to 6,036 Gbps between September 2021 and September 2024, increasing the transmission costs charged by NTTNs. And it should be reduced.

With bandwidth prices falling in the international market, the costs for IIGs and ISPs can also be reduced, ultimately enabling end users to access more affordable internet services.

The commission also found that ITC operators, who are also licensed as IIG operators, sell internet to their subsidiaries at significantly lower rates, creating uneven competition.

The BTRC has directed its Engineering and Operations Division to put an end to this malpractice and ensure the same price.

Subsequently, the BTRC has managed to lower the cost of bandwidth purchased by ISPs from IIGs, the wholesale providers of bandwidth, by 15 to 25 percent.

This has paved the way for lower internet prices at the consumer level.

"In our entire value chain, the BTRC will not be able to demonstrate any reduction in costs, including staff salaries, electricity expenses, or space rent, and there was no adequate consultation with stakeholders before lowering the ISPs' price," said Aminul Hakim, chief executive officer of Amber IT, a top ISP.

Without lowering the NTTN price, there is no justification for reducing the price of IIG and ISPs, he added.

However, the BTRC officials said they have held multiple stakeholder consultations before arriving at the decision.

"It is a bit complicated now to bring down the prices of the NTTNs and the ITCs, but we will do it soon," Bari said.

As of November last year, Bangladesh had 13.28 crore internet subscribers, of which 1.37 crore are broadband internet users.