10 Mbps broadband internet to cost Tk 500 a month from Jul 1: ISPAB

Internet service providers (ISPs) will offer fixed broadband internet with 10 Mbps speed at Tk 500 per month, down from the previous Tk 700, with effect from July 1.

The Internet Service Providers Association of Bangladesh (ISPAB) said in a statement today that no licensed internet service provider—whether local, district-level, divisional, or nationwide—currently offers 5 Mbps packages.

Most ISPs now provide an average of 10 Mbps bandwidth to users, and based on this, the association has decided to introduce packages starting from Tk 500.

This development comes as the Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to reduce internet prices by up to 20 percent starting this month to make internet more affordable for users across the country.

Under the revised pricing structure, a 5 Mbps package was set to cost Tk 400 per month, down from the previously fixed Tk 500 in 2021 when the BTRC began setting minimum internet tariffs.

Similarly, 10 Mbps packages were reduced to Tk 700 per month, down from Tk 800, and 20 Mbps packages to Tk 1,100, down from Tk 1,200.

It remains unclear whether the BTRC has formally approved ISPAB's move to offer 10 Mbps for Tk 500, as the telecom regulator is responsible for determining internet tariffs.

ISPAB President Aminul Hakim told The Daily Star that the BTRC has verbally allowed them to introduce the Tk 500 price point for 10 Mbps.

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He added that the BTRC instructed ISPs not to charge more than Tk 400 for 5 Mbps services, but ISPAB has requested that the Tk 400 package not be made mandatory for them to offer.

The BTRC could not be immediately reached for comment.

Hakim also noted that Bangladesh currently ranks 98th among 153 countries in fixed broadband services on the Speedtest Global Index. ISPAB aims to improve this standing by ensuring better quality services and moving towards global standards.

He expressed optimism that if the government withdraws the Social Obligation Fund and revenue-sharing obligations, ISPs would be able to provide users with 20 Mbps broadband as per international benchmarks.

Hakim also said most users are reluctant to pay the 5 percent value-added tax (VAT) on their monthly bills. This VAT has been difficult for ISPs to collect.

However, ISPAB members have now agreed to collect the 5 percent VAT from customers and deposit it with the government exchequer as part of a unified effort to work with the government and ensure national revenue.

ISPAB has also called on customers to obtain internet connections only from licensed ISPs and to request VAT receipts along with their monthly payments, as per current government rules.