Broadband internet prices cut by Tk 100

The internet regulator has reduced broadband internet prices at the consumer level by up to 20 percent in a bid to make internet access more affordable across the country.

The Bangladesh Telecommunication Regulatory Commission (BTRC) issued the directive to broadband internet service providers on Tuesday.

Documents show that BTRC submitted the proposal to lower end-user internet tariffs to the telecom ministry for pre-approval on December 3 last year — a necessary step before the commission can approve major decisions.

However, it took around four and a half months to secure approval from both the telecom and finance ministries.

Under the new pricing, a 5 Mbps broadband connection will now cost Tk 400 per month, down from the previously fixed Tk 500 in 2021. The 10 Mbps package has been reduced to Tk 700 from Tk 800, and the 20 Mbps tariff is now Tk 1,100 instead of Tk 1,200.

BTRC Chairman Emdad ul Bari, who assumed the role in September last year, has repeatedly emphasised the need to bring down 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 told The Daily Star in January.

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

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

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

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 unified prices.

Subsequently, the BTRC 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.

Starting from July 1, 2025, the Bangladesh Telecommunication Regulatory Commission (BTRC) will enforce a new internet tariff applicable to all licensed public and private Internet Service Providers (ISPs) for an initial period of five years.

Unless revised, the tariff will remain in effect with BTRC's approval. The commission may alter it at any time, considering market demand and consumer interest.

ISPs must also follow a compensation policy: if service is disrupted for 5, 10, or 15 consecutive days, customers will pay 50 percent, 25 percent, or 0 percent of the monthly bill, respectively. This aims to ensure accountability and protect consumer rights.