Set Tk 800 as lowest payable for broadband packages

The lowest price payable for a broadband internet connection needs to be Tk 800, not Tk 400 as per a policy drafted recently, said service providers, offering to reciprocate by raising the minimum speed to 50 Mbps.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to reduce the prices by up to 20 percent starting next month, aiming to make internet more affordable nationwide.

Under the new pricing, a 5 Mbps connection will cost Tk 400 per month, down from Tk 500, which was set in 2021 when the telecom regulator started determining the pricing.

The cost of 10 Mbps packages has been reduced to Tk 700 from Tk 800, and 20 Mbps ones to Tk 1,100 from Tk 1,200.

The price cuts were made possible by reducing transmission and bandwidth import costs, as international bandwidth prices have declined in recent years.

Earlier, for the Tk 500 package, the Internet Service Providers Association of Bangladesh (ISPAB) had offered to double the internet speed to 10 Mbps, on condition that the price remain unchanged.

However, the association now demands that the minimum payable for an internet package be Tk 800 and offers 50 Mbps with it.

It also urged dropping 5 Mbps packages, citing concerns over service quality.

"We constantly face questions about the quality of service. If I have to reduce response time, I need to hire more call centre agents. I also need to ensure instant physical support by deploying engineers," said ISPAB President Aminul Hakim.

"Our average revenue per user is around Tk 550. So, we won't be able to deliver proper service if the minimum package price is set at Tk 400," he said.

There should be both floor and ceiling prices for broadband internet. "If mobile operators have a floor price, then our industry should also have one," he added. Currently, only ceiling prices exist for broadband services.

Moreover, the ISPAB wants to increase the minimum broadband download speed to 50 Mbps, even though the draft broadband policy set it at 20 Mbps.

Hakim made the remarks at a workshop and media briefing titled "Draft Telecom Policy Report: Challenges of the ISP Industry," at the RAOWA Complex in Dhaka yesterday.

The ISPAB also called for permission to enable active network sharing.

"If we receive policy approval for active sharing, we can minimise downtime, reduce unnecessary cabling, and ensure 1 Gbps connectivity for every customer," Hakim said.

He emphasised that last-mile wired connectivity should be exclusively provided by internet service providers (ISPs), and this should be clearly stated in the upcoming telecom licensing policy.

Hakim also demanded the cancellation of the social obligation fund and provisions for sharing revenue with the BTRC.

"Social obligations are the responsibility of the government, which already collects VAT, income tax, and corporate tax from companies. These funds should be used to meet such obligations," he said.

"As for revenue sharing, without making any investment, the government becomes our business partner. This is absolutely unacceptable," he added.

He urged the government to safeguard the interests of local entrepreneurs in the upcoming telecom licensing framework.

Mubarak Hossain, CEO of PLEXUS Cloud Ltd, also spoke at the event.