Bangladesh's mobile data prices are among the highest in the region, surpassing Pakistan, India, and even developed countries like France and Italy. In today's world, access to affordable data is a necessity, not a luxury. It's the bridge between a mother staying connected to her children overseas, a farmer consulting a doctor via telemedicine, or a student in a remote village accessing the same quality education as a child in Dhaka. When the cost of data is high, we're not just raising prices, we're raising barriers to progress, education, and health.

The golden goose and the tax trap

Bangladesh's telecom sector is like a golden goose -- a powerful engine of economic growth. Yet, high taxes and fees are stifling its potential. The NBR imposed heavy taxes on mobile operators, discouraging innovation and expansion as they struggled to meet both the tax load and growing consumer demand. Without changes, Bangladesh risks sacrificing long-term growth for short-term revenue. In a country where the wealth gap is already wide, the high cost of mobile data creates a digital divide. While the wealthy enjoy fast, reliable internet, the majority of Bangladeshis are left disconnected. This isn't just about technology, it's about fairness, inclusion and equity for every citizen.

The heavy tax burden

The telecom industry in Bangladesh faces an overwhelming tax burden. Telecom companies are subject to VAT (15 percent), supplementary duty (15 percent), and a 1 percent surcharge on subscriber services, accounting for 25 percent of their revenue. On top of this, they bear corporate tax, SIM taxes, customs duties, and regulatory fees like revenue sharing (5.5 percent), the social obligation fund (1 percent), and spectrum amortization costs. These fees add another 15 percent to their costs. Ecosystem costs, including payments to TowerCo, NTTN, IIG and others, make up 18 percent while network operations, marketing, capital expenditures and financial costs account for around 26 percent. This leaves operators with a very low profit margin, making it difficult to improve service quality or reduce prices.

CDN barriers and content delivery

Bangladesh's lack of proper implementation of content delivery networks (CDNs) further contributes to high data costs and slow internet speeds. BTRC announced that IIG operators, the NIX, ANSs, and nationwide ISPs were allowed to set up caching servers with BTRC's permission. CDNs store data closer to users, reducing the need to pull data from international sources, which improves speed and lowers costs. However, bureaucratic delays have prevented CDNs from being fully adopted. Expediting CDN implementation could significantly reduce international bandwidth costs, improving both speed and affordability for consumers.

The second-order effect

Imagine you have a toy car, and you push it. The first thing that happens is the car starts moving (that's the first effect). Now, imagine the car bumps into another toy, making that toy move too. This is the second effect -- the ripple. Let's consider a real-life example in Bangladesh.

First-order effect: a telecom company introduces a more affordable data plan. Second-order effect: more people can afford internet access, which leads to improved access to information, online education, and digital services.

The ripple of cheaper data

Imagine students in remote villages accessing online lessons with affordable data. Like watering a garden, this would nurture a more knowledgeable population, driving growth in sectors like ICT, education, and healthcare. Now, picture a small business owner in a rural area setting up an online store with cheaper data, reaching customers far beyond their village. This would open doors to new markets and bring millions of unbanked citizens into the formal financial system through mobile wallets like bKash. More people online means more demand for services, jobs, and innovation, fueling Bangladesh's economy in ways that are just waiting to be unlocked.

What needs to change

Bangladesh is at risk of being left in the slow lane while countries like India and Pakistan surge ahead with cheaper, faster data access.

To unlock the potential of affordable mobile data, Bangladesh must:

Reduce the tax burden: Lower VAT, supplementary duty, and regulatory fees to allow operators to offer affordable data plans. The BTRC should ease its ecosystem costs and spectrum fees to enable more investment in network improvements.

Promote innovation: Lower taxes would encourage operators to invest in technologies like 5G, fostering competition, improving service quality and driving prices down.

Accelerate CDN adoption: The BTRC must fast-track CDN approvals, reducing international bandwidth costs and making data more affordable.

Conclusion

It's time for policymakers to recognize that affordable data is the key to unlocking Bangladesh's future potential. The time for action is now. We must reduce the tax burden on telecom operators, accelerate the adoption of new technologies and ensure that every Bangladeshi -- no matter where they live -- has access to fast, affordable internet. The future of our nation depends on it.

The author is a telecom policy analyst