ISP fees could rise exponentially

The proposed increase in fees structure for internet service providers (ISPs) by the Bangladesh Telecommunications Regulatory Commission (BTRC) defies imagination. Nationwide license fee has been proposed at Tk 25 lakh, which is 25 times the current Tk 1 lakh. Not only will new providers have to pay this charge, but the existing 590 operators too will have to make a one-time deposit. The zonal fees for ISPs (urban area clusters) are proposed to go up 30 times from Tk 50,000 to Tk 15 lakh! We find it ironic for BTRC to comment that the new rules may be reviewed if it will end up raising the burden at end-user level.

The manifold rise in regulatory fees in one go is simply unheard of. Such a move will most definitely hurt consumers who will be getting less speed as ISPs will be forced to spread existing bandwidth to cover more users. Also, the retail pricing of existing internet connections may well be raised that will be beyond a large portion of existing consumers at retail level. When the government is trying to take the country into the digital age, we find the proposal that has been sent to the Ministry of Posts, Telecommunications and Information Technology to be a step in the opposite direction. Where steps are being taken to increase internet coverage to reach more people across the country, a huge leap in fees like this could effectively kill the market. A rethink is very much a need of the hour and hopefully the concerned ministry will see the folly of such a regulatory change.