Government urges mobile operators to cut data prices

Ensuring 10%-15% cheaper bandwidth and data transmission, the government urged mobile operators to cut their data prices proportionately. 

Chief Adviser's Special Assistant for Posts, Telecommunications and ICT Faiz Ahmad Taiyeb in a social media post on Monday said a top tier bandwidth supplier and transmission service provider Fibre @ Home agreed to charge 10% and 15% less for the two, respectively. 

After ensuring a similar price cut by the submarine cable operator and double internet speed for Tk500 shared broadband connections, a 10% price cut by state owned mobile operator Teletalk, the interim government now expects a proportionate data price cut by the three other mobile operators Grameenphone, Robi and Banglalink. 

The government has already given a hand to the mobile operators through policy support and by reducing their costs. They have no more excuse for not slashing data prices, Taiyeb said. 

"There are widespread questions about the price and quality of mobile internet and the government is committed to taking the right steps to protect consumer interests." 

He also said that mobile operators did not reduce the price they increased in March following a duty hike then, despite the fact that the government later withdrew the added duty. 

Mobile operators, however, said they did not reduce prices for some packages, instead offered more data at the same prices. 

Grameenphone Head of External Communications Ankit Sureka told The Business Standard, "Data price does not depend on a single factor. Rather it involves multiple components across the entire value chain including spectrum, towers, electricity costs and others." 

"Nevertheless, keeping customers in mind, we are comprehensively evaluating how to deliver high-quality services at lower prices." 

Additionally, Bangladesh's telecom sector has long been subjected to unreasonably high tax rates, applicable to both consumer taxes and corporate taxes. This disproportionately high tax burden is a key contributor to elevated service costs, he added. 

"Also, the government and regulator are working on reforms aimed at advancing the telecom sector to better serve the people. The goal of these reforms is to enhance service quality, reduce prices, and ensure a sustainable business environment for investors," he said. 

"In a competitive mobile data market, cost reduction was always reflected in our pricing and it will remain the same," said Robi's Chief Corporate and Regulatory Officer Mohammed Shahedul Alam. 

Bandwidth and transmission together costs 7% of the mobile operators' data revenue, according to the industry reports.