Internet prices likely to rise by 18.4% under proposed BTRC guidelines: ISPAB

Internet prices in Bangladesh are projected to surge by 18.40% under draft telecommunications guidelines prepared by the Bangladesh Telecommunication Regulatory Commission (BTRC), a move that domestic entrepreneurs and the Internet Service Providers Association of Bangladesh (ISPAB) warn could severely jeopardise the country's internet service providers (ISPs).

The concerns were raised at a press conference organised by the ISPAB at the Raowa Club in Dhaka today (3 November).

The association strongly opposed the draft guidelines for fixed telecom service providers (FTSPs).

Under the BTRC's proposed guidelines, FTSPs will be mandated to pay a 5.5% revenue share to the government, along with an additional 1% contribution to a social obligation fund.

The ISPAB stated that, in addition to the revenue share, the purchase costs for FTSP operators are also expected to rise by 14%.

Businessmen are particularly alarmed that these new financial burdens, combined with the extension of fixed wireless (FW) and hotspot privileges to telecom operators, could threaten the survival of approximately 2,700 smaller, domestic ISPs.

ISPAB President Aminul Hakim criticised the policy shift, arguing that the interim government's telecom policies have deviated from their original purpose and are no longer aligned with public interest.

"The government is going in the wrong direction," Aminul said, presenting a comparison of the existing framework and the proposed, higher-cost regulatory model.

'Widen the digital divide'

According to him, the interim government currently collects 21.45% of revenue from the sector, which also includes revenues from submarine cable, international internet gateway, international terrestrial cable, and, through revenue sharing, social obligation contributions, and VAT.

However, under the new proposed policy, the government's total share will rise to 40.25%.

"The proposed policy will widen the digital divide between urban and rural areas," the ISPAB president said.

"On one hand, they speak about reducing internet prices, while on the other, their policy decisions are making it more expensive."

Hakim also pointed out inconsistencies in licensing fees. "For Starlink, the government has set a license fee of only $10,000 (around Tk12 lakh), while local ISPs are required to pay Tk25 lakh. Why is a global company being given preferential treatment?" he asked.

ISPAB further expressed concern that the draft guideline explicitly allows mobile operators to provide fixed connectivity through fixed wireless access and last-mile fibre connections. "This will create severe unfair competition for local ISPs who have built their networks through their own investment," the association said, warning that consumers would ultimately bear the consequences of such policy.