Internet tariff for ISPs reduced, but more consumers will share a connection now

Until April this year, Internet service providers (ISPs) had to pay Tk2,500 to Nationwide Telecommunication Transmission Network (NTTN) service providers for carrying each megabit per second (Mbps) bandwidth to "long haul areas" other than metropolises and district areas.

This rate was charged for up to 10Mbps of bandwidth. The tariff for carrying the same volume of bandwidth to district areas was Tk400-800 then.

But, the Bangladesh Telecommunication Regulatory Commission (BTRC) has now set the first-ever tariff for NTTNs and ISPs, reducing the rate 11%-84% for carrying bandwidth to remote areas, ranging from 6% to 50% for district areas.

Starting this coming September, NTTNs' tariff for carrying the same volume of bandwidth to rural areas will be Tk400-Tk500 and Tk200-Tk300 for metro and district areas.

At the same time, International Internet Gateway (IIG) prices were also set, lowering them 1%-9%, or Tk300-Tk399.

Industry insiders say the new tariff will hardly have an impact on improving the quality of service as the regulator has increased the user ratio per Mbps of bandwidth.

Instead of consumers, operators will benefit from the new tariff, they said, wishing anonymity.

Posts and Telecommunication Minister Mustafa Jabbar announced and inaugurated the new tariff on Thursday on a virtual programme.

Earlier, on June 6, BTRC also announced the flat retail rate of bandwidth for the country.

"The tariff will be effective from 1 September to materialise the government's flat Internet tariff plan 'One country, One Rate," he said. 

Urging providers to ensure quality service to users, Mustafa Jabbar said, "If we commit to providing 5Mbps and consumers don't get even 1Mbps, which is cheating them. But we don't want to be treated like cheaters."

"Therefore, we will have to keep our commitment as we did in setting this tariff," he added.

He urged BTRC to set such tariffs for mobile operators, too.

BTRC Chairman Shyam Sunder Sikder presided over the programme attended as special guest, by Md Afzal Hossain, secretary to the posts and telecom ministry.

Representatives from IIG, NTTN, and the Internet Service Providers Association of Bangladesh (ISPAB) spoke at the programme.

Md Arif Al Islam, managing director and chief executive officer (CEO) of Summit Communication Limited, one of the NTTNs, asked the authority to set such tariffs for mobile operators. 

Welcoming the government initiatives, Md Aminul Hakim, president of ISPAB, said, "With this tariff, the industry will come into a discipline in the coming days."

He suggested that the authorities stop the operations of illegal ISPs across the country.

He also said that instead of 5Mbps, they will provide 10Mbps at the current rate from 26 March 2022.

Brig Gen Md Nasim Parvez, director general (Systems and Services Division) at BTRC, gave a presentation on the topic.