Experts urge to eliminate bandwidth and tariff disparities

Experts have urged policy reforms to eliminate disparities in bandwidth pricing and tariff structures at the government and private institutional levels and ensure affordable and quality internet services for consumers.

The recommendations were made during a discussion titled "What to do to Address the Discriminatory Market Management of Bandwidth and Internet," organised by the Bangladesh Mobile Phone Consumers' Association at the Taj Mahal Hotel in Dhaka today.

During the event, Mobile Phone Consumers' Association President Mahiduddin Ahmed noted that Bangladesh uses approximately 6,000 gigabits per second (Gbps) of bandwidth per second.

"Of this, government institutions supply 3,800 Gbps through submarine cables SIMU 4 and 5, while six private institutions import and supply around 3,000 Gbps from India. However, unhealthy competition in the bandwidth market is preventing consumers from receiving benefits," he said.

Rana Islam, a member of the association, presented a report on the disparity in International Internet Gateway (IIG) institutions.

The report suggested setting a standard rate for all and evaluating the Significant Market Power in broadband internet services. It also recommended creating a favourable environment for establishing Content Delivery Networks (CDNs) in Bangladesh.

Technology expert Suman Ahmed Sabir highlighted the challenges related to low prices and quality.

He said, "If the revenue share is made equal for everyone, the price of internet services will decrease. It is crucial to increase the use of submarine cable bandwidth and improve quality simultaneously."

Bangladesh Telecommunication Regulatory Commission (BTRC) Director (Systems and Services) Lt Col Rezaur Rahman informed the meeting that efforts are underway to address the existing issues.

"We work in coordination with the government, operators, and consumers. Differences in capital expenditures and operating expenses between government and private businesses have caused discrepancies in bandwidth prices. We are reconsidering rates for bandwidth prices, but it will take time," he stated.

Fahim Mashroor, CEO of Bdjobs.com, noted that the information technology market remains limited and that internet costs in rural areas are still high. He called for lowering the cost of mobile broadband services to 500 taka, similar to broadband internet.

Internet Service Provider Association Of Bangladesh General Secretary Nazmul Karim Bhuyan added that without uniform rates and the availability of CDNs, internet service providers are struggling.

He underscored the need for the BTRC to be given more independence to facilitate affordable broadband services.

The report presented by Rana Islam attributed the discriminatory market management of bandwidth and internet in the country to "tariff aggression." It explained that government institutions like Bangladesh Telecommunications Company Limited (BTCL) and Bangladesh Submarine Cables Company (BSCCL), as well as mobile operators, independently set selling prices, while private IIG institutions face discriminatory tariffs.

This has enabled mobile operators and two government institutions to regulate the bandwidth market, with some service providers, backed by political patronage, trying to establish dominance.

The report also highlighted that, while ITC shares 1% of revenue and enjoys tax breaks, and BSCCL shares 1.5%, BTCL has yet to share any revenue. Meanwhile, private IIG institutions are required to share 10% of revenue along with VAT. This disparity is leading to a decline in service quality amid intense competition.