Bangladesh Government Expects Mobile Operators to Reduce Internet Prices Following Wholesale-Level Cuts

The interim government of Bangladesh anticipates that mobile operators will soon lower their mobile internet prices after a series of wholesale-level price reductions across various layers of the internet value chain, according to Faiz Ahmad Taiyeb, the chief adviser’s special assistant overseeing the ICT and telecom sectors.

In a post on Facebook, Taiyeb highlighted that the government has extended policy support to mobile network operators and has successfully reduced internet prices at both the international and national wholesale levels. He urged the mobile operators to follow suit and participate in the national initiative aimed at lowering internet prices.

Taiyeb noted that the government has already facilitated significant price cuts at three key layers of the internet distribution network. Fiber@Home management confirmed that wholesale prices would decrease by 10% at both the International Terrestrial Cable (ITC) and International Internet Gateway (IIG) levels, and by 15% at the National Telecommunication Transmission Network (NTTN) level.

Additionally, the Internet Service Providers Association has committed to offering 10 Mbps connections at Tk 500, effectively doubling the speed available at the same price point.

The only remaining segment to respond to these changes is the three mobile network operators (MNOs). Taiyeb emphasized that with the government’s recent decision to grant MNOs access to Dark Fiber and Dense Wavelength Division Multiplexing (DWDM) infrastructure, there is no longer any valid reason for mobile companies to delay passing on the benefits to consumers.

Taiyeb further explained that reducing mobile internet prices would provide some relief from the current high inflation rates and directly benefit millions of users. He pointed out that mobile internet prices in Bangladesh are currently too high in relation to the quality of service provided.

The government is committed to protecting consumer interests and will take necessary steps to ensure fair pricing. Mobile operators did not respond immediately to The Daily Star’s request for comment. However, an official from a mobile operator, speaking anonymously, stated that the price of mobile internet is only marginally affected by bandwidth costs, and that the installation of DWDM has not yet been completed, despite the government granting the facility. The official further noted that mobile internet pricing is primarily influenced by taxation, spectrum costs, and revenue-sharing obligations.

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