Bandwidth Bonanza: Internet Backbone Operators Slash Wholesale Prices
The day after internet service providers (ISPs) announced a doubling of broadband speed under a BDT 500 package, key players in the internet supply chain—International Internet Gateway (IIG), International Terrestrial Cable (ITC), and Nationwide Telecommunication Transmission Network (NTTN) operators—have responded with price reductions. Now, all eyes are on the three private mobile network operators (MNOs) to follow suit by announcing a reduction in mobile data prices.
According to sources, a 10% price cut has been approved at both the IIG and ITC levels, while NTTN operators, such as Fiber@Home, have decided to reduce prices by 15%. This information was shared by Faiz Ahmad Taiyeb, Special Assistant to the Principal Advisor and acting Advisor for the Ministry of ICT and Telecommunications, quoting Fiber@Home’s management.
Welcoming this decision, Taiyeb stated, “Earlier, at the international gateway level, Bangladesh Submarine Cable Company Limited had already reduced prices by 10% for all IIG and ISP clients, with an additional 10% discount for wholesale customers—totaling a 20% reduction. With these steps, we’ve initiated price cuts across three to four layers of the internet licensing regime.”
He further noted that the government has already provided private mobile operators with access to DWDM and dark fiber infrastructure. “In this context, there is no longer any rational justification or excuse for private mobile companies not to reduce mobile internet prices,” Taiyeb emphasized.
He expressed hope that a reduction in mobile internet prices would help alleviate the ongoing inflation to some extent and expected the three private operators to “announce reasonable price cuts soon.”
Highlighting the government's commitment, Taiyeb added, “The government has offered policy support to MNOs, and through public-private partnerships, prices at both the international and national wholesale levels have been reduced. Now it’s their turn to be part of this national effort. A reduction in mobile internet prices may help marginally ease current inflationary pressures.”
Taiyeb also pointed out that the government expects two forms of reductions from the mobile operators. “First, they should roll back the price hike they imposed in March following an anticipated SRO adjustment that the government eventually reversed. Second, they should pass on a proportionate share of the wholesale price reductions made at the IGW/ITC, IIG, and NTTN levels to end-users,” he explained.
Meanwhile, former BASIS President Fahim Mashroor has urged the government to reduce the 20% supplementary duty on internet services and to remove revenue-sharing obligations specifically for data services. Echoing this sentiment, former Robi CEO Mahtab Uddin Ahmed warned, “These benefits should not be pocketed by the service providers alone. A few months ago, a similar 10% duty adjustment only ended up benefiting the providers.”
Notably, state-owned mobile operator Teletalk had already offered a 10% discount on mobile internet services starting from Eid-ul-Fitr.
