The government has announced efforts to reduce internet prices while simultaneously improving service quality. In line with this, Bangladesh Railway has issued a fresh tender, “adjusting” the rental charges per core of its Telco fiber. However, tenants argue that the new rates—coming after years of a 5 percent annual hike—feel more like a “final blow” than a realignment.
Internet service providers (ISPs) claim that while the government urges lower prices at the consumer level, state agencies themselves are raising charges, making the initiative potentially counterproductive. According to several industry stakeholders, the Bangladesh Telecommunication Regulatory Commission (BTRC) recently discussed reducing internet prices for end-users by up to 66 percent. But the ISPs see no feasible way to achieve this. They claim that out of every BDT 100 in revenue, BDT 66 must be paid to the state across various stages, leaving just BDT 34 for operational expenses, services, and salaries.
Given the situation, nationwide telecommunication transmission network (NTTN) providers and mobile network operators (MNOs) are reconsidering whether to continue using fiber lines leased from Bangladesh Railway and Power Grid Company of Bangladesh (PGCB).
Following PGCB’s recent tender, Bangladesh Railway on June 16 also released a new price structure for fiber optic cable leases, applicable to NTTNs and MNOs. The state-run entity claims this is a justified price adjustment based on market rates. The new pricing, effective from June 2025, increases the monthly rental rate per meter per core to BDT 4.50 from the earlier BDT 3.50 set in 2021.
Sushil Kumar Halder, Chief Signal and Telecom Engineer (Telecom) at Bangladesh Railway, told DigiBanglaTech.News, “It’s not a price hike. We have adjusted the best prices per section based on core quality. The maximum price in 2021 was BDT 3.50, and we have now adjusted it to BDT 4.50.”
However, Rashed Amin Bidyut, Chief Operating Officer of Bahon Ltd—a company that provides bandwidth transmission via optical fiber—expressed discomfort over the price escalation. Speaking to DigiBanglaTech.News, he said, “This is not justified. The rent already increases 5% annually. Now our total rental stands at around BDT 9.50 per meter per core. If this so-called adjustment adds more cost, how can we lower internet prices? The focus should be on the actual cost drivers. If government entities increase prices, how will private players survive?”
Facing such cost pressures, many operators now view self-deployment of fiber infrastructure as a long-term solution.
Lt. Col. Mohammad Zulfikar, Secretary General of the Association of Mobile Telecom Operators of Bangladesh (AMTOB), stated: “To make internet and mobile services affordable and accessible, there’s no alternative to cutting costs at every level. If our service providers see a cost increase from infrastructure vendors, it will have a ripple effect on the entire sector, eventually raising prices for consumers. While the government pushes for lower user-end pricing, its own cost policies are contradictory. For long-term sector stability and affordable service, we urge a constructive dialogue and equitable policy for all stakeholders, including fair opportunities for fiber deployment by operators.”
As per BTRC regulations, NTTN rental tariffs cannot be set without commission approval. Bangladesh Railway has yet to receive such clearance for the new prices but plans to obtain it within days, confirmed Halder. Reportedly, Grameenphone leases the largest volume of fiber from the railway—over 2,071 kilometers.
If the new tariff is approved, Grameenphone will face the most significant financial impact. However, rural internet users may suffer even more due to price hikes. Aminul Hakim, President of the Internet Service Providers Association of Bangladesh (ISPAB), told DigiBanglaTech.News: “This cost will inevitably be passed to consumers. Most of the rural transmission network relies on railway infrastructure, and this network is used to deliver bandwidth. If the long-haul transmission cost rises, internet prices in rural areas may go up by 3–4%. This will also hinder internet penetration.”
It is noteworthy that the BTRC has instructed ISPs to introduce entry-level internet packages priced at no more than BDT 400 from June. Yet, operators insist that with rising operational costs and most revenue funneling into government coffers, offering any package below BDT 800 is financially unviable.
