ISPAB Cuts Price by Tk 200 from BTRC’s Proposed Tariff!

To maintain service quality and align with industry standards, the Internet Service Providers Association of Bangladesh (ISPAB) has announced a revised minimum fixed broadband package of 10 Mbps at Tk 500, effective from July 1. This replaces the Bangladesh Telecommunication Regulatory Commission’s (BTRC) proposed 5 Mbps package priced at Tk 400.

On May 18, BTRC issued a tariff directive to ISPs that included minimum monthly rates of Tk 400 for 5 Mbps, Tk 700 for 10 Mbps, and Tk 1,100 for 20 Mbps fixed internet services. However, ISPAB has deemed the 5 Mbps option inadequate for quality service. As a result, ISPs have withdrawn the 5 Mbps package and replaced it with the higher-speed 10 Mbps option at a reduced rate of Tk 500—down from the BTRC-recommended Tk 700.

According to ISPAB, “No ISP, whether local, district, divisional or nationwide, currently offers a 5 Mbps package. The industry standard is already around 10 Mbps.” As such, the association believes this new pricing structure is more realistic and reflective of current service practices.

ISPAB President Aminul Hakim stated, “In the Speedtest Global Index, Bangladesh ranks 98th out of 153 countries in fixed broadband internet service. ISPAB wants to see Bangladesh improve its position in this index. Therefore, ISPs will begin with a 10 Mbps minimum to ensure quality service. If the government withdraws the Social Obligation Fund (SOF) and revenue-sharing requirements, we hope ISPs will eventually be able to provide 20 Mbps bandwidth as the new baseline.”

Hakim also noted that most customers are reluctant to pay the 5% value-added tax (VAT) along with their monthly bills, which ISPs struggle to collect. “To cooperate with the government and contribute to national development, ISPAB members have agreed to collect the 5% VAT from customers and deposit it into the state treasury,” he added.

In a press release, ISPAB urged the public to obtain internet services only from licensed ISPs and to pay the 5% VAT in accordance with government regulations. Customers are also requested to ensure they receive receipts when paying their monthly internet bills.