Internet Inflation Imminent: ISPs Warn of Price Hike and Policy Peril

Internet prices in Bangladesh are set to rise significantly under the draft telecommunications guidelines, with rates expected to increase by 11 percent in Dhaka and 18.40 percent in rural areas. The new policy—mirroring that of the telecom sector—proposes a 5 percent revenue share and an additional 1 percent contribution to a social security fund. Local entrepreneurs warn that these provisions, combined with the extension of Fixed Wireless (FW) and hotspot privileges to telecom operators, could jeopardize around 2,700 domestic Internet Service Providers (ISPs).

The concerns were voiced at a press conference held on Monday, November 3, at the Skyline Restaurant of RAOWA Club in Mohakhali, Dhaka.

Conducted by ISPAB (Internet Service Providers Association of Bangladesh) General Secretary Nazmul Karim Bhuiyan, the event featured a detailed presentation by ISPAB President Aminul Haque Hakim, who explained the factors behind the projected rise in internet prices under the new and existing policy frameworks.

According to Hakim, “The license renewal fee for acquisition has been increased two and a half times, while the annual fee has been raised three and a half times. Starlink’s acquisition fee is Tk 1.2 million, whereas for ISPs it has been set at Tk 2.5 million.”

He criticized the government’s approach, saying, “The government is heading in the wrong direction. The proposed license guidelines do not reflect public expectations. Many local entrepreneurs entered this business out of social responsibility, but instead of taxing their profits, the policy imposes revenue and SOF fund burdens on their income.”

Hakim questioned the disparity between Starlink and local ISPs, asking, “Why is there such discrimination between Starlink and ISPs? Why are telecom operators granted more privileges under their licenses?”

Responding to queries, Hakim stated, “If the new policy is implemented, the average internet price at the customer level will rise by 20 percent, while business-level rates will increase by 14 percent.”

Expressing deep concern, he warned that “within three months, many rural ISPs may be forced to shut down.” He added, “Given such a scenario, we urge political parties to intervene in the telecom sector to protect local entrepreneurs.”

ISPAB Vice President Neyamul Haque Khan, Joint General Secretaries Mahbub Alam and Fuad Muhammad Sharafuddin, and Treasurer Moin Uddin Ahmed were present at the press conference, along with directors Rashedur Rahman, Md. Mithu Hawlader, and Sabbir Ahmed, among others.