Internet prices may rise under proposed guideline

The proposed regulatory and licensing guidelines for broadband service providers could increase internet costs for users by at least 20 percent due to new fees and charges.

The Internet Service Providers Association of Bangladesh (ISPAB) made the comment yesterday at a press conference at a city hotel.

The trade body organised the event to express its views on the draft guideline for issuing licences for Fixed Telecom Service Providers (FTSPs), recently prepared by the Bangladesh Telecommunication Regulatory Commission (BTRC).

The ISPAB opposed the proposed guideline.

Under the guideline, FTSPs would have to share 5.5 percent of their revenue with the government and contribute another 1 percent to the Social Obligation Fund.

The cost of purchasing bandwidth for FTSP operators is also expected to rise by around 14 percent, said the ISPAB.

The government is moving in the wrong direction, said ISPAB President Aminul Hakim.

He said the BTRC currently receives 21.45 percent of the sector's revenue, including from submarine cables, international internet gateways, and international terrestrial cable operators, under revenue-sharing arrangements and social obligation contributions.

However, under the new policy, the regulator's total share in revenue from the sector would rise to 40.25 percent, he added.

"The proposed policy will widen the digital divide between urban and rural areas," he said.

"On one hand, they talk about reducing internet prices; on the other, their policy decisions are making it more expensive."

"For Starlink, the government has set a licence fee of only $10,000 (around Tk 12 lakh), while local ISPs are required to pay Tk 25 lakh. Why is such a global company being given preferential treatment?" he asked.

The ISPAB said the draft guideline explicitly allows mobile operators to provide fixed connectivity through fixed wireless access and last-mile fibre connections.

"This will create unfair competition for local ISPs who have built their networks with their own investment," the association said, warning that consumers would ultimately bear the consequences.