`Internet rates to raise by 20pc’

Staff Reporter :

Internet prices could increase by at least 20 percent if the proposed regulatory and licensing framework for broadband operators is implemented, the Internet Service Providers Association of Bangladesh (ISPAB) warned on Monday.

Speaking at a press conference in Dhaka, the association voiced strong opposition to the draft guideline for issuing licences to Fixed Telecom Service Providers (FTSPs), recently prepared by the Bangladesh Telecommunication Regulatory Commission (BTRC).

According to ISPAB, the guideline would require FTSPs to share 5.5 percent of their revenue with the government and contribute an additional 1 percent to the Social Obligation Fund. It also projected a nearly 14 percent rise in the cost of purchasing bandwidth.

ISPAB President Aminul Hakim said the policy direction was counterproductive at a time when affordability and digital inclusion should be priorities.

He noted that the BTRC currently receives 21.45 percent of sector revenue through various channels, including submarine cable and gateway operators. If the new rules take effect, the regulator’s share could jump to around 40.25 percent.

“The proposed policy will increase inequality between urban and rural users,” he said. “On one hand, there is talk of lowering internet tariffs, but on the other, regulations are being introduced that will make the internet more expensive.”

Hakim also questioned why global providers are being offered more favourable terms, citing Starlink’s licence fee of about Tk 12 lakh compared with Tk 25 lakh for local ISPs.

The association warned that allowing mobile operators to offer fixed broadband via wireless and last-mile fibre as outlined in the draft would create unfair competition for local ISPs who have built networks with their own investment. Ultimately, it said, users would face higher costs and reduced service options.