Telecommunication costs in the country are higher compared to neighbouring countries. To address this, the government will work with the two telecom operators to reduce talk time costs, data charges, and internet rates by 50 per cent within this fiscal year. Prime Minister Tshering Tobgay shared this during the National Assembly’s question hour session today.
According to Kengkhar_Weringla MP, Dorji Wangmo, there is a need to make the internet affordable with good connectivity, because it is essential for education, business, entertainment and other public services.
“Last year, research by UNDP and GovTech Agency showed that in India, one gigabyte costs about 10 rupees. But in Bhutan, it costs Nu 59. There are different types of data packages. Most people with humble backgrounds and students cannot buy expensive data packages. Moreover, some villages have yet to even get an internet connection”
Responding to the question, the prime minister admitted that data charges in the country are too expensive.
“For example, if you buy a 499 data package, one gigabyte costs Nu 59. If you buy 700 data packages, 699, you can use only 23 gigabytes. If you look at it gigabyte-wise, each costs Nu 30. With one gigabyte, you cannot watch one movie on a platform such as Samuh. You at least need two gigabytes.”
He added that for individuals using a leased line internet connection, 30 megabits per second costs Nu 16,500 a month in Bhutan while in India, it costs about Nu 400.
He added that the high internet rates prevent people, especially those with humble backgrounds, from fully utilising the internet compared to countries like India.
Therefore, the government will negotiate with Bhutan Telecom and TashiCell to reduce the rates by 50 per cent and aim to provide internet access in all districts and gewogs.
Regarding the MP’s concern about the impact on dividends and taxes for telecommunication providers, he reassured everyone that they would not suffer significant losses.
“Bhutan Telecom’s annual capital is Nu 6bn. After deducting the required expenses and taxes, they still get about 2.5 billion in profits. Therefore, I see a little opportunity to reduce the rates. After we discuss with the service providers, if it does not get through, we might have to introduce a new service provider.”
He added that the internet rate will decrease after the third internet gateway is introduced this year.
In addition, the government is in discussions with Starlink, an international internet provider operated by an American company, which will further lower the rate if the negotiations get through.
Currently, over 700,000 mobile SIM cards are being used in the country and 12,000 people have broadband connections.
Singye Dema
Edited by Sonam Pem
