Lowering internet prices could unlock major opportunities

There is no doubt that internet speed in our country—whether through fixed broadband or mobile internet—still lags behind in comparison to many other places. The silver lining, however, is that the current interim government's telecom leadership has shown genuine intent to make quality internet services available at affordable prices for the people. If this intent is matched with trust and cooperation from the operators who understand the value of internet at various levels, then delivering quality service at a lower cost isn’t a far-fetched goal.

From the perspective of service providers—taking into account their investments and operational costs—it must be acknowledged that delivering high-quality services doesn’t come cheap. The price has to match the quality. If providers can’t make a profit, it becomes impossible for them to ensure good service. But there’s another harsh reality: our market doesn’t support the idea of raising prices to deliver high-end services. Most people in Bangladesh have limited purchasing power. If prices go up, many either stop using the service or significantly reduce usage.

This increases the business risk for providers. For instance, although internet connectivity—through both broadband and mobile networks—has reached even the remotest corners of the country, the number of regular users remains low. A significant portion of the population either doesn’t have access to internet or doesn’t use it regularly. If prices go up, the number of regular users could decline further. On the other hand, lowering the price might actually increase the user base, which could ultimately benefit service providers by expanding their market.

That’s why the recent announcements over the past three days—regarding price reductions by several levels of internet service stakeholders—seem very positive. At a roundtable organized by TRNB on April 19, Fayez Ahmed Tayyab, Special Assistant to the Chief Adviser on Telecom and ICT, clearly laid out the current state of internet services in Bangladesh. He called for ensuring quality internet at affordable prices. At that same event, the Internet Service Providers Association of Bangladesh (ISPAB) announced that, effective immediately, they would provide 10 Mbps broadband speed for BDT 500—a service that previously offered just 5 Mbps at the same price.

Though the price in monetary terms hasn’t dropped, doubling the speed at the same price is undoubtedly a positive step toward delivering more value at affordable rates. The following day, transmission service providers (NTTNs), terrestrial cable-based international bandwidth providers (ITCs), and international gateways (IGWs) also announced a 10–15% reduction in their charges. This too is a welcome move. Collectively, these cost reductions across different service layers will help bring down the operating costs for ISPs and mobile operators, potentially opening the door to lower end-user prices.

It’s important to mention here that the telecom sector in Bangladesh has long suffered from a lack of trust among its stakeholders. This has stifled cooperation and created a fragmented environment, ultimately hurting everyone. If a new environment of mutual trust and cooperation can be established, then it will be genuinely possible to deliver high-quality internet at even lower prices. Operators at all levels will also be in a better position to grow their businesses in a positive direction.

In the short term, service providers may suffer some losses due to these price reductions. But in the near future, there’s a strong possibility of business gains. Lower prices will likely attract more users, increase overall data consumption, and position the sector to meet the evolving challenges of the digital era. This could bring long-term benefits for the internet ecosystem in Bangladesh. Moreover, if service quality improves further, even more opportunities will emerge. In the future, we can expect better internet and a stronger, internet-driven economy.

Let me add one more point, keeping the average consumer in mind. In the case of fixed broadband, packages are generally based on speed, and there’s little confusion. But mobile internet packages are like a maze. Some last three days, others seven; data volumes vary; and choosing the right one is a confusing task. To be honest, even I get confused when trying to buy a mobile data package. I believe it’s time to simplify this chaos. A simplified package policy should be adopted, and in my opinion, there should be no more than ten standard mobile internet packages.

Sumon Ahmed Sabir is a telecommunications and information technology expert.