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Call for policy reforms to address internet tariff disparities

  • Stressed the need for BTRC to operate independently
  • They cautioned that current policies favouring a few could worsen market chaos
Update : 27 Oct 2024, 07:50 PM

Stakeholders in Bangladesh’s internet sector are urging immediate policy reforms to eliminate tariff disparities affecting bandwidth purchase and revenue sharing among government and private institutions.

A discussion at the National Press Club on Sunday highlighted the urgent need for creating an equitable environment that ensures affordable and quality internet services for all consumers.

At the meeting chaired by Mohiuddin Ahmed, president of the Bangladesh Mobile Phone Consumers Association, speakers stressed the need for the Bangladesh Telecommunication Regulatory Commission (BTRC) to operate independently, focusing on oversight rather than revenue generation.

They cautioned that current policies favouring a few could worsen market chaos.

At the discussion, Lieutenant Colonel Rezaur Rahman of BTRC announced efforts to address bandwidth pricing disparities by coordinating with government, operators, and consumers, and plans to standardize tariffs for government entities.

Barrister Asaduzzaman Fuad, joint general secretary of the AB Party, stressed the importance of presenting these issues clearly to the interim government to expedite resolution.

Aminul Hakim, president of the International Internet Gateway Bangladesh (IIGB), criticized the monopolistic tendencies of private companies, arguing that government support is essential for fair market competition.

He warned that without International Telecommunication Carrier (ITC), internet prices would rise.

Prabhas Chandra Bhattacharya from Submarine Cable Limited expressed similar concerns, highlighting their 2% revenue disadvantage compared to ITC and questioning the loss of cost savings.

IIGB Joint Secretary Maktabur Rahman pointed out BTRC's double standards in treating mobile operators and ISPs alike.

He emphasized that internet pricing in Bangladesh is unique globally and urged recognition of the internet as a service rather than a product, calling for better support for ISPs.

Experts Suman Ahmed Sabir and Kamal Hossain highlighted the urgent need for equal revenue sharing and fixed tariffs to enhance competitiveness.

Concerns were also raised about the withdrawal of Content Delivery Networks (CDNs) from ISPs, which disrupts market balance.

Robi Axiata's Shah Md Fazle Khoda compared bandwidth to bottled water, highlighting costs like a 2.3% overhead and taxes. With monthly revenues of Tk 145 — lower than neighbouring countries — he stressed that reducing internet prices is unsustainable and called for a re-evaluation of the value chain

Kamal Hossain, managing director of Earth Communication, criticized revenue share discrimination, stating that domestic ISPs must follow fixed tariffs set by government IIGs, while Network service (NS) operators do not.

He emphasized the incomplete implementation of the BTRC's "One Country One Rate" policy, which harms market competition, and called for better coordination for independence.

Tech expert Mustafa Mohammad Hossain warned that removing (Content Delivery Networks) CDNs from ISPs disrupts the internet market balance and called for BTRC independence to lower internet costs.

Market analyst Kazi Abdul Hannan said the state’s hidden policies create syndicates in the internet and egg markets, while the government remains inactive despite its claims. The Board of Revenue controls the Commission.

Former BASIS president Fahim Mashroor noted that while one-third of the population has digital access, the country still lags behind due to a focus on platforms like Facebook and TikTok.

He urged for local content creation, equal broadband rates, and an end to questionable revenue-sharing practices.

ISPAB General Secretary Nazmul Karim Bhuiyan highlighted the internet as a fundamental right but noted significant fraud undermining it.

He criticized the high bandwidth costs for ISPs and the negative impact of recent licensing changes, which have made many ISPs illegal, leading to financial issues.

Khaled Abu Nasser, former director of the Competition Commission, pointed out the existence of a syndicate in the market.

He urged the BTRC to utilize its legal authority to eliminate this unfair competition and questioned why it hasn't done so.

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