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Experts call for eliminating bandwidth and pricing disparities
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Experts call for eliminating bandwidth and pricing disparities

Disparity in bandwidth pricing and pricing structures harmful to consumers, they say

TBS Report

October 27, 2024, 10:15 p.m.

Last modification: October 27, 2024, 10:18 p.m.

Representational image. Photo: collected

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Representational image. Photo: collected

Representational image. Photo: collected

The experts advocated policy reforms to eliminate disparities in bandwidth pricing and tariff structures at government and private institutional levels and ensure affordable and quality internet services for consumers.

The recommendations were made during a discussion titled “What to do to address discriminatory management of bandwidth and Internet market”, organized today by the Bangladesh Mobile Phone Consumers’ Association at the Taj Mahal Hotel in Dhaka.

During the event, President of Mobile Phone Consumers Association Mahiduddin Ahmed highlighted that Bangladesh uses around 6,000 gigabits per second (Gbps) of bandwidth per second.

“Out of this, government institutions provide 3,800 Gbps through SIMU 4 and 5 submarine cables, while six private institutions import and supply around 3,000 Gbps from India. However, unhealthy competition in the bandwidth market prevents consumers from benefiting,” he said.

Rana Islam, member of the association, presented a report on the disparity in the institutions of the International Internet Gateway (IIG).

The report suggests setting a standard rate for all and assessing significant market power in broadband Internet services. He also recommended creating an enabling environment for the creation of Content Delivery Networks (CDNs) in Bangladesh.

Technology expert Suman Ahmed Sabir highlighted the challenges of low prices and quality.

He said: “If the income share is made equal for everyone, the price of internet services will come down. It is crucial to increase bandwidth utilization of submarine cables and simultaneously improve quality. »

Bangladesh Telecommunications Regulatory Commission (BTRC) Director (Systems and Services) Lt Col Rezaur Rahman informed the participants that efforts are underway to resolve the existing issues.

“We are working in coordination with the government, operators and consumers. Differences in capital expenditures and operating expenses between the government and private companies have caused discrepancies in bandwidth prices. We are reconsidering the bandwidth rates, but it will take time,” he said. .

Fahim Mashroor, CEO of Bdjobs.com, noted that the information technology market remains limited and internet costs in rural areas are still high. He called for bringing down the cost of mobile broadband services to 500 taka, similar to broadband internet.

Bangladesh Internet Service Providers Association general secretary Nazmul Karim Bhuyan added that without uniform pricing and availability of CDNs, Internet service providers are in trouble.

He stressed the need to give more independence to the BTRC to facilitate affordable broadband services.

The report presented by Rana Islam attributes the discriminatory management of the bandwidth and Internet market in the country to “tariff aggression”. He explains that government institutions such as Bangladesh Telecommunications Company Limited (BTCL) and Bangladesh Submarine Cables Company (BSCCL), as well as mobile operators, set sales prices independently, while private institutions in the IIG are facing discriminatory prices.

This has allowed mobile operators and two government institutions to regulate the bandwidth market, while some service providers, backed by political patronage, attempt to establish dominance.

The report also highlights that while ITC shares 1% of revenue and benefits from tax breaks, and BSCCL shares 1.5%, BTCL has not yet shared any revenue. Meanwhile, private IIG institutions are required to share 10% of revenues as well as VAT. This disparity leads to a decline in the quality of services in a context of intense competition.