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Internet costs in Bhutan are among the highest in Asia.
For example, in India, the average cost per GB of data is about $0.09, while in Nepal it is about $0.60. In contrast, costs in Bhutan are significantly higher, averaging about $1.25 per GB.
This simple cost comparison opens our eyes to how much Bhutanese have been paying for the internet. The question is – is it really fair that low-income people like us should pay such high prices for the internet?
Bhutan’s telecom market is dominated by two companies, Bhutan Telecom Co., Ltd., which holds about 60% of the market, and Tashi InfoComm Private Limited, which controls the remaining 40%. The two companies have been generating billions of dollars in revenue, but they have failed to significantly reduce the cost of Internet.
A duopoly is characterized by limited competition, which allows these companies to maintain high prices. Ultimately, consumers have to bear the brunt of the high costs.
The high cost of the Internet poses a significant barrier to the development of digital businesses, the provision of public services, and national digital transformation goals. As the world goes digital, affordable and reliable Internet access is essential. High costs limit access to digital tools and resources, limiting opportunities for education, e-commerce, and digital innovation.
For digital businesses and startups, the high cost of the internet has increased operating costs, making it difficult for local businesses to survive, let alone compete in regional and global markets. This has hampered entrepreneurship and reduced Bhutan’s attractiveness as a tech investment destination.
The high cost of the internet also has a direct impact on government initiatives to digitize and improve access to a wide range of government services for citizens. Citizens, especially those living in rural areas, find it very difficult to access online services, which widens the digital divide and affects the delivery of public services.
Lowering the cost of the Internet is not only an economic imperative, but also a step towards achieving digital equity in the context of socio-economic development. By lowering the cost of the Internet, governments will be able to promote wider participation in the digital economy and improve public services.
During a question-and-answer session in Parliament last week, the Prime Minister was asked about the government’s promise to halve data charges or bring them in line with Indian prices. The Prime Minister bluntly stated that if the existing two telecom companies do not reduce internet prices, the government will bring in a third operator.
A third operator will increase competition in the market and drive down prices, benefiting consumers and businesses alike. But in the meantime, telecom regulators must step up to ensure telecom companies don’t abuse their market dominance to exploit the public. Now is the time for the government to take decisive action.
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