𝐁𝐡𝐮𝐭𝐚𝐧 𝐭𝐨 𝐒𝐥𝐚𝐬𝐡 𝐈𝐧𝐭𝐞𝐫𝐧𝐞𝐭 𝐃𝐚𝐭𝐚 𝐂𝐨𝐬𝐭𝐬 𝐛𝐲 𝟓𝟎 𝐩𝐞𝐫𝐜𝐞𝐧𝐭 𝐢𝐧 𝐖𝐞𝐞𝐤𝐬, 𝐀𝐬𝐬𝐮𝐫𝐞𝐬 𝐌𝐢𝐧𝐢𝐬𝐭𝐞𝐫

…𝑴𝒊𝒏𝒊𝒔𝒕𝒆𝒓 𝑹𝒆𝒗𝒆𝒂𝒍𝒔 𝑭𝒆𝒂𝒔𝒊𝒃𝒊𝒍𝒊𝒕𝒚 𝑺𝒕𝒖𝒅𝒊𝒆𝒔 𝑪𝒐𝒏𝒇𝒊𝒓𝒎 𝑫𝒂𝒕𝒂 𝑷𝒓𝒊𝒄𝒆 𝑪𝒖𝒕𝒔 𝒂𝒓𝒆 𝑨𝒄𝒉𝒊𝒆𝒗𝒂𝒃𝒍𝒆

By Yeshey Lhadon

The government has assured that telecom data and internet charges will be reduced by 50 percent by the end of the year to address high internet costs. The announcement was made during the Question Hour session in Parliament on Friday. Lyonpo Namgyal Dorji, Minister of Industry, Commerce, and Employment said, “As pledged, the government expects to reduce data and internet cost before the year end. It will take only few weeks.”

Member of Parliament (MP) Sangay Thinley of Khar-Yurung Constituency led the discussion by recalling the Prime Minister’s earlier commitment to making data more affordable. “The Prime Minister assured that telecom data charges would either be reduced by 50 percent or aligned with India’s rates. This is essential, especially for rural and low-income groups who rely heavily on affordable internet,” said MP Sangay Thinley.

The MP also highlighted a potential plan to introduce a third service provider, such as Starlink, if discussions with Bhutan’s existing telecom operators, Bhutan Telecom and TashiCell, failed to yield results. Seeking clarity, MP Sangay Thinley asked for an update on the timeline for implementing these measures and the feasibility of introducing a new provider to foster competition.

Echoing similar concerns, MP Lhakpa Tshering Tamang of Sergithang-Tsirang Toed Constituency pointed out that Bhutan’s internet data costs are among the highest in Asia. “An 8GB data package costs United States Dollar (USD) 0.71 (Ngultrum [Nu] 59) per gigabyte, significantly higher than in neighbouring countries. Despite government efforts, many feel these costs remain unaffordable,” said MP Lhakpa Tshering Tamang.

In response, Lyonpo Namgyal Dorji, Minister of Industry, Commerce, and Employment, reassured MPs that the government remains steadfast in its commitment to reducing internet costs.

“After directives issued during the first parliamentary session in July, we tasked GovTech, the Bhutan InfoComm and Media Authority (BICMA), and telecom providers with studying the feasibility of reducing costs. The results show that a 50 percent reduction is achievable without compromising the sustainability of our telecom sector,” said Lyonpo Namgyal Dorji.

The Minister added that a committee at the cabinet level has been established to oversee the initiative, ensuring alignment with the National Digital Transformation agenda. “This strategy is central to Bhutan’s ambition of becoming an economically developed hub by 2034 under the Gross National Happiness (GNH) philosophy,” said Lyonpo Namgyal Dorji.

Discussions with Bhutan Telecom and TashiCell have been promising, with B-Mobile, a subsidiary of Druk Holding and Investments (DHI), indicating that even with a 50 percent reduction in rates, it would still generate a profit of Nu 46 million annually. However, Lyonpo acknowledged that revenue losses are expected in the initial years.

“The first and second years may see a decline in contributions from telecom companies. However, as industries and businesses grow, the digital sector’s contribution to GDP will strengthen the economy,” Lyonpo Namgyal Dorji explained.

To address underlying issues, the government is also negotiating with the Government of India to lower internet import costs, which significantly contribute to Bhutan’s high prices.

Despite progress, MPs expressed concerns over potential delays. Gangzur-Minjey MP Loday Tsheten emphasized the importance of timely implementation. “Internet has become a basic necessity in this digital age, especially for students and citizens relying on connectivity for education and daily life. The government must act swiftly,” said MP Loday Tsheten.

He further argued that the profitability of telecom companies reduces the need for subsidies. “If subsidies are required to make internet affordable, the government should step in. Fortunately, the profits indicate that such measures may not even be necessary,” MP Loday Tsheten added.

Lyonpo Namgyal Dorji acknowledged that Bhutan’s small population and user base are major challenges in lowering costs. Despite this, the government is committed to addressing the issue as part of its broader digital strategy.

While the government works to fulfil its pledge, Bhutan’s 700,000 mobile internet subscribers and 21,000 leased-line internet users eagerly await tangible results. The anticipated reduction in data charges is seen as a crucial step toward bridging the digital divide, especially for rural communities.