In this digital age, internet is not a luxury but a necessity, an essential tool for connectivity, education, business, healthcare, and even daily life. Despite global trends toward more affordable internet access, Bhutan remains one of the most expensive countries in Asia for data. This disparity places Bhutan at a significant disadvantage, especially when compared to its neighbours. While countries like India and Nepal offer substantially lower prices for data, Bhutanโs mobile data costs remain prohibitive for many citizens.
At present, the average cost of 1GB of mobile data in Bhutan is a staggering Nu 58.71 (about USD 0.71). In contrast, neighbouring countries like India charge only USD 0.16 per GB, and even Sri Lanka, with similar geographical challenges, charges just USD 0.25. For a nation aspiring to become a regional leader in digital transformation, Bhutanโs internet prices represent a serious bottleneck to progress.
The problem is not just the cost but the inequality it creates. High data charges limit access for rural communities, students, and low-income families who increasingly rely on the internet for education, communication, and livelihood. Itโs clear that this disparity is preventing many Bhutanese citizens from fully participating in the digital economy. If Bhutan is serious about its ambition to develop a more inclusive, equitable, and innovative digital ecosystem, then reducing the cost of data must become a top priority.
Fortunately, the government has recognized the issue and committed to cutting telecom data and internet charges by 50 percent by the end of the year. This ambitious move, announced during a recent session of Parliament, is a welcome step forward.
However, while the governmentโs commitment is commendable, there are legitimate concerns about the timeline and feasibility of such a drastic reduction. Some MPs, including have questioned whether the 50 percent reduction will be implemented as promised, especially considering the slow pace of previous reforms. Itโs also worth noting that Bhutanโs small population and limited user base present unique challenges in terms of profitability for telecom companies. These factors make it all the more important for the government to work collaboratively with telecom providers and explore all options for cost reduction.
One key solution lies in fostering greater competition in the telecom sector. At present, Bhutanโs internet market is dominated by two players, Bhutan Telecom and TashiCell. To drive down costs and improve service quality, the introduction of a third provider, such as Starlink, could shake up the status quo and give consumers more choices.
The government is also negotiating with the Indian government to lower internet import costs, which represent a significant portion of Bhutanโs telecom expenses. This could be a crucial factor in ensuring that any price reductions are sustainable over time. Additionally, lessons can be drawn from countries like India and Bangladesh, where the combination of regulatory reforms, competitive markets, and infrastructural development have led to a sharp decline in data prices. Bhutan should actively explore these models to ensure that its own internet pricing structures are aligned with global best practices.
As the government works toward fulfilling its pledge, itโs important to remember that affordable internet is not just about lowering costs, itโs about ensuring that all Bhutanese, regardless of their location or income level, have equal access to the digital world. This is crucial for students who need internet access for learning, businesses that depend on online connectivity for growth, and families that rely on the internet for daily communication.