TIL BDR GHALLEY | Thimphu
The government’s plan to reduce mobile data charges by 50 percent remains under review as the Bhutan InfoComm and Media Authority (BICMA) carries out a comprehensive costing analysis on telecom sustainability, pricing structures, and network quality, officials said.
The initiative, aimed at making internet services more affordable, was initially facilitated by the GovTech Agency under the directive of the Prime Minister.
The agency coordinated with relevant stakeholders and submitted a proposal to the Lhengye Zhungtshog seeking approval for a nationwide reduction in internet costs.
The proposal was endorsed during the 43rd Session of the Fourth Lhengye Zhungtshog held on 27 February 2025. As part of the Cabinet’s decision, mobile data tariffs for packages ranging from Nu. 99 to Nu. 499 were to be reduced by 50 percent, with implementation scheduled for 1 July 2025.
The move was widely seen as a significant step toward enhancing digital accessibility and affordability.
However, the implementation process has faced delays following a revised submission by Bhutan Telecom.
The telecom operator proposed a reduction of 30 to 40 percent on selected packages ranging from Nu. 49 to Nu. 499, supplemented by additional voice and SMS benefits.
The Cabinet did not approve the revised proposal, stating that it did not fully meet the committed 50 percent reduction target.
Since then, the matter has been referred to BICMA and the Ministry of Industry, Commerce and Employment (MoICE) for further review and technical assessment.
As of now, no additional official updates have been communicated to the GovTech Agency regarding the final decision or the timeline for implementation.
Providing an update on the ongoing process during the meet the press session on 6 April, the Minister of Industry, Commerce and Employment Lyonpo Namgay Dorji said that BICMA is undertaking a detailed costing analysis with inputs from both international and domestic experts.
“BICMA is conducting a costing analysis with input from both international and domestic experts on telecom operators’ sustainability and network quality issues, and the government is taking time to review the study. The review is expected to be completed by May this year, after which the changes will be implemented,” he said.
The Prime Minister also addressed the issue, highlighting the balance between telecom profitability and consumer affordability. According to him, Bhutan Telecom continues to generate substantial revenue and profit annually.
“Bhutan Telecom earns between Nu 6–7 billion annually in revenue, with an annual profit after tax of Nu 2.3 to 2.4 billion,” the PM said.
He stressed that while telecom companies benefit from current pricing structures, such profits should not come at the expense of the public.
“While high data charges generate profits for telecom companies, the government believes this should not come at the expense of the public,” he said.
The PM further stated that the government is exploring measures to strengthen competition within the telecom sector, including the possibility of introducing a third operator if necessary.
“If necessary, a third operator should be introduced. This is not just about fulfilling a government pledge, but about ensuring customers receive fair value for service,” he said.
He added that efforts are also underway to enhance connectivity infrastructure through international collaboration.
The PM further added that the government is in talks with Bangladesh and has also held discussions with the founder of Airtel to bring in a third internet gateway to support telecom operators in the country.”
The PM also emphasized the responsibility of regulatory bodies in safeguarding consumer interests and ensuring fair pricing practices.
“BICMA and the Competition and Consumer Affairs Authority should ensure that people are not overcharged and have the authority to address the matter,” he said.
He added that further measures may be considered if the current approach fails to adequately address public concerns over data pricing.
“If the current approach does not serve the people and the country, we may have to explore introducing a third operator, which could bring down data prices immediately. I hope it does not come to that,” he said.
Bhutan Telecom’s revised proposal was ultimately rejected as it did not meet the full 50 percent reduction target approved by the Cabinet in March last year.
The ongoing costing analysis by BICMA is expected to play a critical role in determining the final course of action.
Once completed, the findings will inform the government’s decision on implementing the mobile data price reduction policy and shaping the future of Bhutan’s telecom pricing framework.
