50% Data reduction decision expected soon as MoICE plans to submit recommendations to Cabinet

Plans to reduce mobile data tariffs are expected to progress soon, as the Ministry of Industry, Commerce and Employment (MoICE) prepares to submit its final recommendations to the Cabinet.

During the 32nd Meet-the-Press session, Lyonpo Namgyal Dorji said that, in line with the Government’s directive to pursue mobile internet cost reductions of 50 percent or more, the Ministry directed the Bhutan InfoComm and Media Authority (BICMA) in May this year to undertake a comprehensive technical and financial review of mobile service tariffs. The review took into account consumer affordability, quality of service, investment requirements and the financial sustainability of telecom operators.

Accordingly, BICMA conducted a comprehensive mobile costing study, incorporating technical and financial inputs from telecom operators, to establish the actual and efficient costs of delivering mobile services.

Following further technical vetting, the Ministry received the final report and recommendations on 2 October 2026. Based on the findings, the Ministry will recommend to the Cabinet that the Government pursue the proposed 50 percent reduction in mobile data tariffs.

Lyonpo said the study was an important development, as the regulatory authority now had a sound empirical basis to assess telecom tariffs and undertake informed regulatory interventions to reduce costs while safeguarding service quality and sustainability.

The review also indicates that tariff reductions in the past have largely been initiated by telecom operators, with BICMA primarily reviewing and approving their proposals.

The Ministry said the Government intends to move towards a more proactive, evidence-based regulatory approach, under which consumer affordability is regularly assessed and pursued by the regulatory authority.

A decision on the proposal is expected soon, following which the Government will announce the specific reductions across mobile data packages, the implementation timeline and other service improvements intended to benefit consumers.

Meanwhile, both Bhutan Telecom (BT) and Druk Holding and Investments (DHI) said they had not received any official communication on the matter.

A senior BT official disagreed with the proposed 50 percent reduction figure, saying that the reduction indicated in the BICMA report was lower.

He said BT had a board of directors and that its main shareholder was DHI, which would have to be consulted once official communication on the matter was received.

BICMA has been working with foreign consultants on the Mobile Costing Model Exercise report, which examined the economics of mobile data in Bhutan and whether Bhutan Telecom and TashiCell could afford to reduce mobile data tariffs.

The BICMA study shows that BT’s B-Mobile data traffic increased from about 13,500 terabytes (TB) in 2018 to almost 119,000 TB in 2025, while TashiCell’s traffic rose from around 5,700 TB to more than 43,500 TB. This growth in data traffic is progressively lowering the underlying cost of delivering each gigabyte (GB) of data.

The costing model also indicates that B-Mobile currently has considerably more room to reduce tariffs than TashiCell. For example, compared with the current effective rate of about Nu 76 per GB under the Nu 99 package, the model estimates B-Mobile’s cost at Nu 46 per GB based on the 2025 cost base and Nu 36 per GB for 2026. TashiCell’s corresponding figures are Nu 77 and Nu 63 per GB, respectively.

The findings appear to support meaningful tariff reductions but also suggest that implementation may need to account for differences in the cost structures and network conditions of the two operators, rather than treating them identically