The Bhutanese Leading the way.
With the implementation of the Third International Internet Gateway (3IIG), the Bhutan InfoComm and Media Authority (BICMA), as the regulatory authority, has clarified that the new pathway operates under existing licensing frameworks and will not automatically trigger immediate tariff reductions for consumers.
In a written response to media inquiries regarding regulatory oversight of the project, an official from BICMA noted that the commercial implementation and infrastructure deployment are being managed by agencies such as the GovTech Agency and Bhutan Telecom Limited (BTL).
“The commercial implementation, infrastructure deployment, and contractual arrangements relating to the Third International Internet Gateway are being undertaken by the two agencies (GovTech Agency and BTL),” said the official.
The authority addressed questions surrounding whether the additional gateway would directly lower internet costs.
The operation of International Internet Gateways by licensed telecommunications operators is already authorized under the existing Telecommunications License issued by BICMA and thus, there will be no separate International Gateway license required for telecom operators.
According to BICMA, the new internet gateway may not necessarily lower the cost because the implementation of 3IIG will add on the cost to the operators, citing additional capital expenses and recurring monthly operational costs.
The Bhutanese, in its recent response from GovTech Agency learned that the current Indefeasible RIghts of Use (IRU) initiative under the ACCESS project is aimed at reducing the cost of international connectivity through bulk bandwidth procurement on a long-term contract basis, which is expected to contribute to improved affordability significantly over time.
However, the current IRU arrangement is intended for government use. Therefore, end-users and businesses might still have to wait for cheaper internet as the 3IIG is more of a long-term project.
However, BICMA said that it remains committed to promoting affordable telecommunications services and in carrying out tariff assessments and regulatory intervention it will be guided by the provisions of the applicable laws, regulations, and tariff framework.
Regarding pricing and market competition, an official from BICMA stated that while the commissioning of a new gateway does not automatically prompt a tariff review, the authority remains committed to promoting affordable services under existing regulatory frameworks.
“Any tariff review will be undertaken in accordance with the Telecommunication Tariff Order and applicable regulatory procedures. Where necessary in future, BICMA may require operators to submit relevant cost, traffic, capacity, and financial information to support tariff assessments,” said the official.
Regarding access for smaller internet service providers, the official emphasized that mobile operators leasing bandwidth must do so on a non-discriminatory basis, remaining subject to fair competition rules.
Furthermore, the official from BICMA confirmed that all licensed operators must continue to comply with established Quality of Service (QoS) standards and provide network performance data upon request.
The primary objective of the 3IIG project initiated by GovTech Agency is to enhance international connectivity resilience through greater geographic and route diversity.
BICMA said that it will continue to monitor network resilience and service continuity through its existing regulatory oversight mechanisms and may require relevant information from operators where necessary.
