File image of Lyonchhen Dasho Tshering Tobgay (Image courtesy Anil Sharma of Indian Express)

Cabinet doing a rethink on modified BT proposal

Around four weeks ago in December 2025, the Bhutan Telecom (BT) proposal for data cuts was not received warmly by the Cabinet, and instead an order was expected to be sent to the GovTech Agency and BICMA to enforce the 50 percent data cut.

However, that initial stance has now softened, and instructions have been issued by the Prime Minister (PM) Dasho Tshering Tobgay to the Minister for Industry, Commerce and Employment, Namgyal Dorji, to study a ‘modified proposal’ of BT.

The MoICE Minister is supposed to submit the matter back to the Cabinet after consultations and more research.

The PM said, “From what I gather, it looks quite good. Some of the packages are quite attractive. Our stand is still the same, as telecom companies have a lot of room to provide reasonable prices which are of use to the nation and people, and we want to get reasonable prices.”

There has been some public criticism of the delay in reducing mobile data given that it was a major election pledge now made worse by a 5 percent GST tax on mobile data, voice and SMS.

The PM said rather than rush, the government would like to get something welcome by the people.

Lyonchhen Dasho Tshering Tobgay said that he has shared his views on wanting affordable prices with the MoICE Minister and through him to BICMA.

The PM said that one of the new things in the modified BT proposal was free voice packages when currently all voice packages are charged.

Lyonchhen said that while the government should not be involved in such issues, the current data prices are unacceptably high. He said companies should compete on the basis of price, otherwise the government has to be invoked.

Lyonchhen said an issue is also that data coming into the country is expensive, and that is something that has to be taken up. He said that Bangladesh agreeing to export data through the third internet gateway will not only improve redundancy but also could make prices lower.

The PM said while the data cut is taking some time, there should be something in the end that will benefit people and businesses.

It has been learnt that the MoICE Minister has formed a focus group on the matter and even local government leaders like Gups are being consulted and there is overwhelming support.

Ultimately while a 50 percent cut may come, it may not all just be data but also include voice and data packages to make it a 50 percent cut.

The main target for the cut is the Nu 49 to Nu 499 category as higher categories already get cheaper data though they will also get cuts.

There will be cuts in the leased line rates too. 

The issue is also being looked at from the angle of ensuring that while BT gives the cuts, it also remains sustainable.

There is an attempt to get a final decision on the matter by January 2026.

The government had given a directive for a 50 percent mobile data cut in March 2025 to be implemented by 1st July 2025, but close to the date, BT asked for an extension to consult its Board and DHI, and time was given till September 2025 around which they came up with a proposal, and this was again subject to further modification.

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