The Bhutanese Leading the way.
After a lot of delay and back and forth, the Cabinet has taken a final decision on the mobile data cut by rejecting Bhutan Telecom’s (BT) modified proposal, and so BT will be asked to implement the full mobile data charges cut of 50 percent for the Nu 49 to Nu 499 packages.
In short, these packages should get double the data than what they are getting.
The above happened after the Bhutan InfoComm and Media Authority (BICMA) presented the final proposal of BT to the Ministry of Industry, Commerce and Employment (MoICE), along with its own assessment, and MoICE in turn put it up to the Cabinet.
In the final BT proposal, they offered data cuts of 30 percent, 35 percent and 40 percent for Nu 49 to Nu 499, and some free voice and SMS to make up the remaining 20 percent to 10 percent, as these packages do not carry voice and SMS.
In the final version that went to the Cabinet, BT increased the voice from 30 to 60 minutes for the Nu 99 package and voice from 50 to 70 minutes for the Nu 199 package on the request of MoICE through BICMA, with the rationale that such packages are used by low-income people.
The packages above Nu 499 proposed a much smaller cut, which would be as little as half of what the packages from Nu 49 to Nu 499 are getting.
BICMA did its own assessment or study of BT’s report that claimed there would be network congestion with a direct 50 percent cut. BICMA concluded that the congestion level will not be as high as claimed by BT, and that it is anyhow BT’s responsibility to upgrade its network.
It was found that BT spends around Nu 1 billion a year in upgrading its network, and the Cabinet offered to fund some of this upgradation if BT implemented the 50 percent data cut.
The Cabinet decision is expected to be communicated in written form soon to BT, either through GovTech Agency or BICMA, and if BT does not implement it, then BICMA, as the regulator, will enforce the government directive.
A source said the government is not trying to impose undue pressure on BT, but that it is in line with the government’s digital strategy and connectivity goals, as mobile data in Bhutan is very expensive and there is room for a cut.
The source said that BT’s main argument against a full 50 percent cut is that the Nu 49 to Nu 499 package is its main customer base, but the government sees it differently, as a major chunk of the users in this category are rural and lower-income people, and they are being charged the highest, which is not fair.
A past analysis by this paper found that a Nu 49 recharge gives 660 MB of data, which is the highest per-unit cost, with Nu 1 giving 13.46 MB of data. When you get a Nu 999 recharge, you get 37,570 MB, which means Nu 1 now gives you 37.60 MB of data, which is almost three times more.
The source said that in 2024, BT’s profit after tax was Nu 2.370 billion and most of this came from mobile data, and so it is not equitable that such a huge profit comes from rural and lower-income people.
The source pointed out that 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. Close to September, they came with a different proposal than what the government had asked for, with the final version mentioned above.
In the Cabinet, the Prime Minister, Dasho Tshering Tobgay, made it clear that while the government appreciates the difficulties, initiatives and cooperation, the decision is a clear and straight 50 percent cut for the Nu 49 to Nu 499 category.
This is to be implemented at the earliest by BT, and while they may get some time to consult their Board and DHI, refusal will mean BICMA enforcing the 50 percent cut. The government feels it has engaged enough with BT and heard enough.
The source said that if BT feels the cut is unreasonable, then what explains the fact that TashiCell gave a similar rate cut proposal as BT to BICMA right after BT. The source said that if a private company is willing to cut, then it shows there is room for cuts. Otherwise, the private company would be complaining that it is uncompetitive or unreasonable.
Meanwhile, GovTech and BICMA are awaiting the official written directives from the Cabinet through MoICE.
A source in BT said they are yet to receive any written directives on the issue, and once they do, they will have to consult their Board and DHI. The BT source is not sure how BICMA can enforce tariff cuts on it, and the source speculated that matters may even end up in court.
