Government working to reduce data charges by 50 percent

The Minister of Industry, Commerce, and Employment (MoICE) Namgyal Dorji shared that the works are going on for the reduction of 50 percent data charges for the two telecom operators in the country, Bhutan Telecom and Tashi Cell.

During the Parliament session, Members of Parliament (MPs) from the Khar-Yurung and Sergithang-Tsirang Toed constituencies have raised concerns over the high cost of telecom data, questioning the Minister of Industry, Commerce, and Employment about plans to introduce a third service provider, such as Starlink, and make data more affordable for the public.

Gangzur-Minjey MP Loday Tsheten also raised concerns over the government’s prolonged research and study on reducing internet charges. “Whenever we question the government, the response is always about researching and studying. Time will pass with no tangible outcomes,” he remarked, emphasizing the critical role of affordable internet for students in the digital era.

The MP urged the government to prioritize reducing internet rates as part of its pledges to the people. “Even if telecom companies make no profit, the government should subsidize and lower the rates. However, given the significant profits reported by telecom companies, there may be no need for subsidies. The government knows well how these companies generate profits,” he said.

In response, MoICE Minister Namgyal Dorji announced that data charges could potentially be reduced by 50 percent. “It is only a matter of time before we implement the reduction. There is significant potential to cut rates by half,” he said.

Lyonpo shared that even with a 50% reduction in data rates, Bhutan Telecom is projected to maintain a profit of Nu. 46 million.

The government has been working closely with GovTech, BICMA, and telecom companies to address this issue, with a report already submitted to the Cabinet. However, the full implementation of reduced rates may take some time.

Highlighting the importance of the National Digital Transformation initiative, the minister also revealed that the Prime Minister has been in discussions with the Government of India (GoI) to further lower internet costs.

Bhutan currently has around 20 internet and data providers serving approximately 700,000 subscribers and 21,000 leased internet lines.

The minister noted that the country’s small population and limited user base contribute to high data prices, even though telecom companies report substantial profits.