Govt may go for 3rd operator if BT does not relent

A quiet tug of war has been unfolding between the government and Bhutan Telecom (BT) over the mobile data price reduction since 27th February 2025, when the Cabinet approved the internet cost reduction strategy.

The directive called for a 50 percent reduction in mobile data prices for packages ranging from Nu 99 to Nu 499, to take effect from 1st July 2025.

Minister for Industry, Commerce, and Employment (MoICE) Namgyal Dorji said, “Bhutan Telecom subsequently submitted a revised proposal on data charge reduction. However, the Cabinet did not approve it, as it did not fully meet the 50 percent reduction commitment. Instead, the proposal offered reductions ranging from 30 to 40 percent for packages between Nu 49 and Nu 499, along with additional voice and SMS benefits intended to partially offset the remaining gap.”

He added that since then, the matter has been under review by BICMA and MoICE, and no official updates have been communicated to the GovTech Agency regarding progress or a final decision.

The GovTech Agency had initially facilitated the “50 percent reduction in data charges” initiative under the Prime Minister’s directive, coordinating with all stakeholders and submitting the proposal for Cabinet approval last year.

Lyonpo Namgyal Dorji explained that BT could not implement the full cut in their earlier proposal, citing concerns over sustainability and network quality. He said the government’s primary concern is that data charges for lower-priced packages remain high.

BICMA is currently conducting a costing analysis to determine the feasible reduction. “Once this study is complete, likely by May, we will know how much can be cut,” said Lyonpo.

Prime Minister Dasho Tshering Tobgay emphasized that the data cut is not intended to make BT unsustainable. “Informally, I’ve heard BT can afford the cut, but they may not want to appear as supporting a political pledge,” he said, stressing that this is a national issue, not a political one.

He noted that BT’s annual profit typically ranges between Nu 2.3 and Nu 2.4 billion, and the government is willing to support the telecom in implementing the cut. “It is okay for BT to make a profit, but it should not come at the expense of farmers, students, and low-income citizens,” said the PM.

“If BT cannot reduce data charges despite such large profits, BICMA should step in and study the matter. We are also in touch with Airtel to reduce import data prices,” he added.

According to the PM, if data prices remain high, the government may consider introducing a third operator willing to offer cheaper data, to ensure competitive pricing.