The Bhutanese Leading the way.
The introduction of Starlink in Bhutan has intensified competition in the country’s internet market. Promising high-speed satellite internet, Starlink aims to provide connectivity even in the most remote locations. However, established telecom providers like TashiCell and Bhutan Telecom argue that their existing infrastructure already meets the needs of most Bhutanese users.
Starlink users in Bhutan have reported speeds between 200-300 Mbps, but this is expected to decrease as more users join the network due to limited satellite capacity. Additionally, enterprise customers will receive higher priority over residential users, which could lead to fluctuations in performance. Meanwhile, both TashiCell and Bhutan Telecom offer 4G services nationwide, with the capability to upgrade to 5G where necessary. Bhutan Telecom also provides fiber-to-the-home (FTTH) services in urban areas, ensuring stable and high-speed internet for homes and businesses.
Affordability remains a key concern. Starlink requires an upfront investment of Nu 18,000 for its terminal and a monthly fee of Nu 3,000 paid in advance. In contrast, TashiCell offers unlimited data plans starting at Nu 1,350 per month with a one-time setup fee of Nu 5,000. Bhutan Telecom provides similar competitive pricing across various data packages, making local providers the more cost-effective option for most users.
Coverage is another critical factor in this competition. TashiCell and Bhutan Telecom have already built over 600 network towers each, covering both urban and rural areas. The government’s Rural Communication Program has significantly expanded connectivity, ensuring that even remote settlements have access to mobile networks. This raises questions about Starlink’s actual target market, as local providers believe it will compete more in urban and semi-urban areas rather than solely focusing on remote regions.
For users who rely on high-speed internet for gaming, freelancing, or other data-intensive tasks, both TashiCell and Bhutan Telecom offer 5G broadband and fiber-optic services with speeds ranging from 100 to 500 Mbps. However, the expansion of fiber services faces challenges due to delays in municipal approvals for cable installations. Starlink, while capable of providing high-speed internet, operates on a best-effort basis, similar to mobile networks, meaning speeds may vary based on congestion.
The reliability of service and customer support are crucial factors in user satisfaction. TashiCell and Bhutan Telecom differentiate between best-effort mobile internet and dedicated Internet Leased Line (ILL) services for homes and businesses, ensuring guaranteed speeds where necessary. Both companies also provide 24/7 customer support, raising concerns about whether Starlink can match this level of service for Bhutanese users.
The entry of Starlink is expected to disrupt the market, pushing local providers to improve their offerings. While it introduces an additional connectivity option, particularly for remote areas, it remains to be seen whether it will truly dominate the Bhutanese internet landscape. With competition driving down prices and improving service quality, consumers stand to benefit the most from this evolving market.
