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Fixed broadband internet price of International Internet Gateway (IIG) and Nationwide Telecommunication Transmission Network (NTTN) services will be effective from September 1 to materialise the government’s flat internet tariff plan ‘One Country, One Rate’.
The Bangladesh Telecommunication Regulatory Commission (BTRC) will inaugurate the tariff plan today.
On August 7, BTRC set the service price based on the consent of the stakeholders while meeting with the ISPAB and IIG Forum. At the meeting, BTRC fixed the cost of bandwidth for 11 slabs in different volumes for IIGs. The service price for 15 slabs and several new categories, including metro city and adjoining districts, have been added in terms of the volume of transmission capacity for NTTNs.
For this, the IIG will have to provide bandwidth to ISPs at the same price all over the country. For NTTN, the transmission cost from Dhaka to other districts will come down substantially.
Arif Al Islam, managing director and CEO of Summit Communications Limited, welcomed the move, saying it would also end allegations against NTTNs. “It is good for the industry. Otherwise, the industry will blame us that the NTTNs are holding it back,” Arif told The Business Post.
Ahmed Junaid, secretary-general of the IIG Forum, concurred. “It is a positive initiative because the industry will get a shape and the quality of service will improve. Every user will benefit directly and indirectly. ISPs will get the most benefits.”
Emdadul Hoque, secretary-general of Internet Service Providers Association of Bangladesh (ISPAB), said, “Fixing price is unnecessary for ISPs as our market determines the service price. There are more than 2,000 ISPS. If I offer 10Mbps at a certain rate, another provider will offer 15Mbps for the same price. It will force me to cut the price to survive in the market.”
“Of the three NTTN companies, Summit and Fiber@Home dominate the market. And they are rigid when it comes to lower prices. We will need some time to figure out the package prices once the regulator implements the tariff plan,” he added.
Bahon Limited is the other NTTN company.
Hoque said that in terms of long-haul transmission, NTTN documents say they sell per Mbps for Tk 100, but they negotiate with some ISPs and sell them at a low price like Tk 40-60. “This can help those ISPs step ahead of competitors,” he said.
BTRC’s initiative is expected to end a decade-long turmoil and ensure quality internet service at the consumer level and will benefit the country significantly, said Md Zakir Hossain Khan, deputy director of BTRC.
On June 6, BTRC set the maximum monthly fees for broadband internet connections to reduce internet price discrimination across the country.
A customer will have to pay a maximum of Tk 500 a month for 5Mbps, Tk 800 for 10Mbps and Tk 1,200 for 20Mbps broadband connection.