Mobile operators yet to cut internet prices despite government call
More than a month after the interim government urged a reduction in internet prices for consumers, mobile network operators have yet to lower their package rates.
In mid-April, Faiz Ahmed Tayyab, special assistant to the chief adviser, stated that the government provides policy support and infrastructure, leaving no valid reason for private mobile operators to delay price cuts. Telecom experts noted that operators have the opportunity to lower prices as transmission tariffs have been reduced at various levels.
However, officials from telecom companies argue that pricing depends on a range of factors beyond just transmission costs. The Association of Mobile Telecom Operators of Bangladesh (AMTOB), the industry trade body, didn’t respond to queries from the Mirror Asia. However, three major operators provided statements.
Grameenphone’s Head of Communications, Sharfuddin Ahmed Chowdhury, emphasised that internet pricing is determined by a complex value chain involving spectrum, towers, fibre, and electricity.
“Still, keeping customers in mind, we are comprehensively evaluating how to provide quality services at affordable prices. Moreover, the telecom sector in Bangladesh has long faced unreasonably high tax rates, both on consumers and operators,” he said.
Company officials claimed that these high taxes are one of the primary reasons behind elevated internet prices, even as efforts continue to improve service quality.
Robi Axiata has welcomed the government’s initiative to reduce wholesale prices across the telecommunications ecosystem.
“We’ve seen media reports suggesting price reductions, but we’ve not yet received formal notifications from industry partners or directives from regulatory authorities,” said Shahed Alam, chief corporate and regulatory officer at Robi Axiata, told the Mirror Asia.
Alam has emphasised that the company is focused on achieving “meaningful reductions in the effective prices paid by consumers,” rather than superficial price cuts. “To lower costs, it’s crucial to reduce taxes and spectrum fees, which would have a real impact,” he added.
He further noted that the telecom sector is currently experiencing negative growth, and operators have already reduced average retail prices by about 20 percent over the past eight months to retain customers and support affordability.
Banglalink, in its statement, pointed to the unstable political situation in the last quarter of 2024 as a major setback for the entire telecom sector. “Spectrum costs in Bangladesh remain disproportionately high compared to regional markets, making it difficult for operators to ensure affordable and consistent connectivity,” the statement read.
Despite the challenges, Banglalink said it continues to invest in digital platforms, expand network capacity, and promote innovation. The company is also advocating for a balanced and forward-looking regulatory framework to foster sustainable industry growth and bridge the digital divide.
Technology expert Sumon Ahmed Sabir echoed the view that mobile operators now have room to lower prices due to reduced transmission costs. “Operators should reduce internet prices to connect more people. The reduction in transmission tariffs supports this,” he told the Mirror Asia.
Meanwhile, mobile internet subscriptions have plummeted. Since June 2024, operators have lost over 130 million users, with the number of active mobile internet subscribers falling to 116 million in January — the lowest since May 2023.