End-users yet to get any benefit

The government's recent move to cut bulk internet bandwidth price has failed to make expected impact at the user-end, as Internet Service Providers (ISPs) are terming the price cut a fuzzy math.
"Rather, internet price might go up due to imposition of new value added tax (VAT) on Nationwide Telecommunication Transmission Network (NTTN) service in the budget for fiscal year 2019-20," the Internet Service Providers Association of Bangladesh (ISPAB) President Abdul Hakim told The Financial Express.
On June 27, the government reduced the bulk bandwidth price by 41 per cent on an average, to be effective from July 1, in a move to provide low-cost internet service across the country.
The price cut was supposed to reduce the end-users' internet bandwidth price. But the users in Dhaka and elsewhere are yet to get any benefit of the move.
The ISPAB president, however, said bulk internet price has been reduced at international internet gateways (IIGs)-end by Tk 40 to Tk 50 per gigabits per second (gbps).
"It will not impact the end-users' internet price at all."
Mr Hakim said the end-users would not get any benefit from the new price. The ISP providers do not use the BTCL rout only. Internet price will be higher for providing quality bandwidth, for which the IIGs use multiple routs.
Besides, price has been reduced for educational institutions, but they have to set their own lines for the reduced price.
The minimum internet data size has to be 3.0 gbps for any ISP to get the new reduced price, he noted.
Moreover, if 15 per cent VAT prevails on NTTN service, the internet price will go up instead of going down.
The ISPs will meet the Bangladesh Telecommunications Company Limited (BTCL) and the National Board of Revenue (NBR) this week to get clarification about the VAT, he added.
Earlier, following the meeting that took the decision of internet price cut, Posts and Telecommunications Minister Mustafa Jabbar said Bangladesh's total bandwidth usage was 7.5 gigabits per second (gbps) in 2008. Now it stands at over 1,100 gbps due to various effective and innovative decisions of the government.
The revised price of IP transit for the IIGs was Tk 350 per month for 500-999 mbps bandwidth, and Tk 335 for minimum two years deal.
Besides, the price would be Tk 300 per month for 50,000+ mbps, and Tk 285 for minimum two years deal.
On the other hand, IP transit for the ISPs is Tk 400 per month for 5-19 mbps bandwidth (for upazila and union level), and Tk 375 for minimum three years deal.
The price would be Tk 310 per month for 40,000 mbps, and Tk 290 for minimum three years deal.
The BTCL local content transmission charge is Tk 30 per mbps for greater Dhaka, while Tk 100 for outside Dhaka.
For the educational institutions and training centres are Tk 300 per month for 5-99 mbps bandwidth, and Tk 270 for minimum five years deal, while the rate is Tk 200 per month for 3,000+ mbps, and Tk 180 for minimum five years deal.
For the government, semi-government and corporate offices, the rate is Tk 395 per month for 5-49 mbps bandwidth, and Tk 355 for minimum five years deal, while Tk 250 per month for 3,000+ mbps and Tk 225 for five years deal.

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