Slashing of bandwidth price fails to benefit internet users

Internet users in general are not getting full benefit of slashing of internet bandwidth price once again from Tk 4,800 to Tk 2,800 for one year.
However, the bandwidth price is also much lower for those who buy it from the International Terrestrial Cable (ITC) instead of the Bangladesh Submarine Cable Company Ltd (BSCCL).
But the internet service providers except the Bangladesh Telecommunications Ltd (BTCL) did not bring any change in their service charges at users' level.
The BTCL charges Tk 1,150 for unlimited use with 1Mbps speed while it has fixed Tk 500 for volume- based users for 10 GB internet with 512 Kbps speed. However, private ISP operators charge 3 to 4 times more for the same kind of internet use.
For example, Accesstel is currently charging around Tk 6,000 and Dhakacom offers Tk 4,500 for 1Mbps internet. WiMAX and mobile phone operators also charge the highest rate for volume- based internet use.   
Industry people say the price reduction of bandwidth is only a small part of the total cost and as a result, users do not get direct benefits of the reduction. However, they give attention to quality service and increased package volume keeping the same price.  
Mobile phone and Wimax operators and Internet Service Providers (ISPS) are providing internet service to the users' level. At present, the operators have 36 million internet users. Of them, mobile telecom operators have a majority stake in internet market share with 34.6 million users while ISP operators 1.22 million and Wimax operators 0.3 million users.
Former vice president of the Internet Service Providers Association of Bangladesh (ISPAB) Suman Ahmed Sabir said, "The reduction of bandwidth price by the BTCL will minimise the business gap between the BSCCL and the ITC operators."
"Since the ISP operators are enjoying lower bandwidth price for the last couple of months, recent BTCL price reduction will not impact the end- users' level," Mr Sabir said.
Sources said ITC operators are selling bandwidth at between Tk 3,000 to Tk 2,000 to the internet service providers for the last couple of months. Therefore, the business of government entity BSCCL has been reduced tremendously because of its higher bandwidth price.   
The highest ceiling of bandwidth price set by the government is Tk 8,000 while service providers buy it at much lower rate.
At present, six ITC operators and BSCCL are the main sources of bandwidth supply in the country.
According to the telecom regulator sources, total bandwidth consumption of the country is around 58 Gbps for both voice and internet. Of the volume, the BSCCL sells around 25Gbps while six ITC operators 33 Gbps.
In the last few years, the government reduced bandwidth price several times from Tk 12,000 to Tk 8,000. Now it is selling at Tk 2800 since April 2014.
The ISPAB claimed that the increased operational cost is the core reason for not giving the full benefit of bandwidth price reduction to the end-users.
"The end-users of the service will be benefited directly when the government will withdraw 15 per cent VAT," said Akhteruzzaman Manju, president of the ISPAB.
He, however, said the customers are getting better service due to bandwidth charge reduction.
An official of the Qubee, Wimax technology-based broadband internet service provider, said earlier that it is not possible to give benefits to the customers financially through this reduction as their operational cost is 60 per cent and it is going up.
But in service, customers will get some benefits for speed and volume in their existing packages, the official assured.
Talking about internet penetration, BASIS president Fahim Mashroor said mobile penetration in the country shot up because of its low-cost nature. The same can be true for internet penetration, he said.
He opined that internet service providers should reduce the cost of internet when the bandwidth charge is reduced.