July 17, 2009

Bandwidth Price Slashed: Will ISP Suffer Again?

To extensively promote the telecom sector all over the country recently Bangladesh Telecommunication Regulatory Commission (BTRC) has reduced the value of internet bandwidth by about 33 percent for operators. BTRC announced Thursday the cost of internet bandwidth for operators will be slashed by 33 percent, in a move intended to inspire the telecom sector.

Bangladesh Telecommunication Regulatory Commission (BTRC) chairman Zia Ahmed said the move would boost the figure of internet users and improve internet speeds. The regulator said mobile phone companies and internet service providers have vowed to pass on the savings to users, by providing quality services at reduced rates.

The BTRC, in a statement, said public and private internet service providers will now pay Tk 18,000 per megabit/second to the state-run Bangladesh Submarine Cable Company Limited (BSCCL),
rather than the current rate of Tk 27,000. Prime Minister Sheikh Hasina promised to build a digital Bangladesh by this decision the campaign will move towards a new era.

Bangladesh Telecommunications Company (BTCL) reduced the price of internal backhaul – from the landing station to Dhaka – while the BSCCL also agreed to reduce their fees, said the statement. The BTCL said the decision was made in consultation with the ministry of telecommunications and private and public run service providers.

Bangladesh is connected with the SEA-ME-WE-4 submarine cable consortium. The allotted bandwidth is 24 gigabits, although current usage remains at around 8 gigabits. The SMW-4 cable has a bandwidth capacity of 1.2 terabytes per second.

This is however, great news for internet users in Bangladesh. From now on, users have the chance to get more bandwidth. At the same time, I urge users to be bandwidth hungry rather than take it as a chance to reduce cost. Because each time price of bandwidth decreased, the Internet Service Providers suffered.

It has been seen earlier that, users prefer to reduce the cost rather increasing bandwidth. Say, if anyone uses 256 kbps he is intended to keep that and ask ISP’s to reduce the price with revised tariff. This is, however, doesn’t do any good to ISP’s fate as they are losing revenue all time when Government reduces bandwidth price.

So if you are an internet user, explore more with higher speed and please don't compromise speed with any cost.


Kashif said...

I agree completely. I think, the more bandwidth one has, the more he will be able to utilize the internet. I recently got a very good connection from an ISP (compared to my previous one) which gives me 256 kbps (shared) for 1200 taka. In Uttara I guess this is above average. I used to get 88 kbps for 1000 taka before from another ISP. The lower price could be because of the government initiative. Finally, some movement towards DB!!!!

Kamrul said...

I am a reporter of telecom sectors in Bangladesh of a newspaper. I have to talk u about such issues. Pls call me or e-mail me:

Cell: 01816331973
E-mail: khasan4bd@hotmail.com

Anonymous said...

It is not discussed in this article as to why the ISPs should lose revenue if the wholesale Bandwidth price is reduced. They are doing the same thing, not reducing their price for the package they are offering to the end users.

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