If newly proposed internet service provider (ISP) guidelines are enacted, consumers across Bangladesh could see internet prices rise by an average of 20%, while businesses may face hikes of up to 14%, the Internet Service Providers Association of Bangladesh (ISPAB) has warned.
Speaking at a press conference held on Monday, November 3, at Rawa Club in Mohakhali, Dhaka, ISPAB raised serious concerns over provisions in the draft policy that it says unfairly burden domestic ISPs while offering preferential treatment to mobile operators.
ISPAB President Aminul Hakim said that under the proposed rules, internet costs in Dhaka would climb by 11%, with steeper increases – up to 18.4% – expected in areas outside the capital. “This will severely damage the digital ecosystem,” he cautioned, citing adverse effects on consumers, education, and healthcare sectors.
Hakim criticised the government for moving in a direction “that ignores public interest.” He highlighted several contentious measures, including the imposition of a 5% revenue-sharing requirement and a 1% Social Obligation Fund (SOF) on domestic ISPs – many of whom entered the market with a social mission – and pointed to discriminatory licensing fees. “While Starlink is charged Tk 12 lakh for a licence, domestic ISPs are being asked to pay Tk 25 lakh,” he noted, adding that renewal fees have been hiked by 2.5 times and annual fees by 3.5 times.
Warning of potential closures across the sector, Hakim said that a 20% price rise would push marginal customers – particularly in rural areas – offline within one to two months. “If the government truly represents the people, it must prioritise their welfare over policy decisions that favour a select few,” he urged, calling for internet pricing to be guided by public need rather than regulatory fiat.
ISPAB outlined seven key demands for policy revision:
Exclude Fixed Wireless Access (FWA) from Cellular Mobile Service Provider (CMSP) guidelines.
Remove provisions allowing CMSPs to deploy fiber to homes, offices, or indoor premises.
Prohibit commercial use of ISM/WiFi bands for service delivery under CMSP rules.
Clearly define active infrastructure-sharing guidelines for Fixed Telecom Service Providers (FTSPs) in line with existing policy.
Scrap or review the 5% revenue share, 1% SOF levy, and excessive licensing fees for FTSPs.
Clarify ambiguous regulations around IPTSP SMS services and mobile dialers.
Eliminate service discrimination between national FTSPs and District FTSPs.
General Secretary Nazmul Karim Bhuiyan echoed these concerns, stressing that the policy creates “extreme uncertainty” for domestic investment. “Mobile operators are being handed fixed-line connectivity rights, while local ISPs face crippling fees,” he said. “Our data shows consumer internet costs will jump by 20%, and FTSPs will pay 14% more for bandwidth – making affordability a major issue.”
The association urged the government to engage in meaningful consultation before finalising the guidelines. ISPAB Vice President Neyamul Haque Khan, Joint Secretaries General Mahbub Alam and Fuad Muhammad Sharfuddin, Treasurer Moin Uddin Ahmed, and Director Rashedur Rahman were also present at the briefing.