BTRC to study internet service costs to regulate prices

BTRC to study internet service costs to regulate prices

The telecom regulator is going to analyse the cost components in providing internet services, to determine a pricing guideline for the oper... 5:57 PM

The telecom regulator is going to analyse the cost components in providing internet services, to determine a pricing guideline for the operators, said an official.

There is a huge gap in internet prices between different operators. To intervene in the market, the regulator must first conduct an analysis of the pricing process, said Shahjahan Mahmood, chairman of Bangladesh Telecommunication Regulatory Commission.

“We want to get the correct information, which will help us offer the best possible prices to customers.”

BTRC recently decided in principle to purchase expertise from InCyte Consulting, a globally reputed company on telecommunication services and regulation, for Tk 30 lakh.

Two years ago, BTRC had approached International Telecommunication Union (ITU), the highest body of global telecommunication services, to receive consultation free of cost.

But ITU recommended InCyte Consulting for the job, said senior BTRC officials. Earlier, BTRC also recommended the government to appoint a consultant for cost modelling of voice services, short and multimedia messaging, video calls and value-added services.

However, the regulator is yet to receive a response from the government on the issue. “All the prices of services are proposed by the telecom companies. We then negotiate to lower the prices based on those,” said a senior BTRC official, on condition of anonymity.He said the government reduced the internet bandwidth price to as low as Tk 625 a megabyte last year, which was Tk 72,000 just seven years ago, but operators continued to charge higher rates from the subscribers. Operators said bandwidth is not the only pricing component, and they have other costs as well. “After launching the cost modelling study, we can learn the real picture and packages can be approved based on the report's findings.”

The BTRC ran a cost modelling study on voice services in 2008.  
Daily Star