Amid growing public frustration over weak internet connectivity and inconsistent mobile data services across the country, the government has clarified that the recent service disruptions affecting users of Bhutan Telecom and Tashi Cell are not linked to the implementation of the Goods and Services Tax (GST).
Speaking during the 27th Meet the Press session, Minister for Industry, Commerce and Employment (MoICE), Lyonpo Namgyal Dorji said the connectivity issues currently experienced by users are technical and operational in nature, and not a consequence of recent tax reforms or revised telecom service packages.
In recent weeks, internet users across several parts of the country have reported slower browsing speeds, unstable WiFi connections, interrupted mobile data services, and reduced call quality. The concerns have triggered widespread discussions on social media, with some users speculating that the decline in service quality may have been linked to GST-related changes in telecom pricing and billing structures.
Dismissing those claims, Lyonpo explained that GST functions purely as a taxation mechanism applied to telecom billing and has no direct impact on network performance or infrastructure.
“The GST does not affect technical parameters such as signal strength, internet speed, network coverage, latency, or call quality,” he said. “The current quality-of-service issues arise from a range of operational and technical factors that telecom providers continue to address.”
According to the Minister, fluctuations in telecom service quality can occur due to several underlying challenges, particularly in a geographically difficult country like Bhutan. These include network congestion during peak usage periods, limitations in domestic and international bandwidth capacity, disruptions in backbone and last-mile connectivity, terrain-related constraints, and weather-related disturbances. Routine maintenance work and occasional technical faults can also temporarily affect service performance.
While the country’s rugged mountainous landscape continues to present structural challenges for telecommunications infrastructure, maintaining stable connectivity requires substantial investment and continuous technical upgrades, particularly in remote and rural regions.
The Minister noted that the increasing reliance on digital services, online platforms, and internet-based communication has also significantly raised data consumption nationwide, placing additional strain on existing network infrastructure.
With rapid digital transformation, demand for faster and more reliable internet connectivity has expanded across sectors including education, business, government services, entertainment, and financial transactions.
In response to the growing concerns, the Bhutan InfoComm and Media Authority (BICMA) has been directed by MoICE to closely monitor telecom service providers and engage regularly with operators to ensure timely interventions and service improvements.
The Minister said BICMA continues to oversee the performance of both Bhutan Telecom and Tashi Cell to ensure compliance with quality-of-service standards and consumer protection requirements.
Although no major nationwide outage has been officially reported in recent weeks, authorities acknowledged that localized service disruptions and intermittent performance issues have affected users in several areas.
Telecom operators have also been advised to remain responsive to customer complaints and strengthen support systems, especially during periods of high network demand or adverse weather conditions that may affect infrastructure performance.
Officials emphasized that ensuring reliable telecommunications services remains a national priority as Bhutan continues to expand its digital economy and improve public access to online services.
The government reiterated that ongoing efforts are underway to strengthen network infrastructure, improve bandwidth capacity, and enhance overall service reliability across the country.
Meanwhile, Lyonpo Namgyal Dorji urged the public not to associate technical service disruptions with GST implementation, stressing that taxation policy and network performance operate independently off one another.
He also encouraged consumers experiencing persistent connectivity problems to report them directly to their respective service providers to facilitate quicker technical responses and resolution.
Nidup Lhamo, Thimphu
