The long-promised Third Internet Gateway (3IG) for Bhutan, envisioned as a digital safety net and a pathway to affordable, resilient connectivity, is nearing physical completion. More than a year after its originally scheduled launch, the project remains inactive. This is not due to missing fibre or faulty equipment, but because of unresolved cross-border approvals that continue to delay commissioning.
The gateway was expected to go live in January 2025. Instead, as Bhutan enters 2026 with growing dependence on digital services, the system remains unswitched, stalled by regulatory clearances, right-of-way approvals, and coordination challenges involving Bangladesh and India. According to the Government Technology Agency (GovTech), the project could become operational in the next financial year if remaining hurdles are resolved.
The delay has raised concerns among policymakers, businesses, and digital service providers who view the gateway as critical national infrastructure—essential for resilience, economic competitiveness, and digital sovereignty.
Bhutan’s push for a third international internet route stems from long-standing vulnerability to disruptions. For years, the country has relied almost entirely on connectivity routed through India’s Siliguri corridor. While the corridor has supported Bhutan’s digital growth, it has also exposed the country to outages caused by cable cuts, technical failures, natural disasters, or disruptions beyond Bhutan’s control.
As e-governance platforms, online education, digital payments, fintech services, and creative industries expanded, the risks of depending on a single route became increasingly clear. Planning for the Third Internet Gateway began as a redundancy-first initiative, aimed at preventing digital isolation should one link fail. Cost reduction, while important, was a secondary benefit.
A major breakthrough came with the signing of a Memorandum of Understanding between the Royal Government of Bhutan and the Government of the People’s Republic of Bangladesh. The agreement allows Bhutan to access international internet bandwidth through Bangladesh at a preferential “friendship rate” of USD 3 per Mbps per month. GovTech confirmed that the rate remains valid despite the change of government in Bangladesh, as explicitly stated in the MoU.
Once operational, the Third Internet Gateway is expected to significantly reduce Bhutan’s international bandwidth costs. Currently, the country pays about USD 7 per Mbps for connectivity via Siliguri. Under the new arrangement, Bhutan would pay around USD 1.5 per Mbps to India and USD 3 per Mbps to Bangladesh for traffic routed through the third link. These savings are expected to benefit telecom operators, government platforms, businesses, and consumers.
By 2025, GovTech reported that the project was nearly 90 percent complete. Most domestic infrastructure had been laid, including fibre connectivity up to Gelephu. On the cross-border side, Airtel constructed underground fibre lines in Gelephu. Although not built exclusively for the Third Internet Gateway, these lines are intended to form part of the overall connection.
The final phase has proven the most complex. Commissioning requires tightly coordinated actions across jurisdictions, including final regulatory and security approvals, resolution of right-of-way issues in Bangladesh, confirmation of the precise network handover point, completion of last-mile connectivity arrangements, and comprehensive end-to-end testing.
Among these, right-of-way and regulatory issues in Bangladesh—particularly those linked to the Airtel transit line—have emerged as the most significant bottleneck. GovTech officials acknowledged that these challenges lie largely outside Bhutan’s direct control and require alignment with multiple Bangladeshi authorities operating under domestic legal and security frameworks.
“Discussions to resolve these matters are ongoing through diplomatic and institutional coordination mechanisms,” a GovTech official said, adding that relevant ministries are engaged to facilitate dialogue with Bangladeshi counterparts.
Despite the delays, GovTech said it remains focused on resolving issues within the existing implementation framework. While alternative partners or routes could theoretically be explored, officials cautioned that changing course now could introduce new delays, costs, and uncertainties. Such options would be considered only if current challenges prove insurmountable.
The delay is becoming more consequential as Bhutan’s digital ecosystem expands. Without the Third Internet Gateway, the country remains vulnerable to disruptions affecting government services, online learning, financial transactions, and private-sector operations. Internet demand continues to grow, driven by increased smartphone use, digital public services, cloud-based applications, and remote work.
GovTech stressed that once commissioned, the gateway will significantly improve redundancy and network stability, allowing traffic to be rerouted during failures along existing routes—an especially critical capability during emergencies or natural disasters.
The gateway is also expected to deliver broader social and economic benefits. Faster, more affordable internet could help bridge the digital divide, particularly in eastern dzongkhags and remote areas that currently experience slower speeds and less reliable service. Improved connectivity is seen as vital for expanding access to online education, telemedicine, and digital government services.
Economically, the Third Internet Gateway is expected to enhance Bhutan’s appeal to investors, especially in digital, creative, and knowledge-based sectors. Officials say improved bandwidth availability would support entrepreneurship, reduce business costs, and create new employment opportunities. Better connectivity could also strengthen digital rights management and efforts to address piracy and copyright issues.
Small internet service providers may also benefit over time. Increased international capacity and lower wholesale costs could reduce the rates charged by major telecom operators, potentially lowering leased-line costs nationwide.
Under the current agreement, the gateway will initially provide a subsidised 10 Gbps link. GovTech said usage will be closely monitored, with the possibility of scaling capacity to meet rising demand.
GovTech reiterated its commitment to completing the project, emphasising its strategic importance for national resilience and cost-effective connectivity.
The prolonged delay underscores a broader reality: in an interconnected world, national infrastructure projects move only as fast as cross-border cooperation allows. The Third Internet Gateway has become a test of Bhutan’s digital diplomacy.
The fibre is laid, the agreements signed, and the demand firmly in place. What remains is final clearance at the border. Until then, Bhutan’s digital lifeline remains connected—but not yet switched on.
Nidup Lhamo
From Thimphu
