Partner for a third internet gateway changed

Partner for a third internet gateway changed

Airtel moves in after BSNL leaves due to failed negotiations

The much anticipated and delayed Third Internet Gateway for Bhutan would now see the light only in January 2025, as the former partner from India, PSU Telecom provider Bharat Sanchar Nigam Limited (BSNL) has been replaced by another company, Airtel.

According to an official from GovTech, this happened after failed negotiations between BSNL and Bhutan Telecom Limited (BTL). “Negotiations between Bharat Sanchar Nigam Limited and Bhutan Telecom did not reach a common consensus on the service level agreement,” he said, though details of what happened with the negotiations could not be availed.

However, the official mentioned that BTL has officially partnered with Airtel for the establishment of the third internet gateway, following the signing of a customer order form in June 2024. The official shared that work towards establishing the Internet Gateway is in full swing.

The official also said that currently, Airtel is working on establishing a point of Intersection in Gelephu, which is expected to be completed by the end of this year. “The operationalization of the link is projected for January, 2025,” the official added.

Currently the country has three nationwide Internet Service Providers (ISPs) with international Internet gateways, that is, Bhutan Telecom, Tashi Infocomm and NANO through the Siliguri corridor in India.

The official said that the third internet gateway will aim to provide redundant and reliable connectivity, particularly during disasters. The official also shared that while there won’t be significant impacts on overall tariffs, the new gateway will enhance the country’s internet resilience by reducing dependence on a single link.

Currently, the country is paying USD 7 per Mbps for internet connection through the Siliguri corridor. After the establishment of the third internet gateway, the country would be paying USD 1.5 per Mbps to India and USD 3 per Mbps to Bangladesh for the internet connection through the third gateway.

The third internet gate way will not only reduce the costs and bridge the digital divide but will also facilitate in empowering the creative industry and go a long way in addressing piracy and copyright issues, amongst others.

With the third internet gateway, the eastern Dzongkhags (districts) will also be benefited and will help to connect remote pockets of the country. Aside from that, the internet will be faster and will play a vital role in attracting foreign direct investment (FDI) and employment generation.

Similarly, other benefit include reducing wholesale rates levied to small internet service providers (ISPs) by the two telecom operators, and, therefore, the cost of leased internet line may reduce in the country over the time.

By Nidup Lhamo, Thimphu