The GovTech Agency is leading efforts to reduce data charges, following a Cabinet discussion that resulted in the formation of a technical committee to address the issue.
During the 12th Meet-the-Press session held on February 7th, 2025, Deputy Executive Engineer of the GovTech Agency, Cheki Dorji, shared that the agency has conducted several consultations with relevant stakeholders. GovTech is currently working on three proposed approaches for reducing data charges.
The Deputy Executive Engineer explained that the agency is focusing on short-term, mid-term, and long-term solutions. For the short term, the proposal suggests reducing data charges by 50%, while also considering the impacts on the quality of services and the revenue of service providers.
In the mid-term, the proposal focuses on reviewing and consolidating all incoming international bandwidth to reduce internet charges at the source, leveraging economies of scale to offer lower prices with higher volumes.
The long-term goal is to consolidate national infrastructure and invest in affordable, high-speed internet services to reduce congestion in mobile networks.
Prime Minister Dasho Tshering Tobgay also mentioned that he would personally engage with the Government of India to discuss the issue, expressing hope for a positive outcome regarding the reduction of internet tariffs.
Meanwhile, the Government has identified the Digital Transformation Programme as a crucial strategy in the 13th Five Year Plan (FYP) to achieve the long-term goal of making Bhutan a high-income GNH Economy by 2034.
To this end, the national digital strategy “Intelligent Bhutan” was launched to drive the country’s digital transformation. A key enabler for this strategy is robust and accessible digital connectivity. However, the cost of internet services in Bhutan remains among the highest regionally and globally.
To address this, the Prime Minister issued an Executive Order directing the GovTech Agency, BICMA, all Telecom Service Providers, and Internet Service Providers to submit a strategy for a 50% reduction in internet service costs.
Based on the submission by these agencies, a Cabinet Sub-Committee was formed, comprising Ministers from the Ministry of Finance (as Chairperson), Ministry of Infrastructure and Transport, and the Ministry of Industry, Commerce, and Employment, to review the proposal and submit recommendations.
The Cabinet Sub-Committee and stakeholders have met three times so far. The 50% reduction in internet costs could either involve a 50% reduction in the cost of selected data packages or increasing selected data packages by 50% at the existing data costs.
Meanwhile, reducing Internet and Data Costs by 50% is one of the pledges made by the PDP government during the last National Assembly election. A question on this was asked during the parliament session in November 2024. In response, Lyonpo Namgyal Dorji, reaffirmed the government’s commitment to reducing internet and data costs by 50% as part of the 13th Five-Year Plan (FYP) and Bhutan’s national digital strategy.
Lyonpo Namgyal Dorji then highlighted that reducing internet costs is pivotal to Bhutan’s goal of becoming a high-income Gross National Happiness (GNH) economy by 2034. “This initiative supports our long-term vision by enhancing digital accessibility and affordability,” he said. However, the minister acknowledged that Bhutan’s current internet service costs rank among the highest regionally and globally, limiting digital connectivity.
Bhutan currently has two telecom operators (with Starlink yet to start operations) and 20 internet service providers, with a mobile subscriber base of around 790,000 and about 21,000 internet leased line users. In 2023, BTL contributed Nu 2,560 million in dividends to DHI, which in turn contributed Nu 3,361 million to the government. Despite the potential initial loss in revenue, the government anticipates that lower internet costs will stimulate increased usage, economic activity, and ultimately, long-term revenue growth.
High internet costs and low speeds have hindered digital connectivity, innovation, and economic growth in Bhutan. To address these issues, the government approved Starlink, a Foreign Direct Investment (FDI) Internet Service Provider, to complement existing providers.
The Cabinet Sub-Committee will soon submit its recommendations, and the Lhengye Zhungtshog will make a decision as soon as possible.
Nidup Lhamo from Thimphu
