The Bangladesh Submarine Cable Company鈥檚 recent decision to reduce internet bandwidth costs by 10 per cent raises an important question: who stands to benefit from this price cut? Announced on March 22, 2025, the move is expected to ease expenses for both mobile and broadband service providers. However, whether these savings will trickle down to end-users remains uncertain. Internet costs in Bangladesh have historically been resistant to reductions and consumers continue to grapple with poor service quality, inconsistent speeds and affordability concerns. Despite this apparent gesture of financial relief, longstanding issues within the telecommunications sector persist, casting doubt on whether the average internet user will experience any tangible improvement.
The structure of Bangladesh鈥檚 internet industry does not favour consumers. Many users, particularly those without technical expertise, struggle to navigate complex pricing models and vague service terms. Internet service providers (ISPs) often fail to deliver the speeds they advertise, leaving customers paying for a level of service they do not receive. This situation is exacerbated by weak consumer protection measures, which allow providers to operate with little accountability. For professionals and students who rely on the internet for work and research, unreliable connections translate into lost productivity, frustration and economic inefficiencies. Frequent service interruptions, high latency and sluggish speeds remain common complaints, despite rising internet penetration.
Official data from the Bangladesh Telecommunication Regulatory Commission paints a contradictory picture of internet accessibility. By December 2023, the number of internet users had reached 131 million, an increase of seven million over the year. However, between July 2023 and January 2024, approximately 9.4 million internet users discontinued their services, alongside a loss of 13.2 million mobile internet users. The total number of mobile subscribers fell from 196 million in June 2023 to 186.6 million in January 2024. These figures suggest a significant churn rate, indicative of widespread dissatisfaction with service quality or financial constraints preventing users from maintaining subscriptions.
Bangladesh鈥檚 internet speed rankings highlight another area of concern. While the country moved up slightly in global broadband rankings, from 101st to 98th, mobile internet rankings stagnated at 89th. Internet freedom has also declined, with Bangladesh鈥檚 score in the Freedom on the Net 2024 report dropping from 41 to 40, keeping it in the 鈥榩artially free鈥� category. The regulatory landscape remains opaque and accessibility issues continue to restrict digital participation for many.
On broader digital competitiveness metrics, Bangladesh remains at a disadvantage. The International Telecommunication Union鈥檚 ICT Development Index 2024 scores the country at 62 out of 100, significantly below the global average of 74.8 and even behind the lower-middle-income country average of 64.8. Regional counterparts such as Myanmar, Sri Lanka, Vietnam and Bhutan outperform Bangladesh in household internet usage, broadband access and data affordability. The situation is equally concerning in AI readiness, with the International Monetary Fund鈥檚 AI Preparedness Index ranking Bangladesh 113th out of 174 countries, citing weak digital infrastructure as a major limitation. Similarly, the Digital Quality of Life Index 2023 by cybersecurity firm Surfshark places Bangladesh 82nd out of 121 countries, ranking particularly low in e-government, internet affordability and e-security.
Internet speeds in Bangladesh further illustrate the scale of the problem. The average download speed stands at just 9.22 Mbps, significantly trailing India (65.5 Mbps), Nepal (26 Mbps) and Sri Lanka (18.4 Mbps). Even countries like South Africa (42.4 Mbps) and Nigeria (27.6 Mbps) offer considerably faster connections. Official ISP pricing suggests that users should receive 5 Mbps for Tk 500, 10 Mbps for Tk 800 and 20 Mbps for Tk 1,200, yet reports indicate that actual speeds fall far short of these figures. Service quality remains highly variable, with larger ISPs delivering more reliable speeds while smaller, local providers operate with minimal oversight. Consumer complaints regarding high latency, frequent disconnections and poor customer support are widespread.
One of the most pressing issues is the lack of skilled technical personnel in the industry. Many ISP technicians acquire their knowledge informally, leading to inconsistent service quality. When customers report issues, the standard advice is often to restart their routers rather than receiving genuine technical assistance. Moreover, consumers lack a clear and effective avenue for filing complaints against poor service, leaving them without recourse when ISPs fail to meet their obligations.
The potential entry of new competitors could introduce some degree of disruption to this stagnant market. One such development is Elon Musk鈥檚 satellite internet service, Starlink, which is set to demonstrate its capabilities in Bangladesh on April 9 at the Bangladesh Investment Summit. Starlink offers download speeds ranging from 25 to 220 Mbps, with most users experiencing speeds above 100 Mbps. However, the cost of accessing this service remains a barrier. A Starlink kit, including a receiver, router and other components, is priced between $349 and $599, with a minimum monthly fee of $120 for residential users. While this is a promising development for remote areas where traditional ISPs have failed to expand infrastructure, affordability remains a significant concern for mass adoption.
Unlike local ISPs, which rely on submarine and international terrestrial cables for bandwidth, Starlink uses a network of thousands of low-Earth orbit satellites to provide internet coverage. As of January 2025, Starlink had deployed nearly 7,000 satellites, serving over 100 countries. Its first South Asian deployment took place in Bhutan, signalling the possibility of further regional expansion. While the upcoming demonstration does not equate to an official launch in Bangladesh, it signals potential future alternatives for consumers dissatisfied with the current state of internet services.
Despite these developments, structural barriers continue to hinder the accessibility and affordability of quality internet in Bangladesh. Rural areas and economically disadvantaged communities remain underserved, with broadband expansion largely focused on urban centres. Furthermore, internet costs relative to income levels remain prohibitively high for many citizens. The digital divide is widening and without strategic intervention, the country risks further entrenching socio-economic inequalities.
A meaningful reduction in internet costs must go beyond mere headline figures. While a 10 per cent reduction in bandwidth costs may seem like progress, it will be meaningless unless accompanied by improvements in service quality, speed consistency and regulatory enforcement. The government must strengthen oversight of ISPs to ensure compliance with promised service standards and implement a consumer rights framework that allows users to challenge unfair practices. Additionally, expanding infrastructure to underserved areas and improving technical training for ISP personnel should be prioritised to enhance service reliability.
If Bangladesh is to achieve its aspirations of becoming a digitally competitive economy, it must move beyond token measures and address the systemic challenges plaguing its telecommunications sector. Ensuring affordable, reliable and high-speed internet for all is not merely a convenience but a fundamental requirement for economic and social progress. Without urgent reforms, the promise of digital inclusion will remain elusive and the benefits of connectivity will continue to be concentrated in the hands of a privileged few.
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Nafew Sajed Joy is a writer and researcher.
