Pvt submarine cables may halve internet prices: Speakers

Industry stakeholders have identified the monopoly of Bangladesh Submarine Cables PLC (BSCPLC) as a major obstacle to affordable and reliable internet services, saying the lack of competition in international bandwidth infrastructure is driving up costs and affecting service quality.

They also warned that continued government indecision over allowing private submarine cables could leave Bangladesh facing a major infrastructure crisis. According to their estimates, introducing private submarine cables could reduce internet prices by 40% to 50%.

The issues were discussed at a seminar and workshop titled “Affordable Internet for All: Challenges for the Tech Giants Investment in Bangladesh and Where are the Solution?” organised by the Telecom and Technology Reporters Network Bangladesh (TRNB) at the RAOWA Club in Dhaka’s Mohakhali on Tuesday.

A presentation at the event said BSCPLC had invested Tk819.50 crore in two submarine cables �" SEA-ME-WE 4 and SEA-ME-WE 5. Between 2008 and 2026, the company’s revenue exceeded Tk3,000 crore, while its net profit stood at more than Tk1,362 crore.

However, the presentation said ordinary consumers were not benefiting sufficiently from the investment and business success because of the company’s monopoly.

In 2006, Bangladesh Telecommunications Company Limited (BTCL) sold bandwidth at Tk75,000 per Mbps. After BSCPLC began selling bandwidth, the price fell to Tk500 per Mbps in 2016. This year, the same bandwidth is being sold at Tk120.

Analysts said competition from private submarine cables could bring the price down to Tk60-70 per Mbps in 2027, creating scope for a 40-50% reduction in internet prices.

Bangladesh currently uses around 13,500 Gbps of international bandwidth. However, limited access to multiple submarine cables and alternative international routes, inadequate uninterrupted power supply and a lack of favourable policies are creating challenges for investment by global technology companies and hyperscalers such as Google, Meta, Akamai and Cloudflare, the seminar was told.

To break the monopoly, participants recommended allowing private investment, ensuring carrier-neutral and non-discriminatory access to landing stations, establishing multiple cables and landing stations, expanding domestic fibre sharing, internet exchange points (IXPs) and local peering, and rationalising taxes on broadband infrastructure and equipment.

Aminul Hakim, director and chief executive officer of Metacore Subcom Ltd, said affordable and quality internet services would be impossible while BSCPLC’s monopoly remained in place.

“Creating opportunities for private investment would break the monopoly in the bandwidth market and allow consumers to benefit,” he said.

Mashiur Rahman, chief executive officer of CdNet Communications Ltd, and AHM Bazlur Rahman, chief executive officer of Bangladesh NGOs Network for Radio and Communication, also spoke at the seminar.