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Bangladesh: Government Attempts to Increase Internet Usage Print E-mail
Monday, 21 January 2008
Bangladesh’s government has reduced tariffs for submarine cable access by an average of 20% in order to increase Internet usage.

The charge for monthly business Internet use has been reduced to US$ 10.35 from US$ 14.79, and annual leased-line Internet access up to 2 mbps was reduced to US$ 21,300 from US$ 28,400. All other Internet tariffs have also been reduced and four new service packages have been introduced in an attempt to increase Internet access. The Finance Ministry has approved the reduced rates.

A telecom ministry brief said the reduced rates would result in a 45% reduction in revenue from the submarine cable, amounting to US$ 4.7 million. However, it is hoped that lower costs would lead to 300% growth in the user base and additional revenues of US$ 17.7 million.

"The government has reduced the rate on the plea by the internet service providers (ISPs). The ISPs have said that high submarine tariff rates are responsible for low Internet penetration in the country," a telecom ministry official said.

The website Internetworldstats.com puts Bangladesh’s Internet penetration at 0.3% of the population as of September 2007. Almost 90% of the submarine cable’s capacity, installed at a cost of US$ 97.2 million in 2006, has remained unutilised, due largely to high tariff rates.

Source: Xinhua - WDR/Intelecon Regulatory News.