After prolonged discussions and repeated revisions, the Cabinet has reached a firm decision on the reduction of mobile data prices by turning down Bhutan Telecom’s (BT) revised proposal. As a result, BT will be required to implement the full 50 percent data increase for prepaid packages ranging from Nu 49 to Nu 499, meaning users in this category will effectively receive twice the data they currently get for the same price.
This decision followed the submission of BT’s final proposal to the Ministry of Industry, Commerce and Employment (MoICE) by the Bhutan InfoComm and Media Authority (BICMA), along with BICMA’s independent evaluation. BT had proposed smaller data increases of 30 to 40 percent for these packages and attempted to offset the remaining difference by offering limited free voice minutes and SMS, since these packages are primarily data-only. At MoICE’s request, BT slightly enhanced the voice benefits for certain low-value plans, citing their importance for lower-income users.
For higher-value packages above Nu 499, BT suggested much smaller reductions. However, BICMA’s assessment challenged BT’s claim that a full 50 percent cut would cause serious network congestion, stating that any increased demand should be addressed through network upgrades, which fall under BT’s responsibility. The Cabinet even indicated its willingness to support some infrastructure upgrades if the full cut is implemented.
The government maintains that high mobile data costs disproportionately burden rural and low-income users, who form the majority of customers in this price range. Past analysis shows that smaller recharges offer far less data value per ngultrum compared to higher-value plans. Given BT’s strong profits in recent years, largely driven by mobile data services, the Cabinet concluded that the reduction is both reasonable and necessary.
The Prime Minister reaffirmed that the decision is final and must be carried out promptly. While BT may consult its Board and Druk Holding and Investments, refusal could lead to regulatory enforcement by BICMA. Officials also noted that a similar proposal by a private operator suggests that price reductions are feasible. Written instructions are expected soon, after which implementation will be closely monitored.