Private submarine cable could halve internet prices: ISPAB president

Internet prices in Bangladesh could drop by 40 to 50 percent following the introduction of private submarine cable connections, according to Aminul Hakim, president of the Internet Service Providers Association of Bangladesh (ISPAB).

He noted that internet service providers (ISPs) would be able to purchase bandwidth at roughly half of today's rates once private submarine cable operators begin supplying the market.

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He made the remarks in response to a question at a discussion titled “Affordable internet for all: barriers and solutions to tech giants’ investment in Bangladesh” held at a hotel in Dhaka today organised by the Telecom and Technology Reporters Network Bangladesh (TRNB).

ISPs currently purchase bandwidth at Tk 120 to Tk 130 per Mbps, said Aminul, who is also chief executive officer of private submarine cable company Metacore Subcom Ltd.

The entry of private submarine cable operators would increase the supply of international bandwidth, create multiple sources and boost competition in the market. As a result, he said, bandwidth prices could fall by 40 to 50 percent.

Aminul said demand for bandwidth is rising rapidly as internet usage increases in Bangladesh.

He said the country's current bandwidth demand is around 13,500 Gbps. According to his estimate, demand could reach 50,000 to 54,000 Gbps by 2030.

He said Bangladesh therefore needs to increase capacity through multiple submarine cables and international connectivity while creating greater opportunities for private investment to meet future demand.

Aminul said Bangladesh currently has to import a significant amount of international bandwidth from India. He said international connectivity is closely linked to the services and infrastructure of global technology companies such as Google, Meta, Akamai and Cloudflare.

However, he said large technology companies and hyperscalers face significant challenges in investing in Bangladesh because of the monopoly-dependent environment of Bangladesh Submarine Cables PLC, limitations in international connectivity, uninterrupted power supply issues and the absence of favourable policies.

TRNB President Masuduzzaman Robin chaired the event, while former TRNB president Samir Kumar Dey moderated it.

Mahmud Shahed, project head of private submarine cable company Metacore Subcom Ltd, and Moin Uddin Ahmed, treasurer of ISPAB, made two presentations at the event.

The presentations showed that BSCPLC has invested Tk 819.50 crore in two submarine cables — SEA-ME-WE-4 and SEA-ME-WE-5.

The company generated more than Tk 3,000 crore in revenue between 2008 and 2026 and earned net profits of more than Tk 1,362 crore during the period, according to the presentations.

The presenters, however, said ordinary consumers and internet users were being deprived of the benefits of these investments because of the opportunity for a monopoly business.

However, Bangladesh Submarine Cables earlier said that concerns about a possible shortage of internet bandwidth in the country are unfounded.

The company has said there is currently no shortage in the supply of international bandwidth in Bangladesh and that there is no risk of a shortage in the future.

Rather, it has the capacity to supply more bandwidth than current demand, it said.