The Internet Service Providers Association of Bangladesh (ISPAB) has announced a reduction in the price of fixed internet packages, with a Tk 700 package now being offered for a minimum of Tk 500.

The new decision will cme into effect from Tuesday (July 1).

Currently, ISPs across the country — whether local, district-based, regional, or nationwide — do not offer packages with speeds as low as 5 Mbps. Most ISPs provide an average of 10 Mbps bandwidth.

In line with this, ISPAB has decided to offer fixed internet packages starting from Tk 500.

Contacted, ISPAB President Aminul Hakim said that Bangladesh is ranked 98th among 153 countries in the Speedtest Global Index for fixed broadband services.

ISPAB is keen to improve the country’s position in that ranking, he said.

Internet price to drop by 20% at ISP and IIG levels from July

To that end, ISPs are now beginning with 10 Mbps as the minimum standard.

Hakim further stated that if the government withdraws the Social Obligation Fund (SOF) and revenue-sharing requirements, ISPs will be able to provide 20 Mbps bandwidth in line with the global definition of broadband.

Efforts are underway to achieve this goal, he added.

He also noted that most customers are reluctant to pay the 5% value-added tax (VAT) included in their monthly bills, making it difficult for ISPs to collect.

To address this, ISPAB members have agreed to collect the 5% VAT from customers and deposit it into the national treasury as part of a joint effort with the government to support national development.

ISPAB has urged all customers to subscribe to internet connections only from licensed ISPs, pay the 5% VAT as per government regulations, and request a payment receipt with their monthly bill as proof of payment.