In a groundbreaking move to enhance digital connectivity across the kingdom, the Bhutanese government has officially sanctioned Elon Musk’s Starlink Services Private Limited, a foreign direct investment (FDI) entity, to deliver satellite-based internet services nationwide.
This landmark decision emerges after a pivotal July meeting between Prime Minister [Name] and Rebecca Hunter, Director of Global Licensing at Starlink. During the discussions, GovTech was tasked with assessing the potential impacts of introducing Starlink’s advanced satellite technology to Bhutan’s diverse topography.
Starlink’s innovative approach is poised to address the persistent internet accessibility challenges in Bhutan’s remote and mountainous regions, where traditional network infrastructures have struggled to establish a foothold. The introduction of satellite-based services promises to bridge the digital divide, offering reliable and high-speed internet to areas previously underserved by conventional providers.
Yesterday, the Bhutan Information and Media Authority unveiled Starlink’s comprehensive tariff plans, designed to cater to a wide array of users, including residential, business, government, and mobile segments. The pricing structure ranges from Nu 3,000 to Nu 2.1 million per month, reflecting the varied needs and usage patterns of different consumer groups.
For residential users, Starlink offers the “Residential Lite” package at Nu 3,000 per month, providing internet speeds between 23-100 Mbps with unlimited data. A more robust option, the standard residential plan, is priced at Nu 4,200 and delivers speeds from 25-110 Mbps. When compared to existing providers, these plans present a competitive alternative. Bhutan Telecom (BT) currently charges Nu 550 per Mbps with a minimum subscription of 2 Mbps, translating to approximately Nu 12,650 for a 23 Mbps plan and Nu 13,750 for a 25 Mbps plan. Meanwhile, TashiCell’s broadband packages start at Nu 675 for speeds ranging from 2 to 99 Mbps, with premium options available at Nu 1,000.
Despite Starlink’s promise of superior speeds, the higher cost of its plans raises questions about their affordability for middle-income households, who may find existing broadband options more economically viable.
For business, government, and institutional users, Starlink introduces priority plans offering speeds between 50-220 Mbps. These packages range from Nu 5,900 for 40 GB of data to Nu 106,000 for a substantial 6 TB, positioning Starlink as a premium choice for organizations requiring robust and high-capacity internet solutions. In contrast, BT’s corporate plans are more budget-friendly but offer lower speeds and limited data allowances, while TashiCell’s business offerings, though cost-effective, do not match Starlink’s high-speed and large data capacities.
Experts emphasize that Starlink’s satellite-based connectivity is particularly advantageous for Bhutan’s remote and rural areas, where traditional infrastructure development is hindered by the country’s rugged terrain and logistical challenges. The difficulty in constructing and maintaining network towers leads to significant congestion and unreliable service in both urban and rural locales. Starlink’s ability to circumvent these obstacles through satellite technology makes it a promising solution for ensuring consistent and widespread internet access.
However, urban consumers might continue to favor BT and TashiCell due to their more affordable pricing, despite occasional slow speeds. Additionally, Starlink’s mobile data plans, priced at Nu 21,000 for 50 GB and Nu 4,200 for roaming 50 GB, present a premium option that may not appeal to the average Bhutanese consumer accustomed to more economical local mobile data offerings.
In response to the anticipated competition, the Minister for Industry, Commerce, and Employment announced that BT and TashiCell are slated to reduce their data charges by 50 percent in the coming months. This strategic price cut aims to make internet connectivity more accessible for lower and middle-income households, potentially reshaping the competitive landscape and influencing Starlink’s market penetration.
As Bhutan steps into a new era of digital connectivity, the integration of Starlink alongside established providers like BT and TashiCell is set to transform the internet landscape. While Starlink offers unparalleled speeds and coverage for remote areas, the affordability and evolving pricing strategies of local providers will play a crucial role in determining the overall adoption and impact on the nation’s digital future.
