In a landmark decision, the government granted approval for billionaire Elon Musk’s Starlink Services Private Limited, a registered foreign direct investment (FDI) company, to provide satellite-based internet services in the country.

This decision follows a meeting in July between the Prime Minister and the Director of Global Licensing at Starlink, Rebecca Hunter, during which GovTech was assigned to evaluate the potential impact of introducing Starlink in the country.

Starlink’s satellite-based technology is seen as a solution to internet access in geographically challenging areas, where traditional network infrastructure has yet to reach.

As per the tariff plan announced by Bhutan Information and Media Authority yesterday, Starlink’s pricing structure includes a variety of plans tailored to residential, business, government, and mobile users, with costs ranging from Nu 3,000 to Nu 2.1 million per month.

For residential users, Starlink offers several packages. The entry-level “Residential Lite” plan, priced at Nu 3,000 per month, delivers speeds of 23-100 Mbps with unlimited data. The standard residential plan, costing Nu 4,200, provides speeds ranging from 25-110 Mbps.

By comparison, Bhutan Telecom (BT) charges Nu 550 per Mbps, with a minimum subscription of 2 Mbps. This means a 23 Mbps plan with BT would cost around Nu 12,650, while a 25 Mbps plan would run approximately Nu 13,750. On the other hand, TashiCell’s standard broadband package starts at Nu 675 for speeds between 2 and 99 Mbps, with its premium package priced at Nu 1,000.

Although Starlink promises faster speeds, the affordability of its plans compared to existing providers raises concerns about its adoption, especially for middle-income households to more affordable broadband.

For business, government, and institutional users, Starlink offers priority plans with speeds ranging from 50-220 Mbps, starting at Nu 5,900 for 40 GB of data and going up to Nu 106,000 for 6 TB of data.

In contrast, BT’s corporate plans are more affordable but offer lower speeds and limited data. TashiCell’s business broadband plans are similarly more cost-effective but lack the higher speeds and larger data capacities that Starlink offers.

According to experts, Starlink’s satellite-based connectivity has a bigger advantage in Bhutan’s remote and rural areas, where traditional network infrastructure faces significant challenges in expanding coverage.

The mountainous terrain and infrastructure limitations in the country hinder the construction of towers, leading to congestion in both urban and rural areas.

Starlink’s ability to bypass these challenges by providing satellite-based internet makes it a viable option for remote households and businesses.

For urban consumers, BT and TashiCell’s networks may remain cost-effective despite occasional slow speeds.

Starlink’s pricing for mobile data plans could be a tough sell for the average Bhutanese consumer. The mobile priority plan, priced at Nu 21,000 for 50 GB, and the roaming plan, which costs Nu 4,200 for 50 GB, are significantly more expensive than local mobile data offerings.

While Starlink’s mobile services offer global coverage, the high cost of these plans may limit their appeal, especially when compared to the more affordable options available through BT and TashiCell.

Meanwhile, the Minister for Industry, Commerce, and Employment recently announced that BT and TashiCell are expected to reduce their data charges by 50 per cent in the coming months.

This reduction could provide lower-cost internet connectivity for lower and middle-income households while allowing Starlink to cater to users seeking faster speeds and willing to pay premium prices.

-In Association with ANN