Internet Connectivity

Local and Indian ISPs yet to reach an agreement on rates
Internet Connectivity A second international gateway via Gelephu that would allow more reliable Internet connectivity for Bhutan, and especially for the recently inaugurated IT park, is still pending.

The department of information technology and telecom (DITT) had initially hoped to ‘light’ or operationalise the second gateway prior to the IT park inauguration on November 1. The second gateway is a prerequisite for any international IT company that may want to set up operations in Bhutan, as it should mean that internet connectivity would be constantly available, even if one gateway fails. The gateway is basically a bridge or point where fibre optic cables in Bhutan connect to Indian cables, which then travel to Mumbai and eventually join submarine cables.

While the infrastructure has already been in place for some time now, talks between local internet service providers (ISP) and Indian counterparts are still underway. Both sides have not yet come to an agreement on rates Bhutanese ISPs are being charged for bandwidth usage on the Indian side of the border. Bhutanese ISPs are asking for lower rates.

Tashi InfoComm general manager for network issues, Ganga Sharma, said that negotiations over rates are still ongoing, as both sides have not been able to come to an agreement. He pointed out that rates the Indian counterparts are charging are “quite high, and we’re asking them to reduce.” He did not reveal what the rates are. He added that an agreement could be reached by the end of this month.

DITT director, Phuntsho Tobgay, said that the agency had initially hoped the second gateway would be “lit” before the IT park was inaugurated. He said that this was because DITT had expected international business processes outsourcing (BPO) company Genpact to start local operations then.

He said that now the second gateway would be lit either “in tandem” the moment a BPO starts operations at the IT park, or before any BPO company moves in.

The director also pointed out that DITT would be taking stock of the issue to see if the agency would have to get involved in the negotiations to find a “way forward if necessary.”

Currently, there is one gateway through Phuentsholing.

Source: kuenselonline