Bhutan: Bhutan Communication Profile

While mobile internet is booming in Bhutan in general mobile increase has started to slow

In less than seven years Bhutan has moved from having no mobile phones to claiming additional than 70% mobile penetration. Over this period the annual increase in mobile subscribers has reached in excess of 100%. Most significantly the mobile networks have provided a major boost to internet access in the country, largely on the back of EDGE/GPRS and 3G technology platforms.

It was not always like this. Bhutan had been isolated from the rest of the world for a long time – both generally, and particularly in terms of its telecommunications. Its mountainous landscape made it particularly difficult to build the necessary telecoms infrastructure. Back in 1974, Bhutan and India formally agreed to the introduction of trunk calls between the two nations. However, in a remarkable contrast with the rest of the world, it was not until 1999 that the country saw television stations, satellite dishes and internet services for the initial time.

Between 1996 and 2001, Bhutan invested substantially in telecommunications infrastructure. The tiny country has quickly developed a modern, fully digital fixed-line network, which covered all 20 provinces and the key commercial and people centres. Despite this investment , however, it did experience significant network performance difficulties in the early stages.

For a lot of years, the offering of mobile services had been considered uneconomical due to its small people, although Bhutan Telecom, the only telecom operator in the country at the time, had considered the Japanese Personal Handy Service (PHS) system as a possible mobile solution. In 2001, as an interim measure, Bhutan Telecom launched a GSM-based mobile satellite service in conjunction with Thuraya Satellite Co Ltd. This service was expected to fill the gap until a conventional national mobile network was established. Again, in 2003, the country’s initial mobile telephone service was launched. While initially established with relatively limited coverage (five towns inclunding the capital Thimphu), the government was keen to see this service, operated by Bhutan Telecom and branded B-Mobile, providing national coverage by 2006.

In 2006, in what was a landmark step for the local telecom market, the regulator awarded a second national mobile licence to local industrial conglomerate, the Tashi Group, requiring a commercial service to be launched within one year. Tashi from presently on began operating its mobile service in 2008.

Bhutan as well came late to the internet. Development has continued down a slow path, as the country embraces online activity cautiously. In fact the internet penetration continues to be disconcertingly low for a country trying to lift itself up economically. Fixed internet subscriber penetration was still below 3% in 2013; however, this was compensated by a new booming mobile internet/broadband market.

Bhutan – key telecom parameters – 2012 - 2014