Internet Access in Bhutan: Current Status, Challenges, and Future Outlook

Bhutan – a small Himalayan kingdom known for its Gross National Happiness philosophy – was a late adopter of modern communications, introducing television and the internet only in 1999 freiheit.org. In the two decades since, Bhutan has rapidly embraced the digital age. Today, internet connectivity reaches all 20 districts and even every school in the country, with 87% of the population online – surpassing global averages un-dco.org. This report provides a comprehensive overview of internet access in Bhutan, covering the current infrastructure for broadband and mobile networks, the government’s policies and regulatory framework, the role of satellite internet, disparities between urban and rural connectivity, internet affordability and speeds, key challenges, digital literacy and adoption, notable initiatives to improve connectivity, and the trends shaping the future of Bhutan’s internet landscape. Key insights are drawn from Bhutanese government agencies, telecom providers, international development partners, and satellite service companies to ensure an up-to-date and in-depth analysis.

Broadband and Mobile Infrastructure Status

Bhutan’s terrain – dominated by rugged mountains – has made the rollout of telecom infrastructure challenging. Nonetheless, the country has achieved near-universal mobile network coverage and a growing fiber backbone:

• Mobile Networks: Two national telecom operators, Bhutan Telecom (BT) and TashiCell, provide mobile services. Both have deployed GSM, 3G, and 4G LTE networks nationwide. By early 2023 Bhutan had 780,800 mobile subscriptions, equivalent to 99.5% of the population datareportal.com, indicating many Bhutanese have at least one mobile SIM. The 4G network covers an estimated 87% of the population pulse.internetsociety.org, bringing high-speed mobile internet to most communities. In late 2021, Bhutan Telecom soft-launched 5G in Thimphu, Paro, and Phuentsholing, and by 2023 5G service was extended to 18 out of 20 dzongkhags (districts), mainly in major towns openjicareport.jica.go.jp. Both BT and TashiCell are expanding 5G coverage; as of Dec 2022, BT had around 756 active 5G users and TashiCell over 500, with numbers limited by the availability of 5G-capable handsets thebhutanese.bt thebhutanese.bt. (There is no extra tariff for 5G, but users consume data faster due to higher speeds thebhutanese.bt.) The mobile infrastructure is supported by hundreds of cell towers, many in remote areas powered by solar panels and off-grid systems.
• Fixed Broadband: Bhutan’s small size and difficult geography mean fixed broadband (e.g. fiber to the home or DSL) is mostly available in urban centers. Bhutan Telecom’s DrukNet is the primary ISP for fixed broadband, offering ADSL and fiber in cities like Thimphu. TashiCell and a few smaller ISPs (e.g. DrukCom, Data Center Services, Nano) also provide broadband or enterprise connections bicma.gov.bt. Thanks to government investment, a national fiber optic backbone now connects all 20 dzongkhags and many gewogs (counties). By 2016, fiber links had reached 196 out of 205 gewogs as part of the National Broadband Master Plan, using optical ground wire on power lines (via Bhutan Power Corporation) tech.gov.bt tech.gov.bt. Remaining gewogs (especially those without grid electricity) have since been connected via alternative means or are in progress. This backbone ensures that even district centers in remote valleys have high-capacity links. Additionally, Bhutan has a domestic Internet Exchange Point (IXP) to localize traffic, with one IXP operational in Thimphu pulse.internetsociety.org. There are 3 data centers in Bhutan and efforts to host more content locally (65% of the top websites have caches inside Bhutan, higher than the Asia average pulse.internetsociety.org).
• International Connectivity: Being landlocked, Bhutan relies on cross-border fiber links through India for global internet access. It currently has two major international gateways via India (likely through Siliguri and Kolkata routes). A stark reminder of this dependency came in May 2020 when Cyclone Amphan knocked out both routes, causing Bhutan to be largely offline for over a day thebhutanese.bt. To prevent such outages, Bhutan has long pursued a Third International Internet Gateway route via India and Bangladesh. Since 2011, the government has negotiated with India and Bangladesh for a third redundant path thebhutanese.bt thebhutanese.bt. In 2023, India agreed to facilitate Bhutan’s third gateway at a concessional rate sasec.asia, which will improve redundancy and could reduce bandwidth costs. This third gateway (potentially routing through Bangladesh to submarine cables) is expected to enhance reliability and lower the cost of internet connectivity for users sasec.asia sasec.asia. Bhutan’s upstream international connections are currently rated as having “fair” diversity (more than two routes are needed for strong resilience) pulse.internetsociety.org, so the new gateway is a critical upgrade.

Overall, Bhutan’s core telecom infrastructure has vastly improved in the last decade. Virtually the entire population lives under mobile internet coverage, and fiber rings link the country internally and to the world. The focus is now shifting to last-mile connectivity in villages, increasing capacity, and upgrading to newer technologies like 5G.

Government Policies and Regulatory Framework

The Royal Government of Bhutan has actively promoted ICT development as a national priority, integrating it into five-year development plans and national policy frameworks:

• Telecommunications & Broadband Policy: In December 2014, Bhutan approved a comprehensive Telecommunications and Broadband Policy tech.gov.bt. This policy set ambitious targets such as 100% broadband access for all schools and academic institutions tech.gov.bt. It guided the expansion of fiber backbone and rural connectivity projects during the 11th Five Year Plan. The policy also led to the creation of a dedicated Telecommunications Division under the Department of IT & Telecom (DITT) tech.gov.bt. Bhutan’s government recognizes broadband as a “utility” service essential for socio-economic development.
• Regulatory Authority: The Bhutan InfoComm and Media Authority (BICMA) is the telecom regulator established under the Bhutan Information, Communications and Media Act. BICMA oversees licensing of service providers, spectrum management, and quality of service. It issues rules such as the “Rules and Regulations for Licensing and Operation of ISPs” (latest 2021) and sets Quality of Service (QoS) standards for broadband bicma.gov.bt. BICMA also maintains oversight through annual reports and surveys. For example, its Annual Report 2022-2023 documents the expansion of services (e.g. completion of a project connecting 68 remote villages with mobile service) bicma.gov.bt. The regulator has encouraged competition: Bhutan Telecom (state-owned) and Tashi InfoComm (private) both operate nationwide, and a few smaller ISPs have niche licenses. However, Internet Society rates Bhutan’s ISP market choice as “very poor” due to the small number of providers pulse.internetsociety.org pulse.internetsociety.org – effectively a duopoly for most consumers.
• Universal Service & Rural Connectivity: The government, through BICMA and DITT (now restructured as the GovTech Agency), runs a Universal Service Fund mechanism to subsidize rural telecom expansion. Rural Communication Projects (RCP) Phases I–VI were implemented over the past decade to build cellular towers in isolated villages. In the latest phase (RCP VI, completed Dec 2022), 68 villages in 10 dzongkhags gained 4G data and 2G voice services for the first time bicma.gov.bt. Earlier phases connected hundreds of other villages. These projects are typically financed by the universal service fund and supported by donor grants, ensuring even high-altitude hamlets have at least basic voice and data coverage.
• Digital Government Initiatives: The government’s regulatory focus extends beyond connectivity to digital services. In 2019, Bhutan launched the Digital Drukyul Flagship Programme with a budget of Nu 2.5 billion, aiming to transform Bhutan into a “Smart Society.” Under this program, policies were put in place to integrate government online services (e.g. one-stop eGovernment portal, digital ID), strengthen cybersecurity, and expand critical ICT infrastructure bbs.bt dailybhutan.com. A key project under Digital Drukyul was connecting ~1,084 government offices via fiber optic network thebhutanese.bt to improve e-governance. The National Digital Strategy and upcoming 13th Five Year Plan (2024–2029) further emphasize digital governance, data infrastructure, and innovation un-dco.org. Regulatory frameworks are being updated accordingly (for example, Bhutan is drafting data protection guidelines and reviewing ICT laws to align with these digital initiatives freiheit.org freiheit.org).
• Licensing Satellite Services: Notably, Bhutan has moved to accommodate new technologies like LEO satellite internet within its regulatory framework. BICMA in 2022 studied the use of Low Earth Orbit satellites for broadband bicma.gov.bt and by 2023 had licensed a local entity, Starlink Services Pvt. Ltd., to serve as SpaceX Starlink’s Bhutanese representative bicma.gov.bt bicma.gov.bt. The regulator provides public FAQs on Starlink bicma.gov.bt bicma.gov.bt and has approved standard tariffs for Starlink plans in local currency bicma.gov.bt bicma.gov.bt. This proactive stance shows Bhutan’s openness to diverse technologies under a regulated environment.

In summary, Bhutan’s policy and regulatory environment strongly supports expanding internet access as part of national development. The government has enacted forward-looking policies (the 2014 broadband policy and recent digital transformation strategies) and empowered BICMA to ensure operators deliver on universal access goals. Collaboration with regional partners (especially India) on regulatory issues – such as securing affordable international bandwidth – also forms part of Bhutan’s strategy sasec.asia. Moving forward, regulations are evolving to address cybersecurity, data governance, and emerging services, which will further strengthen Bhutan’s digital ecosystem.

Availability of Satellite Internet in Bhutan

Given Bhutan’s mountainous terrain and dispersed settlements, satellite internet has long been seen as a complementary solution to reach remote areas. There are two main facets to satellite internet in Bhutan: traditional geostationary satellite services and newer low-earth-orbit (LEO) constellations.

• Traditional Satellite Services: Bhutan has utilized geostationary satellite links for years in areas without fiber or mobile coverage. For instance, the Kacific-1 high-throughput satellite (launched 2019) covers Bhutan and other Asia-Pacific countries with powerful Ka-band beams thebhutanese.bt. Kacific1 can deliver up to 60 Gbps of broadband capacity with ~600 ms latency thebhutanese.bt. While Bhutan’s telecom companies have primarily focused on terrestrial networks, VSAT (Very Small Aperture Terminal) connections have been used for backhaul (connecting remote cell towers) and for community centers or offices in extremely isolated locations. There are service providers (such as GlobalTT, NTvsat, etc.) advertising VSAT internet for Bhutan’s rural areas nt-vsat.com, offering C-band or Ku-band terminals capable of around 10 Mbps. However, high cost and latency limited widespread use of GEO satellites in the past. These were often last-resort links for villages days away from roads, like in the high Himalayas. One example is a Bhutan Telecom solar-powered mobile tower in Lunana (at 4,100m elevation) which originally included a satellite backhaul dish, enabling basic connectivity in a community 9 days trek from the nearest roadyesheydorji.blogspot.comyesheydorji.blogspot.com. Such installations demonstrate how satellite fills the gap where terrestrial networks are impractical.
• Starlink (SpaceX) – LEO Broadband: The game-changer for Bhutan came with Starlink, the LEO satellite internet service. Starlink’s constellation of low-earth-orbit satellites provides low-latency, high-speed coverage even in rugged terrain. In December 2024, Starlink officially launched in Bhutan, making the country one of the first in South Asia to get the service indiatoday.in. By February 2025, SpaceX confirmed Starlink was operational in Bhutan and delivering high-speed connectivity to users in remote areas indiatoday.in. Two primary residential plans are offered: a Residential Lite plan at Nu 3,000 per month (≈ USD $36) for ~23–100 Mbps speeds, and a Standard Residential plan at Nu 4,200/month (≈ $50) for ~25–110 Mbps with unlimited data indiatoday.in. Equipment (dish kit) costs about Nu 33,000 for the standard kit as a one-time purchase bicma.gov.bt. While the price is high compared to terrestrial internet, Starlink targets underserved rural customers “where fiber or cellular networks are unreliable or unavailable” indiatoday.in. Indeed, Starlink’s arrival allows nomadic settlements, mountaintop monasteries, and far-flung farms to get online with only a clear view of the sky. The Bhutanese regulator BICMA has ensured Starlink’s integration by licensing Starlink Services Pvt. Ltd. (a local partner) and providing contact points for subscription and support within Bhutan bicma.gov.bt bicma.gov.bt. According to BICMA’s Starlink FAQ, the service is “activated and operational in Bhutan now.” bicma.gov.bt Bhutanese users can order directly via the Starlink website or through the local reseller bicma.gov.bt bicma.gov.bt. Importantly, payments in local currency (Ngultrum) are being facilitated bicma.gov.bt, making it easier for Bhutanese customers. Early adopters in Bhutan report Starlink delivering on its promise of broadband in valleys where previously even a dial-up or 2G signal was hard to get.
• Other LEO and Satellite Providers: Beyond Starlink, other satellite constellations are on Bhutan’s radar. OneWeb (part-owned by India’s Bharti) has also been developing LEO services across South Asia, and Bhutan is a potential beneficiary once OneWeb’s network and distribution partners are ready. As of 2022, OneWeb had over 390 satellites in orbit and was seeking market access in neighboring countries bicma.gov.bt bicma.gov.bt, though no official OneWeb service in Bhutan is reported yet. Bhutan’s BICMA study in 2022 highlighted OneWeb, Telesat, and Amazon’s Project Kuiper as upcoming LEO options, analyzing their planned capacities bicma.gov.bt bicma.gov.bt. Meanwhile, regional satellite initiatives (like South Asia Satellite launched by India in 2017) provide some C-band capacity for South Asian nations including Bhutan. Bhutan has a ground station for the South Asia Satellite mainly for TV and strategic communications, not broadband internet per se. The country also launched its first small satellite (BHUTAN-1 cubesat) in 2018 for educational purposes, but it’s not related to internet service.
• Use Cases: Satellite internet in Bhutan is currently a niche but crucial service. Use cases include: connecting schools and clinics in mountain villages, providing backup connectivity for government offices, and serving tourist lodges or parks in wilderness areas. It also offers redundancy for disaster resilience – if an earthquake or landslide severs fiber links, satellite links can keep information flowing to affected regions. Bhutan’s government has considered community Wi-Fi hubs powered by satellite, as mentioned in BICMA’s study: for example, leveraging models like Hughes’ community Wi-Fi which have been deployed in Indonesia and Latin America bicma.gov.bt. Such a model could mean one Starlink terminal feeding a Wi-Fi hotspot for an entire village. The BICMA LEO study concluded that LEO satellites have “huge potential for global broadband connectivity” and specifically noted that LEO broadband can address the growing digital divide in Bhutan’s difficult terrain, where some pockets still lack proper connectivity bicma.gov.bt bicma.gov.bt.

In summary, satellite internet has transitioned from a backup solution to a mainstream option in Bhutan with the advent of Starlink. The government and regulator have welcomed these services to ensure 100% geographic coverage – so that no part of Bhutan remains offline due to location. While cost remains relatively high, satellite broadband offers an immediate bridge for remote areas until terrestrial networks catch up. It also adds resiliency to Bhutan’s network architecture in the face of natural disasters or other disruptions. Looking ahead, expanding the use of satellite internet (LEO and GEO) in Bhutan will depend on continued price reductions and smart integration (such as community hotspots and hybrid networks).

Urban vs. Rural Connectivity

Bhutan has made concerted efforts to minimize the digital gap between its cities and far-flung villages. Nevertheless, differences persist in coverage quality and usage between urban and rural areas:

• Coverage: Urban centers like Thimphu (capital), Phuentsholing, Paro, and Punakha enjoy the most robust connectivity. These areas have dense 4G coverage, fiber-to-the-home in some neighborhoods, and are the first to receive upgrades (e.g. 5G rollout started in core urban zones thebhutanese.bt). By contrast, rural regions – especially the high mountain valleys in the north and east – often rely on a single mobile tower covering multiple villages. According to Internet Society data, by 2021 97% of urban residents used the internet, versus 79% of rural residents pulse.internetsociety.org pulse.internetsociety.org. This 18-point gap reflects that some rural pockets only got connectivity recently or have weaker service. Still, the fact that four out of five rural Bhutanese are online is a testament to successful rural network extensions. Initiatives like the community centers in every gewog, and the RCP projects that connected villages by 4G/2G, have brought internet access to most rural communities. As of end-2022, virtually all villages with electricity had at least mobile data service tech.gov.bt. Remaining uncovered hamlets are typically extremely remote seasonal settlements, where solutions like satellite hotspots are now being explored.
• Infrastructure Differences: In urban areas, users can access high-speed fiber broadband (with speeds of 50–100 Mbps available for those who subscribe) and extensive cellular capacity (many cell sites with overlapping coverage). Rural users often have only wireless access, either 4G mobile broadband or fixed wireless. Many remote villages are served by a single BTS (base tower station) that may be solar-powered and connected via microwave or satellite backhaul. These rural towers typically offer 4G for data and fall back to 2G for voice/SMS bicma.gov.bt. Because of fewer users per tower, rural 4G speeds can actually be decent when the network is functioning, but outages or maintenance delays can be an issue (as seen in Lunana where a lone tower had reliability problems due to infrequent maintenance visitsyesheydorji.blogspot.comyesheydorji.blogspot.com). Urban networks have more redundancy and are better maintained.
• Usage and Adoption: There is a noticeable difference in how urban vs rural populations use the internet. Urban Bhutanese, especially youths, are heavy users of social media, streaming, and e-services. Rural users more often use the internet for communication (Facebook, WeChat, WhatsApp) and practical needs like market prices, weather forecasts, or government services through community centers. Digital literacy programs are being tailored to rural communities to ensure they can benefit from connectivity (e.g. basic smartphone training sessions conducted along with new tower installations facebook.com). The government’s Community Centers (one-stop offices in each gewog) have played a big role in rural digital access – they provide public computers, online government services, and sometimes free Wi-Fi. Every gewog center being fiber-connected means villagers can, for instance, make online applications or video calls at the center even if they don’t have a home internet connection.
• Affordability Gap: We discuss affordability in the next section in detail, but it’s worth noting that income disparities make the cost of devices and services a bigger barrier in rural areas. Urban dwellers are more likely to afford smartphones and data plans, whereas some rural families find even subsidized data prices to be a burden. The government and operators have offered promotional rates in the past to students and rural users (such as double data offers or cheaper nighttime data) to encourage usage outside cities.

In conclusion, urban Bhutan is nearly fully connected with high quality services, and rural Bhutan is rapidly catching up. The urban-rural digital divide, measured by internet use, has shrunk significantly – from virtually zero rural internet two decades ago to roughly 80% rural usage today pulse.internetsociety.org. Gaps remain in speed and reliability: a person in Thimphu can get fiber 100 Mbps, while a herder in Merak might only have a patchy 3G signal. But Bhutan’s policies (rural towers, community centers, subsidy of rural bandwidth, introduction of satellite options) are clearly aimed at bridging these gaps. With continued investments, the country is on track to ensure that whether one lives in a city or a remote valley, a basic level of internet access will be available.

Internet Affordability and Speeds

Affordability: Internet service in Bhutan has become more affordable over time, and is now comparatively cheap for mobile data, though fixed broadband remains expensive for many. According to 2023 data, the average cost of 1GB of mobile data in Bhutan is about USD $0.71 (approximately Nu 59) facebook.com. This is impressively low – less than 1% of the average monthly income per capita, meeting the UN Broadband Commission’s affordability target pulse.internetsociety.org pulse.internetsociety.org. In fact, a basic mobile data/voice package consumes <1% of GNI per capita in Bhutan pulse.internetsociety.org, indicating that mobile internet is quite affordable for the average user. By comparison, neighboring India has some of the world’s cheapest data (~$0.20/GB), but Bhutan’s $0.70/GB is still among the lowest in Asia voronoiapp.com. This is partly due to healthy competition between BT and TashiCell in the mobile market and regulatory pressure to keep prices low. Both operators offer inexpensive prepaid data packs; for example, Bhutan Telecom’s prepaid plans (branded “Chechay” data plans) offer packages like 30 GB for around Nu 645 (just over $8) valid 30 days digitaldevelopment.org, which is a fraction of what broadband used to cost a decade ago.

Fixed broadband, however, is less common and can be costly. A home fiber connection of 5-10 Mbps unlimited might cost on the order of Nu 1500–2000 per month (~$20-$25) – affordable to urban middle-class families but steep for rural households. The government has tried to improve affordability by reducing upstream costs: historically, Bhutan paid $7 per Mbps per month for its international bandwidth via India bbs.bt. Efforts to secure the third gateway at lower rates (Bangladesh offered $3/Mbps for a 10 Gbps circuit facebook.com, and India in 2023 agreed to around $4.5 after subsidy bbs.bt) should eventually translate to cheaper retail internet for consumers. The government subsidizes connections for schools and community centers, providing free or ultra-low-cost internet at those sites. Additionally, Bhutan’s approach of co-deploying fiber with power lines (using Bhutan Power Corp infrastructure) has saved costs and kept retail broadband prices in check tech.gov.bt tech.gov.bt.

Speeds: The quality (speed) of internet in Bhutan has improved markedly, though it lags behind global averages in fixed broadband. As of 2023, average download speeds in Bhutan are about 16.9 Mbps for both broadband and mobile users pulse.internetsociety.org pulse.internetsociety.org. This figure, reported by Internet Society, likely reflects that many users rely on 4G mobile which can achieve ~10–30 Mbps in practice. Mobile network tests (SpeedChecker 2024) showed Bhutan Telecom’s average download at 21.7 Mbps and TashiCell’s at 23.7 Mbps insights.speedchecker.com insights.speedchecker.com. Uploads averaged around 9–11 Mbps insights.speedchecker.com insights.speedchecker.com, and latencies ~45 ms on BT and 32 ms on TashiCell (to nearest CDN) insights.speedchecker.com. These are respectable 4G performance numbers, albeit lower than 4G speeds in some larger countries.

For fixed broadband, many urban customers can get 20–50 Mbps plans, but actual average usage across the country is lower (because so many users are mobile-only). The median fixed broadband speed in Bhutan was around 21.2 Mbps download in 2024 worldpopulationreview.com. While this is not very high, it reflects infrastructure limits and the fact that fiber-to-home is not yet widespread beyond city centers. Bhutan ranks around mid-tier globally for internet speeds – for instance, around 82nd in the world for broadband in one 2025 ranking (with ~32 Mbps) global-relocate.com. The relatively low speeds in rural areas (often capped by 3G/4G technology) bring down the average. However, ongoing 5G deployment could change this: 5G has demonstrated speeds well over 100 Mbps in trials in Thimphu. If 5G and fiber expand, Bhutan’s speed averages will rise.

Quality and Consistency: The government and BICMA monitor service quality. BICMA’s broadband QoS standards require minimum throughput and uptime, and they introduced tools for users to test speeds lirneasia.net. One challenge has been maintaining consistent speeds during peak hours. Both major ISPs have limited international bandwidth, which can cause slowdowns in the evenings when many users stream video. The addition of caches and local CDNs (65% of popular content is cached locally pulse.internetsociety.org) has helped alleviate international bandwidth strain. Also, the upcoming new gateway and increasing transit capacity should improve speeds for international content (less congestion).

Affordability Initiatives: To further improve affordability, Bhutan’s government has waived certain telecom duties and encouraged operators to introduce “lite” plans. For example, in 2021 during the pandemic lockdowns, special educational data packages were offered free or at nominal cost to students. There have been editorials calling for making internet even more affordable, recognizing it as an essential service (one local editorial argued “internet is not a luxury but a necessity” and urged price cuts for low-income users) linkedin.com. The trend is positive: prices have fallen and data caps increased year over year. According to World Bank/ITU metrics, Bhutan’s “1 GB mobile prepaid basket” cost fell to roughly 2.3% of monthly income by 2020, and is now under 1% voronoiapp.com pulse.internetsociety.org, which is a significant achievement in affordability.

In summary, mobile internet in Bhutan is both affordable and reasonably fast for most citizens, enabling mass adoption. Fixed broadband is improving gradually, but mobile is the workhorse of connectivity. The government’s continued push for cheaper international bandwidth and infrastructure upgrades, combined with the inherent lower costs of new tech (e.g. fiber, 5G, LEO satellites eventually), suggest that bandwidth per Ngultrum will keep increasing. One remaining issue is equitable affordability – ensuring that even in rural areas and among poorer populations, the cost of devices and internet does not exclude anyone. Programs to provide devices (like subsidized smartphones for rural users) could be a next focus to complement the affordable service tariffs.

Key Challenges in Providing Widespread Access

Despite the impressive progress, Bhutan faces several key challenges in achieving truly ubiquitous, reliable, and high-quality internet access:

• Challenging Geography: The Himalayas and deep valleys make network rollout technically difficult and expensive. Laying fiber or building roads to remote villages can be prohibitive. Many settlements are reachable only by foot or mule, complicating tower construction and maintenance. As noted in a Bhutanese study, the “difficult geographical terrain” means fiber and terrestrial networks struggle to reach every pocket bicma.gov.bt. Landslides, snowfall, and monsoon rains also regularly damage infrastructure (e.g. poles, cables), requiring constant repairs.
• Small and Dispersed Population: With under 800,000 people spread over 38,000 km², Bhutan’s population density is low. There are dozens of villages with only 50–100 residents. Providing modern internet to such small communities yields little commercial return. The economics of scale are not in favor of private investment in remote areas, so the government must often subsidize these. Maintaining far-flung equipment (like replacing solar batteries or repairing microwave links on mountaintops) is costly. This challenge is partly addressed by the universal service projects, but it remains an ongoing burden to ensure isolated infrastructure stays operational.
• Reliability and Redundancy: As seen with the 2020 outage from Cyclone Amphan, Bhutan’s connectivity can be knocked out by a single disaster due to limited redundancy thebhutanese.bt thebhutanese.bt. Internal network redundancy is also an issue – if a fiber line to a district is cut, that whole region might lose internet until it’s fixed. Power supply reliability is another factor; rural towers on solar can experience downtime in bad weather if not properly maintained. Building a more resilient network (with looped fiber routes domestically and a third international link) is a challenge both technically and in negotiation with neighbors, but it’s crucial for uninterrupted service.
• Affordability for Marginalized Groups: While average costs are low, the poorest Bhutanese still find it hard to afford devices like smartphones or laptops, and may ration their data usage. There’s a risk of a section of society (elders, farmers with low cash income) being left behind because they can’t comfortably pay for data or don’t see the value relative to cost. Bridging this gap requires targeted interventions (like community Wi-Fi free zones or subsidized plans for low-income users), which can be challenging to implement and fund sustainably.
• Digital Literacy and Awareness: Simply having access does not guarantee effective use. Bhutan has a digital literacy rate of about 49% as per a recent survey freiheit.org freiheit.org. This means over half the population lacks some skills to use digital tools fully safely. Many new internet users (especially older adults in rural areas) need training on how to use smartphones, access information, and avoid online scams or misinformation. Expanding digital literacy programs to reach all sections is an organizational challenge, requiring coordination between government, schools, and perhaps NGOs.
• Limited ICT Human Resources: Bhutan’s ICT sector is small, and technical expertise is limited. The country relies on a modest pool of telecom engineers and IT professionals; highly specialized skills (e.g. in cybersecurity, network architecture) are scarce. This can make it challenging to locally manage complex systems and can slow the pace of advanced deployments. The government often partners with foreign firms (like Ericsson for 5G rollout capacitymedia.com) which is effective but also means knowledge transfer needs to be ensured. Retaining skilled tech workers is an issue as some leave for higher pay abroad.
• Financial Sustainability: Telecom operators in Bhutan operate in a tough financial landscape – low tariffs (due to affordability goals) and high capital expenditure on infrastructure. Bhutan Telecom, being partly government-owned, has some support, but TashiCell and others need viable business cases. Ensuring that expanding into rural areas remains sustainable is a challenge. The government sometimes offers incentives, but long-term, operators must innovate with new services (like fintech, enterprise solutions) to boost revenues. A related challenge is the small market size which limits competition; introducing a third mobile operator, for instance, might not be feasible, so the duopoly must be carefully regulated to balance investment and fair prices.
• Keeping Up with Technology: The global internet landscape evolves quickly. Bhutan faces the challenge of not falling behind – e.g. deploying 5G, implementing IPv6 (currently ~29% of users have IPv6 access in Bhutan, below the Asia average pulse.internetsociety.org pulse.internetsociety.org), and preparing for future innovations like IoT networks, AI services, etc. Upgrading legacy systems (some government agencies might still use old software/hardware) is an ongoing effort. The cost of new technology and the need for training to use it are non-trivial challenges.

In summary, Bhutan’s journey to universal internet access is fraught with natural and logistical hurdles, from mountains and storms to economic viability and human capacity. The government and stakeholders are aware of these and actively addressing many of them – for instance, the push for the third gateway tackles redundancy and cost issues, and digital literacy programs are expanding to tackle the skills gap. Nonetheless, these challenges require continuous attention and innovative solutions. Bhutan’s unique constraints mean it often must chart its own path (e.g. using creative solutions like drones or yak caravans to transport equipment to sites). The resilience and ingenuity in overcoming these challenges will determine how quickly and robustly Bhutan can achieve its connectivity goals.

Digital Literacy and Internet Adoption Rates

Bhutan’s internet adoption has been remarkable: as of January 2024, there were 686,000 internet users, representing 86.8% of the population online datareportal.com. (This is a dramatic rise from just 14% in 2011 statista.com.) By mid-2024, the figure cited is around 87% online un-dco.org. Such high penetration suggests that most Bhutanese who want access can get it. However, being an “internet user” can range from occasional social media browsing to intensive daily use, and that’s where digital literacy comes in.

• Digital Literacy Levels: A government survey (ICT Household Survey 2021) and other research found Bhutan’s digital literacy rate is about 49% freiheit.org freiheit.org. This means roughly half of the population has basic proficiency in using digital tools (e.g. can operate a computer or smartphone, navigate the web, send emails, use apps). The other half have limited or no digital skills. Notably, digital literacy is lower among older adults and in rural areas. Many Bhutanese above the age of 50, who didn’t grow up with technology, find modern ICTs daunting. To address this, the government has initiated programs like the Digital Literacy Program (often run through community centers and schools) to train citizens in essential ICT skills freiheit.org freiheit.org. Volunteers and officials teach how to use smartphones securely, how to access e-services, etc. The goal is to empower all citizens to utilize digital technologies effectively and safely freiheit.org. Improving digital literacy is seen as key to Bhutan’s digital economy goals – the country’s Digital Readiness Index scores were dragged down by the ‘Skills’ and ‘Usage’ components freiheit.org, indicating the need for further improvement in human capacity.
• Language and Content: One aspect of digital literacy in Bhutan is language. Not all Bhutanese are comfortable in English (the dominant language online) or Dzongkha keyboard use. There have been efforts to localize content and tools – for instance, Dzongkha texting and input systems have been developed, and some government websites provide Dzongkha versions. The government and partners are creating more local-language digital content to make the internet more accessible to non-English speakers. These initiatives encourage those with limited English proficiency to still use online services (e.g., farmers can watch YouTube tutorials dubbed in Dzongkha on better cultivation techniques).
• Youth and Education: Younger Bhutanese (teens and 20-somethings) are largely digitally native now. ICT is taught in schools, and all high schools have computer labs and internet access. By policy, “all academic institutions in Bhutan shall have broadband access” tech.gov.bt, a target achieved in recent years (every school is connected via fiber or wireless). University students and urban youth are avid internet users – social media (Facebook, Instagram, TikTok) is popular, as is online gaming and video streaming. The challenge among youth is often responsible use and cybersecurity awareness. There have been campaigns to educate youth on things like verifying information (to counter misinformation on social media) and staying safe online. The Bhutan Computer Incident Response Team (BtCIRT) also conducts awareness on cyber safety, targeting schools and colleges.
• Gender and Inclusion: Interestingly, available data suggests Bhutan has very little gender gap in internet use – in fact one source reported female internet usage (86%) slightly higher than male (85%) by 2021 pulse.internetsociety.org pulse.internetsociety.org, which is uncommon in the region. This indicates women are equally participating online, likely thanks to inclusive policies and high mobile phone ownership among women. The government continues to ensure ICT training programs reach women in villages (for example, training housewives on digital financial services or online marketplaces for their handicrafts). Other inclusion efforts target people with disabilities, creating accessible e-government services (e.g. text-to-speech for the visually impaired in Dzongkha).
• Adoption Trends: Social media is a major driver of internet adoption in Bhutan. Platforms like Facebook and WeChat gained users even in rural areas as soon as mobile internet became available, because they fulfill the need to keep in touch with family (especially as many Bhutanese study or work abroad). The COVID-19 pandemic in 2020–21 further spurred internet adoption – schools moved to online classes, businesses started e-commerce, and citizens used Bhutan’s Druk Trace and other apps for public health. By necessity, many people learned to use services like Zoom, Google Meet, and the national e-services portal during that period, accelerating digital uptake. The government’s flagship digital platforms – such as the recently revamped Citizens Portal that provides access to hundreds of services online – also encourage people to go online for convenience rather than visiting offices freiheit.org freiheit.org. As of 2023, Bhutan has moved up into the “High” category on the UN E-Government Development Index freiheit.org, partly due to better telecommunications infrastructure and usage.
• Continued Challenges: Despite the successes, bridging the remaining 13-15% of the population who are offline (as of early 2023, about 113,000 people) is a priority datareportal.com datareportal.com. These are likely people in the most remote communities or elderly populations who have not adopted the internet. For them, both access and motivation are factors – some remote individuals might say “I have no need for the internet” in their traditional lifestyle. The approach to increasing adoption hence includes demonstrating the internet’s value (for education, healthcare, market access) in addition to providing training and access. Bhutan’s leaders often highlight digital transformation as a means for “leaving no one behind”, aligning with SDGs un-dco.org. The UN and other partners are supporting Bhutan in community outreach to show farmers how a smartphone can check crop prices or weather forecasts, or show artisans how to sell goods online. Over time, such measures aim to make internet usage truly universal across Bhutan.

In conclusion, Bhutan’s internet adoption story is one of rapid uptake supported by growing digital literacy efforts. The vast majority of citizens, including women and rural dwellers, are now online at least occasionally. The focus is now on deepening the quality of that use – ensuring all users have the skills to utilize the internet productively and safely. With roughly half the population not yet fully comfortable with digital tools freiheit.org freiheit.org, Bhutan is scaling up digital skills training, from primary schools to vocational institutes and community centers. As these efforts continue, Bhutan is poised to convert its high connectivity rates into meaningful digital empowerment for all its people.

Notable Projects, Initiatives, and Partnerships

Bhutan’s strides in connectivity are the result of deliberate projects and partnerships over the years. Some key initiatives that have significantly improved internet access include:

• National Broadband Master Plan Project (2011–2016): A major initiative under Bhutan’s 10th Five Year Plan, funded by Government of India (GoI) grants (Nu 600 million) tech.gov.bt. This project built the fiber optic backbone across Bhutan, connecting all 20 dzongkhags and almost all gewogs via optical fiber. It was executed in collaboration with Bhutan Power Corporation (BPC), which laid fiber (OPGW on high-voltage lines and ADSS cables) alongside the electric grid tech.gov.bt. By the project’s end, 196 out of 205 gewogs had fiber nodes tech.gov.bt. This vastly increased backhaul capacity and made nationwide broadband possible. The project also set up an international gateway in Phuntsholing with SDH equipment tech.gov.bt. The fiber backbone is maintained jointly by DITT (GovTech) and BPC, with agreements ensuring uptime and maintenance funding tech.gov.bt. This strategic co-deployment of fiber with electricity infrastructure is cited as a best practice by UN ESCAP unescap.org.
• SASEC “Information Highway” Project (2009–2014): Part of an ADB-led South Asia Subregional Economic Cooperation program involving Bhutan, India, Bangladesh, and Nepal. In Bhutan, SASEC funded the establishment of the Bhutan Village Network – equipping 30 Community Centers (CCs) with computers, internet, and video-conferencing facilities tech.gov.bt. These CCs, one-stop public service offices in rural areas, were linked by the new fiber backbone, providing villagers access to e-government and communication services. The project also supported a Regional Network connecting research and training institutions (Bhutan’s part was connected to the Asian Research and Education Network) tech.gov.bt. SASEC’s contribution improved cross-border connectivity and gave birth to the first Internet Exchange in Bhutan. It also provided training and capacity building for ICT officials. By project’s end, Bhutan had better regional links and local access points that directly benefited rural communities.
• Rural Communication Projects (RCP I–VI, 2006–2022): A series of projects financed by the Universal Service Fund (managed by BICMA) and sometimes supported by Indian grants. Each phase targeted clusters of remote villages to connect via mobile network. For example, RCP V connected 59 villages, and RCP VI connected 68 villages by installing solar-powered base stations and microwave links bicma.gov.bt. Over the years, hundreds of remote settlements gained telephony and internet for the first time due to RCP. These projects often involved partnerships with the two telecom operators (they bid to build/operate the towers under subsidy). The cumulative impact is that by 2022, practically all inhabited villages in Bhutan had at least 2G/4G coverage. RCP is a shining example of targeted public-private effort to reach the “last mile” populations.
• Digital Drukyul Flagship (2019–present): Launched by the Ministry of Information and Communications (MoIC) as a flagship program in the 12th Five Year Plan, this comprehensive initiative aims to “transform Bhutan by digitally empowering citizens.” With a budget of ~Nu 2.5 billion and support from various development partners (e.g. UNDP, World Bank), Digital Drukyul has multiple components:
  • GovNet – connecting over 1,000 government offices with high-speed fiber or wireless links thebhutanese.bt to create a secure government Intranet.
  • G2C Services – integrating hundreds of public services into a single online portal (the revamped citizen portal) freiheit.org freiheit.org.
  • Digital Identity – implementing a national digital ID system (recently with a blockchain-based solution for secure identity management idtechwire.com).
  • ICT Capacity – setting up fab-labs, training ICT professionals, and establishing an Innovation Hub.
  • Cybersecurity – enhancing the national CERT (BtCIRT) and drafting data protection laws freiheit.org freiheit.org.
  Despite delays from the pandemic, by mid-2024 Digital Drukyul had completed seven major projects and had one ongoing kuenselonline.com kuenselonline.com. It is a transformative partnership involving GovTech Agency (formerly DITT), international donors, and private tech companies. Outcomes include better connectivity for government agencies (which frees up public internet bandwidth for others), improved digital literacy through training programs, and more reasons for citizens to use the internet (thanks to new online services).
• India-Bhutan Digital Cooperation: India has been Bhutan’s key partner in ICT development. Apart from funding backbone projects, in 2023 India committed to Rs 198 crore (approx USD $26 million) to support Bhutan’s digital initiatives during the 12th Plan sasec.asia. This covers people-centric projects in e-governance, education, and technology. Notably, India agreed to Bhutan’s proposal for an affordable third international gateway and is subsidizing the cost sasec.asia. The two countries also have a peering arrangement between Bhutan’s DrukREN and India’s National Knowledge Network to benefit research and education traffic sasec.asia. There are joint projects on using space technology, such as cooperation on remote sensing satellites (Bhutan-1 was built with ISRO’s help, and a second joint satellite is in planning). Additionally, India provides training for Bhutanese ICT engineers and has donated hardware (for example, computers to schools under the Chiphen Rigpel project in 2010s). This partnership ensures Bhutan isn’t alone in tackling connectivity challenges – it enjoys both financial and technical support from its giant neighbor.
• Other Development Partners: The World Bank and ITU have provided policy and technical assistance for Bhutan’s ICT sector. The World Bank’s IDA funded an ICT Development Project in the mid-2000s that helped set up an ICT center and expand telecom outside Thimphu. Asian Development Bank (ADB), through SASEC, continues to support regional connectivity and innovation. UN agencies (UNDP, UNICEF) have helped with digital literacy and using ICT for development (for instance, UNICEF supported a program bringing mobile e-learning to rural children). Japan (JICA) implemented a project to strengthen government digital capacity (open data, etc.) openjicareport.jica.go.jp. LIRNEasia (a regional ICT policy think-tank) has worked with Bhutan on usage research. All these partnerships have injected expertise and funds that complement Bhutan’s own efforts.
• Private Sector and New Entrants: The role of the private sector is growing. TashiCell itself was Bhutan’s first major private ISP breaking Bhutan Telecom’s monopoly in 2008. Now with Starlink’s entry (a private satellite company) via a local partner, Bhutan is leveraging global private innovation for local benefit. Bhutanese tech startups are also emerging, focusing on content, apps, and services that will increase demand for connectivity (e.g. e-commerce apps like DrukSmart, local delivery services, etc., that sprang up recently). While the private tech ecosystem is small, the government is fostering it through the Thimphu TechPark and innovation grants, on the logic that “content is king” – local apps will drive more internet usage and justify network expansion further.

Together, these initiatives and partnerships illustrate a holistic approach: infrastructure building, policy reform, capacity development, and service delivery have all been pursued in parallel. The result is that Bhutan has leaped from near isolation to a well-connected nation in just a couple of decades. Each project learned from earlier ones – for example, challenges in maintaining earlier rural telecom sites informed better maintenance contracts in later RCP phasesyesheydorji.blogspot.comyesheydorji.blogspot.com. The synergy between government vision and international support has been crucial. Going forward, Bhutan is likely to continue this collaborative approach, for instance partnering with international satellite firms for remote coverage, or with fintech companies to increase internet-based financial inclusion.

Trends and Future Outlook

Looking ahead, Bhutan’s internet landscape will be shaped by both local aspirations and global technology trends. The future outlook for internet access and usage in Bhutan is very promising, with several trends already underway:

• Towards 100% Connectivity: Bhutan is on track to achieve near-universal internet access in the coming years. The remaining offline population (~13% as of 2023) will shrink as infrastructure projects reach the last unconnected hamlets and as smartphone adoption increases among older citizens. Government plans under the new 13th Five Year Plan emphasize leaving no one offline, aligning with the vision for Bhutan to leverage digital tech to achieve developed country status by 2034 un-dco.org. We can expect continued investments in rural networks, maybe an RCP Phase VII if needed to address any residual uncovered villages or to upgrade 2G-only areas to 4G.
• 5G Expansion: After the initial launch in 2021–22, 5G networks will expand significantly by 2025–2027. Both Bhutan Telecom and TashiCell, with support from vendors like Ericsson capacitymedia.com, plan to cover all dzongkhags and major towns with 5G. As device prices drop, more users will come aboard 5G, enabling new use cases. For example, 5G could support IoT (Internet of Things) applications in Bhutan’s context – smart agriculture sensors, drone connectivity for mountain rescue, or real-time telemedicine in remote clinics. BICMA has already been studying IoT spectrum needs (e.g. a consultation on numbering for IoT SIMs bicma.gov.bt), indicating future networks will cater to machine connectivity too. By late 2025, Bhutan’s population coverage with 5G is forecast to rise from 22% to a majority of the population pulse.internetsociety.org pulse.internetsociety.org, which will greatly increase average mobile speeds and capacity.
• Fiber Deeper and Last-Mile Solutions: The national backbone is strong, so the next step is bringing fiber to more homes and businesses. Bhutan Telecom is likely to extend fiber-to-the-premises in all district towns and even satellite towns. We might see public-private partnerships to lay fiber in challenging areas, or the use of alternative tech like TV White Space or microwave relays for last-mile in villages (Bhutan trialed TV White Space tech for an e-Health pilot in a remote area, which showed some success blog.apnic.net). Additionally, with electricity now in nearly all villages, the ground is ready for expanding fixed broadband should demand grow. The government’s Digital Drukyul fiber network connecting offices might also double as backhaul for community Wi-Fi in villages. Expect more Wi-Fi hotspots in public places, especially to serve those who cannot afford personal plans – possibly expanding on the current community centers by adding outdoor Wi-Fi zones in markets or bus stops.
• Satellite Internet Growth: LEO satellite internet will likely become an entrenched part of Bhutan’s connectivity mix. By late 2024 Starlink was already operational; by 2025–2026 one could expect thousands of Starlink users if the prices become a bit more accessible or if institutions adopt it. Also, OneWeb is merging with Eutelsat and could begin offering services in South Asia – Bhutan may benefit through its ties with India’s Bharti (a major OneWeb stakeholder) advanced-television.com telecomtalk.info. If OneWeb lands in Bhutan, possibly via a partnership with one of the local telcos, it could provide competition to Starlink or specialized enterprise services. New satellite tech like HAPS (high altitude platform stations) or stratospheric balloons (e.g. Loon, though that particular project ended) are globally being tested; Bhutan could consider these for hard-to-reach pockets. In any case, Bhutan’s regulators have laid the groundwork to welcome satellite operators, as evidenced by the licensing of Starlink. The 2022 BICMA study on LEO concluded that leveraging LEO constellations is an “opportunity” for Bhutan to bridge the digital divide bicma.gov.bt. We will likely see Bhutan continue to evaluate new satellite services and possibly negotiate favorable terms (like capacity packages) to deploy them in education, disaster response, and tourism.
• Improved Redundancy and Quality: The commissioning of the third international gateway via Bangladesh/India will be a turning point. Once in place, Bhutan will have triple redundancy for international traffic, making nation-wide internet blackouts extremely unlikely. It will also increase available international bandwidth (multi-Gbps), which should allow ISPs to raise data caps or even offer true unlimited mobile data plans without fear of congestion. Quality of Service will improve – higher backbone capacity means even peak-hour slowdown will be minimal and streaming 4K videos or doing HD video calls should become seamless. Additionally, the Internet resilience score of Bhutan (currently 59% “medium” pulse.internetsociety.org) will climb as upstream diversity improves and local content caching grows. By 2025, possibly >75% of popular content could be locally cached (from 65% now pulse.internetsociety.org), further speeding up user experience.
• Growing Digital Ecosystem: As more Bhutanese come online with faster connections, the demand for digital services will grow. We anticipate a surge in e-commerce, e-banking, and e-government usage. The government’s national digital ID and payment gateway will facilitate secure online transactions, leading to new services in fintech and online business licensing bbs.bt. A “digital economy” is emerging – for example, farmers might start using apps to sell produce directly to urban consumers, or tourism businesses might leverage virtual reality to showcase Bhutan’s culture. This growth will reinforce the importance of reliable internet access everywhere, creating a virtuous cycle: more usage -> more revenue for operators -> more investment in network expansion.
• Policy Continuity and Reforms: Bhutan’s government will likely continue prioritizing ICT. After the success of the Digital Drukyul flagship, a second phase or new flagship could be launched focusing on Emerging Tech (AI, blockchain, etc.) and digital skills training at scale. There may be regulatory reforms like updating the ICM Act to cover cybercrimes, data privacy, etc., which indirectly support internet uptake by making the online space safer. Cybersecurity will get more attention – the more people online, the more potential cyber threats. Bhutan will strengthen BtCIRT and may establish more robust cyber laws, ensuring that internet growth does not come at the expense of security.
• Inclusion and Sustainable Access: A key future trend is ensuring inclusive access – reaching people of all ages, abilities, and locations, and doing so sustainably. Bhutan’s focus on environmentally sustainable development means it will strive for green ICT solutions (like solar-powered towers – already common – and energy-efficient data centers). Also, accessible design for disabled users will be an emerging priority (e.g., websites usable by visually impaired through screen readers in Dzongkha). Internet access will be seen not just as tech infrastructure, but as an enabler for health, education, and cultural preservation (for instance, using the internet to archive and share Bhutan’s rich cultural heritage, or for telemedicine to connect rural clinics with Thimphu hospitals).

In conclusion, Bhutan’s internet future looks bright. Having rapidly caught up with much of the world in basic connectivity, Bhutan is now poised to innovate in how it uses that connectivity for development. High-speed networks (fiber, 5G, satellite) will increasingly blanket even the remotest corners of the country, fulfilling the dream of a connected Kingdom where distance is no longer a barrier to opportunity. As Bhutan moves toward its Vision 2030 goals, internet access and digital transformation are set to play a central role in boosting economic growth, enhancing public services, and improving quality of life – truly materializing the promise of Gross National Happiness in the digital era. The strong foundation built so far, supported by ongoing projects and partnerships, suggests that Bhutan will continue to overcome challenges and remain an exemplar for how a small, landlocked nation can leap into the digital future while ensuring the benefits reach all its citizens.

Summary of Key Indicators (Bhutan Internet)

Sources: Bhutan GovTech/BICMA reports, DataReportal datareportal.com, UN DCO un-dco.org, Internet Society Pulse pulse.internetsociety.org pulse.internetsociety.org, SpeedChecker insights.speedchecker.com, World Bank/Statista statista.com, etc.

Table: Key metrics on Bhutan’s internet access, usage, and providers.