Bhutan Telecom MNO Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 89.55 Million |
| Market Size (2030) | USD 110.66 Million |
| Growth Rate (2025 - 2030) | 4.32% CAGR |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Bhutan Telecom MNO Market Analysis by Mordor Intelligence
The Bhutan Telecom MNO Market size is estimated at USD 89.55 million in 2025, and is expected to reach USD 110.66 million by 2030, at a CAGR of 4.32% during the forecast period (2025-2030). In terms of subscriber volume, the market is expected to grow from 1.29 million subscribers in 2025 to 1.61 million subscribers by 2030, at a CAGR of 4.44% during the forecast period (2025-2030).
The measured expansion is underpinned by state-led connectivity programs, steady 4G deployment, and early commercial 5G launches that already cover 18 dzongkhags. Rising mobile-data use among citizens under 35, growing enterprise digitalization, and the arrival of satellite broadband alternatives collectively add momentum to the Bhutan telecom MNO market. Operators’ revenues tilt increasingly toward data and internet services as video streaming, social-media engagement, and emerging IoT solutions overtake legacy voice traffic. Policy support through the Digital Drukyul Flagship Program injects BTN 3.132 billion (USD 37.6 million) into nationwide fiber and wireless projects, while the planned third international gateway promises lower transit costs and improved service affordability.
Key Report Takeaways
- By service type, data and internet services held 46.54% of the Bhutan telecom MNO market share in 2024, and IoT and M2M services are projected to expand at a 5.13% CAGR through 2030.
- By end user, consumer connections captured 93.69% of the Bhutan telecom MNO market size in 2024, whereas enterprise connections are advancing at a 5.89% CAGR to 2030.
Bhutan Telecom MNO Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising mobile-data consumption fueled by social-media and video use | +1.2% | Thimphu, Paro, Phuentsholing and nationwide youth clusters | Short term (≤ 2 years) |
| Government Digital Drukyul and 13th FYP connectivity targets | +0.8% | All 205 gewogs with rural focus | Medium term (2-4 years) |
| 4G/5G footprint expansion into all 205 gewog | +0.6% | Underserved rural areas | Long term (≥ 4 years) |
| Third international fiber gateway lowering IP transit cost | +0.4% | National with regional spillovers | Medium term (2-4 years) |
| Commercial launch of LEO satellite broadband | +0.3% | Remote dzongkhags such as Lhuentse and Gasa | Short term (≤ 2 years) |
| Rural e-health and e-learning pilots | +0.2% | Health posts and schools in remote gewogs | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rising Mobile-Data Consumption Fueled by Social-Media and Video Use
Affordable smartphones, flat-rate prepaid packs, and 5G speeds of 25-110 Mbps on TashiCell’s network have shifted Bhutanese usage from voice to data. [1]TashiCell, “TashiCell 5G, Frequently Asked Questions,” tashicell.com Youth-centric demand drives average monthly data per-capita past 9 GB, and video-first platforms now dominate traffic. The Bhutan National Digital Identity app, launched in 2023, eased onboarding to government e-services and stimulated incremental data flows. [2]National Newspaper, “Bhutan National Digital Identity Application Launched in Thimphu,” kuenselonline.com Operators monetize this trend through tiered unlimited plans, although headline tariffs of BTN 55,000 challenge household budgets. Continuous data-heavy behavior enlarges the Bhutan telecom MNO market as operators bundle OTT zero-rating and introduce mobile-first IoT products for smart villages.
Government Digital Drukyul and 13th FYP Connectivity Targets
Digital Drukyul allocates BTN 3.132 billion to fiber backbones, rural towers, a national digital-identity stack, and e-governance portals. The program seeks a 10% GDP contribution from ICT by 2034 and promises 1,000 new tech jobs annually. Every government agency now maintains a secure Drupal-based web presence, ensuring consistent enterprise connectivity demand. Fiber rings and microwave hops extend to all gewogs, sustaining the Bhutan telecom MNO market through guaranteed backbone traffic and public-sector service contracts.
4G/5G Footprint Expansion into All 205 Gewogs
Nationwide 2G coverage was achieved in 2012; 3G followed soon after on 850 MHz; and B28 (700 MHz) LTE plus 5G went live from 2021 onward. Operators exploit low-band spectrum to overcome mountainous topography and to achieve wide cells that minimize tower counts. Edge caching becomes essential where fiber is absent, and mobile backhaul traverses microwave links exceeding 100 km. Coverage obligations under the InfoComm Act oblige Bhutan Telecom and TashiCell to service less profitable gewogs, but state co-financing partly offsets capital costs. As coverage closes, latent demand translates into incremental revenue, propelling the Bhutan telecom MNO market.
Planned Third International Fiber Gateway Lowering IP Transit Cost
Dependence on two gateways inflates wholesale bandwidth fees and magnifies outage risk. The proposed third route aims to interconnect with Indian and Bangladeshi carriers, trimming IP transit by 18-25% and lifting margin headroom for operators. Lower costs allow broader data-pack inclusions at unchanged retail prices, directly swelling traffic volumes within the Bhutan telecom MNO market. The gateway also supplies the forthcoming Gelephu Mindfulness City SEZ with international redundancy, improving the investment climate for export-oriented digital firms.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rugged topography and sparse population raise network CAPEX/OPEX | −0.9% | High-altitude gewogs and border valleys | Long term (≥ 4 years) |
| High import duty and GST on telecom equipment | −0.6% | National | Medium term (2-4 years) |
| Shortage of skilled RF and fiber technicians | −0.4% | Remote dzongkhags | Medium term (2-4 years) |
| Tight local-content rules slowing OTT uptake | −0.3% | Urban youth segments | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Rugged Topography and Sparse Population Raise Network CAPEX/OPEX
Helicopter-assisted tower builds lift unit site cost by up to 300% above plains averages, and many rural cells serve fewer than 500 users. [3]Asian Development Bank, “Fiscal Sustainability and Green Recovery Program,” adb.org Maintenance journeys can span multi-day treks, inflating operating expenses and stretching payback periods well beyond the typical seven-year horizon. Low-band spectrum partly mitigates tower need but requires expensive amplifiers and high-gain antennas. These cost burdens temper the pace at which operators can monetise rural demand, moderating overall Bhutan telecom MNO market growth.
High Import Duty and GST on Telecom Equipment
Network gear carries cumulative duty and tax marks that exceed 20% on landed cost according to Ministry of Finance schedules. [4]Ministry of Finance, “Green Tax Rules & Regulations of Bhutan,” mof.gov.bt 5G radios and massive-MIMO panels are especially price sensitive because vendors bundle software licences into hardware invoices. Operators consequently phase upgrades over longer cycles and pass part of the burden onto end-users, visible in premium post-paid tariffs. Elevated equipment costs delay coverage milestones and impinge on the Bhutan telecom MNO market CAGR.
Segment Analysis
By Service Type: Data Services Drive Revenue Growth
Data and internet services generated 46.54% of 2024 revenue, underscoring the pivot toward over-the-top engagement and cloud connectivity. Voice usage remains essential in rural pockets but sinks steadily as messaging apps cannibalize SMS volumes even with flat Nu 0.30 pricing. IoT and M2M offerings, though nascent, benefit from smart-meter roll-outs and agriculture sensors, contributing a 5.13% CAGR that outperforms all other service lines within the Bhutan telecom MNO market. OTT video experiences slower uptake due to content-quota rules that restrict foreign catalogues, yet bundled zero-rating with local platforms stimulates episodic spikes. Operators diversify through VAS such as mobile wallets and cloud storage, widening average revenue per user and enlarging the Bhutan telecom MNO market.
A progressive shift sees data accounting for more than half of incremental revenue by 2027. Consumers stream Buddhist teachings, live sports, and K-pop, while enterprises adopt secure MPLS links and private 5G slices for manufacturing. The Gelephu Mindfulness City pilot incubates fintech sandboxes that rely on low-latency links, accelerating demand for high-capacity backhaul. Continuous data growth compels operators to order additional spectrum, driving spectrum-usage fees that feed back into retail pricing dynamics and influence the Bhutan telecom MNO market share distribution between incumbent Bhutan Telecom and challenger TashiCell.
Note: Segment shares of all individual segments available upon report purchase
By End User: Enterprise Growth Outpaces Consumer Expansion
Consumers represented 93.69% of subscriptions in 2024, but enterprise lines are projected to post a 5.89% CAGR to 2030. Government digitization, bank core-system upgrades, and hospitality Wi-Fi mandates in resort corridors stimulate leased-line uptake priced at Nu 55,000 for 100 Mbps links. Enterprises also adopt managed security, cloud interconnect, and video-conferencing solutions that ride on operator MPLS networks.
Consumer growth stays positive yet tapers as SIM saturation nears 90%. Youth adoption of gaming and short-video apps intensifies data volumes but meets spending ceilings imposed by household income. Operator family-plan bundles temper churn but compress margins. Enterprise contracts, however, often involve multi-year commitments complete with service-level guarantees, delivering predictable cash flows that improve operator capital-structure metrics. As more manufacturing units migrate to the Pasakha industrial belt and as digital-service exporters locate in Thimphu TechPark, enterprise connectivity will weigh heavier in determining the Bhutan telecom MNO market share split going forward.
Geography Analysis
Western dzongkhags comprising Thimphu, Paro, and Chukha supply more than 57% of service revenue on account of urban density, hospitality inflows, and the presence of government departments. Average downstream speeds here surpass 45 Mbps on 4G and touch 110 Mbps on 5G test clusters, underpinning premium post-paid uptake. The Bhutan telecom MNO market size attributable to the western corridor crossed USD 51 million in 2024, showcasing its role as the commercial nucleus of the Kingdom.
Central highlands such as Trongsa and Bumthang exhibit mixed terrain that complicates tower logistics. Satellite broadband, activated commercially in December 2024, fills interim gaps with plans priced at BTN 3,000 to 4,200, moderating digital divide concerns. Operators blend microwave backhaul with fiber-to-the-dzongkhag heads to meet e-learning and e-health latency tolerances. Uptake remains price sensitive but shows strong elasticity once affordable bundled data emerges, preserving headroom for the Bhutan telecom MNO market.
The southern Gelephu corridor is an emergent hotspot linked to the USD 100 million Mindfulness City SEZ that aims to attract digital-asset firms and knowledge-process outsourcers. The SEZ requires low-jitter gateways for blockchain validation and cloud workloads. Consequently, operators fast-track redundant fiber spurs to the Indian border, a move that reinforces the Bhutan telecom MNO market resilience against international trunk failures. As enterprise tenants occupy SEZ campuses, demand for private 5G, edge compute, and cloud peering will elevate regional ARPU well above national averages.
Competitive Landscape
The Bhutan telecom MNO market operates as a regulated duopoly. Bhutan Telecom holds a significant share of subscriptions through its B-Mobile brand, leveraging near-ubiquitous 2G/3G coverage, a legacy wireline backbone, and close alignment with state entities. TashiCell competes on early 5G adoption and youth-oriented marketing. Regulatory barriers, including spectrum-access fees and minimum population-coverage mandates, limit additional terrestrial entrants, though satellite broadband players such as Starlink introduce fresh competition for rural wallets.
Competition centers on network quality, bundle innovation, and enterprise solution depth rather than aggressive price undercuts. TashiCell optimizes 900 MHz GSM and 850 MHz HSPA+ to maximize coverage in rugged valleys, while Bhutan Telecom emphasizes carrier-grade IP-MPLS and IMS core investments to maintain perceived reliability. Both operators extend wholesale infrastructure to ISPs, sustaining backhaul revenue and partially defraying capital costs.
Diversification into fintech and content partnerships gains traction. Bhutan Telecom’s BT PAY wallet garners 210,000 active users, whereas TashiCell trials edge-hosted gaming nodes to bolster 5G value propositions. Still, average revenue per user lags South-Asian peers owing to economic structure and taxation levels. Satellite entrants change the calculus for last-mile economics in mountainous districts, nudging incumbents toward infrastructure-sharing agreements and RAN-sharing to preserve margins and sustain the Bhutan telecom MNO market.
Bhutan Telecom MNO Industry Leaders
-
Bhutan Telecom Limited (B-Mobile)
-
TashiCell (Tashi InfoComm Limited)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- February 2025: Starlink satellite internet services became commercially available in Bhutan with residential plans priced at Nu 3,000-4,200 per month, providing alternative broadband in remote dzongkhags.
- May 2024: UNDP published Bhutan’s Digital Economy Development and Transformation Strategy, outlining USD 37.6 million connectivity investment and targeting a 10% ICT GDP contribution by 2034.
Bhutan Telecom MNO Market Report Scope
| Voice Services |
| Data and Internet Services |
| Messaging Services |
| IoT and M2M Services |
| OTT and PayTV Services |
| Other Services (VAS, Roaming and International Services, Enterprise and Wholesale Services, etc.) |
| Enterprises |
| Consumer |
| Service Type | Voice Services |
| Data and Internet Services | |
| Messaging Services | |
| IoT and M2M Services | |
| OTT and PayTV Services | |
| Other Services (VAS, Roaming and International Services, Enterprise and Wholesale Services, etc.) | |
| End-user | Enterprises |
| Consumer |
Key Questions Answered in the Report
How large is the Bhutan telecom MNO market in 2025?
It is valued at USD 89.55 million and is forecast to climb to USD 110.66 million by 2030.
What is the expected CAGR for Bhutan mobile operators through 2030?
The Bhutan telecom MNO market is projected to post a 4.32% CAGR.
Which service category leads operator revenue?
Data and internet services contribute 46.54% of 2024 revenue, outpacing voice and messaging.
How competitive is the Bhutan mobile landscape?
It is a regulated duopoly with Bhutan Telecom holding 74% of subscriptions and TashiCell the balance.
How will satellite broadband affect future growth?
Starlink’s entry broadens rural access, pressuring terrestrial operators to adjust pricing and coverage strategies.
Which user group is expanding fastest?
Enterprise connections record a 5.89% CAGR as government and private firms digitize operations.
Page last updated on:
