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Internet connectivity 

Internet usage in Bhutan has increased significantly with about 13.83 per every 100 inhabitants now having internet access. Mobile broadband service is gaining increasing popularity with number of subscribers rising from 11,886 in 2009 to 84,458 in 2010 to 86,539 by 30 April 2011. The actual number of users would be much higher if all users connected through lease-line and Wi-Fi connections are taken into account. 

National Broadband Network 

This was one major project undertaken during the past one year. The project involved the stringing of optical fiber on Bhutan Power Corporation‟s (BPC) transmission network. To create a nationwide broadband infrastructure that is necessary to promote ICT access within the country as well as for international connectivity. Implementation of this project was challenging and involved lengthy and numerous discussions with Bhutan Power Corporation (BPC), inter-ministerial consultations and directives from the Cabinet. 

The national broadband master plan project is being implemented to connect all 20 Dzongkhags and Geogs through the optical fiber network. Optical ground wire fiber network covering 18 Dzongkhags has been completed. Works are underway to connect the remaining 2 Dzongkhags and 131 Geogs by June 2012. Rest of the Geogs will be connected in tandem with the Government‟s Rural Electrification Project. This project is being implemented by BPC as a deposit work of DITT. 

With regard to international connectivity, infrastructure for the second international gateway at Gelephu has been established to create the required redundancy and ensure uninterrupted communication link. Power Grid Corporation of India Limited (PGCIL) has already completed stringing of OPGW between Bongaigaon and Gelephu (BPC gantry) to facilitate this connectivity. On the Bhutanese side, BPC has also completed its OPGW works between Tsirang and Gelephu. MoIC is currently working with the domestic operators to operationalize the fibers at both the international gateways. 

In parallel to the establishment of broadband infrastructure, works on bringing down the cost of internet connectivity are progressing in earnest. With BICMA revising the tariff order 2009, Bhutanese will have access to broadband internet service with high band-width, and at an affordable price. MoIC is also in consultation with regional players in India to bring down the cost of international connectivity. 

IT Park 

The development of Bhutan‟s first IT Park, the Thimphu Tech Park, is progressing well. The basic facility is scheduled for completion in September 2011, with the opening ceremony on November 01, 2011 to be combined with other important events such as the National ICT Fair, ICT for GNH Conference, etc. The IT park project, which is the main component of the Private Sector Development initiative, is supported by the World Bank as an IDA grant. The remaining 2 components are implemented by the Royal University of Bhutan and Ministry of Labour & Human Resources (for skills development program), and Royal Monetary Authority of Bhutan and Bank of Bhutan (for strengthening of financial sector). 

Works on the development of the IT Park infrastructure has been awarded to Thimphu TechPark Pvt Limited, a Joint Venture of Assetz Property Group, Singapore and DHI, Bhutan. The 5 acre facility is expected to create a minimum of 700 new jobs in the country and an additional 13 acres land has been approved by the Royal Government for expansion of the park. 

Dialogue with potential anchor tenants are in advanced stage and MoIC should be able to lock-in the first IT Park tenant by July 2011. By December 2011, the local ITES/BPO industry will directly be employing about 500 Bhutanese youth. Discussions have also been initiated with Tutor-Vista as a potential tenant in the IT Park. 

SASEC Information Highway Project 

Works on the implementation of the SASEC Information Highway Project funded by the Asian Development Bank (ADB) with a grant of USD 4.7 million commenced since October 2010. It has three components and the status as follows: 

1. SASEC Regional Network: A robust, reliable and affordable network will be built connecting to the Siliguri hub in India for inter-connection among the SASEC member countries (Bangladesh, India, Nepal, Bhutan). Various works such as site survey for route network (local as well as India), technical design and specification and consultation with local Internet service providers are progressing. 

2. SASEC Village Network: Establishment of 30 Community Centres (CCs) in 30 different Geogs across the country in-line with the plan for CC project. Site selection for establishing the 30 CC completed. Tender evaluation for office equipments, computers and accessories and furniture, and Request For Proposal for connectivity sent to ADB and awaiting approval. 

3. SASEC Research and Training Network: The Royal University of Bhutan has been identified as a partner for establishment of a research and training, and details are being discussed.