Bhutan Telecom Limited (BTL), a fully state-owned enterprise, is one of the leading telecommunications and internet service providers in Bhutan. It was established in the year 2000 through the corporatisation of the former Department of Telecommunications. BTL offers a broad range of services, including fixed-line and mobile telephony, internet and data services, leased-line connectivity, and international gateway services.

Bhutan does not impose functional separation on operators with significant market power (SMP) in the telecommunications market. However, the Bhutan InfoComm and Media Authority (BICMA) requires all operators to maintain accounting separation.
According to Art. 51.8 of the Bhutan Information, Communications and Media Act 2018, the BICMA is empowered to ensure the proper maintenance of accounting systems by public ICT providers and media service providers.
In this regard, BICMA issued the Rules and Regulations on Accounting Reports for ICT Services, which apply to all licensed ICT service and facility providers operating within Bhutan. Section 1 of these Rules requires service providers to maintain accounting records and prepare accounting separation reports accordingly.
Furthermore, Section 3.4 of the Rules and Regulations for Licensing and Operation of Internet Service Providers in Bhutan obliges internet service providers to implement accounting separation between their facilities and services by maintaining separate costs and charges for the different services they offer.

According to Section 2.3 of the Rules and Regulations on ICT Facilities and Services in Bhutan, only Bhutanese citizens are eligible to apply for an ICT facility licence, ICT service licence, or a consolidated licence, provided that the applicant does not hold a majority share in any other ICT facility or service licence.
Art. 464 of the Bhutan Information, Communications and Media Act 2018 defines ICT facilities and ICT services, encompassing: (i) telecommunications services, such as public telephony, telegraphy, facsimile, cellular telephony, and pay-phone/communication services; (ii) information technology services, such as internet services; and (iii) transmission facilities, including fixed links and cables, computer facilities, pay-phone/communication facilities, and radio communication transmitters, receivers, and links.
Additionally, the Rules and Regulations for Licensing and Operation of Internet Service Providers in Bhutan establish specific requirements for applications for an Internet Service Provider (ISP) licence.

Bhutan has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

Section 28 of the Bhutan Information, Communications and Media Act 2018 establishes the Bhutan InfoComm and Media Authority (BICMA) as an autonomous regulatory authority for the telecommunications sector. It is reported that BICMA operates independently from the government in its decision-making processes.

According to Schedule II of the Foreign Direct Investment Regulations 2019, the minimum project cost for FDI in IT park development activities is BTN 200 million (approx. USD 2,300,000).

According to Sections 143 and 144 of the Bhutan Information, Communications and Media Act 2018, foreign direct investment (FDI) in the ICT and media sector may be approved by the Cabinet, taking into account all relevant circumstances, including national interest and the prevailing FDI policy. On the basis of a written government policy, the Bhutan InfoComm and Media Authority (BICMA) is then empowered to issue licences permitting the participation of foreign companies in the ICT and media sector, subject to such terms and conditions as it may determine from time to time.
Section 464 of the Act further defines the scope of ICT services. These include: (i) telecommunications services, such as public telephony, telegraphy, facsimile, cellular telephony, and pay-phone/communication services; (ii) broadcasting services, including mobile satellite and subscription broadcasting; (iii) information technology services, such as internet services, webcasting, e-mail, and other electronic services; (iv) Internet Protocol (IP) telephony; (v) digital library and commercial information services; and (vi) network-based information and related specialised professional services provided by electronic means, public switched data, and other similar services.

According to Art. 35 of the Industrial Property Act of the Kingdom of Bhutan, where an applicant’s ordinary residence or principal place of business is outside Bhutan, the applicant must be represented either by a legal practitioner resident and practising in Bhutan or by a person duly registered as an industrial property agent.
Art. 60 of the Industrial Property Rules further specifies that both legal practitioners and other persons may apply for registration as industrial property agents. The requirements for registration include, inter alia, that the applicant must (i) be a citizen of Bhutan; (ii) be not less than 22 years of age; (iii) be a graduate of a university recognised by Bhutan or possess an equivalent qualification; or (iv) be a certified Bhutanese legal counsel licensed to practise before the courts of Bhutan (these legal counsels are referred to as 'jabmi' in the country).

Bhutan is not a party to the Patent Cooperation Treaty (PCT).

Bhutan is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II). In fact, the country is not a member of the WTO.

According to Section 4.1.2.1 of the Procurement Rules and Regulations 2023, a procuring agency may conduct open tendering only under the following circumstances: (i) when certain goods, domestic contractors with the required capacity to undertake specific works, or service providers are not available in the country; or (ii) in donor-funded projects, where the funding agreement requires the procuring agency to approach the international market.

According to Section 1.1.2.3 of the Procurement Rules and Regulations 2023, goods of Bhutanese origin may be granted preferential treatment in any procurement. Where two or more tenders are evaluated as equivalent, preference shall be given to the bid offering goods of Bhutanese origin, provided that the price difference does not exceed 20%. Similarly, for works where tenders from foreign bidders are invited, a margin of preference of up to 20% may be granted to national bidders.

Reports highlight persistent challenges within Bhutan’s public procurement system, notably the need for timely invoice payments via the electronic government procurement (e-GP) platform, comprehensive record-keeping, adequate resourcing and staffing, and improved inter-institutional coordination. Despite an established legal and regulatory framework, practical implementation issues persist. In 2024, controversy arose when the government awarded direct contracts for laptops and desktops to the State Trading Corporation of Bhutan Limited (STCBL), prompting objections from private IT firms on grounds of unfairness, non-compliance with the Procurement Rules and Regulations (PRR) 2023, and insufficient stakeholder consultation. The government subsequently annulled the STCBL contract.

Bhutan is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). In fact, the country is not a member of the WTO.