According to Section 51 of the Bhutan Information, Communications and Media Act 2018, the Bhutan InfoComm and Media Authority (BICMA) is mandated to regulate the interconnection and sharing of infrastructure and facilities between or among telecom facility providers. The Rules and Regulations on ICT Infrastructure Sharing 2019 further detail these obligations, requiring service providers to share passive infrastructure with other licensed providers on a “first-come, first-served” basis, and to publish on their websites detailed information regarding infrastructure available for sharing. Infrastructure sharing must be formalised through a written agreement grounded in the principles of neutrality, transparency, non-discrimination, and fair competition. A copy of the agreement must be submitted to BICMA within one month of its signing.

Section 5 of the Foreign Direct Investment Regulations 2025 distinguishes between: (1) “Priority Sector Activities” in the manufacturing and service sectors listed in Schedules I and II; and (2) “Other Activities” not listed in those Schedules. As the telecom sector is not explicitly included in the schedules, it falls under the “Other Activities” category, for which the maximum foreign investor shareholding is capped at 74% equity (section 7).

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.

Under Sections 59–60 of the Foreign Direct Investment Rules and Regulations 2025, the FDI process begins with an online registration application for activities open to FDI. Applicants must demonstrate compliance with the prescribed minimum investment thresholds and shareholding structures and submit the required supporting documentation, including corporate documents, investor identification documents, and, where applicable, the curriculum vitae of a local partner.
The application is then subject to administrative review and clearance. Under Sections 77–79, the Department of Industry (DoI) reviews and approves FDI projects and coordinates the required sectoral clearances, while the Invest Bhutan Division is authorised to expedite and approve priority sector proposals within three working days upon receipt of complete documentation. Sections 80–81 provide that proposals must be rejected where they do not meet the approval criteria, fail to comply with the Rules or other applicable laws, or where sectoral clearance is denied. Following approval, Section 84 requires the investor to obtain an online business licence within one month of project approval.
Finally, the Rules include localisation-related constraints on the use of foreign labour. Under Sections 46–47, FDI companies may apply for work permits for foreign professional and non-professional expatriates during the establishment and operational phases only where qualified and experienced Bhutanese personnel are not available, and recruitment must comply with applicable labour and immigration requirements. The Rules also encourage FDI companies to recruit and develop Bhutanese nationals.

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

Section 5 of the Foreign Direct Investment Regulations 2025 distinguishes between: (1) “Priority Sector Activities” in the manufacturing and service sectors listed in Schedules I and II; and (2) “Other Activities” not listed in those Schedules. In practice, “Other Activities” operates as a residual category covering most sectors. For these activities, the minimum project cost is BTN 50 million (approx. USD 530,000) in the manufacturing sector and BTN 25 million (approx. USD 265,000) in the service sector (Section 7).

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.

Pursuant to Section 6 of the Foreign Direct Investment Regulations 2025, the minimum project cost for priority sector activities is set out in Schedules I and II. Under these Schedules, the minimum project cost for FDI in IT park development activities is BTN 200 million (approx. USD 2,140,000), while in the manufacturing sectors of electronics and electrical equipment, the minimum project cost is BTN 40 million (approx. USD 420,000).

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 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.