I'm not sure about India. But I have assumptions to why bandwidth is costlier in Malaysia. Monopolization. In Malaysia, TM is the monopoly of internet service providers. Despite having clients of over 1 million, Malaysians have not seen any price reductions in Internet plans offered by TM. TM also wholesales bandwidth all over Malaysia. We pay a higher amount of price for a slower Internet package compared to neighboring countries like Singapore and Thailand. In countries like US, there's more than 1 internet service providers, so the competition is tough. Providers naturally have wage price wars in order to win more customers. So, as expected, the prices of bandwidth would be considerably lower than say, Malaysia.