[🇧🇩] ICT Industry in Bangladesh

[Saif]

Veon eyes space-based connectivity for Bangladesh in partnership with Starlink

Veon CEO Kaan Terzioglu revealed the plan during an interview with Bloomberg at the World Economic Forum in Davos.

www.thedailystar.net

Veon eyes space-based connectivity for Bangladesh in partnership with Starlink
Veon CEO Kaan Terzioglu revealed the plan during an interview with Bloomberg at the World Economic Forum in Davos.

Veon Ltd, a Dubai-based telecommunications company, is exploring opportunities to bring satellite-powered cellular services to Bangladesh in partnership with Elon Musk's Starlink.

The move aims to bridge connectivity gaps in areas where terrestrial networks fall short, particularly during natural disasters such as floods or periods of energy shortages.

Veon Chief Executive Officer Kaan Terzioglu revealed the plan during an interview with Bloomberg at the World Economic Forum in Davos.

"It's not only about the war situation. Terrestrial networks have their limits," Terzioglu said.

"During times of floods or energy deficiencies, which our markets are exposed to, we truly believe that markets need both space-based and terrestrial network coverage."

Veon's Ukraine subsidiary, Kyivstar PJSC, has already partnered with Starlink to provide satellite-to-cell services.

A Banglalink official stated that if Veon and Starlink partner to enter Bangladesh, the service would be provided through Banglalink.

Veon owns Bangladesh's third-largest mobile operator, Banglalink.​

 

[Saif]

Bangladesh’s digital transformation: How social media is shaping politics and society

Social media has become a crucial part of this transformation, influencing everything from politics to social movements.

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Bangladesh’s digital transformation: How social media is shaping politics and society

File visual: Amreeta Lethe Chowdhury

Over the last decade, Bangladesh has seen a massive shift in how its people communicate, interact, and make decisions. Social media has become a crucial part of this transformation, influencing everything from politics to social movements. With nearly 200 million mobile phone users and over 100 million internet subscribers, it is clear that the digital revolution in Bangladesh is well underway. As the world becomes more interconnected, social media has risen to the forefront, playing a critical role in shaping public opinion, politics, and social change.

Social media: A game-changer for communication

In recent years, platforms such as Facebook, Twitter, Instagram, and TikTok have exploded in popularity in Bangladesh. The younger generation, often referred to as "digital natives," has turned social media into more than just a way to stay in touch; it is now a space for entertainment, influence, and activism. Affordable mobile internet has made social media more accessible, especially to the youth, who make up a significant portion of the country's population.

Among these platforms, Facebook stands out as the most popular in Bangladesh, with millions logging in daily. For many people, social media is the first place they go for news and updates, giving them quick access to both local and global events.

Politics in the digital age

Social media has changed politics in Bangladesh by giving ordinary people an easy way to share their opinions, question the government, and support important issues. It has brought politicians and the public closer together, making it easier for them to communicate directly. Now, politicians use social media to connect with voters more easily, instead of relying on traditional media.

The 2018 national elections in Bangladesh were a turning point in how social media influences politics. Political parties used Facebook, Twitter, and YouTube to connect with voters, share their manifestos, and promote their candidates. Ads targeted specific groups using data analytics, helping parties tailor their messages to different demographics.

However, this new digital space has also brought challenges, such as the spread of misinformation, fake news, and hate speech, particularly during elections. The ease with which anyone can share content has led to the rapid spread of propaganda, and the lack of regulation has made it difficult to hold people accountable for what they say online.

Despite these challenges, social media remains a powerful tool in Bangladesh. It has raised political awareness, especially among the youth, and sparked movements and protests that gained momentum through viral hashtags and posts. Social media has even been used to challenge authoritarianism, with people demanding government accountability and social justice.

Social media as a catalyst

Beyond politics, social media has become a vehicle for social change in Bangladesh. Topics such as women's rights, climate change, and education are being widely discussed on digital platforms, giving grassroots movements a chance to be heard. The #MeToo movement, for example, has found a strong voice among Bangladeshi women, with many using social media to share their stories of sexual harassment and demand safer environments.

Social media has also been key in raising awareness about marginalised communities. Issues such as the rights of the Rohingya refugees and the fight for greater representation of ethnic minorities have gained visibility thanks to the power of digital platforms, which give these often-silent voices the chance to be heard far and wide.

One of the most powerful examples of social media's role in driving social change occurred during the 2018 student protests in Dhaka. After a tragic road accident that killed two students, thousands of young people took to the streets, demanding safer roads. The protests were organised and amplified on social media, gaining widespread attention and eventually forcing the government to take action. This movement, led by the youth, showed how digital activism could spark change.

Challenges of inclusivity and access

While social media has brought about significant progress, it also highlights the digital divide in Bangladesh. While internet access is growing, large parts of the population—especially in rural areas—still have limited access to the digital world. Challenges such as the cost of smartphones, slow internet speeds, and low literacy rates make it hard for many to participate in the digital conversation.

This divide is also clear in the skills needed to use technology. For example, older generations often struggle with social media, making it hard for them to join digital conversations. This creates a gap between those who can engage online and those who cannot.

Additionally, the government's attempts to regulate social media have raised concerns about freedom of expression. In recent years, Bangladesh has seen increased censorship of online content, with authorities blocking websites and arresting people for allegedly posting content that is deemed defamatory or politically sensitive. The Digital Security Act of 2018 has been criticised for stifling free speech, as it allows the government to prosecute people for online posts that are seen as harmful to the state.

The future of Bangladesh's digital transformation

As Bangladesh continues to move towards a more digital future, social media will remain a key player in shaping its political and social landscape. The growing influence of social media among the youth promises to reshape politics and activism, offering opportunities for greater transparency, engagement, and accountability. However, challenges such as misinformation, censorship, and the digital divide must be addressed to ensure that social media remains a force for good.

As the country continues its digital journey, the potential for social media to drive change is immense. From transforming political communication to empowering social movements, Bangladesh's digital transformation will undoubtedly play a major role in shaping the future of its society.

In conclusion, while social media offers new opportunities for public engagement, it also presents challenges that need to be addressed. By embracing the benefits of digital platforms and working to mitigate the risks, Bangladesh can continue its progress towards becoming a more connected, informed, and progressive nation in the digital age.

Farzana Hoque is social media executive at The Daily Star.​

 

[Saif]

REPORT ON RE-STRATEGISING ECONOMY: Task force for withdrawal of SD, surcharges on internet

The task force report on re-strategising the Economy and Mobilising Resources for Equitable and Sustainable Development recommended that the government immediately withdraw 20 per cent supplementary duty and 2 per cent surcharge on the Internet.

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REPORT ON RE-STRATEGISING ECONOMY: Task force for withdrawal of SD, surcharges on internet
Taufiq Hossain Mobin 31 January, 2025, 21:24

The task force report on re-strategising the Economy and Mobilising Resources for Equitable and Sustainable Development recommended that the government immediately withdraw 20 per cent supplementary duty and 2 per cent surcharge on the Internet.

The 12 member task force, formed by the planning ministry on September 2024, submitted its report to the interim government chief adviser professor Muhammad Yunus on Thursday.

The report says that the current high taxation and fiscal policies that impose charges exceeding 50 per cent on internet users directly contradict the country’s commitment to equitable development.

‘Due to excessive internet prices, the mobile internet adoption is low and there is a noticeable underutilisation of internet resources in critical areas such as education, government services, and online banking among the population,’ it said.

Considering the significant impact of internet-driven technologies in the daily life of the ordinary people, particularly AI applications in education and healthcare, governments must recognise the internet as a ‘social good’ to guarantee equitable access for all citizens, especially marginalised communities, the report noted.

‘It is estimated that for every Tk 100 data pack purchased by a mobile user, more than Tk 50 is allocated to the government in various forms, including supplementary duty (20 per cent), VAT (15 per cent), revenue sharing (5.5 per cent), surcharges (2 per cent), social obligation funds (1 per cent), and spectrum related fees (approximately 9 per cent),’ the report reads.

The task force in its report said that the Bangladesh Telecommunication and Regulatory Commission should waive the 5.5 per cent revenue sharing and 1 per cent social obligation fund over internet revenue.

It also recommended eliminating international internet gateway, interconnection exchange, international gateway services (IGW), IGW operators forum, and national internet exchange layers from the current telecom ecosystem.

The data transmission value chain is intentionally or unnecessarily divided into multiple disconnected segments, contribute to unnecessary costs, raising the price of mobile data for consumers, said the report, using the term artificially fragmented.

The currently existing 29 licensing categories have created a complex telecom ecosystem, leading to inefficiencies and non-value-added entities. This creates layered intricacies that ultimately impact quality of service and cost of service to subscribers.

Removing these layers will directly decrease cost in both data and voice for telecom operators. Operators can use the cost saving for investing in rural last mile connectivity (mostly data where investment is urgently required), according to the report.

Mentioning establishing cache servers as a quick way to reduce the price of internet, the report noted that global companies like Google, Meta and Bytedance have not set up data centres in Bangladesh due to legal concerns. They seek legal protection, such as intermediary liability protection.

The report said that broadband providers pay less than Tk 2 per GB due to minimal delivery costs, while telecom operators face much higher expenses. Their transmission costs are six times higher than the cost of bandwidth itself.

For each GB, telecom operators pay Tk 1.2 to NTTNs and Tk 2.6 to tower companies, significantly increasing the overall operational expenses compared with the ISP provider in the urban areas.

The NTTN policy prevents MNOs and ISPs from laying fibre networks, forcing dependence on NTTNs. Telecom operators are also barred from importing essential technologies like DWDM, limiting cost efficiency.

The task force was led by KAS Murshid, former director general of the Bangladesh Institute of Development Studies. Other members included Akhtar Mahmood, former World Bank official, Selim Raihan, professor of economy department at the University of Dhaka, Abdur Razzak, former head of research department at the Commonwealth Secretariat, Mushfiq Mobarak, professor at Yale University’s economics department; Shamsul Haque, professor at Bangladesh University of Engineering and Technology, Rumana Huque, professor of economy at the University of Dhaka, Nasim Manzoor, former president of the Metropolitan Chamber of Commerce and Industry, Dhaka, Monzur Hossain, research director at Bangladesh Institute of Development Studies, Fahmida Khatun, executive director of Centre for Policy Dialogue, AKM Fahim Mashrur, chief executive officer of BDjobs, and Md Kawser Ahmed, member secretary of the general economics division of the Planning Commission.​

 

[Saif]

Prof. Yunus speaks to Elon Musk, urges him to bring Starlink to Bangladesh

The head of Bangladesh’s interim government, Professor Muhammad Yunus, on Thursday urged billionaire tech tycoon Elon Musk to introduce the Starlink satellite internet service in Bangladesh.

www.newagebd.net

Prof. Yunus speaks to Elon Musk, urges him to bring Starlink to Bangladesh
Staff Correspondent 14 February, 2025, 04:20

Chief Adviser Professor Muhammad Yunus and Elon Musk. | BSS Photo Collage

The head of Bangladesh’s interim government, Professor Muhammad Yunus, on Thursday urged billionaire tech tycoon Elon Musk to introduce the Starlink satellite internet service in Bangladesh.

Nobel laureate Yunus, who is currently in Dubai, United Arab Emirates, attending a summit, made the request during a video conversation with Elon Musk, owner of SpaceX, Tesla, and X.

Present at the meeting were Dr. Khalilur Rahman, High Representative for the Rohingya Crisis and Priority Issues, and Lamiya Morshed, Principal Coordinator of SDGs from the Bangladesh side, as well as Lauren Dreyer, Vice President, and Richard Griffiths, Global Engagement Adviser, from the SpaceX side, according to a statement issued by the press office of the chief of the interim government.

During their conversation, Professor Muhammad Yunus and Elon Musk emphasised the transformational impact of Starlink’s satellite communications, particularly for Bangladesh’s enterprising youth, rural and vulnerable women, and remote communities.

They discussed how high-speed, low-cost internet connectivity could bridge the digital divide in Bangladesh, empowering education, healthcare, and economic development in underserved regions, and providing millions of small and micro-entrepreneurs with access beyond the national boundary.

Professor Yunus extended an invitation to Elon Musk to visit Bangladesh for the potential launch of Starlink services, highlighting the significance of this initiative for national development.

Musk responded positively, saying, ‘I look forward to it,’ according to the statement.

Professor Yunus stated that integrating Starlink’s connectivity into Bangladesh’s infrastructure would create new opportunities for millions and bring the country closer to the global digital economy.

He also expressed his enthusiasm for working alongside Musk to unlock the full potential of technology-driven social and economic growth in Bangladesh and beyond.

Professor Yunus explained that Starlink would complement the pioneering work of Grameen Bank and Grameenphone in connecting village women and young people to the world.

‘They would become global women and children and global entrepreneurs,’ he said.

Elon Musk, in turn, praised the Grameen Bank microfinance model, acknowledging its global impact on poverty alleviation.

Tech entrepreneur Musk said he had been familiar with the work of both Grameen Bank and Grameen Village Phone for many years.

He expressed his belief that leveraging technological advancements such as Starlink could further drive innovation, economic empowerment, and financial inclusion in Bangladesh.​

 

[Saif]

Musk keen on launching Starlink in Bangladesh

Elon Musk, head of the US Department of Government Efficiency, yesterday said he is looking forward to launching Starlink in Bangladesh

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Musk keen on launching Starlink in Bangladesh

Elon Musk, head of the US Department of Government Efficiency and owner of satellite internet service provider Starlink, yesterday said he is looking forward to launching Starlink in Bangladesh.

Earlier yesterday, the X account of Bangladesh's chief adviser posted: "Had great meeting with Mr @elonmusk. We agreed to work together and hope to launch Starlink in Bangladesh soon."

Musk replied: "Looking forward to it!"

On Thursday, the Chief Adviser's Press Wing issued a statement saying that Prof Muhammad Yunus had an extensive discussion with Musk to explore future collaboration and advance efforts to introduce Starlink in Bangladesh.

According to the statement, the two discussed the transformational potential of Starlink's satellite communications, particularly for Bangladesh's enterprising youth, rural and vulnerable women, and remote communities.

Yunus also invited Musk to visit Bangladesh for the potential launch, to which Musk responded positively.​

 

[Saif]

Can Starlink’s entry be another turning point?

Two of the greatest minds in Bangladesh -- Dr Muhammad Yunus and Iqbal Quadir -- came together for an unconventional idea: providing mobile phones, then exorbitantly priced status symbols for the urban elite, to poor rural women in the mid-90s.

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Can Starlink’s entry be another turning point?

Two of the greatest minds in Bangladesh -- Dr Muhammad Yunus and Iqbal Quadir -- came together for an unconventional idea: providing mobile phones, then exorbitantly priced status symbols for the urban elite, to poor rural women in the mid-90s.

What they envisioned was made possible by the entry of a Norwegian telecommunications company onto the shores of the Bay of Bengal and their idea turned out to be a game-changer.

Telenor's arrival through Grameenphone was not just a means of poverty alleviation for many women, it was a pivotal moment that transformed the country's telecommunications landscape.

Its entry, along with the efforts of other mobile operators, democratised mobile connectivity, expanded rural access and played a crucial role in bolstering economic growth.

Today, a similar disruption could be on the horizon with Starlink, Elon Musk's satellite-based internet service.

With Chief Adviser Professor Yunus recently engaging in talks with Elon Musk, followed by his post on X and Musk's "looking forward to it" response, and the telecom regulator's draft guidelines for NGSO satellites being released, Starlink's entry seems on the horizon.

The pressing question now is whether its arrival will be as transformative as Telenor's. And while the answer remains uncertain, one thing is clear: it undoubtedly poses itself as a potential watershed moment.

Starlink has the potential to revolutionise broadband internet the same way Grameenphone impacted mobile access in rural areas.

However, since spectrum-dependent mobile services require heavy infrastructural investment for wide deployment, internet access remains unreliable in remote regions despite high mobile penetration.

The country's telecom policy has also long hindered broadband expansion into remote areas.

However, Starlink's satellite-based model removes the need for costly infrastructure, bringing high-speed connectivity to underserved regions and unlocking new economic opportunities.

Whereas Grameenphone's entry empowered rural entrepreneurs, particularly women, Starlink could represent a quantum leap for digital businesses, e-commerce, remote work, and online education -- sectors that remain constrained by poor internet access.

Even in cities, entrepreneurs and freelancers who rely on high-speed internet often find existing services inadequate. Internet speed and reliability remain major concerns, limiting productivity and growth in the digital economy.

During the July revolution, when nationwide internet shutdowns were imposed by the Awami League government to quell a mass uprising, some executives sent officials abroad to procure Starlink kits, using them with roaming services from other countries.

This highlights the growing demand for an alternative, resilient connectivity solution beyond traditional telecom infrastructure. Besides, Starlink also offers the invaluable benefit of enhancing disaster-resilient communication services.

When a cyclone, flood, or other natural disaster strikes, affected communities often lose access to mobile networks when they need it most. This disruption occurs primarily due to prolonged power outages, as most base transceiver stations have battery backups lasting only four to eight hours.

As a result, thousands of towers go offline, leaving people stranded without communication.

Starlink, being satellite-based, could provide uninterrupted internet access during such crises, ensuring more effective disaster response and greater resilience.

Besides, with Starlink, Bangladesh's burgeoning digital economy -- particularly in freelancing, software exports and AI -- could significantly leap forward.

Reliable high-speed internet would eliminate key bottlenecks for IT professionals and start-ups, strengthening Bangladesh's position in the global digital economy.

Although Starlink could disrupt the broadband market by challenging established ISPs and mobile internet providers, it will also foster competition and improve service quality. Considering the greater interests of the internet business, there should be no barriers to the entry of new technology.

Yet, regulatory hurdles are now the main obstacle hindering Starlink from making a smooth entry.

The proposed guidelines for NGSO (Non-Geostationary Satellite Orbit) Systems present two major concerns -- legal interception and bandwidth procurement from International Internet Gateways (IIGs).

Firstly, the requirement for lawful interception contradicts Starlink's fundamental design and commitment to privacy. Unlike traditional ISPs and mobile operators that operate within a nation's regulatory framework, Starlink's encrypted, direct-to-satellite model makes centralised interception difficult.

Insisting on such compliance risks deterring investment or delaying its entry.

Secondly, mandating bandwidth purchases from IIGs undermines the very purpose of Starlink -- independent, direct satellite connectivity. This not only adds unnecessary costs but also contradicts global best practices for satellite broadband deployment.

Regulators must adopt a smarter, future-proof approach instead of applying legacy telecom regulations to disruptive technologies. BTRC officials must move beyond outdated telecom-era regulations and embrace innovation.

Forcing Starlink into legacy frameworks like IIG bandwidth procurement and legal interception shows a lack of adaptability that stifles progress instead of fostering competition and digital inclusion.

Besides, the NGSO market is rapidly evolving, with several key players competing to provide global broadband services.

SpaceX's Starlink leads with over 7,000 satellites in orbit and a customer base exceeding 4.6 million as of 2024. Amazon's Project Kuiper has received preliminary approval to launch over 3,000 satellites and aims to enter the market soon. OneWeb, backed by Eutelsat, is deploying a 'constellation' to offer global connectivity.

Mobile operators, best positioned to partner with satellite internet providers, are already on the move as well. Banglalink and Robi Axiata are currently in discussion with operators such as Starlink and OneWeb to explore potential collaborations in Bangladesh.

Given these factors, Bangladesh should have facilitated the entry of all such NGSO operators to foster competition.

If regulatory barriers are removed, satellite internet could be offered for just $10 to $30 per month, similar to Kenya, but far lower than the United States' monthly service fee of $120.

Additionally, one kit, which can currently be purchased for over $500 or rented for $15 in Kenya, can be used by a whole community.

A Starlink connection can be shared with neighbours by extending Wi-Fi using routers or extenders, setting up a wired ethernet connection, or using a mesh network for broader coverage.

This means that a small community could chip in to buy or rent one kit and share the cost of a subscription among themselves, shaping its entry into Bangladesh as a transformative moment.​

 

[Saif]

Govt for white paper on ICT sector

Chief adviser’s press secretary Shafiqul Alam on Tuesday said that the interim government would soon form a high-level committee to investigate corruption and irregularities committed in the information and communication technology sector...

www.newagebd.net

Govt for white paper on ICT sector
Staff Correspondent 19 February, 2025, 00:22

Key target to bring Hasina back to face trial: CA office

Chief adviser’s press secretary Shafiqul Alam on Tuesday said that the interim government would soon form a high-level committee to investigate corruption and irregularities committed in the information and communication technology sector during the regime of deposed prime minister Sheikh Hasina.

He came up with the information at a press briefing held at the Foreign Service Academy in the capital Dhaka on the day.

Shafiqul said, ‘Many reports on corruption in the ICT and digitalisation were published in newspapers and we read those. Chief adviser Professor Muhammad Yunus wants a whitepaper to be published to this end.’

He said that the high-powered body having the world’s renowned economists and ICT experts would be formed within a day or two to prepare the whitepaper.

The committee will probe how corruption was committed and how much money was laundered from the ICT sector in the name of digitalisation during the ousted regime, he said.

He said that the white paper committee would present the white paper within two months.

Shafiqul also spoke about the issue of Bangladesh’s labour restrictions in the United Arab Emirates.

He said that during the World Government Summit in Dubai in February 11-13, the chief adviser had spoken with several UAE ministers regarding the ban on Bangladeshi workers.

The ban would soon be lifted, allowing Bangladeshis to return to the UAE workforce, he said, adding that the government was actively working on resolving this issue.

In response to a question regarding Hasina’s extradition, Shafiqul also said the interim government’s key goal was to bring ousted prime minister Sheikh Hasina back to Bangladesh and put her on trial.

He said that the government intended to hold Hasina accountable for her crimes against humanity.

Referring to the recent United Nations Human Rights Commission report which accused Sheikh Hasina of committing crimes against humanity, Shafiqul also stated that the report outlined the serious nature of these offences.

‘This is a grave crime,’ he remarked, adding that there has been significant pressure on Hasina following the findings in the report.

He cited a survey conducted by India Today that revealed that 55 per cent of respondents wants Sheikh Hasina send back to Bangladesh, while a smaller percentage advocates for her transfer to another country and only about 16-17 per cent of people wants Hasina remain in India.

Regarding a Committee to Protect Journalists report which highlighted the threats and attacks faced by journalists in Bangladesh, Shafiqul acknowledged the importance of press freedom.

Welcoming the recent CPJ report, he said that sometimes observations were made on the basis of isolated incidents.

He invited the CPJ to visit Bangladesh and observe the state of media freedom in the country, saying that Bangladesh had now one of the highest levels of media freedom in its 53-year history and the interim government never threatened any newspaper for publishing reports.​

 

[Saif]

BTRC limits bandwidth imports from India

Bangladesh Telecommunication Regulatory Commission (BTRC) has capped bandwidth imports from India at 50 percent of the country’s consumption of 6,500 Gbps to reduce reliance on a single source and promote diversified international connectivity.

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BTRC limits bandwidth imports from India

Bangladesh Telecommunication Regulatory Commission (BTRC) has capped bandwidth imports from India at 50 percent of the country's consumption of 6,500 Gbps to reduce reliance on a single source and promote diversified international connectivity.

Currently, about 60 percent of Bangladesh's bandwidth consumption is imported from India by international internet gateway (IIG) operators through international terrestrial cable (ITC) companies.

Bangladesh Submarine Cable PLC (BSCPLC) currently supplies the remaining 40 percent of the bandwidth for internet.

BTRC Chairman Emdad ul Bari said the regulator aims to further reduce bandwidth imports from India to 30 percent, while increasing the share of submarine cable-supplied bandwidth to 60 percent through the BSCPLC.

The remaining 10 percent would be sourced via satellite, he added.

This move comes through an amendment to the IIG guidelines, according to the BTRC documents.

Md Ariful Huq, deputy general manager for sales and marketing at the BSCPLC, said they were prepared to supply additional bandwidth immediately.

Under the revised framework, the IIG operators can maintain up to 10 percent of their total connected bandwidth as backup capacity via satellite earth station or VSAT until an alternative international long-distance communication (ILDC) route was available.

A satellite earth station refers to any ground station that communicates with satellites.

The VSAT (very small aperture terminal) is a specific type of satellite earth station that uses small dish antennas to transmit and receive data via satellite, typically used in remote areas where other forms of internet access are limited.

Operators must adhere to service level agreements (SLAs) and obtain prior approval from the BTRC to secure backup bandwidth via satellite.​

 

[Saif]

Digital hub to boost trade, investment

Undeniably, navigating the labyrinth of multiple desks and procedures to clear imported cargoes and ship export consignments has been a notoriously messy, tardy and costly affair so far. So, doing business encounters enormous hurdles and as such it is a disincentive, especially for foreign direct i

thefinancialexpress.com.bd

Digital hub to boost trade, investment
Editorial
Published :
Feb 26, 2025 00:46
Updated :
Feb 26, 2025 00:46

Undeniably, navigating the labyrinth of multiple desks and procedures to clear imported cargoes and ship export consignments has been a notoriously messy, tardy and costly affair so far. So, doing business encounters enormous hurdles and as such it is a disincentive, especially for foreign direct investment (FDI). As a way out of this bureaucratic maze, the National Board of Revenue (NBR), is reported to have launched an online export-import hub recently to provide customs and tariff-related information from a single centralised platform. Evidently, the aim of this digital hub is to make business operations smoother for international trade. Though belated, it is still a welcome development that the digitalised information providing system could finally see the light of day.

The need for a centralised information portal for external trade facilitation cannot be overstated. How the country was falling behind its regional as well as international competitors in trade and investment was made plain by the operator of a Korean investor in Bangladesh who spoke at the launching event of the digital hub in question. It is indeed a revelation that the said foreign investor admitted how he gave preference to its business operation in Vietnam instead of Bangladesh when it came to allocating funds while receiving export orders. It was for the simple reason that Bangladesh was far behind Vietnam regarding lead time. Evidently, the inordinate delays in processing export-related information and documentations at the customs were to blame for this. Now, the services the digital platform would provide include what is called Harmonised System (HS) code-specific document requirements, information on necessary certificates for imports and exports, applicable tariff rates and so on. It is believed the accessibility of the digital customs and tariff-related information hub by all concerned would also facilitate business operations of new entrants with the growth of national economy. In fact, it was a long-felt demand of the new businesses since earlier only big businesses could afford the necessary facilities including certificates for obvious reasons resulting in the growth of so many oligarchs in the country. Expectedly, the centralised online system to access customs and tariff-related information would break the barriers for the newcomers to develop and excel. Also, to facilitate submission of customs-related documents by compliant businesses certified as Authorised Economic Operators (AEOs), the NBR is learnt have launched a digital platform within the so-called Automated System for Customs Data (ASYCUDA) world. Obviously, the digital module will immensely benefit the AEO licence-holders from the customs authority since they would now be able to bypass physical inspection and transport their export-import cargo directly through the green channel from the ports to their factories or warehouses thereby saving time and costs.

Notably, the NBR has reportedly awarded AEO status to 9 out of 17 highly compliant businesses so they would be able to use the green channel to carry out overseas trade smoothly. The good news is that remaining eight firms will be eligible for the online service once they meet the necessary regulations involved. But for the business community to get the facility, full implementation of the AEO system would be necessary. Again, the system will also be of help for the regulatory authority, NBR as it would reduce a lot of work pressure on it.

In addition to the AEO module, the digital hub also aligns with the Customs Strategic Plan 2004-28 as part of integration with customs modrnisation efforts. Introduction of the digital hub to facilitate trade through streamlining customs procedures would hopefully boost business confidence and investment in the economy. However, efficient and seamless operation of the digital hub to provide services as and when required will remain essential precondition.​

 

[Saif]

Bangladeshis burdened with high internet taxes

Bangladeshi citizens were burdened with some of the highest taxes on internet usage in Asia in 2024, with a combined tax rate of 39 percent on internet services, according to a recent report by GSMA, a non-profit organisation that represents the interests of mobile network operators worldwide.

www.thedailystar.net

Bangladeshis burdened with high internet taxes
GSMA says it exacerbates digital divide

Bangladeshi citizens were burdened with some of the highest taxes on internet usage in Asia in 2024, with a combined tax rate of 39 percent on internet services, according to a recent report by GSMA, a non-profit organisation that represents the interests of mobile network operators worldwide.

This high tax rate, comprising 21 percent in sector-specific taxes and 18 percent in VAT, exacerbates the digital divide and poses a significant barrier to the country's digital transformation efforts, the report said.

The report, titled "Enabling Mobile Network Investment: Policy Reforms for Bangladesh", reveals that Bangladesh's internet tax rate far exceeds that of its regional peers.

Nepal imposes a 26 percent tax on internet services, Sri Lanka 23 percent, India 18 percent, the Philippines 12 percent, and Indonesia 11 percent.

The GSMA report highlights that the telecom sector in Bangladesh faces additional financial challenges, including notably higher corporate income tax rates compared to other industries.

Publicly traded telecom companies are taxed at 40 percent, while non-publicly traded companies face a 45 percent rate—higher than rates in India and comparable to those applied to industries like tobacco.

Furthermore, telecom operators are subject to a minimum turnover tax of 2 percent, significantly higher than the 0.6 percent applied to other sectors.

The lack of a credit mechanism for input taxes further increases operational costs, reducing profitability for telecom operators. For instance, operators incur an additional 7.5 percent cost because the Bangladesh Telecommunication Regulatory Commission does not register them for VAT.

The report underscores that Bangladesh stands at a critical juncture in its journey towards becoming a trillion-dollar economy and achieving developed nation status.

The telecom sector, as a vital enabler of this transformation, is expected to drive economic growth, foster innovation, and ensure digital inclusion.

However, achieving these goals will require substantial investments in telecom infrastructure, which are currently hindered by high taxes and regulatory challenges.

Key obstacles identified in the report include a complex licensing framework that increases administrative burdens, restrictions on infrastructure ownership and sharing that create inefficiencies, and short licence durations that complicate long-term investment planning.

Additionally, opaque penalties, retrospective audits, and prescriptive regulations create uncertainty for investors and limit market-driven growth.

To address these challenges, the GSMA recommended creating an attractive business environment by streamlining licensing processes, extending licence periods, and allowing mobile operators to deploy their own infrastructure.

It also suggests reforming the fiscal framework by reducing sector-specific taxes, aligning corporate taxes with other industries, and introducing transparent tax policies.

Establishing a progressive regulatory framework with market-driven regulations and improving transparency is another key recommendation.

Finally, the report calls for government enablers for investment, including regulatory stability, fiscal support, and prioritised digitalisation initiatives.

The report emphasises the need for collaboration among government bodies, telecom operators, and investors to build a future-ready telecom ecosystem.

"By addressing these challenges and implementing these reforms, Bangladesh can unlock the full potential of its telecom sector, ensuring it becomes a cornerstone of the nation's journey to a developed and digitally inclusive economy," the report concludes.​