[🇧🇩] ICT Industry in Bangladesh

[🇧🇩] ICT Industry in Bangladesh
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Information technology in Bangladesh

The information technology sector in Bangladesh had its beginnings in nuclear research during the 1960s. Over the next few decades, computer use increased at large Bangladeshi organizations, mostly with IBM mainframe computers. However, the sector only started to get substantial attention during the 1990s. Today the sector is still in a nascent stage, though it is showing potential for advancement. Nonetheless, Bangladesh IT/ITES industry has fared comparatively well by achieving US$1.3 billion export earnings in FY 2020-21 and holding US$1.4 billion equivalent market share in the local market contributing 0.76 per cent to the GDP creating more than 1 million employment opportunities so far amid Covid-19 havoc that suddenly shattered businesses last year. Consequently, riding on the successes of IT/ITES sector-supported export-led industries as well as pro-private sector and conducive policies pursued by Bangladesh Government, the country is now poised to become a Developing Country by 2026, as recommended by the United Nations Committee for Development Policy (UNCDP), besides, Bangladesh now seeks to transform itself into a knowledge-based and 4IR-driven cashless economy, aiming to become a developed country by 2041. The Bangladesh government has formulated a draft 'Made in Bangladesh– ICT Industry Strategy' aimed at turning Bangladesh into an ICT manufacturing hub, enhancing export of local products, attracting foreign investment and creating employment proposing to implement in three Notif-info terms— short term from 2021 to 2023, mid-term from 2021 to 2028 and long term from 2021 to 2031 for implementation of the 65 action plans.

History

The first computer in East Pakistan was an IBM mainframe 1620 series, installed in 1964 at the Dhaka center of the Pakistan Atomic Energy Commission (later the Bangladesh Atomic Energy Commission). Computer use increased in the following years, especially after the independence of Bangladesh in 1971; more-advanced IT equipment began to be set up in different educational, research and financial institutions. In 1979, a computer centre, later renamed Department of Computer Science & Engineering, was established at Bangladesh University of Engineering and Technology (BUET); the centre has been playing a pivotal role in Bangladeshi IT education since its inception. Through the introduction of personal computers, the use of computers witnessed a rapid increase in the late 1980s. In 1985, succeeding several individual initiatives, the first Bengali script in computers was invented, paving the way for more intense computer activities. In 1995, use of the Internet began and locally made software started to be exported.

In 1983, the Ministry of Science and Technology established a National Computer Committee to create the required policies. The committee was also responsible to carry out programs to expand and promote the efficacious use of the sector. In 1988, the committee was replaced by the National Computer Board. In 1990, the ministry reformed the board and reconstituted it as the Bangladesh Computer Council to monitor computer- and IT-related works in the country.

ICT industry

The ICT industry is a relatively new sector in the country's economy. Though it is yet to make tangible contributions in the national economy, it is an important growth industry. The Bangladesh Association of Software and Information Services (BASIS) was established in 1997 as the national trade body for software and IT service industry. Starting with only 17 member companies, by 2009 membership had grown to 326. In a study among Asian countries by Japan International Cooperation Agency in 2007–08, Bangladesh was ranked first in software and IT services competitiveness and third in competencies, after India and China. The World Bank, in a study conducted in 2008, projected triple digit growth for Bangladesh in IT services and software exports. Bangladesh was also listed as one of the top 30 Countries for Offshore Services in 2010–2011 by Gartner. The Internet penetration has also grown to 21.27 percent in 2012, up from 3.2 percent three years prior.

The Information and Communications Technology (ICT) sector of the country has maintained 57.21 percent export growth on an average over the last nine years since 2009. In the fiscal year (FY) 2016–17, Bangladesh ICT sector registered export earnings worth US$0.8 billion from the global market and US$1.54 billion from the domestic market span – thereby making around one percent contribution to the gross domestic product (GDP). The ICT sector has created around three hundred thousand job opportunities so far. ICT exports of the country are also projected to reach US$5 billion by 2025.

As the Internet usage increases, the government expects the IT sector to add 7.28 percent to GDP growth by 2021.
 
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How the cyberspace is being manipulated

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VISUAL: SHAIKH SULTANA JAHAN BADHON

Evgeny Morozov, in his book The Net Delusion: How Not to Liberate The World (Penguin, 2012), defined "cyber-utopianism" as a naive idea that the internet favours the oppressed rather than the oppressor. Contrary to the beliefs of the cyber-utopians, Evgeny showed how the internet has become a useful tool for authoritarian governments for propaganda, censorship, and surveillance—the three main pillars of Orwellian authoritarian control.

In the age of internet and digital technology, these three pillars of authoritarianism have become so interconnected that efforts to undermine one pillar might ruin the efforts to do something about the other two. For example, in order to avoid the control of the traditional censorship, if the people flock to social networking sites, they may fall prey to surveillance and propaganda. The more trust users put in social networks, the easier it is to use the networks to promote carefully disguised government messages and boost the propaganda apparatus.

Bangladeshi netizens are not outside this mechanism, which has become evident from the latest Adversarial Threat Report prepared by Meta, the parent company of Facebook. In its first quarterly report of 2024 published in May, Meta has announced the removal of 50 Facebook accounts and 98 pages with 3.4 million followers which are linked to Bangladesh's ruling Awami League, citing violations of its policy against Coordinated Inauthentic Behaviour (CIB).

According to Meta, CIB refers to coordinated efforts to manipulate public debate for a strategic goal, in which fake accounts are central to the operation. In each case, people coordinate with one another and use fake accounts to mislead others about who they are and what they are doing.

In the chapter titled "Bangladesh-based Network" and appendix, Meta's report exposed the fake accounts which posed as fictitious new entities or existing news organisations in Bangladesh. Some pages used the Bangladesh Nationalist Party (BNP) in their name and posted anti-BNP content. Many of these pages had a corresponding presence across several platforms, including YouTube, X (formerly Twitter), TikTok, and Telegram, in addition to their own websites.

According to Meta, the network posted primarily in Bengali and also in English about news and current events in Bangladesh, including elections, criticism of the BNP, allegations of BNP's corruption and its role in pre-election violence, as well as supporting commentary about the incumbent government, the ruling party and its role in the technological development of Bangladesh.

Meta found this activity as a result of its internal investigation into spammy inauthentic amplification activity in the region. Although the people behind it attempted to conceal their identity and coordination, Meta's investigation found links to individuals associated with the Awami League and the Centre for Research and Information, a non-profit organisation in Bangladesh associated with Awami League.

In the appendix of the report, Meta also gives a list of websites, X accounts, Telegram and YouTube channels, TikTok accounts, and names of fictitious news outlets which are used to spread misinformation with political purpose. According to Meta, the network worked to a regular shift pattern, posting between 07:00 and 21:00 GMT (1pm to 3am Bangladesh time), with a peak between 13:00 and 18:00 GMT (7pm to 12am Bangladesh time), and notably fewer posts on Fridays.

This is not the first time that government propaganda efforts have been exposed by Meta/Facebook. Earlier in December 2018, Facebook published a report titled "Taking Down Coordinated Inauthentic Behavior in Bangladesh'' where it announced removal of nine Facebook pages and six Facebook accounts for engaging in coordinated inauthentic behaviour. Facebook mentioned that after getting a tip from Graphika, a threat intelligence company that it worked with, it discovered that these pages were designed to look like independent news outlets and posted pro-government and anti-opposition content. Facebook directly linked these propaganda activities to individuals associated with the government at that time.

The irony is that on the one hand, the government has enacted cyber security laws in the name of preventing rumours and propaganda, and is asking for support from global technology companies like Facebook, Google, and TikTok to prevent rumours, block user accounts and pages, remove content. On the other hand, the ruling party and its research wing themselves have engaged in organised disinformation campaign against the opposition parties using fake accounts.

According to the latest Google transparency report, the Bangladesh government made 591 content removal requests to Google in the last six months of 2023, of which 310 or 52 percent were related to government criticism and 175 or 30 percent were related to defamation. According to Meta's latest transparency report, from July to December 2023, the Bangladesh government sought information about 2,164 users or accounts. Meta has provided information in 67.81 percent of the cases. In the same period, the government made 3,459 content restriction requests to Meta, of which 2,049 were Facebook posts and 1,357 were Facebook comments.

However, government control over the flow of information is not limited to removing or blocking content. Of course, similar to banning books or newspapers, governments block websites and apps to varying degrees depending on the situation and regime of internet-based communication. But this is not the only way to control the internet. Apart from creating various barriers to the flow of information that is dangerous for the government, there are many other ways to control people's thoughts. Some examples of these mechanisms are keeping people busy with various unimportant issues, publicising government statements or positions as neutral opinions or news, and controlling the content of discussions on social media through hired individuals and organisations, etc.

This type of activities can also be undertaken using traditional media, but by exploiting the various features of the internet and digital technologies, these activities can be implemented on a wider basis much more easily, effectively, and at a lower cost than traditional media.

With new forms of authoritarian and surveillance capitalism developing around the internet and digital technologies, it is important to hold both the government and technology companies accountable to the citizens to ensure privacy and freedom of expression. Just as unaccountable authority is harmful in the real world, it is equally dangerous in the virtual world of the internet—especially when the real and the virtual become one.

Kallol Mustafa is an engineer and writer who focuses on power, energy, environment and development economics.​
 
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ICT sector: Different figures over actual export revenue
Suhadha AfrinDhaka
Updated: 15 Jul 2024, 12: 35

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US dollarFile photo

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ICT sector export incomeRepresentational image

As per the government version the country's export income in information and communication technology (ICT) sector has reached USD 2 billion while the businessmen of the sector maintain that the amount can at best be USD 1.5 billion.

However, the government organisations that keep track of the export income said the sector's income is not even USD 1 billion.

Zunaid Ahmed Palak, the state minister for post, telecommunication and ICT has been maintaining the export income in the sector to be around USD 2 billion.

He also expects the amount will reach USD 5 billion in the next five years.

Asked about the information of ICT sector's export income, Palak on Sunday told Prothom Alo that this estimation is based on data from Bangladesh Bank, and information of hardware and freelancing sectors.

Besides, some companies in the Chattogram Export Processing Zone (EPZ) export electronic items.

Some stakeholders of the sector say that the amount would actually be USD 1 billion more, the state minister said adding there are some unofficial exports in the sector.

Palak also states that he gives the estimation of USD 2 billion taking responsibility.

Bangladesh Bank and Export Promotion Bureau (EPB) mainly serve the information of export of goods and services. Service sector makes more exports in the ICT sector.

There is no specific data on the number of freelancers in the ICT sector. A top freelancer of the country, on condition of anonymity, told Prothom Alo that none can correctly tell the export amount in the sector. The number of Bangladeshis freelancers registered with various freelancing platforms will be around Tk 600,000 to Tk 700,000. But the actual number of freelancers is around 150,000.

According to the Bangladesh Bank, the amount of export in telecommunication, computer and information service was USD 531.8 million between July-April in the fiscal year of 2023-24. This is 5.2 per cent less than the corresponding period of the last fiscal year.

Meanwhile, ICT services exports were USD 477 million from July to March of the same fiscal year, according to EPB data.

This amount is USD 6.43 million less than the corresponding period of the previous fiscal year.

According to World Bank data, the ICT sector accounts for 10 per cent of all services exported from Bangladesh in 2023. In the case of India it is 48.2 per cent, 36.2 per cent in Pakistan and 16.9 per cent in Sri Lanka.

Stakeholders say that 80 per cent of the country's ICT sector exports are service-based. And the export of this service is half of one billion dollars. In total, ICT sector exports will be less than a billion dollars.

The exports have been declining for two years. As a result, there are questions as to whether the export target of five billion dollars is achievable in the current situation.

Rasel T Ahmed, president of Bangladesh Association of Software and Information Services (BASIS), thinks that the export of the ICT sector will be about USD 1.5 billion dollars.

He told Prothom Alo that many information of this sector is not added up.

ICT is considered as the most promising sector after the apparel industry but there has been no progress in the last two years, Ahmed said adding expected growth could not be achieved.

The dream of five billion dollar exports will not be achieved this way, he noted, rather proper planning is required for it.
There is no specific data on the number of freelancers in the ICT sector. A top freelancer of the country, on condition of anonymity, told Prothom Alo that none can correctly tell the export amount in the sector. The number of Bangladeshis freelancers registered with various freelancing platforms will be around Tk 600,000 to Tk 700,000. But the actual number of freelancers is around 150,000.

Persons connected with BASIS said the export amount of freelancers in the country can be between USD 200 and 250 million. However, the president of Bangladesh Freelancer Development Society (BFDS) Tanjiba Rahman told Prothom Alo that the amount would be USD 300.

She also thinks that the export of the ICT sector will be USD 2 billion. Apart from services, the ICT sector has various other products. The World Bank does not have any data on Bangladesh's exports of ICT products after 2015.

UN Trade and Development (UNCTAD) gives a list of products that are considered as ICT products. The list includes products such as computer and peripheral equipment, communication equipment, consumer electronic equipment (sound recording, microphone, camera, television camera, headphone, video game equipment, radio broadcasting equipment), electric components and semiconductor media etc.

There is no separate information available for ICT products in Bangladesh's export sector. However, Bangladesh Bank's 2022-23 financial year export earnings report mentions engineering products' export amount would be USD 585.85 million. According to the EPB data, the amount would be USD 479.96 million between July and May in 2023-24 fiscal year.

EPB's list of engineering products includes iron steel, copper ware, stainless steel ware, engineering equipment, electric products, bicycle and other products. None of Bangladesh's engineering products except for electric equipment fall under the category of UNCTAD's definition of ICT products. However, if the total export of engineering products and ICT services sector is calculated, it is more than a billion dollars.

He added that different activities are taking place in the ICT sector in scattered ways but the impact of these are not so visible. The government has to set the target and set up at least 150 big companies.​
 

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Internet blackout: Freelancers in trouble
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Internet blackout lands freelancers in trouble. Photo: Orchid Chakma

With the complete shutdown of internet services across Bangladesh for the past five days, life on the digital frontier had come to a grinding halt. Mobile internet access was restricted on July 16 amidst country-wide protests against quota reinstatement in government jobs. Following escalating street violence, a complete internet blackout was suddenly imposed on July 18, with no prior warning. Now, the country's freelancers, whose income depends heavily on internet access, are facing significant financial difficulties.

Timely communication is paramount in online freelancing platforms like Fiverr and Upwork. Freelancers typically rely on the platforms' embedded messaging systems to communicate with clients. Unfortunately, the internet shutdown rendered communication entirely impossible.

Shaikh Abdullah, a Dhaka-based motion designer and video editor working for international clients, shared his experience. "I was negotiating a $500 project with a client," he explained. "The internet abruptly cut out during our discussions, with no prior announcement. After four days of complete inactivity, if the client reports my profile as inactive, it will significantly reduce my profile visibility and overall click-through rate. This, in turn, will lead to a loss of potential clients and ultimately, a decrease in my income."

The global freelancing marketplace operates at a fast pace, with clients and workers adhering to strict deadlines for project orders and deliveries. Failure to deliver on time often results in negative client feedback, which can significantly impact a freelancer's earnings if enough negative ratings accumulate.

Sudiptta Apu, a graphic designer and freelancer based in Khulna, expressed similar concerns. "I had eight ongoing projects worth over $1,000 that are now on hold due to the internet blackout. It's highly likely that clients will seek alternative service providers, as most require urgent and ongoing work."

"For my regular clients outside of online marketplaces, I attempted communication through international calls to India and the USA," Sudiptta added. "However, network issues made proper communication impossible. I fear losing most of my regular clients as well."

The internet shutdown also prevented many freelancers from delivering completed projects. Sohag Islam, a UI/UX designer based in Dhaka and founder of the IT firm Designera, recounted his experience. "I had two deliveries scheduled – one for $1200 and another for $660. Just an hour before the final delivery to the client, I lost internet connectivity. Communication with all my regular clients is completely cut off. The internet shutdown has resulted in a minimum loss of $3,000 for me."

Sohag further stated that he works remotely for a US-based firm, but the internet blackout hampered communication with them as well.

However, broadband internet connections were restored on a limited scale yesterday after 5 days of complete countrywide blackout. Md Emdadul Hoque, president of the Internet Service Providers Association of Bangladesh (ISPAB), said earlier today that approximately 40% of broadband connections across the country have been restored, with most lines expected to be operational by the end of the day.​
 
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4 ways to stay online during an internet outage
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Mobile data internet in various parts of the country are experiencing outage. Image: Tech & Startup

Mobile data internet services across Bangladesh is reportedly experiencing a widespread outage, as per reports. The disruption, assumed to have begun around 10:30 am on July 18, is in continuation for the third consecutive day.

The disruption has particularly affected social media platforms such as Facebook and Messenger. Upon testing, netizens have been unable to send messages through Messenger or access the updated feed of Facebook since today morning. The same restriction has been noticed in platforms like X (formerly Twitter) as well, though tests have shown that, at the time of writing, YouTube has been accessible through normal means.

In light of these events, in any cases of emergency, the following methods can be tried to stay connected to the internet:

Virtual Private Networks (VPNs)

VPNs are widely used to access blocked content or websites. They function by routing the user's connection through a remote server, masking the local IP address and making it appear as though the user is accessing the internet from another location. However, some countries, including Russia and Egypt, employ network management technologies to block VPN traffic. Experts recommend having at least two VPNs to increase the likelihood of bypassing restrictions. Additionally, changing the domain name server (DNS) may be effective in some situations.

It is important to note that while VPNs can help bypass censorship, they do not provide privacy protection during browsing.

Mesh Networks

Mesh network applications like Briar and Bridgefy are particularly useful in dense gatherings such as protests. These apps allow messages to hop between devices using Wi-Fi or Bluetooth, creating a network independent of internet connectivity.

However, mesh networks have limitations, primarily their limited geographical range, which typically restricts communication to nearby devices. Research from the University of London identified vulnerabilities in Bridgefy, such as spoofing attacks, which could compromise the security of these networks.

International SIM Cards

In border regions, it may be possible to connect to networks from neighbouring countries where internet access remains unaffected. Using an international SIM card can help maintain connectivity. This approach has proven effective in Myanmar, where journalists and human rights workers use Thai SIM cards to stay connected, communicate with international colleagues, and facilitate mobile money transfers.

Sideloading Apps

Governments might attempt to restrict access to certain platforms by removing them from app stores. On Android devices, users can sideload apps, downloading them directly to the device without relying on official app stores. This method, however, carries risks, as sideloaded apps are not vetted and may contain malware.​
 
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IT cos fear foreign clients may turn their back on them
MOHAMMAD MUFAZZEL
Published :
Jul 28, 2024 08:56
Updated :
Jul 28, 2024 09:35
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Internet blackout came as a severe blow to the IT companies that fear long-term setbacks on business if foreign clients consider them unreliable and move to other countries, say Vietnam, for uninterrupted services.

To avoid clients get irked by any disruption, some big companies have even sent a small team of their workforce to any neighbouring country, for example Nepal and Singapore, to ensure continuation of their services.

Meanwhile, telecom operators said their daily revenue from data services was slashed by 35 per cent and that the industry incurred a loss of around Tk 5 billion between July 16 and July 26. Many service centres were also vandalized during the mayhem centring on protests against the quota system in government jobs, adding to the loss.

Local IT companies have experienced a boom in business opportunities in recent years as they have seen more and more overseas clients seeking to outsource back-office operations, customer care, image processing, graphics design, data entry, data analysis etc. That gave rise to optimistic projections about export growth of IT-enabled products and services.

The sector constitutes 1.25 per cent of the GDP (gross domestic product) and its export earnings were reportedly above $1.8 billion in the last fiscal year.

Shameem Ahsan, managing director of listed IT company eGeneration, said the shutdown of the Internet put the country in reverse order regarding the expansion of the global footprint of the IT sector.

"Companies, which provide outsourced services, lost a large number of foreign clients who failed to communicate with them," he said.

Losses in revenue amounted to Tk 5 billion in the five days to Thursday last week, according to the Bangladesh Association of Software and Information Services (BASIS). The decline in income from the local segment is yet to be determined.

About 5 per cent of 2,500 IT companies sent small teams abroad in a desperate attempt to keep services to foreign clients unhindered during the Internet blackout.

"Foreign clients have alternatives to get the services. So, they will not wait for a service provider to get back to them," said BASIS President Russell T Ahmed.

Though Internet connections have been restored, Mr Ahmed said the companies were yet to return to operations fully because of the low speed.

Mr. Ahsan said his small company eGeneration itself lost revenue worth around Tk 15 million in the last one week. "It would take time to regain the confidence of foreign clients who seek services from Bangladeshi companies."

Mobile operators also endured losses for data services being snapped. A significant amount of revenue is generated from services to corporate companies and SME sectors.

The impact of the disruptions can be illustrated by the experiences that any of the service recipients were subjected to.

A senior official of Square Pharmaceuticals says the drug maker usually receives around 30,000 invoices from buyers across the country. The buyers send invoices to the company's depots situated in different districts through mobile Internet. Now they need to go to the depots and physically submit the invoices.

As a result, the number of invoices received per day has almost halved.

The companies that stored data through cloud computing have encountered greater problems.

App-based operations of mobile operators have also remained suspended. Company secretary of Robi Axiata Mohammed Shahedul Alam said telecom operators earn good revenue from the use of YouTube and Facebook.

"Our new customer acquisition also remained halted during the period of the unrest," Mr. Alam said.

Telecom operators, however, hope to recover part of the loss from the increase in voice services.

The recovery will depend on the facilities to be provided by the government, added Mr. Alam.​
 
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