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Submarine cable breakdown disrupts Bangladesh internet
It will take at least 2 to 3 days to resume the connection

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Representaional photo: Collected

Internet users in Bangladesh are facing disruption as the country's second submarine cable SEA-ME-WE 5, the largest supplier of international bandwidth to Bangladesh, broke last night.

The disconnection was identified at last midnight. It will take at least 2 to 3 days to resume the connection, Mirza Kamal Ahmed, managing director of the Bangladesh Submarine Cables PLC (BSCPLC), told The Daily Star.

International bandwidth usage in Bangladesh now stands at around 5,200GBPS. More than half of it -- about 2,700 Gbps -- comes through international terrestrial cable (ITC) licence holders that import bandwidth from India across land borders.

The South East Asia-Middle East-Western Europe 5 (SEA-ME-WE 5) submarine cable installed in Kuakata supplies 1,700GBPS.

The undersea cable of the SEA-ME-WE 5 got broken in a spot between Singapore and Malaysia, he said.

For that, all circuits of all members of the consortium got down, he added.

"So, a ship will be mobilised to repair and restore the service. Total operation will take minimum 2 to three days," he added.

The SEA-ME-WE 5 is a 20,000km submarine cable system connecting 17 countries through Points-of-Presence from Singapore to the Middle East to France and Italy in Western Europe.

The cable that laid in the eastern side that connected Singapore got broken, while the connectivity in the western side that connected France remained operational, he added.

For that, of 1700Gbps bandwidth comes through the system, only 100 GBPS bandwidth will be supplied to Bangladesh.

The BSCPLC is now exploring ways to restore the circuits of SEA-ME-WE 5 with SEA-ME-WE 4, the country's first submarine cable installed in Cox's Bazar.

Nearly 800 Gbps bandwidth is provided by the first undersea cable with which Bangladesh was connected in 2006. It currently supplies about 850 Gbps bandwidth and its capacity has recently been upgraded to 3,800 Gbps.

The first undersea cable with which Bangladesh was connected in 2006 currently supplies about 850 Gbps bandwidth and its capacity was recently upgraded to 3,800 Gbps.

The BSCPLC is set to receive 13,200 Gbps from a third undersea cable, SEA-ME-WE 6, by 2025.

Md Emdadul Hoque, president of the Internet Service Providers Association of Bangladesh (ISPAB), said the cable cut of the second submarine cable will severely affect internet service for almost a week.

"Some of our customers have already started complaining about slow interest and high latency," said ISPAB president.

However, officials of mobile operators said their internet services have so far remained unaffected.

"We are monitoring the situation closely. We are working with our partners International internet gateway operators to continue smooth service," said Shahed Alam, chief corporate and regulatory officer at Robi Axiata.

"As it is a holiday today [Saturday], the demand for the internet is low. Our customers may face disruption from tomorrow [Sunday]".

Submarine cables are crucial for internet bandwidth because they enable high-capacity data transfer between continents, supporting global communication, online services, and international connectivity essential for modern digital operations.​
 

Internet slowdown across Bangladesh may persist for a month
Published :
Apr 23, 2024 20:00
Updated :
Apr 23, 2024 20:00

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Internet users across Bangladesh have been experiencing a slowdown for the past four days as repair work on the country's second submarine cable South East Asia-Middle East-Western Europe 5 (SEA-ME-WE-5), which was recently damaged, has yet to be completed.

The repair work of the cable will persist until the last week of May, according to Bangladesh Submarine Cables PLC.

BSCPLC's General Manager (Operation and Maintenance) Saidur Rahman said the cable, SEA-ME-WE-5, broke down in the Indonesian sea coast area on Saturday, reports bdnews24.com.

"Administrative work there takes a little longer. The authorities said the repair work could be completed in the third or fourth week of next month."

When asked about the suffering of people due to the internet slowdown, Rahman said, "All alternatives are not fully effective yet. The country's first submarine cable, SEA-ME-WE-4, is capable of carrying full bandwidth. The concerned company will have to pay extra for this, which is still not decided. Efforts are underway to act on some other options."

Internet bandwidth in Bangladesh comes mainly through two submarine cables running through the deep sea. The first submarine cable, SEA-ME-WE-4, is installed at Cox's Bazar while the second one, SEA-ME-WE-5, is at Kuakata.

The second cable broke down around 440 kilometres away from Singapore's western coast around midnight on Saturday, the BSCPLC had previously said in a statement.

"All Kuakata-Singapore bound traffic through the cable is closed now. Measures are being taken to repair and reconnect the cable through the SEA-ME-WE-5 consortium."

"Though the services through the SEA-ME-WE-5 cable are closed now, the internet services are being provided across the country through the SEA-ME-WE-4 and other ICT organisations," the BSCPLC statement read.

"A significant amount of bandwidth from the disconnected one is being shifted to the SEA-ME-WE-4 cable. However, the customers may experience slowdowns until the SEA-ME-WE-5 is repaired and operational again."​
 

Seamless internet not before end of May

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Photo: Freepik

The maintenance works of SEA-ME-WE 5, through which Bangladesh avails the largest chunk of international bandwidth, will take about a month, prolonging woes over the lack of a smooth broadband internet service in the country.

Bangladesh Submarine Cables in a press release said the maintenance work of the cable would conclude on the last week of May.

The cable, which was installed in Kuakata connecting Bangladesh with Singapore, snapped at midnight of April 27.

"…The country's second submarine cable (SMW-5) was accidentally severed in Indonesian waters west of Singapore. The SMW5 consortium has already undertaken the repair of undersea cables in Indonesia," said Bangladesh Submarine Cables.

"According to the latest information of the consortium, the maintenance work of the cable will be completed in the last week of May 2024, subject to obtaining permission from the relevant authorities in Indonesia," it said.

It may be noted that preparations have been completed from Bangladesh Submarine Cables to transfer about 1600 Gbps bandwidth of SMW-5 to SMW-4, the first submarine cable of the country,

Customers (International Internet Gateway companies) have started the process of connecting their circuits as per demand through Bangladesh Submarine Cables.

The Bangladesh Submarine Cables authorities sincerely apologised for the temporary inconvenience, it added.​
 

IMF for end to tax break for IT sector
29 Apr 2024, 2:24 am

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Staff Reporter :

The International Monetary Fund (IMF) has proposed discontinuing the tax exemption facility for the information technology (IT) industry, which is scheduled to end in June 2024.

The visiting delegation of the multi-national lending firm came up with the proposal in a meeting with the high officials of the National Board of Revenue (NBR) at the latter's office in the city on Sunday.

The other proposals of the global lender are abolishing tax breaks on clothing, footwear, LPG, and mobile phones, which may increase revenue by 0.31 percent of GDP.

It also suggests repealing the depletion allowance provided for mining and petroleum extraction, eliminating or establishing caps on input VAT deductions for entertainment and VAT on meals, and requiring all businesses with turnover greater than Tk 3 crore to be in the standard 15 percent VAT with input tax credits; eliminating their option for truncated VAT.

The global lender also proposed to reform revenue administration for all three wings. With this move, revenue will be raised by 0.15 percent of GDP, the IMF expects.

The NBR officials accepted the IMF proposal; however, they showed dismay against the withdrawal of the exemption facility for all IT services as it may disrupt sector growth, according to revenue board officials.

Experts opined that some facilities should be withdrawn from the IT sector, but others should be continued for security services such as cloud computing and cyber security because now foreign companies have brought huge money from Bangladesh to provide such services.

If the exemption is withdrawn, the income of the respective IT services companies will be subject to a 27.5 percent corporation tax.

An analysis of the NBR showed that now the government gives an exemption worth around Tk 1,477 crore annually to IT services. However, insiders said that if net profit is supposed to be 10 percent, then the local market should be around Tk 50,000 crore to get such an amount of tax expenditure.

According to the Bangladesh Association of Software and Information Services (BASIS), the annual domestic market size in the ITES sector is around Tk 2,000–2,500 crore, but the contribution of the sector to the economy is uncountable and huge, as agriculture, education, health, media, and RMG sectors use technology and earn a notable portion of their income.

BASIS President Russell T. Ahmed told The New Nation, "The sector is facing numerous challenges every moment. If the sector is taxed, it will be a disaster."

"IMF's prescription is theoretical, and they do not understand the situation in our country. However, our governmentis pro-IT services to make the country smart, and there is opportunity to make every sector smarter," he said.

"The sector does not get banking finance, and its raw material is mostly talent. Besides, our talented ones do not get intellectual property. So, if such a move is executed, brain drain will increase as our costs will jump up, we will lose our competitiveness, and imports will rise," Russell added.

Citing NBR's analysis as wrong, he said, "NBR should be smarter in its analysis. A couple of groups of companies take advantage of an exemption facility in the name of their small IT companies. It is the responsibility of the NBR to catch loopholes and evasion, and there is no scope to tax small and medium startups and IT service companies. The sector will be the most USD-earning source after RMG."

In the meeting, NBR officials were informed that they are collecting revenue with just the provisions or laws, but enforcement is not sound yet.

So they want to strengthen enforcement, which will enable them to meet the IMF revenue collection target, the NBR officials who attended said.

They further said the random withdrawal of tax exemptions will have a negative impact on the country's economy.

In a bid to get the third tranche of a $4.7 billion loan from the IMF, the government of Bangladesh should take these policy measures by June this year in line with the global lender's recommendations. Besides, there are 38 conditions to get the full amount of the loan.

In the revenue part, the IMF has stipulated conditions to increase the tax-to-GDP ratio by 0.5 percentage points in FY24, followed by 0.5 and 0.7 percentage points in FY25 and FY26, respectively.​
 

aamra technologies' entire bandwidth blocked
The IIG operator didn't share Tk 22 crore revenue in time

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The telecom regulator last week blocked full bandwidth of aamra technologies as the international internet gateway operator failed to pay dues of over Tk 22 crore.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has repeatedly sent letters to aamra, but the company did not clear the dues related to revenue sharing, according to the officials of the commission.

Earlier, 80 percent bandwidth of aamra technologies got blocked in January for the payment.

Earlier, the BTRC even proposed aamra to hand over a down payment of Tk 10 crore and clear the Tk 12 crore in instalments.

Still, aamra failed to pay it, according to the officials.

Aamra Technologies used to supply bandwidth to different clients, including mobile operators.

The operators discontinued taking bandwidth from aamra following a blocking in last year.

In July last year, the commission blocked half of the bandwidth of aamra for an outstanding revenue of over Tk 33 crore. Later, the directive was withdrawn.

The IIG companies operate as international gateways for internet traffic, managing the data flow between the country and the rest of the world, enabling internet service providers and telecom operators get access to the global internet.​
 

ICT is going to be main saviour of economy: Salman
Bangladesh Sangbad Sangstha . Dhaka 05 May, 2024, 22:16

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Salman Fazlur Rahman. | — New Age file photo

Noting that the ICT sector is going to be the main saviour of the country's economy in the future, prime minister's private industry and investment adviser Salman Fazlur Rahman on Sunday advocated for continuing the various tax facilities policy apart from support that the sector is currently enjoying for further flourish of this sector.

'I'm cent per cent agreed with the ICT entrepreneurs that the existing tax facilities should remain. I still think that the sector is still at the premature stage and it won't be wise to withdraw the existing tax facilities that the sector is currently enjoying. Rather, we've to think of giving more incentives, otherwise challenges will come,' he said.

Salman was speaking as chief guest at a roundtable titled 'Investment Climate for Smart Bangladesh' held at a city hotel.

State minister for posts, telecommunications and ICT Zunaid Ahmed Palak and parliamentary standing committee chairman on the same ministry Kazi Nabil Ahmed spoke as special guests chaired by Venture Capital and Private Equity Association of Bangladesh president Shameem Ahsan. The VCPEAB organised the roundtable.

Ferdous Ahmed, MP and Zara Jabeen Mahbub, MP also spoke as guests of honour.

Agreeing with the various demands of the entrepreneurs of the ICT sector, Salman said that he would discuss with the finance minister and the prime minister regarding the various issues surrounding the industry.

Criticising slightly the National Board of Revenue for imposing more burden on the existing regular taxpayers, the adviser suggested that the revenue board should focus more on bringing in the untaxed people to the tax net.

'Unless the tax collection system is digitalised fully or major reforms are not brought, then the tax to GDP ratio will not increase,' he added.

Mentioning that data is going to be the main asset in the coming days, the adviser urged the relevant stakeholders and entrepreneurs to give more emphasis on AI, data sign, big data management, chip designing, cyber security and establishing a huge data centre.

State minister for ICT Zunaid Ahmed Palak said that the country's IT and ICT sector witnessed massive successes over the last 15 years under the farsighted vision of prime minister's ICT adviser Sajeeb Wazed Ahmed and courageous leadership of Prime Minister Sheikh Hasina.

He urged the PM's private industry and investment adviser to talk with the finance minister and the prime minister about the rational demands of continuing tax facilities in the ICT sector.

The state minister suggested that the higher educational institutions and universities should change their curriculum in line with the changing global context in the ICT sector.

He opined that the existing tax exemption facilities in the ICT sector should continue in the next year while there could be discussions on how to facilitate the sector considering the changing context of FY26, FY31 and FY41.

Palak opined that if the ICT sector receives government's policy support for the next 10 years, then the ICT and the IT enabled services would be the major export-oriented sector in the country.

Kazi Nabil Ahmed, MP said that there was a need to make more energetic and skilled Human Resources to make each and every sector of the country technology-based.

'We've to make a knowledge-based economy to build Smart Bangladesh,' he said, adding that the government and the private sector should leapfrog the initiatives in this sector to make the Smart Bangladesh vision visible.

The ICT policies mainly focuses on data protection and cyber security along with ease of doing ICT business by streamlining tax incentives, including 100 per cent CIT exemption for the ICT/software industry, 10 per cent export subsidies, VAT exemption on local bills during production. Additionally, initiatives to attract foreign investment include 100 per cent tax exemption for income from software development, 2 per cent duty on ICT related hardware imports etc.

The ICT industry emphasizes achieving a $50 billion ICT GDP by 2041, which entails increasing the sector's contribution to the national GDP from less than 1 per cent to 2-3 per cent by 2041.

In his presentation, Shaheem Ahsan said that withdrawal of incentives and policy support would directly impact local and foreign investment, worsen unemployment and brain drain situation, put pressure on currency reserve, increase risk of data sovereignty and national cyber security and increase the cost of automation towards SMART transition.

DCCI president Ashraf Ahmed, CCCI president Omar Hazzaz, CSE chairman Asif Ibrahim, UGC member Md Sazzad Hossain, FBCCI senior vice-president Md Amin Helaly, Policy Exchange Bangladesh chairman M Masrur Reaz, Founder and CEO of Bdjobs Ltd Fahim Mashroor, policy adviser of CRI Imran Ahmed, vice-president of VCPEAB Mohammad Zahirul Islam spoke, among others, on the occasion.

The leaders in the IT industry also have asked for the tax exemption to be extended for three years. They believe keeping this exemption is crucial as removing same will diminish profitability and reduce reinvestment capabilities for IT /ITES companies, resulting in slower industry growth and diminished export potential.​
 

Can the IT sector make it through tough times?
AFSAN CHOWDHURY
Published :
May 06, 2024 22:46
Updated :
May 07, 2024 21:31

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Global markets are undergoing turbulence and none can say how long they will last or if they will become the way future markets play. The same syndrome applies to Bangladesh as well including the IT sector.

Information technology exports from Bangladesh dropped 4.4 per cent in the first five months -around 225 million dollars- current fiscal year- due to global demand slowdown. But the global reality of the IT sector as the dominant sector remains. In Bangladesh, most experts tend to think in three months or shorter economic cycles but the fact remains that in the global economy the IT sector is the biggest reality and matters more in the long term.

The current state of IT in Bangladesh is beset with problems. Startup funding availability is not great in the short term and European countries are facing a downturn reducing the market size. The fact remains that the global economic future is here even though global outsourcing and hiring is lower this year. Meanwhile, non-European markets are slowly growing and it's inevitable new economies and sources emerge.

Several factors have contributed to Bangladesh's difficulties. It has relied almost entirely on the West that is under pressure due to the Ukraine war and growth of competitive sub-sources affecting Bangladesh as a low end supplier.

The other one is the accepted lack of entrepreneurial spirit inevitable in a crony economy. They look for connections rather than competition-based markets so their innovation index is not high. Thirdly, the sector is yet to have enough skilled hands and the general low focus on skill development has made it worse. While the future is focused on new technology, Bangladeshi companies are looking for a tech duplication of the RMG sector where price is all, not quality.

"Smart Bangladesh", tax exemption and related issues that affect the sector are several. Although the government is pushing for a "Smart Bangladesh", it's still more of a slogan than practical action driven. About Tk 24 billion were allocated last year but no result sheet on impact has been stated.

Smart Bangladesh is supposed to be "Smart Citizen, Smart Society, Smart Government, and Smart Economy. A 'Smart Bangladesh: ICT 2041 Master Plan' has been prepared. It's estimated that there are over 2,500 startups in Bangladesh with approximately at about $1 billion investment. Around 2 million people may be involved directly or indirectly. The government has promised to invest Tk 5.0 billion.

However, a key factor has been tax exemptions for the IT sector which may end this June. Entrepreneurs are demanding its continuation for another seven years. This exemption coming as it does with a weak performing phase is going to be blow to the sector they are saying. That tax exemption played a major role is obvious as the number of players rushing into the sector was high. Low or no tax exemption will ultimately increase the cost of ICT-related products.

"What ails thee BD IT?" is a question many ask. Bangladesh doesn't have a robust foreign investment framework or even an adequate IT infrastructure with a skilled workforce

The IT sector can be a turnaround agent for developing countries like Bangladesh, but it needs such as IT-enabled services (ITES), e-commerce, Artificial Intelligence, outsourcing, and the production of software and hardware. However, the backbone is the business framework.

Bangladesh is aiming to reach the $5 billion export-mark by 2025 and $20 billion by 2031. By 2025, 3.0 million youths will be employed in the country's IT industry. They need a host of missing links in place first.

No one seems keen to face the fact that shortage of highly skilled professionals is a critical hindrance. Insufficient infrastructure, including reliable internet connectivity and power supply are ailments affecting all sectors.

The regulatory frameworks and bureaucratic procedures deter foreign investment and market for all sectors including IT. Cyber threats and data security vulnerabilities are present and on top of that outfits are not keen to use the formal money channels as dollar rates fluctuate and affect all remittance payments. The sector as a whole is also unused to business competition dynamics.

The GOB has focused more on fiscal issues giving a 10 per cent cash incentive to software exports, aiming to stimulate the foreign exchange-earning segment as in the RMG sector. The exemption of all taxes and duties on imported computer hardware and simplified tax-free export earning remittance procedures with 40 per cent retention in foreign currency have made it more attractive.

But a critical missing factor is the connectivity with other countries in the same sector to see how far they can take advantage of subcontracting. The technologically advanced Asian countries are a big source of market but not yet linked to the BD IT sector.

India and China are big players and as their capacity and scale have grown and they are more keen to enter the bigger market segments. Bangladesh can attract small-scale companies overlooked by India and China. Both may also explore the mutually beneficial business opportunities in joint ventures. Meanwhile, providing the three essentials : training, infrastructure and funding are key to becoming a minor but sustainable player in this global sector.

In the final analysis, the state of the IT sector is both an internal production and external market issue. Bangladesh doesn't have the requisite infrastructural ability whether in skills or technical support issues. It's also not in conversation with its major potential players regionally or even globally. It is not yet ready to join as a serious player. It's this lack of readiness and a trifle lack of knowledge on how to be ready that is hurting the capacity of the Bangladesh IT sector, however limited that is.​
 

Asus launches 6 new laptops in Bangladesh

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Asus has recently launched six new laptops in Bangladesh, including the new dual-screen Zenbook DUO (UX8406) model. Image: Asus

Asus has recently launched six new laptops in Bangladesh, including the new dual-screen Zenbook DUO (UX8406) model. The other laptops recently released are ZenBook 14 OLED (UX3405), ROG Zephyrus G14 (GA403), ROG Zephyrus G16 (GU605), ROG Strix G16 (G614), and ROG Strix SCAR 18 (G834).

ASUS Zenbook DUO (UX8406), Zenbook 14 OLED (UX3405)

ASUS Zenbook DUO (UX8406) comes with dual-screen 3K 120 Hz OLED displays, an Intel Core Ultra 9 processor, 1.35 kg of weight, and a detachable full-size keyboard, touchpad, and built-in kickstand.

Zenbook 14 OLED (UX3405) features an ASUS Lumina OLED touchscreen, an Intel Core Ultra 7 processor, a 75 Wh battery, and 1.2 kg of weight.

Zenbook DUO (UX8406) is priced at BDT 2,52,000 and Zenbook 14 OLED (UX3405) is priced at BDT 1,60,000.

ROG Zephyrus G14 (GA403), Zephyrus G16 (GU605)

ROG Zephyrus G14 (GA403) and Zephyrus G16 (GU605) are gaming laptops with AMD Ryzen 9 processor and Intel Core Ultra 7 processor respectively, as well as NVIDIA GeForce RTX 4060 to RTX4070 graphics, ROG Nebula OLED display, and in-built neural processing units (NPU).

ROG Zephyrus G14 (GA403) starts at BDT 2,80,000, and ROG Zephyrus G16 (GU605) is priced at BDT 3,62,000.

ROG Strix G16 (G614), ROG Strix SCAR 18 (G834)

ROG Strix G16 (G614) is another gaming laptop with 14th Gen Intel Core i9 processor and NVIDIA GeForce RTX 4060 graphics. It also has a 16-inch display.

ROG Strix SCAR 18 (G834) is a high-end gaming laptop with 14th Gen Intel Core i9 processor, GeForce RTX 4090 graphics, 240 Hz 18-inch display, and advanced cooling technology for sustained performance.

ROG Strix G16 (G614) is priced at BDT 2,56,000 and ROG Strix SCAR 18 (G834) is priced at BDT 5,60,000.

According to Asus, these laptops are now available for purchase across authorised ASUS retailers in Bangladesh.​
 

Bangladesh saw three internet shutdowns last year: report

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Bangladesh saw three internet shutdowns last year, and all of those were executed to crack down on dissent, according to Access Now, an organisation advocating for digital civil rights.

The organisation said this in their latest report, titled "Shrinking Democracy, Growing Violence", which was published on its website today. It said globally internet shutdowns have been used by authorities as a tool to enable and exacerbate violence.

India topped the list with 116 internet shutdowns last year.

"Governments continued to shut down the internet and critical digital communication platforms to muzzle expression, block access to life-saving information, and cover up heinous crimes against humanity," said the report.

It said governments intentionally disrupted internet access to coincide with important national events such as protests and political instability, elections etc with one aim -- to restrict the flow of information and control the narrative.

"Despite the fact that these shutdowns flagrantly violate human rights enshrined in national, regional, and international frameworks, governments deliberately imposed shutdown to advance their own political interests -- harming people and communities and endangering lives," it added.

Bangladesh has experienced shutdowns in five or more consecutive years since 2016, found the report.​
 

Homegrown apps fail to take off

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While it is not an uncommon sight to see people typing messages in Bangla on their smartphones, the familiar colours and user interface make it obvious that they are not using communication apps belonging to local companies.

While mobile financial service providers and nearly all banks have gained traction in digital services in Bangladesh, the same cannot be said of communications apps built by the government or private entities.

In early 2020, a homegrown mobile application with capability to send messages and make voice calls was launched in Bangladesh. At the inauguration ceremony of the app, named 'Kotha', Zunaid Ahmed Palak, state minister for ICT, said it would be Bangladesh's Facebook, PayPal, Netflix, Twitter, and WhatsApp.

But now, almost none remembers the app. Although Kotha has good ratings on Google's Play Store, it has less than 2 lakh downloads.

However, Mahboob Zaman, chairman of Kotha Technologies, said the growth of the app is somewhat steady given their strategy. "We were trying to do organic marketing. Besides, research and development requires huge investment. We are trying to find an investor."

So far, the app has 4 lakh registered users, according to the company.

Sumon Ahmed Sabir, a technology expert, said copying something that has numerous versions, which local apps tend to do, is unlikely to lead to popularity. "Popular apps come with diversity, flexibility, efficiency and global expectancy that cannot be replicated."

"Besides, local apps cannot compete with these platforms due to the scale of their research and investment. Once a sector is monopolistic, it's not easy to break."

The government has also taken the initiative making communication apps at the cost of hundreds of crores, but all of them failed to attract audiences.

The government-funded app 'Baithak', a video-conferencing platform enabling virtual meetings and webinars similar to Zoom, was designed for government officials, but got very little response.

'Alapon', a Viber-like app developed by the government's ICT Division with the aim to streamline messaging and file exchange processes for government officials, was launched in 2016. Eight years later, the app no longer exists.

"Privacy is definitely a concern, if not a major one," Sabir added.

Meanwhile, the use of social media platforms and communication apps in Bangladesh developed by the global tech giants boomed in the past decade and made it one of the largest markets for them in terms of audiences. The top communication apps in terms of users are WhatsApp, Messenger, and Imo.

Facebook has a huge chunk of the audience, with nearly 53 million users in the country, which places Bangladesh among the top 10 Facebook-crazed nations as of January 2024, according to Statista, a German online platform that specialises in data gathering and visualisation.

Facebook also offers Messenger, integrating it as a standalone app for messaging, voice calls, and video chats.

There were more than 6.3 crore Facebook users in Bangladesh in February 2024 that has a population of about 17 crore, according to management and analytics platform NapoleonCat. It put the number of Messenger users at 5.7 crore.

When asked how many people in Bangladesh use WhatsApp, Meta, the parent company of WhatsApp, Facebook and Messenger, said it is unable to share the country-specific data.

Imo is also popular in rural Bangladesh due to low data usage, simplicity, and free voice and video calls. In 2023, a staggering 4 million new users from the country were integrated into Imo's network, the company said.

That took its monthly users in Bangladesh to 50 million, accounting for a quarter of its 200 million total users. Imo users in the country made 91.6 billion audio and video calls in 2023, among which 35.8 billion calls were international.

Bangladeshi users also made 676 million group calls last year through the app. The top five destinations for international calls were Saudi Arabia, the UAE, Oman, Malaysia, and Qatar.​
 

Women still lag in mobile ownership, internet adoption

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In Bangladesh, mobile internet adoption rates are 40 percent for men and only 24 percent for women, according to Mobile Gender Gap Report 2024 by the GSMA. The photo was taken at Khulna city recently. Photo: Habibur Rahman

Women in Bangladesh are lagging behind men in both mobile ownership and mobile internet adoption, with gender gaps of 20 percent and 40 percent respectively, representing a significant disparity in digital access, according to a global report.

In Bangladesh, 85 percent of adult males own a mobile phone, compared to 68 percent of adult females.

Meanwhile, mobile internet adoption rates are 40 percent for men and only 24 percent for women, according to Mobile Gender Gap Report 2024 by the GSMA, which represents the interests of mobile operators worldwide.

For those who are already aware of mobile internet, the top-reported barriers to adopting it are affordability (primarily of handsets) and literacy and digital skills, it said.

Millions more women than men face these barriers because they are offline. Women also tend to experience these barriers more acutely due to social norms and structural inequalities, such as lower education and income, according to the report.

The findings of the report are based on the results of an annual GSMA Consumer Survey carried out last year, which had more than 13,600 respondents from 12 low and middle-income countries.

In 10 of the 12 countries surveyed for this report, women who use the internet are more likely than men to access it exclusively on a mobile phone.

For example, in Bangladesh, 74 percent of female internet users access it exclusively via mobile, compared to 66 percent of male users.

In most survey countries, women who use mobile internet are more likely than men to report that they would like to use it more than they currently do.

This was true for more than half of female mobile internet users in Ethiopia, Kenya, Bangladesh, India and Pakistan.

According to the survey, Bangladesh has the highest gender gap in mobile internet adoption among Asian countries at 40 percent.

In comparison, the gap is 30 percent in India, 38 percent in Pakistan, and 8 percent in Indonesia.

Although the gender gap in mobile phone ownership and internet usage in Bangladesh has slightly decreased, it remains substantial.

Gender gaps in smartphone ownership also vary across survey countries and are widest in Pakistan (49 percent), Bangladesh (43 percent) and Nigeria (38 percent).

Women in Bangladesh are also falling behind in smartphone ownership. While 40 percent of men own a smartphone, only 22 percent of women have one.

Fahim Mashroor, former president of the Bangladesh Association of Software and Information Services (BASIS), said most women in the country still rely on men for financial support.

"Typically, if there is a smartphone or laptop in the house, it is mainly controlled by male members. Additionally, parents sometimes restrict girls from using devices or the internet due to social reasons in the still very male-dominated society," he added.

Against this backdrop, he said widespread adoption of the internet by women will remain difficult unless their financial independence is ensured.

Still, women in Bangladesh have seen the strongest growth in mobile internet awareness since 2022, from 64 percent to 74 percent.

For the first time since the GSMA started tracking it, women's awareness in Bangladesh is close to that of men (76 percent), highlighting the progress that has been made.

The report said once women start to use mobile internet, they tend to use it less frequently than men and for a narrower range of services.

At the same time, in most of the survey countries, female mobile internet users are more likely than men to report that they would like to use mobile internet more than they currently do.

This was especially the case for more than half of female mobile internet users in Kenya, India, Pakistan, Bangladesh and Ethiopia.

Affordability is another top barrier to further mobile internet use for both male and female mobile internet users in survey countries.

In most countries, affordability of data is more of a barrier than the affordability of handsets.

Data costs are a particular issue for mobile internet users in Kenya, Nigeria, Uganda and Bangladesh, where it is the top individual barrier to further use for both men and women.

For example, in Bangladesh, 24 percent of women and 15 percent of men who use mobile internet reported data costs as their top barrier to further use.

Overall, women's rate of mobile internet adoption increased over the past year.

There are now more women using mobile internet in low and middle-income countries than ever before: 66 percent.

By comparison, 78 percent of men now use mobile internet, but their rate of adoption slowed in 2023.

The gender gap in mobile internet adoption across low and middle-income countries has narrowed for the first time since 2020 due to women adopting it at a faster rate than men.

This reduction was driven primarily by South Asia and brings the overall mobile internet gender gap back to where it was in 2020.

This gender gap also narrowed slightly in Sub-Saharan Africa for the first time in five years, the report said.​
 

Tax holiday for ICT sector likely to continue: Salman F Rahman
FE ONLINE DESK
Published :
May 21, 2024 20:59
Updated :
May 21, 2024 20:59
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The tax holiday facility in the ICT sector of the country will remain in force this year as well, said Salman F Rahman, Private Industry and Investment Adviser to the Prime Minister.

"I had an opportunity to talk to the Prime Minister about the issue of tax exemption. The Prime Minister assured to consider the proposal in view of the request to impose taxes consistently and rationally in different periods. This time the budget will inform how long the tax exemption can be", he said while speaking as the chief guest at an event held at the Hotel Radisson Blu in the capital where the newly elected Executive Council (2024-2026) of Bangladesh Association of Software and Information Services (BASIS) took oath.

"You have to be vocal about what kind of policy support is needed for the domestic ICT sector to keep pace with the pace at which the world's technology is advancing. While tax exemptions are important, what kind of policy do you need for the next level?

AI, block chain, big data need to be looked at because programmers will lose the most jobs in the future. So now they have to train to the next level. The government should be guided in this matter from the BASIS", he added.

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AI starts to replace entry-level IT jobs in Bangladesh

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It was a pretty good project for SkyTech Solutions for the last few years: generating earnings of $8.5 per hour for each of over 50 people.

The task was to process the invoice of Uber Freight services and upload the information into customer relationship management, a system that manages customer interactions, enhances satisfaction, and streamlines business processes.

But late last year, artificial intelligence (AI) knocked out more than 80 percent of the jobs in the project in a single blow.

"They informed us that the primary task will be handled by AI automation, leaving only quality control to be performed by humans," said self-made entrepreneur Musnad E Ahmed, founder of SkyTech, a leading business process outsourcing (BPO) company in Bangladesh.

Consequently, the number of employees has decreased from 55 to 10, he said.

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Bangladesh's reputation as a freelancing powerhouse is on the line

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VISUAL: ZARIF FAIAZ

Bangladesh has almost always been hailed as a top player in the global freelancing market, and rightfully so as evident from the numerous recognitions the country has earned over the years.

In 2017, according to a study by the Oxford Internet Institute (OII), Bangladesh ranked the second most popular country for supplying online labour. Forbes, in 2019, listed Bangladesh as one of the top 10 countries in the world in terms of income from freelancing.

Our ICT Division estimates the local freelancing sector to be worth nearly $1 billion. According to the "Digital Economy Report-2019" by UN Trade and Development (UNCTAD), Bangladesh is emerging as a significant player in the global freelancing market, with around 650,000 freelancers contributing over $100 million in annual foreign remittances. And just last year, Payoneer ranked Bangladesh eighth amongst the top 10 freelancing countries in the world.

All these data and statistics paint a very optimistic and inspiring picture of the country's freelancing scene. However, given the nature of this profession and the lucrative opportunities it provides, the freelance market is becoming saturated, which would have been somewhat manageable had we the right skills and mindset. Unfortunately, that is not the case. This situation, if it worsens, might slowly impact the country's reputation as a global freelancing powerhouse.

Let us start with the way freelancing is marketed to our common populace. Across Bangladesh, you will find numerous organisations offering skill development and freelancing training. For a certain fee, these organisations promise to turn you into freelancing experts. And to lure you into joining these institutions as students or trainees, they will tell you about the two most lucrative aspects of freelancing—earning from the comfort of your home and earning in foreign currencies.

Every now and then, you will see news articles or social media posts about young men and women from far-flung regions of Bangladesh making four or five times more money than the country's average monthly income through freelancing. These stories are packaged and fed to aspiring freelancers to "motivate" them. This, coupled with the fact that Bangladesh still has an unemployment problem, makes for a very convincing case in support of freelancing to those looking for job opportunities.

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Meta removes pages linked to Awami League for "inauthentic behaviour"

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Meta shuts down Bangladeshi political networks for 'coordinated inauthentic behaviour'. Image: Tech & Startup

Meta, the parent company of Facebook, has announced the removal of numerous accounts and pages linked to Bangladesh's ruling Awami League, citing violations of its policy against "coordinated inauthentic behaviour". This action was detailed in Meta's Quarterly Adversarial Threat Report for Q1 2024.

The company removed 50 Facebook accounts and 98 pages originating from Bangladesh. These accounts and pages were found to be targeting domestic audiences using fake identities to post content and manage pages. Some of these pages posed as fictitious news entities, while others used the names of existing news organisations in Bangladesh. A few pages used the name of the Bangladesh Nationalist Party (BNP) and posted content critical of the BNP.

Meta's investigation uncovered that this network had a presence on multiple platforms, including YouTube, X (formerly Twitter), TikTok, Telegram, and their own websites. The network primarily posted content in Bengali, with some posts in English. The content included news and current events in Bangladesh, criticism of the BNP, allegations of BNP corruption and involvement in pre-election violence, as well as supportive commentary about the incumbent government and the ruling party.

The accounts and pages collectively had about 3.4 million followers. Meta reported an ad spend of approximately $60, paid mostly in Bangladeshi takas.​
 

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Meta to deal directly with advertisers in Bangladesh

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Meta logo is seen near computer motherboard in this illustration taken January 8, 2024. Photo: Reuters

Meta, the parent company of Facebook, plans to stop availing services of Httpool, its authorised sales partner in Bangladesh, from July and shift to a model where it will interact directly with advertisers.

"Meta has recently made the decision to standardise their advertiser service model worldwide," Aloke Panikar, regional director for Asia-Pacific at Aleph, the parent company of Httpool, said in a letter to advertisers in Bangladesh recently.

"…and in markets previously covered by an authorised sales partner, Meta will begin working with advertisers directly starting from July 1, 2024," the letter read.

"This means that Aleph will no longer be Meta's authorised sales partner."

The development has created panic among businesses as they apprehend difficulties in ensuring compliance with VAT and tax regulations when advertising directly with Meta.

"As a compliant company, we are worried," Fahim Mashroor, CEO of online job portal bdjobs.com, said.

"Advertising on Facebook with Httpool was easy as they took care of VAT and tax issues and we could pay in taka. Now, how Facebook will handle this remains unknown," he said.

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R&D a prerequisite to developing the software sector
Published: February 25, 2023 22:55:30

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The goal of transforming the country into a software powerhouse remains as elusive as ever, even though successive governments have emphasised the issue. The Bangladesh Association of Software and Information Services (BASIS) raised the issue again on the opening day of Basis SoftExpo 2023 late last week and suggested that the ICT industry, academia and government devise a mechanism where the much-needed research and development (R&D) could be done. Such a move also needs to be supplemented by efforts to develop a qualified workforce for the software industry. Putting an efficient R&D network is imperative because the global software industry is fiercely competitive, where countries like India, Vietnam, the Philippines, Poland, Estonia and Ukraine are all vying for a share of the same pie.

The domestic software industry has been growing with government policy support, but much more needs to be done. One of the industry's Achilles Heels remains its lukewarm acceptance in the domestic market. Local companies are still facing an uphill task while selling their software to consumers at the corporate level. While smaller companies are slowly transitioning to a customised application made for their operations - whether it is payroll or inventory management, the prized contracts from the big conglomerates remain largely outside the purview of Bangladeshi software developers. The target is to raise the country's IT exports to US$5 billion by 2025 and $20 billion by 2030. But with the current state of affairs in the sector, it is doubtful the country would be able to go near the targets. Getting stakeholders like academia and software developers to collaborate with the relevant ministry is one part of that equation. But what will be the subjects of research? Data? That will not be easy. As far as big data is concerned, only the government can access that data: the NID database, credit information, and national household and health surveys, to name but a few.

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ICT sector hails extension of tax exemption
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Extending the tax exemption until 2031 would better support Bangladesh's goal of becoming an upper-middle-income country and enhance the IT sector's capacity in domestic and global markets

On behalf of the ICT sector, I thank honorable Prime Minister Sheikh Hasina for extending the tax exemption on the ICT sector by three years, aligning with BASIS's proposal for a Smart Bangladesh. I also thank the NBR for recognising the ICT sector's crucial role.

However, we believe extending it until 2031 would better support Bangladesh's goal of becoming an upper-middle-income country and enhance the IT sector's capacity in domestic and global markets.

Impact of Tax Exemption on Other Sectors

This tax exemption will significantly boost the IT sector and play a pivotal role as this sector can be the nucleus for building a Smart Bangladesh across education, healthcare, agriculture, banking, and manufacturing sectors.

These sectors are integral to the Fourth Industrial Revolution. Without it, development would be disrupted, hindering the prime minister's vision of a Smart Bangladesh by 2041. This initiative revives BASIS's efforts toward self-sufficiency in software and IT services.

BASIS Advocacy for Extension in Pre-Budget Discussions

During the pre-budget discussion with the honorable Prime Minister at the Gonobhaban on May 25, I emphasised the importance of extending the tax exemption for the IT sector.

BASIS also met with key figures, including State Minister for Finance Waseqa Ayesha Khan and Chairman of the Parliamentary Standing Committee on Ministry of Posts, Telecommunications, and Information Technology Kazi Nabil Ahmed to address this matter.

Future Goal: Bangladesh's Self-Sufficiency in ICT

Our future goal should be self-sufficiency in information technology. This budget sets the path to achieving it. Prioritising the domestic IT sector in government procurement is essential, and foreign institutions should partner with domestic ones if capacity is lacking for participating in the government tender.

As Bangladesh is set to become a developing country in 2026, we will face challenges. Establishing a recognised system of intellectual property valuation will help convert these challenges into opportunities, attracting foreign investment and enabling entrepreneurs to secure loans and investments from domestic banks.

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How can the women entrepreneurs in Bangladesh be well-equipped in the IT sector?
TANJIM HASAN PATWARY
Published :
Jun 05, 2024 16:01
Updated :
Jun 05, 2024 16:01
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Committed to being 'Smart Bangladesh' by 2041, rampant in every sphere of the country's operation is being redacted, ultimately leading the country to enjoy economic freedom and phylogenetic transcendence.

In the era of globalization, the touch of information technology (IT) has highly practicable implications, ranging from personal life to national or cross-cultural applications, for necessity or to compete in the competitive world.

Women of Bangladesh engage themselves in all sorts of work, and acclimatization to AI is becoming critical, especially while doing business regarding women's entrepreneurship.

According to the Bangladesh Bureau of Statistics (BBS), in 2019-20 FY, the number of registered wholesale and retail businesses was more than 2.5 million, with more than 10 million male and almost 200 thousand female entrepreneurs.

Though the number is comparatively lower than that of male entrepreneurs, the percentage is in the upward position, and it increased to 829 per cent, compared with 2002-03 FY.

According to the Time Use Survey (TUS)—2021 report conducted by the Bangladesh Bureau of Statistics (BBS) and UN Women Bangladesh, 21.25 per cent of internet users were women, compared to 35.15 percent for men.

Though the survey reports regarding women are somewhat disappointing, the upward trend of women's engagement with trade is gradually increasing.

A friendly business environment for both men and women requires comprehending the portfolio of ventures and stretching to enhance profitability.

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ICT businesses concerned over tax waiver removal
Staff Correspondent 09 June, 2024, 22:44

Information technology sector leaders on Sunday expressed their concerns over some provisions in the proposed budget for the 2024-25 financial year, saying that the removal of tax exemptions for cloud services and IT process outsourcing could hamper the sector's journey toward achieving self-reliance.

At a post-budget joint press conference held at the BASIS auditorium in the capital Dhaka, leaders of Bangladesh Association of Software and Information Services, Bangladesh Association of Contact Centre and Outsourcing, Internet Service Provider Association of Bangladesh and E-Commerce Association of Bangladesh sought policy support from the government to achieve self-reliance in this sector.

Finance minister Abul Hassan Mahmood Ali placed the proposed budget for the 2024-25 financial year before Jatiya Sangsad in the capital Dhaka on June 6.

BASIS president Russell T Ahmed urged the government to keep cloud services and web hosting tax-free to support the growth of local ICT service companies.

He also called for the reconsideration of the imposition of a 1-per cent import duty on capital equipment for high-tech park investors, urging the government to maintain the current duty-free status.

Russell thanked prime minister Sheikh Hasina for extending the tax exemption for the ICT sector for three years.

BACCO president Wahid Sharif criticised the proposal to increase supplementary duty on mobile SIM card usage by 5 per cent.

He also expressed concern over the removal of tax exemptions from sectors like cloud services, IT process outsourcing, medical transcription, search engine optimisation, system integration and NTTN services, saying that the initiative could negatively impact the ICT industry.

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Procure more domestic software to boost ICT sector: expert
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At least 10 percent of the internal development budgets of all ministries and their affiliated bodies should be dedicated to the procurement of software and IT-enabled services (ITES) from domestic IT companies, according to Ahsan H Mansur, executive director at the Policy Research Institute of Bangladesh.

Limited procurement of domestic software by the government restricts the growth and international recognition of local companies, the economist said.

He said joint ventures could be formed to implement big IT projects undertaken by the government, bolstering the survival and recognition of local software companies.

Mansur made the remarks while presenting the keynote at a roundtable, titled "Importance of ICT for Economic Growth in Bangladesh", organised by the Bangladesh Association of Software and Information Services (BASIS) at its auditorium in Dhaka.

The ICT sector has emerged as the nucleus of industrial manufacturing and exporting, agricultural progression, and service sectors' uninterrupted quality delivery processes, he said.

"ICT, as a cross-cutting sector, is the cornerstone upon which the efficiency and productivity of all other sectors depend. As the nucleus of every industry, ICT enables streamlined operations, enhanced data management, and innovative solutions that drive economic growth and competitiveness."

Speaking about the challenges facing the ICT sector in Bangladesh, Mansur highlighted the lack of digital literacy and infrastructure.

He said there is a significant gap in digital literacy within the population, which hampers the effective utilisation of ICT tools and services.

The social and economic return from public investment in this area would be huge and would help address the problem of unemployment among the educated youth.

Such a measure would also increase incomes through freelance and inflow remittances and increase household income across the country in defiance of the rural-urban bias.

On the other hand, inadequate ICT infrastructure, particularly in rural areas, limits the reach and impact of digital services as it leads to unstable internet connections and unreliable power supply.

Reducing this would help bridge the rural-urban digital divide.

To bolster women's entrepreneurship in the ICT sector, he proposed to form a Tk 300 crore fund through which loans can be offered at modest interest rates of 2-5 percent.

Mansur also urged the government, finance ministry and Bangladesh Bank to look at the ICT sector in a new light.

"ICT comes with no tangible assets. Valuation of its intangible assets requires a different approach. And I think Bangladesh Bank needs to guide our commercial banks and financial institutions to come forward and help the ICT sector."

In addition, he said the central bank and government can allocate resources in the form of a revolving fund.

He also opined that Bangladesh should develop the capacity to produce 1 lakh highly-skilled ICT graduates every year.

"Prepare a roadmap for that, select the universities, review their curriculum and make it of global standards. Try to bring out the best Bangladeshi students through that system."

Russell T Ahmed, president of the BASIS, said developing skilled human resources is the most important step towards growing the sector.

The only raw materials of the ICT industry are human resources. Unfortunately, we must pay 27.5 percent tax and VAT for any training we avail from an ICT organisation.

"If that is withdrawn, we will be able to contribute more and Bangladeshi IT companies will perform wonders," he added.

M Rashidul Hasan, BASIS senior vice-president, and Syed Mohammad Kamal, vice-president, were also present.​
 

Logitech releases MK220 wireless Bangla keyboard and mouse combo
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Logitech MK220

Logitech has launched the MK220 wireless Bangla keyboard and mouse combo in Bangladesh. The combo offers a compact keyboard and a mouse, both of which come with 2.4 GHz wireless connectivity that works up to 10 meters away, as per the company.

According to an official press release, this is the first Logitech wireless keyboard embedded in Bangla font (Bijoy layout). Logitech also states that the keyboard's battery can last up to 24 months, while the mouse's battery life can extend up to 12 months.

The keyboard and mouse combo works by plugging a USB receiver into the computer's USB port. It is compatible with Windows-based PCs and ChromeOS, as per Logitech.

The Logitech MK220 wireless Bangla keyboard and mouse combo is priced at BDT 2,249.​
 

Mobile internet speed must reach a face-saving level
16 June, 2024, 00:07

MOBILE network operators have expanded their reach and improved their technological infrastructure, but they have, sadly, failed to maintain mobile internet speed. In Ookla's Speedtest Global Index for April, Bangladesh ranked in the 110th position in mobile internet speed, slightly up from the previous ranking, but not promising. The latest report shows that the average internet download speed was 23.83 Mbps, a slight decline from the 24.59 Mbps reported in March. In the Digital Quality of Life Index 2023, Bangladesh ranked in the 82nd out of 121 nations, 73 per cent slower than India. In May, the Telecommunication Regulatory Authority held a public hearing where users complained of poor network coverage, slow internet speed and 'unjust' balance deduction. The regulators mentioned an uneven distribution and an increasing building density as reasons for the poor speed and assured that they are working with city development authorities to include digital connectivity issues in the building code. That Bangladesh is still struggling to maintain the global average download speed makes it obvious that monitoring without a scientifically informed policy and proper network infrastructure will not guarantee internet speed.


Bangladesh's performance in broadband internet speed is equally disappointing. The Oakla report says that the median fixed broadband download speed for April was 46.52 Mbps, an increase from the previous report but still far from the global median internet speed. In November 2023, the capital city was ranked in the 140th position out of 172 cities with a median download speed of 17.8 Mbps. Global organisations also consider internet affordability, electronic infrastructure, electronic security and electronic government as fundamental pillars that define digital quality of life and the status of digital democracy. A government relying so heavily on the rhetoric of building a digital Bangladesh has not only restricted online spaces but also proved very slow in improving digital literacy. A recent study by the United Nations Children's Fund and the Bangladesh authorities reported that three-fourths of the 30.9 million youth do not have the expected level of digital skills and about 57.8 per cent are without the secondary-level skills needed for employment. Setting aside the issues of internet freedom and digital literacy, information and technology experts also blame the government for its flawed policy. Some experts term the telecommunications policy dysfunctional because only 20 per cent of mobile towers are plugged with fibre-optic cable in the 184 million-plus subscribers' market.

The statistical scenario of the quality of digital life in Bangladesh suggests that the government's claim about building a digital Bangladesh is largely unfounded. In reality, the government's strategy of digital governance is more focused on curtailing online freedom and expanding the reach than ensuring the quality of internet services. The government must, therefore, review its telecommunications policy and address the concerns.​
 

Reflecting on BD's IT sector potential & success
M ROKONUZZAMAN
Published :
Jun 21, 2024 21:47
Updated :
Jun 21, 2024 21:47
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Bangladesh has emerged as a vibrant hub of the ICT industry Photo : a2i.gov.bd Photo

India's success in IT export, reaching $199 billion in 2024, has been a decisive inspiration factor for Bangladesh and many other less developed countries. In 2023, India's IT industry experienced over 11 per cent growth-expanding exports by almost $20 billion in a single year. With the success of India, Bangladesh's dream of reaching $5 billion in exports and creating jobs for 1 million youths within the next few years appears to be a highly achievable target. Despite such an apparent possibility, there seems to be a high risk of meeting this target. One of the reasons is the repeated failure to meet targets over the last 25 years. Hence, it's time to reflect on the high gap between reality and apparent possibility.

COMMONLY CITED LIMITATIONS: At the dawn of the 21st century, commonly cited limitations included (i) lack of submarine cable connectivity, (ii) high power failure rate, (iii) scanty supply of computer science graduates, (v) high cost of Bandwidth, (vi) low internet penetration, and (vii) minimal IT expenditure of the government. Fortunately, despite these there has been significant progress in all these areas. For example, in addition to two submarine cables landing at the shore of Bangladesh, the country is connected to more than a dozen of submarine cables in India through terrestrial cables. The fibre optics network has been expanded to connect most areas of the country. On the other hand, number of graduates in computer science and engineering has crossed from less than a thousand in 2005 to over twenty-five thousand per year. To augment it further, the government provided training by recruiting foreign firms for many youths. Besides, government expenditure on IT has jumped from tens of millions to over a billion over the last 25 years. Similar progress has taken place in all other commonly cited areas. Despite this, why has Bangladesh not met the target that was set to reach twenty years ago?

There appears to be no strong correlation between the progress in addressing commonly cited limitations and the ground reality. Does it mean there has been a deficiency in understanding what it takes to develop software business and IT service export revenue? Hence, let's look into relevant issues further.

BARRIERS TO REPLICATING INDIA'S LINEAR MODEL: In the late 1980s, a window of remote IT service opened up due to the rapid progression of telecommunication, primarily due to VSAT connectivity and the sudden need to fix Y2K bugs. India was a forerunner in tapping this opportunity compared to other less developed countries. India changed several policies to allow private companies to install VSAT terminals to establish seamless connectivity with their overseas clients overnight. Besides, Motorola's software development operation in Bangalore demonstrated the possibilities. Hence, a wave of IT service delivery to American and foreign clients started taking off. Among others, struggling Infosys found a scalable growth path. The business model was plain and simple. Instead of sending graduates to client sites, connecting them remotely with VSAT terminals became a new business model. Unlike developing software, Infosys, Tata Consulting, and many others focused on training graduates and leasing them to foreign clients over the network, giving birth to the linear model.

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