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

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

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

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

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

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

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

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

Veon owns Bangladesh's third-largest mobile operator, Banglalink.​
 
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Bangladesh’s digital transformation: How social media is shaping politics and society

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File visual: Amreeta Lethe Chowdhury

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

Social media: A game-changer for communication

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

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

Politics in the digital age

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

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

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

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

Social media as a catalyst

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

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

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

Challenges of inclusivity and access

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

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

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

The future of Bangladesh's digital transformation

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

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

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

Farzana Hoque is social media executive at The Daily Star.​
 
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REPORT ON RE-STRATEGISING ECONOMY: Task force for withdrawal of SD, surcharges on internet
Taufiq Hossain Mobin 31 January, 2025, 21:24

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The task force was led by KAS Murshid, former director general of the Bangladesh Institute of Development Studies. Other members included Akhtar Mahmood, former World Bank official, Selim Raihan, professor of economy department at the University of Dhaka, Abdur Razzak, former head of research department at the Commonwealth Secretariat, Mushfiq Mobarak, professor at Yale University’s economics department; Shamsul Haque, professor at Bangladesh University of Engineering and Technology, Rumana Huque, professor of economy at the University of Dhaka, Nasim Manzoor, former president of the Metropolitan Chamber of Commerce and Industry, Dhaka, Monzur Hossain, research director at Bangladesh Institute of Development Studies, Fahmida Khatun, executive director of Centre for Policy Dialogue, AKM Fahim Mashrur, chief executive officer of BDjobs, and Md Kawser Ahmed, member secretary of the general economics division of the Planning Commission.​
 
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Prof. Yunus speaks to Elon Musk, urges him to bring Starlink to Bangladesh
Staff Correspondent 14 February, 2025, 04:20

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

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

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

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

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

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

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

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

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

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

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

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

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

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

He expressed his belief that leveraging technological advancements such as Starlink could further drive innovation, economic empowerment, and financial inclusion in Bangladesh.​
 
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Musk keen on launching Starlink in Bangladesh
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Elon Musk, head of the US Department of Government Efficiency and owner of satellite internet service provider Starlink, yesterday said he is looking forward to launching Starlink in Bangladesh.

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

Musk replied: "Looking forward to it!"

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

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

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