[🇧🇩] ICT Industry in Bangladesh

[Saif]

Estonia keen to collaborate with Bangladesh in ICT sector

Estonia has expressed keen interest in collaborating with Bangladesh in the ICT sector, particularly in e-governance and cyber security.

en.prothomalo.com

Estonia keen to collaborate with Bangladesh in ICT sector
BSS
Dhaka
Published: 18 Oct 2024, 15: 38

Newly-appointed non-resident ambassador of Estonia to Bangladesh Marje Luup pays a courtesy call on Foreign Affairs Adviser Md Touhid Hossain at the foreign ministry in Dhaka on 17 October 2024. BSS

Estonia has expressed keen interest in collaborating with Bangladesh in the ICT sector, particularly in e-governance and cyber security.

It was revealed when newly-appointed non-resident Ambassador of Estonia to Bangladesh Marje Luup paid a maiden courtesy call on Foreign Affairs Adviser Md. Touhid Hossain at the foreign ministry here on Thursday, said a press release on Friday.

During the meeting, both sides also discussed the possibilities of arranging student exchange programmes in the Information Technology Sector.

Foreign Adviser congratulated Luup for her appointment as the Ambassador of Estonia to Bangladesh, and apprised her of the vision and ongoing reform initiatives taken by the Interim government of Bangladesh.

Both the Adviser and the Ambassador exchanged views on Bangladesh-Estonia bilateral relations and expressed willingness to deepen the existing bilateral cooperation further.​

 

[Saif]

The price of data services and the digital divide in Bangladesh

The cost of data services, both wireless and fixed, is a significant factor in the digital divide in Bangladesh.

www.thedailystar.net

The price of data services and the digital divide in Bangladesh
Graphical representation of internet connectivity issues for freelancers.

Illustration: Abir Hossain

The cost of data services, both wireless and fixed, is a significant factor in the digital divide in Bangladesh. As a low-income country, where a substantial portion of the population earns below the poverty line, high internet costs pose a barrier to accessing essential services like education, healthcare, and financial services. This high cost restricts millions of people from gaining affordable access to the digital economy, worsening social and economic inequalities.

How do we fare comparatively?

As per data analysis done by cable.co.uk in 2023 average cost of 1GB data in Bangladesh is $0.23; which is $0.28 in Indonesia, $0.41 in Thailand, and $0.29 in Vietnam. For Fixed Broadband the average rate is $13.53 per month, $28.05 per month, $22, and $8.72 per month respectively.

As per data from theGlobalEconomy.com, Gross Domestic Product Per Capita in 2023 was for Bangladesh $2,529, for Indonesia $4,940, Thailand $7,171, and Vietnam $4,346 (the World Bank, the global economy.com). This shows that Bangladesh faces a disproportionately higher burden of data costs comparing income level.

Some of the factors contributing to high prices and compromised quality

1. High spectrum pricing for mobile network operators

According to GSMA, consumers in Bangladesh spend around 6-7% of their monthly income on mobile data, far above the global affordability benchmark of 2%.

Bangladesh imposes high spectrum prices on mobile network operators (MNOs), which significantly raises operational costs. According to GSMA, spectrum pricing in Bangladesh is among the highest in the region. This forces operators to focus on recovering costs rather than investing in network upgrades.

2. Taxation and revenue sharing

Both MNOs and internet service providers (ISPs) in Bangladesh face a wide range of taxes and revenue-sharing mechanisms, which inflate the cost of data services. The tax burden for telecom providers includes:

Value-Added Tax (VAT): A 15% VAT is levied uniformly across telecom services, affecting both MNOs and ISPs.

Supplementary Duty (SD): An additional 10% SD is applied to mobile services.

Surcharge (SC): A 2% surcharge on total revenue of MNOs adds more financial strain.

In addition to these taxes, MNOs are required to share around 5.5% of their revenue with the government, while ISPs share about 3-5%. Additional revenue-sharing and tax arrangements apply to other layers of the telecom architecture, such as Gateways, Transmission, and Terrestrial layers. These cumulative costs ultimately increase the retail price of data, making it more expensive for consumers.

3. Inefficiencies in the IIG market

Bangladesh's telecom sector suffers from fragmentation due to too many licensed International Internet Gateway (IIG) operators. With around 40 IIGs, the market is highly inefficient, leading to higher latency and routing inefficiencies. This fragmentation discourages global Internet Content companies like YouTube and Meta to invest in Content Delivery Networks (CDNs) in the country. Countries like Vietnam and Thailand have fewer IIG operators and enjoy better-quality data services.

4. High wholesale transmission costs and NTTN market dominance

The Nationwide Telecommunication Transmission Network (NTTN) market in Bangladesh is dominated by a few major players. The BTRC has made efforts to standardize NTTN tariffs, setting rates between Tk 200-300 per Mbps for basic capacity in metropolitan areas. However, these rates remain significantly higher than those in countries like Vietnam, where 1 Gbps (1,000 Mbps) of transmission capacity costs about $20 (Tk 2,400). In Thailand, the same service costs $30 (Tk 3,600), and in the Philippines, it's priced around $25 (Tk 3,000). The disparity is largely due to the competitive markets in these countries and their more efficient utilisation of public infrastructure.

(Sources: BTRC,ITU, ADB).

In contrast, Bangladesh's NTTN pricing structure is hindered by limited competition and the inefficient use of public assets. The government's licensing policies have prevented offering Info-Sarker infrastructure directly to access network providers, ISPs and MNOs, which could otherwise lower costs. Revisiting these policies and enhancing the use of public infrastructure is essential for reducing transmission costs and ultimately lowering consumer prices.

The path forward

Bangladesh has the potential to lower data prices and improve service quality through regulatory reforms. Lowering spectrum prices, revisiting the tax structure, and improving the efficiency of public infrastructure utilization are critical steps. Addressing the NTTN duopoly and relaxing licensing restrictions for ISPs could foster competition, which would in turn lower prices for consumers.

By reforming these key areas, Bangladesh could significantly narrow the digital divide and enhance the accessibility of digital services across the country.

Abu Nazam M Tanveer Hossain is a telecom policy expert.​

 

[Saif]

IT parks drained away hefty funds

The former ICT state minister, Zunaid Ahmed Palak, had boasted in 2016 that sprawling IT park in Kaliakoir would employ up to a million people over 10 years.

www.thedailystar.net

IT parks drained away hefty funds
15 projects involving Tk 8,500cr fraught with faulty planning, corruption and poor execution

The former ICT state minister, Zunaid Ahmed Palak, had boasted in 2016 that sprawling IT park in Kaliakoir would employ up to a million people over 10 years.

But eight years on and having spent about Tk 600 crore of public funds, the 355-acre Bangabandhu Hi-Tech City has managed to create employment for just 1,500 people. The industrial park remains largely desolate despite incentives like a seven-year tax holiday and duty-free facilities for raw material import.

This is not an isolated case. The Bangabandhu Hi-Tech Park in Sylhet was taken up in 2016 for Tk 324 crore with the ambitious goal of generating 50,000 jobs. Less than 100 people work there. Although long past the deadline, the park is yet to be fully operational.

Out of the 18 companies allotted spaces in the hi-tech park, less than five have started operations and several pulled out even before initiating their business activities.

Till date, Tk 1,473 crore was spent on three hi-tech parks, three software parks and four incubation centres by the Awami League government, which envisioned these establishments as ICT and business innovation hubs that would employ tens of thousands, generate billions of dollars and position Bangladesh as a leading digital nation.

But their returns have been negligible thanks to faulty planning, corruption, poor execution and a lack of supportive ecosystem, found an investigation by The Daily Star involving interviews with over a dozen individuals connected to these parks and an analysis of hundreds of pages of documents.

"Such projects in the name of development in general and with the rhetoric of Digital Bangladesh in particular under long years of authoritarian regime were converted as a licence for partisan political mileage, illicit income and unaccountable wastage of public money," said Iftekharuzzaman, executive director of Transparency International Bangladesh.

Take the case of the Bangabandhu Hi-Tech Park in Rajshahi, which was constructed between July 2016 and June 2024 for Tk 335.5 crore.

At best 500 people are employed across seven investor entities accounting for an investment of Tk 3 crore, said park officials.

Due to petty issues such as rainwater seeping into the buildings, a lack of generator services and other infrastructural challenges, the largest company, Fleet Bangladesh, recently left the park's incubation centre, said its founder Khairul Alam.

"They also promised tax breaks that have yet to be fulfilled," he said.

Over in Jashore, the Tk 253 crore Sheikh Hasina Software Technology Park managed to attract negligible investment.

Despite the abysmally low returns, Palak continued to tout the ventures as successful initiatives, creating the ground for authorising more than 80 such parks all over the country.

He named all the projects after the deposed prime minister Hasina and her family members to expedite approval and shield them from criticism and scrutiny, according to Bangladesh Hi-Tech Park Authority (BHTPA) officials involved with the proceedings.

"Tagging such projects with the names of family members of the fallen head of the government provided added impunity to the multidimensional wastage of mainly borrowed funds, which has also left a huge burden on the people," said TIB chief Iftekharuzzaman, who also heads the interim government's Anti-Corruption Reform Commission.

The parks have been renamed after the district concerned following the fall of the Hasina government on August 5.

At present, another dozen establishments are on the way that would cost about Tk 7,000 crore of public money.

The projects were often undertaken on a whim and almost always without concerted planning.

In similar areas, multiple overlapping projects were approved, including training centres and incubation centres established within hi-tech parks themselves.

For instance, a Tk 66 crore IT training and incubation centre project was initiated in 2019 in Singra, Natore—Palak's constituency.

And yet, less than 30 kilometres away, or a half hour's drive away in Natore Sadar is a similar project, which is now operational.

Still, another project worth over Tk 150 crore was approved in Singra. The project includes infrastructure such as a mini-stadium and a cineplex, reportedly intended for Palak's political events, according to people aware of the proceedings.

Less than 50 miles from Natore Sadar, a Tk 355 crore hi-tech park is already under construction in Rajshahi.

In addition, there is a plan for another IT incubation centre within the Rajshahi Hi-Tech Park, and a separate project is under consideration in Charghat, Rajshahi.

Additional projects have been approved in Natore and Rajshahi's surrounding districts, including Sirajganj, Chapainawabganj, Naogaon, Pabna and Bogura.

In Sylhet, where Tk 336 crore was spent on a hi-tech park, an additional IT park project was approved for over Tk 65 crore. In the same hi-tech park, another Tk 150 crore has been allocated for an IT park.

In Chattogram district, four overlapping establishments have been proposed — an IT park costing Tk 65 crore, another park for Tk 150 crore, a software technology park within the city and the Sheikh Kamal IT Business Incubator Centre at the Chittagong University of Engineering and Technology for Tk 117 crore.

The lack of transparency in the tender evaluation process led to significant corruption within the projects, according to BHTPA officials who spoke on the condition of anonymity.

For instance, an audit into BHTPA by the Office of the Comptroller and Auditor General highlighted six significant irregularities detailing a financial loss of Tk 50.58 crore in fiscals 2019-20 and 2020-21.

Those involved in project design, planning, budgeting, approval and implementation including relevant officials as well as political masterminds must be brought to justice to set examples for the future, Iftekharuzzaman said.

"Officials involved in these projects would face action if found guilty — we are proceeding slowly but surely, and no one will be spared," Shish Haider Chowdhury, secretary to the ICT Division, told The Daily Star.

A committee has been formed to review these procurements.

He acknowledged that most of the projects were undertaken without proper planning.

The projects included large infrastructure in remote areas where there is no business case, he said.

"We are reducing several components of ongoing projects. For instance, if a building was initially planned for seven stories, but four stories are already completed, we are stopping it there. Even then, we remain uncertain if there will be a viable business case after trimming the projects," Chowdhury added.

To lessen further loss, such projects should be frozen until objectively reassessed and appropriately redesigned to ensure value for money, Iftekharuzzaman said.

GSM Jafarullah, the managing director of BHTPA from August 1 last year, had his contractual appointment scrapped on September 3 by the interim government. His successor AKM Amirul Islam could not be reached for comment.​

 

[Saif]

ICT innovation for Bangladesh

Bangladesh stands at the cusp of a historic transformation. With global technology advancing at breakneck speed, the nation has good opportunity to harness the power of Information and Communication Technology (ICT) and transform its economic destiny. If Bangladesh acts swiftly and strategically, i

thefinancialexpress.com.bd

ICT innovation for Bangladesh
Shafi Chowdhury & Mizan Choudhury
Published :
Nov 05, 2024 21:21
Updated :
Nov 05, 2024 21:21

Bangladesh stands at the cusp of a historic transformation. With global technology advancing at breakneck speed, the nation has good opportunity to harness the power of Information and Communication Technology (ICT) and transform its economic destiny. If Bangladesh acts swiftly and strategically, it can train millions of professionals, tackle its unemployment crisis, and establish itself as a global ICT hub.

The future is digital, and Bangladesh has the chance to lead it. A 20-year ICT vision, developed with bold foresight, aims to train 9 million skilled professionals by 2045. These trained professionals will not only fill the demands of the global ICT market but also fuel domestic growth, creating a new era of economic prosperity for the nation. It is a transformative plan that could redefine Bangladesh’s global standing. The time to act is now!

Challenge of Unemployment: Despite Bangladesh’s strong economic growth over the past decade, unemployment—especially among the youth—remains one of the country’s most pressing challenges. According to World Bank data, the unemployment rate sits around 4.2 per cent, but underemployment is a much larger issue, affecting millions of people, particularly the youth. Therefore, based on the unemployment rate of 4.2 per cent and the total labour force of 74.91 million, there are approximately 3.15 million unemployed people in Bangladesh.

Bangladesh’s workforce is expanding rapidly, with two million young people entering the job market each year. Many are struggling to find meaningful employment because the educational system is not fully aligned with the needs of a rapidly evolving global job market.

Most alarmingly, the youth unemployment rate is disproportionately high, with university graduates often unable to secure jobs that match their skills. This mismatch between education and the demands of the digital economy is creating a workforce that is underprepared and underutilised, at a time when global demand for skilled ICT professionals is soaring. According to World Bank, Bangladesh’s young population, approximately 27.96 per cent of the total population, presents a significant demographic dividend. This demographic asset can fuel economic growth and development.

This translates to a substantial number of young people who are entering the workforce or are poised to do so. Based on a total population of approximately 169.8 million, the number of young people aged 15- 29 would be around 47.7 million.

The Global ICT Job Boom: Around the world, digitalisation is rapidly reshaping industries. The global demand for ICT professionals is skyrocketing, fuelled by advancements in automation, AI, cyber-security, data science, cloud computing, and smart infrastructure. According to industry reports, 28.5 million new ICT jobs will be created globally by 2045 according to World Economic Forum’s Future of Jobs Report or Gartner’s annual ICT industry reports. The need for skilled talent is immediate and will only grow as technology continues to evolve.

Building a Digital Workforce: By utilising its existing educational institutions—polytechnic institutes, colleges, and universities— the country can gradually scale its training capacity to meet global demand.

The plan is simple but powerful. Bangladesh can expand and modernise its education system, focusing on ICT fields like software development, cyber-security, AI, and cloud computing. Each year, more professionals will be trained and with an 80 per cent success rate, many will secure high-paying jobs in the global market, earning an average annual salary of $100,000. With $504 billion generated annually by 2045, the ICT sector could become a pillar of Bangladesh’s economy. This would represent an enormous leap in the country’s GDP and global economic stature.

By training and deploying its ICT workforce globally, the sector will become a major contributor to the country’s GDP growth. The projected economic impact is staggering, with the ICT sector potentially contributing 37.1 per cent of GDP by 2040. By 2040, the ICT sector could be at the core of Bangladesh’s economic engine, driving growth and creating opportunities for millions if proper steps are taken right now.

The Road Ahead: To realise this vision, Bangladesh must overcome several challenges and take some bold actions immediately.

• Invest in Polytechnic Institutes, Colleges, and Universities: These institutions will be the foundation of the country’s ICT revolution. Expanding their capacity and modernizing their facilities will allow Bangladesh to produce the world-class professionals the global market demands.

• Partner with the Private Sector: Collaborating with global tech companies, offering internships, and providing practical training will bridge the gap between education and employment. Public-private partnerships will ensure that students are job-ready when they graduate.

• Develop Global Certifications: By ensuring that students graduate with certifications such as AWS Certified Solutions Architect, CompTIA Security+, and Certified Ethical Hacker, Bangladesh will ensure its workforce is recognised and in demand worldwide.

• Enhance Digital Infrastructure: Investing in 4G and 5G networks, upgrading data centres, and ensuring uninterrupted power will create the backbone of Bangladesh’s digital economy. This infrastructure will support both domestic growth and international collaboration, attracting foreign investment and enabling local businesses to compete on a global scale.

The aforementioned 20-year vision can elevate Bangladesh to a new level of prosperity. Delay to act risks missing the chance to be a global leader in ICT. By seizing this moment, Bangladesh can not only overcome its unemployment challenges but also establish itself as a hub for global innovation, setting the stage for a new era of economic growth and leadership in the digital age.

Lt Col Md Shafi Chowdhury, PhD, psc is Co-Chairman/Founder and CEO of Alltex International Consultancies and Services (AICS). Mizan Chaudhury, (CCIE) is Co-Chairman/Founder and President of AICS. AICS has office in Dhaka and New York.

www. alltex-intl.com​

 

[Saif]

What future awaits the hi-tech parks?

Hold to account all involved in corruption, mismanagement

www.thedailystar.net

What future awaits the hi-tech parks?
Hold to account all involved in corruption, mismanagement

We are concerned about the future of the hi-tech parks that the ousted Awami League government planned to establish across the country with the goal of transforming Bangladesh into a global hub for information and communication technology. Reportedly, the government invested Tk 1,473 crore on three hi-tech parks, three software parks and four incubation centres, envisioning them as ICT and business innovation hubs that would create tens of thousands of jobs, generate billions of dollars, and position Bangladesh as a leading digital nation. However, an investigation by The Daily Star has found that due to faulty planning, corruption, poor execution and the lack of a supportive ecosystem, these projects have yielded negligible returns, falling far short of expectations.

Former State Minister for ICT Zunaid Ahmed Palak boasted in 2016 that the IT park in Kaliakoir would employ up to a million people over 10 years. Eight years later, after spending around Tk 600 crore, the 355-acre Bangabandhu Hi-Tech City has created only 1,500 jobs. The situation is similar at the Bangabandhu Hi-Tech Park in Sylhet, a project taken up at a cost of Tk 324 crore with the goal of generating 50,000 jobs. Today, fewer than 100 people are employed there. Despite the project being expected to be completed long ago, it is still not fully operational. Similarly, the Bangabandhu Hi-Tech Park in Rajshahi and the Sheikh Hasina Software Technology Park in Jashore have failed to attract significant investment. In the former ICT state minister's constituency, several overlapping projects were also undertaken haphazardly and without proper planning.

Reportedly, despite extremely low returns, Palak continued to promote the ventures as successes, paving the way for the approval of over 80 similar parks across the country. Currently, another dozen projects are underway, with an estimated cost of around Tk 7,000 crore in public money.

The question is, what future awaits these costly hi-tech projects? Since all these initiatives were riddled with corruption, the interim government must conduct thorough investigations into them and hold accountable all involved in the design, planning, budgeting, approval and implementation of these projects. The government should also assess whether the completed projects have any potential for new job creation. With the country grappling with high unemployment, the ICT sector could provide valuable job opportunities for our youth if managed with efficiency and transparency.

However, the government should also make prudent decisions regarding the incomplete projects. Such ventures should be frozen to prevent further losses until they are objectively re-evaluated and properly redesigned to ensure value for money, as Dr Iftekharuzzaman, head of the interim government's Anti-Corruption Reform Commission, has suggested.​

 

[Saif]

Policy reforms urgent to boost ICT sector dev: experts

Experts on Saturday said that a lack of integrated planning and supportive policy reforms remained as a significant obstacle to the growth of Bangladesh’s information and communication technology sector and...

www.newagebd.net

Policy reforms urgent to boost ICT sector dev: experts
Staff Correspondent 09 November, 2024, 23:38

Experts on Saturday said that a lack of integrated planning and supportive policy reforms remained as a significant obstacle to the growth of Bangladesh’s information and communication technology sector and so urgent reforms were needed to turn this sector into one of the country’s leading industries.

Speaking at a seminar titled ‘Reform for ICT Industry Growth’, organised by the Dhaka Chamber of Commerce and Industry, experts from various sectors highlighted the need for cohesive strategies, infrastructure development and accessible financing to realise the sector’s potential.

Ashraf Ahmed, president of DCCI, emphasised the need for policy reform and workforce development to enable Bangladesh’s ICT sector to compete on the global market, which is valued at nearly $3 trillion, according to a press release.

‘Our IT industry, with nearly $2.5 billion in revenue, occupies a small segment only despite having one of the largest pools of IT-related workers in the world,’ he noted.

The DCCI president urged for short-term, mid-term and long-term strategies, calling for investments in skills development, logistics and education to address skill gaps and advance Bangladesh’s ICT capabilities.

The seminar underscored the challenges local ICT entrepreneurs faced, particularly in accessing low-cost finance.

Mir Shahrukh Islam, managing director of Bondtein Technologies Limited, shared that over 2,600 IT companies currently operated in Bangladesh, yet they struggled with stringent collateral requirements for financing.

‘ICT entrepreneurs are struggling to get easy access to low-cost finance due to a lack of friendly regulatory policies and stringent collateral requirements,’ Mir Shahrukh explained while presenting the keynote paper, adding that incentives for semiconductor industry could spur growth in this emerging sector.

Lutfey Siddiqi, chief adviser’s special envoy on international affairs, addressed the importance of streamlined policies and accurate data for effective planning.

Siddiqi noted, ‘The present government is working in a changed environment, which needs to be considered by all. If the existing policies are properly implemented, it will be easier to do business activities along with citizen services.’

Experts highlighted the need for an ICT-friendly academic curriculum and industry-academia collaboration to enhance graduates’ practical skills.

Bangladesh Bank executive director (ICT) Muhammad Zakir Hasan proposed forming a steering committee to oversee coordinated development across the ICT sector, emphasising that ‘integrated planning’ and ‘industry-academia coordination’ were vital to create skilled graduates.

The seminar concluded with recommendations to expand export incentives, update telecommunication policies and strengthen data privacy laws, as stakeholders urged collaborative efforts between public and private sectors.

DCCI senior vice-president Malik Talha Ismail Bari moderated the discussion, with other DCCI officials present in the seminar.​

 

[Saif]

Govt to introduce satellite internet to bridge up digital divide

The present government is on its way to introduce satellite internet as the telecom regulator has sought public opinion for finalization of the draft guidelines so the country could reap the sacrifice of martyrs in July-August mass uprising.

en.prothomalo.com

Govt to introduce satellite internet to bridge up digital divide
BSS
Dhaka
Published: 15 Nov 2024, 22: 00

The present government is on its way to introduce satellite internet as the telecom regulator has sought public opinion for finalization of the draft guidelines so the country could reap the sacrifice of martyrs in July-August mass uprising.

Officials familiar with the process said the move might unleash new opportunities for bridging digital divides alongside backhauling, disaster management and customer data utilization as it could pave the way for world leading companies like Elon Musk's Starlink and others to enter the Bangladesh market.

The telecom regulator -Bangladesh Telecommunication Regulatory Commission (BTRC) - on 29 October uploaded the draft regulatory and licensing guidelines for NGSO Satellite Service Operator on its website, seeking opinion by 18 November to finalize the guidelines.

Meanwhile, the mobile phone operators and other stakeholders have welcomed the move of opening doors for satellite internet as it would revolutionize data services in the country. They said the initiative might unlock new opportunities for bridging digital divides.

The draft guidelines said that proprietorship, partnership and companies registered under “Registrar of Joint Stock Companies and Firms” under the Companies Act 1994 are eligible to apply for the license to build, own, maintain and operate NGSO Satellite systems and services in Bangladesh.

It also mentioned that 100 per cent FDI or Foreign Partnership or Joint Venture or investment from Non-Resident Bangladeshi (NRB) is permitted to build, own, maintain and operate NGSO Satellite systems and services.

According to the draft guidelines, the license will be valid for five years.

It adds that the licensee is authorized to provide the following NGSO satellite services: broadband internet services, intranet services (domestic data communications), Internet of Things and machine-to-machine communication, earth station in motion service, earth exploration satellite service, remote sensing/meteorological services and any other services approved by the BTRC.

However, operators aren’t authorized to provide direct-to-home (DTH) services, broadcasting services, satellite IMT-based services or telecommunications services.

The application/processing fee has been set at Tk 500,000, with an acquisition fee of $10,000 and an annual fee of $50,000. Additionally, an annual station/terminal fee per terminal is set at $20.

The licensee will also have to share 5.5 per cent of its annual audited gross revenue with the BTRC. Another 1 per cent of the gross revenue must be paid as part of the "contribution to space industry development and management".

The licensee must establish at least one gateway system within Bangladesh before commencing services. However, the BTRC encouraged the licensee to establish additional gateways.

Any user terminal placed within Bangladesh's geographical boundary must be authenticated and served through this local gateway. All traffic from these terminals must be routed through this local gateway for services within Bangladesh, according to the draft.

The NGSO gateway shall connect to international internet gateways to handle international internet data traffic.

Talking to BSS, Shahed Alam, chief corporate and regulatory officer of Robi Axiata, said, “We welcome the initiative to introduce satellite internet in our country, recognizing its potential to revolutionize data services.”

He noted that this advancement could pave the way for new opportunities in areas such as backhauling, disaster management and customer data utilization.

Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, said, "The regulator’s initiative to conduct a public consultation before introducing this new service is commendable, which we appreciate.”

He continued, “We’re confident that this process will provide essential insights to help shape its future direction.”

Sharfuddin Ahmed Chowdhury, Head of Communications, Grameenphone, said, "Grameenphone welcomes any new technology that brings positive change to people's lives, society, the economy, and the country as a whole.”

However, the introduction of any new license should ensure non-discriminatory treatment that promotes market competitiveness among all players, including existing ones, across the entire value chain, he added.

Internet Service Providers Association of Bangladesh (ISPAB), a platform of firms engaged in providing internet services to the customers, is also ready to welcome any new technologies. But, it emphasized to identify the necessity of this technology first before moving to it.

ISPAB President Md Emdadul Hoque told BSS that they always welcome new technologies if those are suitable for the country and industry as a whole.

“We’ve no objection to welcoming new technologies, but priority should be considered first whether the technology is suitable for the country and its people,” he said.​

 

[Saif]

How regulatory hurdles keep internet price high and speed low

The Bangladesh Telecommunication Regulatory Commission (BTRC) has implemented a number of policies over the past 16 years that, according to internet service providers and users, have made Bangladesh pay higher prices for slower internet speeds compared to its neighbours.

www.thedailystar.net

How regulatory hurdles keep internet price high and speed low
internet price regulation in Bangladesh

The Bangladesh Telecommunication Regulatory Commission (BTRC) has implemented a number of policies over the past 16 years that, according to internet service providers and users, have made Bangladesh pay higher prices for slower internet speeds compared to its neighbours.

With those moves, they say the BTRC has turned into a "money-making machine for the government" rather than a facilitator of connectivity.

Take the BTRC's 2021 order to remove cache servers from small and medium sized internet service providers (ISPs) for example.

That meant ISPs were not allowed to store content locally, forcing users to travel longer distances to access it.

Consequently, ISPs incur increased costs and internet users experience slower speeds, according to industry insiders and experts.

"Globally, cache servers are managed by last-mile service providers to ensure quick access to content for users," said Md Emdadul Hoque, president of the Internet Service Providers Association of Bangladesh (ISPAB).

Industry insiders claim that ISPs have to pay an additional Tk 80 to Tk 120 per Mbps of internet compared to mobile operators due to these rules. This disparity puts ISPs, especially in rural areas, at a competitive disadvantage

"Now we pay Tk 25-60 per Mbps for this service. This has added an unnecessary layer of costs and impacts the quality of service."

Without discussing the nitty-gritty, global internet supply broadly passes through several stages to reach households and offices.

It first reaches Bangladesh via submarine or terrestrial cables at landing stations.

International Internet Gateways (IIGs) then handle the data, passing it to the National Telecommunication Transmission Network (NTTN), which distributes it across the country.

ISPs deliver internet directly to homes and businesses through local distribution networks, while mobile network operators (MNOs) receive internet from the IIGs.

However, both MNOs and broadband service providers claim that the IIG layer is unnecessary and that they could directly obtain supply from the NTTN.

In 2008, the BTRC granted the first private IIG licence. Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, said: "It is another layer that does not add any value."

The BTRC also imposed restrictions on ISPs, prohibiting them from sharing physical resources like fibre-optic cables and active network equipment such as switches, routers and optical line terminals.

In simple terms, if an ISP leases 1 Gbps of capacity from the NTTN but can only use half, it cannot lease the remaining capacity to other ISPs.

But if allowed sharing, this could have reduced operational costs of the small net providers. Besides, shared infrastructure could have minimised overhead cables, especially in densely populated areas.

However, the ban on resource sharing has forced individual ISPs to incur higher expenses, which are ultimately passed on to consumers, making internet services pricier.

Some providers allege that the restriction on active sharing is intended to favour the NTTN.

The ISPAB has been advocating for active sharing of infrastructure for years. In a letter to the BTRC, ISPAB said ISPs should be allowed to share active network resources in their access networks. This would not only reduce overhead cables but also enhance the aesthetic appeal of urban areas and improve service quality.

Current ISP licensing guidelines limit ISPs to installing optical fibre within a 3-kilometre radius in metropolitan areas and 6 kilometres in non-metropolitan areas.

The BTRC has also implemented a regulatory framework that sets fixed buying and selling prices for ISPs while mobile operators are exempt from such pricing mechanisms. This policy has created an uneven playing field in the internet service sector.

Industry insiders claim that ISPs have to pay an additional Tk 80 to Tk 120 per Mbps of internet compared to mobile operators due to these rules. This disparity puts ISPs, especially in rural areas, at a competitive disadvantage.

The fixed rates and higher transmission costs lead to higher internet prices in rural areas compared to cities.

"The additional costs incurred by ISPs in rural regions are often passed on to end users, further widening the digital divide," said Syed Almas Kabir, former president of the Bangladesh Association of Software and Information Services (BASIS).

He said that although transmission prices for wholesale internet should have decreased due to increased usage, these tariffs have not been readjusted in a long time.

According to BTRC documents, the commission set tariffs for transmission services in September 2021.

Aminul Hakim, president of the International Internet Gateway Association of Bangladesh, said the association recently proposed a 15 to 25 percent reduction in wholesale internet prices to the BTRC.

Another obstacle that has pushed up internet prices is the BTRC's complex and widespread revenue-sharing system.

Last year, the BTRC introduced a 1 percent revenue-sharing requirement for ISPs to contribute to the Social Obligation Fund (SOF).

ISPAB President Hoque said that under the "one country, one rate" policy, ISPs sell the internet at a fixed price with very limited profit margins. "If we have to contribute another 1 percent of our revenue to the fund, many ISPs may not survive."

Fahim Mashroor, former president of BASIS, said the BTRC has almost become an extension of the National Board of Revenue (NBR), which is not its intended role.

"They should act as regulators or facilitators, not as a money-making machine for the government," he said.

"As the government receives huge revenue from the BTRC every year, it is reluctant to make any changes," he added.

Meanwhile, Syed Almas Kabir advocated for eliminating intermediaries in the internet ecosystem, allowing ISPs and mobile operators to purchase internet directly from the wholesale market.

When contacted, Major General Md Emdad ul Bari, chairman of the BTRC, said the commission is reviewing different licensing regimes and working on various issues to reduce internet prices.

Nahid Islam, the adviser for posts and telecommunications, told The Daily Star that they are currently discussing with stakeholders to find ways to lower internet prices.​

 

[Saif]

Bangladesh needs to boost cybersecurity skills

Bangladesh and many other countries are prone to eroding their progress in cybersecurity systems if they do not provide support for enhancing cybersecurity skills and awareness-raising initiatives...

www.newagebd.net

Bangladesh needs to boost cybersecurity skills
Taufiq Hossain Mobin 22 November, 2024, 22:12

Bangladesh and many other countries are prone to eroding their progress in cybersecurity systems if they do not provide support for enhancing cybersecurity skills and awareness-raising initiatives, according to International Telecommunication Union report.

The report titled ‘Global Cybersecurity Index 2024’ published by the ITU, a specialised agency of the United Nations, said that cybersecurity had increasingly become a pressing financial priority for the whole world as global average cost of a data breach now exceeds $4.45 million.

Experts said that emerging economies like Bangladesh faced dual challenge of securing critical sectors and building cyber-resilient infrastructures, as inadequate cybersecurity measures could jeopardise burgeoning ICT exports and digital transformation goals.

According to the report, Bangladesh held Tier 1 rank amongst the countries in the Asia and the Pacific region, while the neighbouring countries Bhutan and Nepal remained in Tier 3. India also achieved a Tier 1 position, highlighting its significant strides in cybersecurity.

A Dhaka University professor highlighted the country’s impressive cybersecurity ranking but noted that this success belied significant challenges on the ground.

According to BM Mainul Hasan, director of Institute of Information Technology at the University of Dhaka, the nation has historically not prioritised cybersecurity measures, leaving gaps that are becoming increasingly apparent.

‘Those of us working directly with cybersecurity issues are witnessing that the overall situation is not good at all,’ Hasan said, highlighting the disconnect between rankings and real-world preparedness.

He pointed out that Bangladesh had only recently begun digitising many government and private services, which necessitated early stages of developing robust cybersecurity systems.

‘We have just started to transform many government and private services digitally. So, the process to build cybersecurity systems has just started,’ he added.

Hasan stressed the urgency of addressing these deficiencies, saying, ‘Neither do we have enough manpower, nor do institutions in our country give sufficient importance to protecting cyberspaces. It is high time our country built cybersecurity systems that align with international standards. Otherwise, we could face unrecoverable financial losses in the future.’

The ITU in its report said that continued investment was imperative to maintain momentum and close gaps in organisational strategies and international cooperation.

The report said that capacity development was key to building a robust cybersecurity ecosystem.

‘While the cybersecurity workforce grew 8.7 per cent from 2022 to 2023, the gap between the workers needed and the numbers available has also grown by 12.6 per cent,’ it said.

The report further added that to ensure that a domestic cybersecurity industry could flourish, countries needed to ensure that the variety of educational opportunities available at different ages sufficiently prepared students and professionals for their careers.

The fifth edition of the Global Cybersecurity Index or GCI explored the current level of cybersecurity commitment among 193 member states and the state of Palestine.​

 

[Saif]

It’s time to forget Silicon Valley formula and build our own

The world has long been captivated by Silicon Valley: the land of endless innovation, where founders start in garages and build tech giants. It is a formula that many have tried to emulate, but it’s time for Dhaka to write its own recipe—one that works for our unique context, strengths, and...

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It’s time to forget Silicon Valley formula and build our own

The world has long been captivated by Silicon Valley: the land of endless innovation, where founders start in garages and build tech giants. It is a formula that many have tried to emulate, but it's time for Dhaka to write its own recipe—one that works for our unique context, strengths, and challenges.

The allure of Silicon Valley is undeniable. But when we try to replicate this formula in Bangladesh, we quickly learn that Dhaka isn't Palo Alto, and it doesn't have to be. Dhaka has its own rhythm, strengths, and potential. We are a city bursting with energy, full of entrepreneurs who innovate out of necessity. We do not need another Silicon Valley: we need a Dhaka Valley.

To create the Dhaka Valley Recipe, we must embrace our context. In Bangladesh, startup founders don't have access to abundant venture capital or deep talent pools. Instead, we scale through resourcefulness, frugality, and community. When funding is sparse, we need to become profitable faster. When talent is scarce, we need to invest in people and focus on turning potential into excellence. Our founders often wear multiple hats—from sales to HR to operations and product management—roles that would be divided among many in Silicon Valley. This necessity breeds a kind of leadership that is nimble, empathetic, and deeply connected to the realities on the ground, making our founders agile and uniquely effective leaders.

A key ingredient of the Dhaka Valley Recipe is managing growth and ensuring sustainability. We cannot afford to fail before attracting large foreign investors. This means carefully managing growth and creating a solid foundation that draws global interest. Bangladesh often falls at the bottom of investors' priority lists (even within emerging markets), so our funding funnel must adapt accordingly.

The power of collaboration is also critical. In Silicon Valley, competition is often the driving force. Here, the power lies in collaboration—not just among founders but with customers, government bodies, and educational institutions. Our success stories are rooted in ecosystems where everyone benefits.

We must also embrace our people-centric approach. Silicon Valley focuses heavily on technology, often with a "move fast and break things" mindset. In Dhaka, we must focus on people—on the communities we serve, on the employees we nurture, and on the families we impact. The work we do must create real value for people's lives. Empowerment is not just a buzzword; it is the foundation of our businesses—one that can lift millions from informal, unrecognised work into structured and sustainable livelihoods.

Our growth in Bangladesh must be sustainable and inclusive. We cannot build for a handful while leaving millions behind. Instead, our growth must bring real economic change to those who need it most.

Finally, we need to understand the dynamics of attracting venture capital. Venture capitalists need a return, and they are willing to make bold decisions if your business shows extraordinary potential to become a billion-dollar enterprise. We need to give them confidence that they can expect 10-20X returns—so that even in the worst-case scenario, they see a 2-3X return.

The Dhaka Valley Recipe isn't about abandoning Silicon Valley's inspiration; it's about adapting it. Our challenges are different, and so are our strengths. We need solutions that work in our soil, crafted with our own ingredients. We need policymakers who foster innovation, investors who value impact, and founders who believe in this country's potential. If we can do that, we won't just create startups; we will create stories, change lives, and build an ecosystem future generations will be proud of. It's time for Dhaka to stop chasing the Silicon Valley dream and start living on its own.

The writer is the founder and CEO of Sheba Platform Limited​

 

[Saif]

Internet services will be disrupted for 3 hours on December 2

Internet service will temporarily be disrupted for 3 hours on December 2 due to maintenance of SEA-ME-WE4, the country's first submarine cable system in Cox's Bazar.

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Internet services will be disrupted for 3 hours on December 2

Image: Thomas Jensen / Unsplash.

Internet service will temporarily be disrupted for 3 hours on the night of December 2 due to maintenance of SEA-ME-WE4, the country's first submarine cable system in Cox's Bazar.

According to a recent press release by Bangladesh Submarine Cables PLC (BSCPLC), from next Monday (December 2) 3.00 am to 5.59 am, a total of 2 hours and 59 minutes maintenance will be conducted near the Chennai Landing Station at Chennai end and the Tuas Landing Station at Singapore end for the country's first submarine cable system, SEA-ME-WE4, installed at Cox's Bazar.

Maintenance activities have been undertaken by the consortium to address cable faults near the landing station. During this time, internet services will be temporarily disrupted through circuits connected through Cox's Bazar to Chennai route and the circuits of the SEA-ME-WE 4 connected to the Singapore route, said the press release.​

 

[Saif]

BTRC lifts bar on local cache for faster internet

The Bangladesh Telecommunication Regulatory Commission (BTRC) yesterday repealed a directive it had passed in 2021 restricting small and medium-sized internet service providers (ISPs) from installing cache servers for their network..This policy reversal is expected to enhance internet spee

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BTRC lifts bar on local cache for faster internet

The Bangladesh Telecommunication Regulatory Commission (BTRC) yesterday repealed a directive it had passed in 2021 restricting small and medium-sized internet service providers (ISPs) from installing cache servers for their network.

This policy reversal is expected to enhance internet speeds and reduce operational costs for ISPs across the country.

Cache servers, which locally store frequently accessed content, play a crucial role in ensuring faster internet connectivity.

Their absence forced ISPs to route data from distant servers, resulting in slower speeds and increased operational expenses.

Industry experts and insiders have long argued that this limitation hampered the growth of the digital ecosystem, increasing the digital divide in Bangladesh.

With the ban now lifted, small and medium-sized ISPs, in addition to International Internet Gateways (IIGs), National Internet Exchanges (NIXs), and mobile operators, will also be able to install cache servers under specific conditions set by the BTRC.

Operators must inform the commission about the servers' specifications, installation sites, and agreements with suppliers.

Additionally, prior approval in the form of a no-objection certificate (NOC) is required before importing cache servers.

Operators must also submit monthly reports to the BTRC, detailing the servers' operational status and providing updates in case of server relocation or upgrades.

Furthermore, a monitoring link must be supplied to the commission to ensure regulatory oversight.

The move aligns Bangladesh's internet infrastructure with global best practices, where last-mile service providers use cache servers to deliver faster and more reliable internet services.

Experts said this decision would lead to significant improvements in service quality, allowing users to experience quicker access to online content.

For ISPs, the operational cost savings are expected to be substantial as the reliance on expensive, long distance data routing will be minimised.

Rakibul Hassan, chief technology officer of Link3 Technologies, hailed the development as a good initiative of the BTRC.

"It will significantly reduce our international bandwidth costs," he said.

However, for importing such equipment, the BTRC, customs, and other government agencies could collaborate to establish a single-window system, enabling streamlined processing, he added.​

 

[Saif]

Internet penetration rate declines

The country’s internet penetration rate has seen a gradual decline in the latter half of 2024, falling from 80.60 per cent in August to 79.48 per cent in September and further down to 78.61 per cent in...

www.newagebd.net

Internet penetration rate declines
Staff Correspondent 13 December, 2024, 21:55

The country’s internet penetration rate has seen a gradual decline in the latter half of 2024, falling from 80.60 per cent in August to 79.48 per cent in September and further down to 78.61 per cent in October, according to data from the Bangladesh Telecommunication Regulatory Commission.

This metric, which reflects the proportion of the population with internet access, suggested a slowdown in the expansion of internet connectivity.

The decline indicates that while new users are being added, the rate of growth is not keeping pace with population increases or the demand for comprehensive internet coverage.

Mobile broadband subscriptions also witnessed a decrease during this period, dropping from 103.67 million in August to 102.39 million in September and then to 101.80 million in October.

This contraction suggests that some users may be transitioning away from mobile broadband.

According to experts, the shift is due to affordability issues and service quality.

Despite this dip in total subscriptions, 4G remains the dominant technology, with 10.81 crore subscribers in October, slightly down from 10.84 crore in September and 10.93 million in August.

This high adoption rate underscores the growing reliance on faster, more reliable internet services. In contrast, 3G subscribers continue to decline significantly, dropping from 49 lakh in August to 42.3 lakh by October-end, reflecting a gradual phasing out of older technologies in favour of 4G.

Fixed broadband services, which cater primarily to households and businesses, maintained a steady penetration rate of about 7.8 per cent throughout the period.

Even though the fixed broadband segment remains smaller than mobile broadband, it plays an essential role in ensuring stable and reliable connectivity for specific sectors.

Teledensity, a measure of total voice and internet subscriptions relative to the population, also recorded a slight decline, from 110.56 per cent in August to 109.02 per cent in October.

This aligns with the overall trend of declining internet penetration and mobile broadband subscriptions.​

 

[Saif]

ICT trailblazers honoured

Five companies and two individuals were honoured this evening at the 9th BRAC Bank-The Daily Star ICT Awards in recognition of their exceptional contributions to the advancement of Bangladesh’s information and communication technology sector

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ICT trailblazers honoured

From left, Rumana Ahmed, director of Logic Software Limited; Kowser Ahmed, managing director and CEO of The KOW Company; Rafel Kabir, managing director of Instasure Limited; Mahfuz Anam, editor and publisher of The Daily Star; Afeef Zaman, founder and CEO of ShopUp; Selim RF Hussain, managing director and CEO of BRAC Bank; Sadia Haque, co-founder and CEO of ShareTrip; Ahmed Kamal Khan Chowdhury, group adviser of SSL Wireless; Shahir Chowdhury, founder and CEO of Shikho; and Nazim Farhan Choudhury, chairman of The KOW Company, pose for a photo at the 9th BRAC Bank-The Daily Star ICT Awards ceremony at Le Meridien Dhaka today. Photo: Star

Five companies and two individuals were honoured this evening at the 9th BRAC Bank-The Daily Star ICT Awards in recognition of their exceptional contributions to the advancement of Bangladesh's information and communication technology sector.

Selim RF Hussain, managing director and chief executive officer of Brac Bank, along with Mahfuz Anam, editor and publisher of The Daily Star, handed over the awards to the winners at a ceremony held at Le Meridien Dhaka, the hospitality partner for the event.

The event, which was organised in association with Brac Bank and Bangladesh Association of Software and Information Services, began with a minute's silence paying tribute to the martyrs and injured of the mass uprising that led to the fall of the Awami League regime.

Afeef Zaman, founder and CEO of ShopUp, was recognised as the ICT Business Person of the year, while Sadia Haque, co-founder and CEO of ShareTrip, was awarded as the ICT Woman of the year.

Logic Software won the ICT Solution Provider of the year award in the local market focus category and The Kow Company in the international market focus category.

Software Shop (SSL Wireless) was awarded the Digital Commerce of the year, while Shikho and Instasure were the ICT start-ups of the year.

Although ICT has been regarded as the future, it has not been given due importance in Bangladesh, Anam said.

"We haven't given the ICT sector enough support, enough importance, enough legal supportive environment, enough financial incentives for it to flourish."

Only through ICT can Bangladesh catch up with the developed world.

"The application of ICT can advance our health to a much higher standard, provide access to global experts in Bangladesh and connect experts in Dhaka with patients in rural areas. Similarly, in the education sector. Whatever we try, whatever money we spend, we cannot keep our education aligned with the evolution of education in the world except through technology."

Besides, the digitisation of the government system could decrease corruption overnight, Anam added.

There are many who feel that the banking sector should be investing much more in ICT and perhaps there is something to be said about that, said BRAC Bank MD Selim RF Hussain.

"The future does belong to ICT usage and we are confident that banks in Bangladesh will continue to invest in and expand their digital banking capabilities in areas such as artificial intelligence and machine learning to improve customer service, become cost-efficient and fraud detection and prevention."

Going forward, banks will increasingly partner with fintech companies to gain access to new technologies and services to stay competitive in the rapidly changing digital landscape.

"Obviously, this is also an exciting time for banks and financial institutions -- many of them have already significantly upgraded themselves with their digital-first strategies to serve the customers."

The adoption of digital banking channels, implementation of digital onboarding processes (eKYC), use of advanced analytics, development of digital products and services and automation of back-office processes are taking place with great momentum, Hussain added.

Founded in 2010, Logic Software is a leader in providing customised ERP solutions for industries like textiles, garments and leather.

By addressing inventory, production and financial challenges, the company helps businesses streamline operations. The company has processed more than $15 billion in transactions, boosting Bangladesh's economy.

The KOW Company excels in content post-production and 3D innovation.

With over 500 professionals and AI-driven technology, the company processes 32,000 to 35,000 assets daily.

Partnering with global brands like Adidas, it delivers exceptional visual content across industries, setting new standards in media production and creative solutions.

Under Sadia Haque's leadership, ShareTrip has revolutionised travel services in Bangladesh, generating more than $100 million in gross merchandise value.

Her vision has made ShareTrip a leader in the travel industry and digital commerce.

Under Afeef Zaman's leadership, ShopUp raised $174 million in South Asia's largest Series B funding round, driving ShopUp's success.

By focusing on digital credit, logistics and business management, he has transformed the country's e-commerce landscape.

Founded in 2019, Shikho is transforming Bangladesh's edtech landscape by offering localised, interactive educational content in Bengali.

With its mobile app, Shikho provides engaging learning tools for students, addressing education gaps and enabling better retention. The company has secured $6.5 million in funding, expanding its reach and impact.

Founded in 2022, Instasure has pioneered Bangladesh's first embedded insurance platform.

With strategic partnerships and an innovative approach, it offers insurance products at the point of purchase.

By making insurance accessible, particularly for underserved communities, Instasure is reshaping the industry and addressing low penetration rates.

SSL Wireless, founded in 1999, has become a leader in Bangladesh's ICT sector, specialising in digital commerce solutions.

The company's flagship product, Hercules One, integrates over 250,000 merchants, improving business efficiency.

SSL Wireless is also driving Bangladesh's digital transformation and advancing a cashless economy through its innovative offerings.

Ahmed Kamal Khan Chowdhury, group adviser of SSL Wireless; Shahir Chowdhury, founder and CEO of Shikho; Rafel Kabir, managing director of Instasure; Kowser Ahmed, MD and CEO of The KOW Company; Rumana Ahmed, director at Logic Software; Afeef Zaman and Sadia Haque received the award.​

 

[Saif]

Mobile phone talktime, internet to be costlier

The NBR will increase supplementary duty on mobile phone usage by 3 percentage points

www.thedailystar.net

Mobile phone talktime, internet to be costlier
The NBR will increase supplementary duty on mobile phone usage by 3 percentage points

Mobile phone talktime and internet will become costlier as the National Board of Revenue (NBR) is planning to increase supplementary duty (SD) on cellphone use to 23 percent from the existing 20 percent.

After the hike, mobile phone users will face over 42.45 percent in SD, value-added tax and surcharge, up from 39 percent at present.

"We have taken the initiative to increase supplementary duty on mobile phone usage in order to increase revenue collection," said an official of the NBR seeking anonymity.

The initiative is part of the NBR's bid to raise VAT and SDs on 43 goods and services, including restaurants, air travels, sweets, hotels and clothing. A 15 percent VAT is expected to be slapped on the items, which are currently paying between 5 to 7.5 percent.

The tax administrator is expected to issue a notification regarding the hikes in VAT and SD this week, according to the official.​

 

[Saif]

Mobile internet users dropped by 44 lakh in November

The number of mobile internet subscribers in Bangladesh witnessed a significant drop of 44 lakh in November, contributing to an overall decline in internet subscribers to 13.28 crore from that in October.

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Mobile internet users dropped by 44 lakh in November

The number of mobile internet subscribers in Bangladesh witnessed a significant drop of 44 lakh in November, contributing to an overall decline in internet subscribers to 13.28 crore from that in October.

This decline marks the highest drop in internet subscribers since August 2021, based on data available on the website of Bangladesh Telecommunication Regulatory Commission (BTRC).

It also represents the fifth consecutive month of decline since July. Over those five months, internet subscriber numbers have decreased by a staggering 90 lakh.

Industry experts identified a VAT hike on SIM cards as the primary reason for this decline.

In July, the VAT was raised by 50 percent, from Tk 200 to Tk 300.

This hike has made it difficult for mobile operators, particularly smaller ones like Banglalink and Robi, to continue subsidising SIM cards.

Larger operators like Grameenphone, with greater financial resources, have managed to absorb the tax hike.

This resulted in fewer new connections and increased competition imbalances.

The increased cost of SIM cards has also discouraged onboarding of new customers, especially amid ongoing economic challenges that have reduced disposable income.

"We have been observing the declining trend in a number of connections for the last couple of months. High rate of inflation is the primary reason for such scenario," said Shahed Alam, chief corporate and regulatory officer at Robi Axiata.

Besides, the increased rate of SIM tax decreasing mobile network operators' capability of providing subsidy in new customer acquisition resulted in an overall decline in the total number of subscribers, he said.

"The recent decline in mobile internet subscribers can be attributed to several factors," said Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink.

"The current economic challenges have likely slowed the entry of new users and the reactivation of inactive ones," he said.

The increase in SIM tax in the last budget has made it harder for mobile operators to subsidise SIM cards -- an essential driver of subscriber growth in the past, he said.

Smaller operators are particularly affected as larger ones can afford greater subsidies, which exacerbates competition imbalances in the telecom market, Rahman said.

To reverse this trend, policymakers should consider reducing the SIM tax to make connectivity more affordable, he said.

At the same time, government-led digital literacy initiatives could significantly boost mobile penetration, delivering wider socioeconomic benefits, he added.

A significant reason for the drop in active users could be economic hardship or growing reliance on fixed broadband, but the definition of active mobile internet users also requires scrutiny, Abu Nazam M Tanveer Hossain, a telecom expert.

The current report considers only Mobile Station International Subscriber Directory Numbers (MSISDNs) active in the past three months, ignoring usage patterns or devices, he said.

"The regulator should prioritise unique user numbers, which is feasible as each MSISDN is linked to an NID. This would help determine whether changes in user numbers reflect genuine trends or a reporting strategy by operators," he added.

According to BTRC data, November's decline was solely due to the fall in mobile internet subscribers, reducing the total to 11.90 crore. The number of broadband users remained unchanged at 1.37 crore.​

 

[Saif]

Broadband internet to be costlier as 10pc duty imposed

A broadband internet bill of Tk 500 will now add Tk 77.50 in taxes, while a Tk 1,000 bill will add Tk 155 in taxes.

en.prothomalo.com

Broadband internet to be costlier as 10pc duty imposed
Staff Correspondent
Dhaka
Published: 11 Jan 2025, 12: 27

The government has imposed a 10 per cent supplementary duty on broadband internet, in addition to a 3 per cent hike in the supplementary duty on mobile talktime and internet packages.

According to internet service providers (ISPs), this is the first time the broadband service has been brought under supplementary duty. Now, a monthly bill of Tk 500 will increase by an additional Tk 50 due to the supplementary duty.

Midway through the current 2024-25 fiscal year, the government has raised the value-added tax (VAT) and supplementary duty on over a hundred goods and services. In this regard, two ordinances – the value-added tax and supplementary duty (amendment) ordinance - 2025 and the excise and salt (amendment) ordinance - 2025 – were issued on Thursday.

The mobile network operators have already started charging the consumers extra, in line with the 3 per cent additional tax.

According to the Bangladesh Telecommunication Regulatory Commission (BTRC) data, mobile internet users decreased by 10 million to 119 million throughout the past five months until November. In contrast, the number of broadband users has increased from 13.5 million to 13.7 million during the same period.

The ISPs said the total tax on the broadband service now stands at 15.5 per cent – a combination of the previous 5 per cent VAT and the newly introduced 10 per cent supplementary duty. A broadband internet bill of Tk 500 will now add Tk 77.50 in taxes, while a Tk 1,000 bill will add Tk 155 in taxes.

Imdadul Haque, president of the Internet Service Providers Association of Bangladesh (ISPAB), said the additional costs will be added to the bills from next month. Citing the ISPs direct communication with consumers, he noted that all will express dissatisfaction with the extra charge. He urged the government to revoke the additional duty.

Meanwhile, the chief corporate affairs officer (CCAO) of Grameenphone, Tanvir Mohamad, expressed dismay at the decision of duty hike. In a statement, he noted that the tax hike came at a time when there are efforts to overcome economic challenges, with inflation remaining above the 10 per cent threshold. It increased the burden of indirect taxes on consumers.

In the budget for 2024-25 fiscal year, the Awami League government raised the supplementary duty on mobile network services from 15 per cent to 20 per cent. With VAT, surcharges, and other fees, the total tax burden on mobile services now exceeds 42 per cent.

For a Tk 100 recharge, the government will receive around Tk 30 in tax, alongside other fees. Against an income of Tk 100, the mobile operators will remit over Tk 56 to the government in taxes and fees.

Animesh Kaiser, a businessman who uses both mobile and broadband internet for professional and personal use, described the price hikes as a blow to the dead. The simultaneous cost hike for both mobile and broadband services will add to the financial strain.​

 

[Saif]

Killing the golden goose of internet opportunity

The previous Awami League regime, which touted its efforts to make Bangladesh digital, mirrored the poor farmer in Aesop’s fable of the golden goose when dealing with the mobile voice and internet sectors. The interim government is now replicating this flawed approach following its predecessor’s...

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Killing the golden goose of internet opportunity
Govt’s tax hike to stifle growth and revenue

The internet is no longer just a source of entertainment, but also crucial for financial services, education, healthcare, transportation, and freelancing opportunities. Photo: Prabir Das

The previous Awami League regime, which touted its efforts to make Bangladesh digital, mirrored the poor farmer in Aesop's fable of the golden goose when dealing with the mobile voice and internet sectors. The interim government is now replicating this flawed approach following its predecessor's footsteps.

Just as the farmer in the fable killed the goose in a misguided pursuit of greater wealth, the government's escalating taxes on mobile internet threaten to stifle digital accessibility and growth—the modern equivalent of golden eggs.

At present, the government appears to be taking an even more detrimental path, burdening an essential sector with excessive taxes. The internet is no longer just a source of entertainment, but also crucial for financial services, education, healthcare, transportation, and freelancing opportunities.

When additional levies, such as revenue sharing and minimum taxes, are considered, the total tax burden exceeds 56.3 percent—one of the highest globally, according to industry analysts

The National Board of Revenue (NBR) increased the supplementary duty (SD) from 20 percent to 23 percent on January 9, just six months after it was raised from 15 percent. Experts warn that this move will further hinder the sector's growth.

Consumers were already paying Tk 139 for Tk 100 worth of mobile services, factoring in 15 percent VAT, 20 percent SD, and a 1 percent surcharge before the hike. Now, they must spend Tk 142 instead.

When additional levies, such as revenue sharing and minimum taxes, are considered, the total tax burden exceeds 56.3 percent—one of the highest globally, according to industry analysts.

The most alarming move by the interim government is the introduction of a 10 percent supplementary duty on broadband internet, severely undermining an ambitious plan to reduce broadband prices by up to 20 percent by Emdad ul Bari, chairman of Bangladesh Telecommunication Regulatory Commission (BTRC).

Despite rising to power after a youth-led movement, the current administration has failed to learn from the previous government's missteps like soaring internet service taxes.

The supplementary duty on mobile data and voice services was just 3 percent in FY16, which steadily climbed to the current 20 percent.

Also, the tax on SIM card sales increased to Tk 300 from Tk 200 in the last fiscal year, while doubling the VAT on SIM cards from Tk 100 to Tk 200 in 2020-21.

These arbitrary tax hikes, driven by the government's preference for mobile VAT due to its transparency and ease of collection, have had a profound impact.

Already grappling with inflation, the market suffered further, marking the fifth consecutive month of decline from July to November. During this period, internet subscribers dropped by 9.3 million.

Alongside price increases, the Awami League's over-issuance of licences in the internet ecosystem led to market oversaturation, weak regulation, and inefficiency.

Many licences were granted to unqualified entities with inadequate resources, often influenced by political preferences. This fragmented market stifled competition, limited innovation, and hindered infrastructure development, with the government's vision for a "Digital Bangladesh" remaining unfulfilled.

It initially aimed to increase ICT exports to $1 billion by 2018 and $5 billion by 2021, later extending the $5 billion target to 2025. Yet, Bangladesh's ICT exports remain stagnant at just over half a billion dollars.

In comparison, Pakistan's IT exports are more than five times higher, highlighting Bangladesh's failure to capitalise on its digital potential.

Poor internet quality, high costs, and slow digital transformation have further eroded the dream of a tech-driven economy.

Bangladesh scored 62 out of 100 in the June 2024 ICT Development Index by the United Nations International Telecommunication Union, lagging behind Myanmar, Sri Lanka, the Maldives, Vietnam, and Bhutan.

The country ranked 113th out of 174 in the IMF's Artificial Intelligence Readiness Index and dropped to 82nd out of 121 countries in the 2023 Digital Quality of Life Index by Surfshark as the internet speed was measured at 5 percent below the global average.

Freelancing, a key growth area for youth employment, is also struggling as the country ranked 29th out of 30 freelancing destinations in CEO World's April 2024 report, trailing behind South Asian peers India and Pakistan.

Bangladesh ranked 109th out of 147 countries for mobile internet speed and 108th for broadband speed in the May 2024 Ookla Speedtest Global Index, falling behind nations such as Kenya, India, and Rwanda.

While internet service providers (ISPs) and mobile operators often face criticism for subpar services, much of the blame lies with the government and the regulator.

The BTRC has issued directives that benefit a select few with close ties to the former regime. This was done under the heavy influence of the previous government's interference, creating an uneven playing field, burdening consumers with high costs, and hindering the growth of digital service providers.

Treating broadband licences like cable TV businesses was another damaging decision by the previous regime. This approach allowed local strongmen and political operatives to dominate area-based operations, making many regions inaccessible to compliant ISPs.

As a result, numerous customers remain stuck with outdated 1 Mbps broadband speeds when anything below 5 Mbps is now considered unacceptable for ISPs globally.

Developed countries regard 100 Mbps or higher as standard broadband, particularly with the expansion of fibre-optic networks. Despite the government's Tk 4,000 crore investment in fibre infrastructure, the outcomes have fallen significantly short of expectations.

This digital divide continues to widen. In the first quarter of the current fiscal year, internet usage in urban areas was nearly double that of rural regions.

Only 36.5 percent of rural individuals used the internet, compared to 71.4 percent in urban areas, according to the national statistical agency's latest survey. The recent tax hikes may exacerbate this disparity.

Digital service providers have long argued that slow and costly internet has stifled their potential with the past government bearing significant responsibility for this.

Many were hopeful of a different approach by the interim government to recognise the internet's potential to drive growth, boost the economy and solve pressing issues.

Instead, the previous government's squandering of the internet's opportunities has been compounded by the interim administration. What could have been a chance to revive this invaluable sector now risks being buried so deeply that any hope of resurrection may be lost forever?​

 

[Saif]

Boosting Bangladesh’s ‘creator economy’

Bangladesh’s creator economy is booming, offering youth new opportunities for success.

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Boosting Bangladesh’s ‘creator economy’

VISUAL: SALMAN SAKIB SHAHRYAR

The creator economy, a $250 billion global industry, is the ecosystem of individuals monetising content, skills, and creativity on platforms like YouTube, TikTok, Instagram, and Facebook (SignalFire, 2023). According to a study by Adobe, there are over 303 million creators worldwide, from vloggers and gamers to educators and podcasters. The number is rising exponentially as social media platforms become more accessible to the wider masses.

In Bangladesh, the growth of this sector is already evident. Platforms like YouTube and Facebook have started to recognise Bangladeshi creators. The earning depends on their niche and audience size (Dhaka Tribune, 2024). For instance, TikTok alone has seen a dramatic rise in rural content creators who showcase everything from traditional cooking to local craftsmanship. Guess their views—millions!

This is just revolutionary. You no longer need a fancy studio or deep-pocketed investors to start. A smartphone and an internet connection would suffice. But while the barrier to entry is low, the challenge lies in persistence and adaptability. For Bangladeshi youth, the creator economy offers something rare: freedom. Freedom from fixed career paths, freedom to work from anywhere, and freedom from those who control career decision.

Globally, the creator economy is set to grow to $480 billion by 2027, as reported by Goldman Sachs. For individual creators, the average earnings can vary widely. A typical YouTuber can earn up to $100,000 annually, while micro-influencers often collaborate with brands for significant side incomes.

To thrive in this ecosystem, creators need more than just talent—they need to master storytelling, algorithms, and audience engagement. Most importantly, they must navigate societal perceptions. In suburban Bangladesh, for instance, young women face additional hurdles: societal scepticism, familial pushback, and the absence of an enabling work environment. Yet, with every viral video or growing follower count, it is possible to break the barriers.

Globally, creators like MrBeast (Jimmy Donaldson) and Marques Brownlee (MKBHD) have demonstrated how this economy can scale beyond imagination. MrBeast started by posting random YouTube videos as a teenager and now runs a multimillion-dollar content empire with brands and philanthropy intertwined. The lesson we learn from him: focus on what others overlook—quality storytelling and relentless experimentation.

If you take a close look, you will find successful creators have embraced specific strategies to rise above the noise. The first is finding a niche. Whether it's tech reviews, makeup tutorials, or cooking recipes, specificity is the key. The second one is consistency. Audiences and algorithms reward those who show up regularly with value-driven content. Finally, engagement is critical. The best creators aren't just talking to their followers, they're building communities.

Take Emma Chamberlain, a YouTuber who started with raw, unpolished videos of her daily life. Her authentic style resonated with millions, earning her, not just followers, but collaborations with major brands. These stories may seem distant, but their principles are universal: be authentic, be consistent, and think like an entrepreneur.

Bangladesh sits on the edge of a creator economy revolution. With 40 million internet users under the age of 30 (Bangladesh Telecommunication Regulatory Commission, 2023), the potential for this sector is immense. Yet, the ecosystem remains underdeveloped. Creators often struggle with limited monetisation options, slow internet speeds, and a lack of formal guidance.

But the gaps are opportunities in disguise. Platforms like YouTube and Facebook are beginning to pay attention to Bangladeshi creators, opening avenues for ad revenue and sponsorships. TikTok has become a creative playground for rural youth, showcasing everything from dance trends to DIY tutorials. Yet, the full potential remains untapped.

What can change this? First, better infrastructure should be in place—faster internet, affordable devices, and digital literacy programmes. Second, cultural acceptance of content creation as a viable career, particularly for women must be recognised. Third, policy support from governments is crucial. Besides providing incentives for digital creators, the government can create an enabling environment for them.

As Peter Thiel writes in Zero to One: "Brilliant thinking is rare, but courage is in even shorter supply." The creator economy rewards those who dare to think differently and act boldly. For a generation of Bangladeshi youth grappling with unemployment and societal expectations, this economy offers a chance to rewrite their narratives. The question is: will Bangladeshi youth seize the opportunity to shape their future through each upload?

Sabbir Rahman Khan is a knowledge management, communications, and advocacy professional.​

 

[Saif]

High tax barrier to affordable internet in rural areas: TIPAP roundtable

High government taxation has made it nearly impossible to offer affordable internet services to rural communities, said industry stakeholders on Thursday...

www.newagebd.net

High tax barrier to affordable internet in rural areas: TIPAP roundtable
United News of Bangladesh . Dhaka 16 January, 2025, 23:08

High government taxation has made it nearly impossible to offer affordable internet services to rural communities, said industry stakeholders on Thursday.

They raised the concern during a roundtable discussion organised by the Technology Industry Policy Advocacy Platform at The Daily Star auditorium, according to a press release.

When a mobile phone user buys a Tk 100 internet package, over Tk 60 directly goes to the government, they said.

The government collects significant revenue from 10 crore mobile internet users and shows no interest in reducing internet costs, they added.

TIPAP coordinator and Bdjobs founder Fahim Mashroor moderated the discussion, which brought together representatives of leading telecom companies, internet service providers, software firms and freelancing community.

Mashroor said, ‘Urban areas have twice as many internet users as rural ones. While an average urban broadband user consumes 100GB of data per month, a rural user consumes only 6GB. In contrast, Indian mobile data users consume three times more data than their Bangladeshi counterparts.’

He added, ‘This limited mobile data usage keeps Bangladesh far behind neighbouring countries in delivering education, healthcare and essential services through the internet.’

Speakers blamed excessive taxation for high mobile data prices. They said that users faced a 15 per cent VAT, a 23 per cent supplementary duty, a 2 per cent surcharge and a 6 per cent revenue-sharing cost. According to mobile operators, these taxes have more than doubled over the past decade.

Internet service providers also criticised the monopolistic practices of two government-backed companies controlling the Nationwide Telecommunication Transmission Network. These monopolies drive up data transmission costs to rural areas, they said.

Stakeholders urged the Bangladesh Telecommunication Regulatory Commission to allow telecom and internet service providers to manage transmission independently, which they believed would lower costs and make internet services more affordable.

Participants criticised the National Board of Revenue’s recent introduction of supplementary duties—3 per cent on mobile internet and 10 per cent on broadband. They demanded an immediate repeal, arguing that the increase contradicts the spirit of the ‘July Revolution,’ which highlighted the importance of internet access.

Telecommunications expert and BUILDCON CEO Mahtab Uddin Ahmed, AMTOB secretary general Lieutenant Colonel (retired) Mohammad Zulfikar, Robi chief regulatory officer Shahedul Alam, Banglalink chief regulatory officer Taimur Rahman, ISPAB president Imdadul Haque, IIG Association president Aminul Hakim, former BASIS president Almas Kabir and Mobile Subscribers Association president Mohiuddin Ahmed, among others, were present at the time.​