[🇧🇩] ICT Industry in Bangladesh

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Internet services will be disrupted for 3 hours on December 2

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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.​
 

BTRC lifts bar on local cache for faster internet

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The Bangladesh Telecommunication Regulatory Commission (BTRC) yesterday repealed a directive it had passed in 2021 restricting small and medium-sized internet service providers (ISPs) from installing cache servers for their network.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

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

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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.​
 

ICT trailblazers honoured

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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.​
 

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

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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.​
 

Mobile internet users dropped by 44 lakh in November

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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.​
 

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

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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.​
 

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

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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?​
 

Boosting Bangladesh’s ‘creator economy’

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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.​
 

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.​
 

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.​
 

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.​
 

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.​
 

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.​
 

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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