[🇧🇩] ICT Industry in Bangladesh

[Saif]

Why Bangladesh’s mobile data slower than Myanmar’s

Bangladesh has one of the slowest mobile data speeds in the region, lower than neighbouring Myanmar, with prices higher than neighbouring India and Pakistan or even developed nations like Italy and France.

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Why Bangladesh’s mobile data slower than Myanmar’s

Bangladesh has one of the slowest mobile data speeds in the region, lower than neighbouring Myanmar, with prices higher than neighbouring India and Pakistan or even developed nations like Italy and France.

So why has the "Digital Bangladesh" initiative not yet delivered on its promises? Why is a country with so much potential lagging behind? In this article, we will analyse the root causes of these issues.

Digital struggles due to corruption: Corruption and inefficiency have derailed the Digital Bangladesh Vision, and if left unaddressed, they will continue to delay the country's progress in the digital era. Mismanagement of funds intended for crucial infrastructure projects and not efficient utilisation of SOF funds has stalled the growth of a true digital ecosystem, leaving Bangladesh behind in the digital race.

Imbalance in the internet value chain: Mobile network operators in the country do not own key layers of the internet value chain, such as submarine cables, international terrestrial cables, access to international internet gateways, the national telecommunications transmission network and towercos.

These critical layers are controlled by other entities. This imbalance in ownership adds costs and limits competition, further driving up data prices for consumers and restricting innovation.

Low tower fiberisation: Another key issue is that only 20 percent of the mobile towers are connected to fibre. Both 4G and 5G networks require a robust and well-developed fibre infrastructure to deliver high-speed data. Without significant fibre network expansion, the country will continue to struggle to provide reliable mobile data services.

Tower infrastructure challenges and impact on mobile service: The mobile phone industry faces significant challenges due to delays and inefficiencies in the installation of new towers. Slow site acquisition processes, legal disputes and bureaucratic hurdles have severely limited the rollout of essential infrastructure. The lack of proper tower coverage directly impacts data speeds and service reliability, further exacerbating the country's already slow mobile internet speeds.

DWDM technology barriers by BTRC: The BTRC has not permitted the use of Dense Wavelength Division Multiplexing (DWDM) technology by mobile operators. DWDM allows multiple data streams to travel over the same fibre, increasing the efficiency and capacity of their existing networks. By not allowing mobile operators to adopt DWDM technology, the BTRC is creating an additional bottleneck in the country's digital infrastructure development.

Smartphone adoption and regulatory challenges: The slow pace of smartphone adoption remains a significant barrier to achieving Bangladesh's digital ambitions and a successful 5G rollout. To accelerate adoption, the BTRC should introduce regulations for network-locked handsets and offer accessible financing options.

Active infrastructure sharing: One solution to the infrastructure gap is active infrastructure sharing. This would allow telecom operators to share network components such as radio access network equipment and fibre backbones, reducing the costs of building individual networks and speeding up deployment.

The BTRC's eroded independence and political influence: Since a 2010 amendment, the BTRC has lost much of its regulatory independence. This shift, coupled with political interference and external pressures, has created an uneven playing field, favouring certain stakeholders and hindering industry growth. Restoring the BTRC's autonomy and removing political influences are essential for fair regulation and fostering competition in the telecom sector.

High data prices and slow internet speeds do not just inconvenience consumers, they limit access to education, hinder business and block opportunities in the global digital economy. By addressing these challenges, Bangladesh can improve its mobile data speeds and reduce costs, ensuring that its digital future is accessible to all. It is time for both the government and telecom regulator to step up, reduce inefficiencies, and work together to deliver fast and affordable mobile internet for all. Only then will Bangladesh truly embrace its bright future.

The author is a telecom policy analyst​

 

[Saif]

Bangladesh moves two notches up in broadband internet speed index

Bangladesh has made significant strides in its broadband internet speed, moving up two spots in the global rankings. The country rose from the 101st position in July to the 99th position in August, according to the Speedtest Global Index published by Ookla. There has also been a minor improvement

thefinancialexpress.com.bd

Bangladesh moves two notches up in broadband internet speed index
FE Online Desk
Published :
Sep 23, 2024 22:59
Updated :
Sep 23, 2024 23:07

Bangladesh has made significant strides in its broadband internet speed, moving up two spots in the global rankings.

The country rose from the 101st position in July to the 99th position in August, according to the Speedtest Global Index published by Ookla.

There has also been a minor improvement in mobile internet speeds. However, this has not resulted in a change in the ranking.

Bangladesh retained its 89th place in the mobile internet speed index in August, the same as in July.​

 

[Saif]

‘Cybersecurity as vital as border security’: ICT Adviser Nahid

Cybersecurity must be prioritized at the same level as border security, emphasized Md. Nahid Islam, Adviser to the Ministry of Posts, Telecommunications and Information Technology, and the Ministry of Information and Broadcasting. During a meeting with officials from the Bangladesh Computer Council

thefinancialexpress.com.bd

‘Cybersecurity as vital as border security’: ICT Adviser Nahid
UNB
Published :
Sep 23, 2024 20:32
Updated :
Sep 23, 2024 20:32

Cybersecurity must be prioritized at the same level as border security, emphasized Md. Nahid Islam, Adviser to the Ministry of Posts, Telecommunications and Information Technology, and the Ministry of Information and Broadcasting. During a meeting with officials from the Bangladesh Computer Council (BCC), he stressed the urgent need to strengthen the country’s data centers to protect its critical digital infrastructure.

Speaking at the ICT Tower in Dhaka, Nahid Islam remarked, “Our digital infrastructure is as vital as our physical borders. The BCC must enhance its data centers’ capabilities to safeguard the nation’s cybersecurity.”

The meeting opened with a briefing on the ongoing activities of the BCC, which plays a crucial role in managing the country’s IT infrastructure and cybersecurity initiatives.

The adviser also underlined the government’s commitment to rooting out corruption. “Our primary goal is to build a corruption-free Bangladesh,” he said, urging BCC officials to remain committed to their work with integrity, following the council’s policies and principles. He called for dedication in ensuring transparency and accountability within the organization.

Addressing recent concerns, BCC officials informed the adviser that multiple committees had been formed to investigate various complaints within the organization. As part of these efforts, two officers have been placed on mandatory leave, and a technical committee has been set up to review all ongoing projects under the division. However, officials highlighted the challenges involved in project approvals, particularly in navigating complex regulatory requirements.

The adviser emphasized the importance of these investigation committees’ transparency and urged swift action against those responsible for any misconduct.

Present at the meeting were ICT Division Secretary Shish Haider Chowdhury and other senior officials of the Bangladesh Computer Council.​

 

[Saif]

Digitalisation: Billions spent yet Bangladesh lags behind in indices

According to sector insiders, there are a significant number of projects that yielded little benefit. Different infrastructures were built with ‘unrealistic’ promises, while domestic and foreign investments fell far short of expectations

en.prothomalo.com

Digitalisation: Billions spent yet Bangladesh lags behind in indices
Suhadha Afrin
Dhaka
Updated: 25 Sep 2024, 11: 30

The immediate past government, led by the Bangladesh Awami League (AL), spent billions of taka over 15 and a half years in the name of building a digital Bangladesh.

Despite the huge investments, the country lags behind in different indices, including digital services, use of technology in reducing corruption, human resource development, skill development, and ICT service exports.

The ICT division undertook 53 projects and 34 programmes at a cost of Tk 250 billion between 2009 and 2024, with 22 projects still underway. Besides, various ministries and departments took on projects regarding digitalisation. The posts and telecommunications division alone undertook such projects worth Tk 400 billion.

According to sector insiders, there are a significant number of projects that yielded little benefit. Different infrastructures were built with ‘unrealistic’ promises, while domestic and foreign investments fell far short of expectations. A huge sum of money was spent on training programmes, to get a little in return.

There are widespread allegations of cost overruns, nepotism, and corruption in the ICT division projects.

Insiders said former state minister Zunaid Ahmed Palak and his associates would turn their random ideas into projects. A total of 11 projects were named after Bangabandhu Sheikh Mujibur Rahman and his family members to ensure quick approval.

Sajeeb Wazed Joy, son of former prime minister Sheikh Hasina and also her ICT adviser, was in sole control of the ICT and telecommunications sectors, despite his stay abroad.

In a Facebook post in December, 2022, Sajeeb Wazed Joy claimed that Bangladesh had made significant strides in the ICT sector during the last 13 years, with digital centres being set up even at remote villages.

There are many countries across the world that did not chant any slogans or made handsome investments are now ahead of Bangladesh in various indices. Bangladesh ranked 100th out of 193 countries in the United Nations (UN) e-government development index (EGDI) in 2024. Among its peers, India (97th), Sri Lanka (98th), and the Maldives (94th) are ahead of Bangladesh, while Pakistan (136th) lags behind.

The index was prepared on three parameters – online service, telecom infrastructure, and skilled human resource.

The international telecommunication union (ITU) released its ICT development index (IDI)-2024 in June, showing that only about 39 per cent of Bangladeshis use the internet. Bangladesh trails behind Myanmar, Sri Lanka, the Maldives, Vietnam, and Bhutan, though ahead of Pakistan. Data for India was not included in the index.

According to the digital progress and trends report-2023 of the World Bank, Bangladesh has the lowest smartphone user rate in South Asia at about 52 per cent. It also lags in internet speed, digital standard of life, artificial intelligence (AI) usage, and freelancing.

The adviser for ICT and telecommunications, Nahid Islam, said in an annual development programme (ADP) review meeting for the 2024–25 fiscal year that a total of Tk 650 billion was invested in the sector during the Awami League government. Still, Bangladesh is falling behind. The people could not avail the real facilities of digital Bangladesh, except for irregularities.

Digital Bangladesh: Vision and project

The Awami League announced its plan to build ‘Digital Bangladesh’ before the 9th parliamentary elections in 2008, and began various projects in this regard after assuming the state power.

Late Syed Abul Hossain, Mostafa Faruk Mohammed, and Abdul Latif Siddiqui headed the ICT division between 2011 and 2014. Later, Zunaid Ahmed Palak was appointed as state minister on 12 January, 2014, and he served in the position for the next 10 years.

Zunaid Ahmed Palak, who has been subjected to numerous allegations of taking arbitrary projects, irregularities, and corruption, was arrested in a murder case after the downfall of the Awami League regime.

The AL introduced a fresh vision of ‘Smart Bangladesh’ in the manifesto for the last election on 7 January 2024. It gave rise to a question: Why was there a need for ‘Smart Bangladesh’ when the goals of ‘Digital Bangladesh’ had not been fully achieved?

While speaking to Prothom Alo in December, 2022, Zunaid Ahmed claimed that the government had been 100 per cent successful in creating Digital Bangladesh, with government services reaching at doorsteps and technology-based industries developing. The whole system was in operation virtually during the Covid-19 pandemic.

However, individuals concerned said internet usage has increased, and government services have gone digital. But these advances have not placed Bangladesh ahead of other countries in some crucial parameters.

M Manjur Mahmud, president of Datasoft Systems, said there were some good initiatives during the early years of the Awami League government, but the last 10 years saw rampant looting. “The previous government has only erected infrastructures. There were no consultations with the ICT sector stakeholders before undertaking any projects.”

Infrastructures

The Awami League government took an initiative to build hi-tech and software parks in different districts to attract domestic and foreign investments, and also set up incubation centres for skill development. Among the 92 proposed facilities, only three hi-tech parks, three software parks, and four incubation centres are now in operation, while some others are under construction. These projects have cost Tk 81.86 billion so far.

In reality, these facilities did not attract the expected investments, while many incubation centres are not even functioning well.

For example, the Sheikh Hasina Software Technology Park in Jashore, built at a cost of Tk 3.05 billion, was inaugurated in 2017. Zunaid Ahmed Palak then told the media that the hi-tech park will be the silicon valley of Bangladesh. But the park has failed to meet the expectations, and its facilities are now being rented out for wedding ceremonies to cover costs.

M Rokonuzzaman, a professor of electrical and computer engineering department at North South University, said, “What did the nation receive from these state of the art buildings? The lenders too have responsibilities to these projects. The issue should come up if the lenders carried out assessments after execution of the projects. The consultants too should be asked what prompted the construction of this type of infrastructure.”

The Bangladesh computer council (BCC) implemented three projects from 2010 to December 2023 to provide high-speed broadband services at the union level, at a cost of Tk 37.56 billion. Another project – establishment of digital connectivity (EDC) – was undertaken at a cost of Tk 59.23 billion by the ICT division, to provide broadband connections at union and village levels.

There are questions over the impacts and benefits of these projects, as Bangladesh still lags in broadband usage.

Looting through training programmes

A total of Tk 20 billion has been spent on 11 projects and 15 programmes on training since 2009. Projects like freelancing training, language training, cyber training, and digital literacy training continued year after year.

There are allegations that individuals close to the government used to get contracts for training programmes. They pocketed the funds without providing any substantial training.

For example, the learning and earning development project, launched in 2014 with a budget of Tk 3.20 billion, has been criticised by the implementation monitoring and evaluation division for inadequate training, lack of skilled trainers, and poor equipment and internet facilities.

The project ended in 2023. The IMED in 2020 carried out a survey on 500 trainees and came to know from them that the training was not enough for them.

Apps don’t work

The ICT division had undertaken three programmes at different times from 2013 to 2017 for developing mobile games, apps and trainers, with an expenditure of around Tk 240 million. Then another project, worth Tk 3.3 billion, was taken up for the same tasks from 2016 until December this year. This is underway. Not a single one of the 600 apps developed under the programme could meet the expectations.

Multiple projects were taken up for the same work several times. For example, there is a 10-year-long project, iDEA, to support the startups. At the same time, mentioning the same goals and objectives as iDEA, another project of Tk 3.53 billion is ongoing under the Hi-Tech Park Authority. THe project is titled ‘Digital Entrepreneurship and Innovation Ecosystem Development’.

Farhana A Rahman, former vice-president of BASIS (Bangladesh Association of Software and Information Services), an organisation of the information technology sector, told Prothom Alo that in most of the cases some partisan institutions and individuals have benefitted in the ICT sector in the last 15 years. The sector could not progress as expected.

She further said that it was told that the ICT sector would earn US $5 billion dollar as export income but not even 1 billion could be achieved.​

 

[Saif]

Rethinking Bangladesh’s hi-tech parks

Infrastructure delays, skill shortages, and regulatory inefficiencies have hindered the success of the Bangladesh Hi-Tech Park Authority.

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Rethinking Bangladesh’s hi-tech parks

While the intent behind the Bangladesh Hi-Tech Park Authority is commendable, its success has been relatively limited.

VISUAL: ANWAR SOHEL

The Bangladesh Hi-Tech Park Authority (BHTPA) was established in 2010 with the ambitious goal of transforming the country into a global hub for information and communication technology (ICT). More than a decade later, the organisation's efforts to promote the technology sector's growth have largely fallen short of expectations. While the intent behind the initiative is commendable, its success has been relatively limited, and the expected impact has not fully materialised. Several factors have hindered its progress, and strategic interventions are necessary to unlock its full potential.

One of the primary issues hindering BHTPA's progress is the inadequate infrastructure in the hi-tech parks, it established. Many of these parks suffer from poor internet connectivity, irregular power supply, and a lack of basic amenities, making it challenging for technology companies to operate efficiently. This has deterred potential investors and entrepreneurs from setting up businesses in these parks.

While BHTPA has initiated several projects across the country to establish such parks and business incubation centres, many are plagued by delays in construction and infrastructure development. In some cases, bureaucratic red tape and inefficient project management have slowed down the execution of plans. The lack of timely completion has hindered the ability of tech companies to set up operations in these parks.

Streamlining the execution of infrastructure projects is critical to making the hi-tech parks operational. This can be achieved by improving project management, reducing bureaucratic inefficiencies, and ensuring that clear timelines are adhered to. Public-private partnerships (PPP) in infrastructure development could also help accelerate progress by tapping into private-sector efficiency and capital, although this must be done through a fair process.

The locations of the hi-tech parks are also not optimal. For example, the hi-tech park at Kaliakoir is too far away from Dhaka city with no civic amenities around. Typically, a township should be established surrounding hi-tech parks with shopping malls, movie theatres, children's parks, schools, markets, decent housing, etc. Alternatively, high-speed commuter trains or expressways must link the parks with the main city. Without these amenities, skilled tech professionals would not want to relocate themselves to a rural setting.

There was also a plan to develop an IT park in around 47 acres of land at the Korail slum in the capital. Although the site is a fully developed land, it is currently occupied by many slum dwellers. A resettlement programme for the displaced people was adopted as part of the development project to resettle them in an acceptable manner. However, political governments never attempted to implement this project because of the fear of losing a sizable vote bank. This tech park in the capital would surely be attractive to local and international IT companies.

Unfortunately, the IT industry, the biggest stakeholder in the hi-tech parks, was never consulted while selecting the areas or the districts for the parks. Decisions to establish the parks were mostly taken with the agenda to enhance the image of the local politicians. Some areas, selected for the parks, are unsuitable for IT business as skilled human resources are scarce in those regions. Sites near technological colleges and universities are most appropriate for these parks.

Another significant obstacle BHTPA faces is the shortage of skilled and experienced IT professionals in Bangladesh. While the country has a large pool of young talent, many lack advanced skills in areas such as artificial intelligence, blockchain, cybersecurity, data analytics, and other expertise required by tech companies. This skill gap has made it difficult for BHTPA to attract multinational companies to the hi-tech parks.

Though continuous upskilling of the tech professional is required for the ever-changing tech industry, a significant disconnect exists between academic institutions and this sector. There is little collaboration between Bangladeshi universities and research institutes and the industry in terms of research, internships, and project-based learning. This gap weakens the innovation ecosystem and is responsible for the disparity between the skills needed by the companies and the talent pool available. Skill development must be included in the curricula so that graduates have both knowledge and skill.

It is also important to invest in research and development within the hi-tech parks now, since without its own intellectual property, Bangladesh will struggle harder in the post-TRIPS (Agreement Trade-Related Aspects of Intellectual Property Rights) regime. BHTPA can create specialised research zones or labs focused on emerging technologies. Offering tax breaks or subsidies for companies that invest in R&D would also attract more companies to establish operations in the parks. This will drive long-term innovation and competitiveness.

One of the main objectives of the hi-tech parks is to attract both local and foreign investments to spur technological innovation. However, a limited venture capital ecosystem, risk-averse financial institutions, and low levels of foreign direct investment (FDI) in the tech sector have been obstacles. Many startups and entrepreneurs in Bangladesh struggle to secure seed funding or scale-up investment, which stifles innovation and entrepreneurship.

BHTPA could work with financial institutions to encourage the development of tech-focused venture capital funds and ease access to credit for technology-driven companies. Additionally, tax incentives for venture capital investments, grants, and seed funding for deserving startups could be provided to encourage investment in high-tech startups with potential and research-driven innovations that have commercial value.

Many tech firms and startups also face bureaucratic hurdles when seeking government approvals, licenses, and incentives. The slow processing of paperwork and inconsistent policy enforcement discourage companies from utilising the hi-tech parks. To address this issue, BHTPA needs to streamline its processes and make them more business-friendly. Moreover, some policies related to data privacy, intellectual property rights, and tech regulation are not well developed which undermines confidence in the long-term stability of operations.

Simplifying the process of acquiring business licenses, work permits, and other approvals for tech companies operating in hi-tech parks is essential. Introducing a "one-stop service" for tech firms to handle all regulatory processes would significantly reduce bureaucratic bottlenecks. Moreover, updating policies to align with international standards will help increase investor confidence.

Another challenge that BHTPA has grappled with is the lack of effective marketing and promotion of its hi-tech parks. Many potential investors and companies, both local and international, are unaware of the opportunities and incentives offered by BHTPA, resulting in a low occupancy rate in the parks. BHTPA should enhance its marketing and promotional efforts to increase awareness and attract more businesses. There is a need for a concerted effort to market Bangladesh as a viable destination for technology investment. BHTPA should work with trade bodies and embassies to create a global campaign that highlights the country's strengths, such as its young workforce, strategic location, and improving infrastructure. Showcasing successful case studies from existing tech firms operating in the parks would further enhance credibility.

Compared to regional competitors like India or Vietnam, Bangladesh has struggled to present itself as an attractive destination due to concerns about the inequitable political environment including nepotism and corruption, infrastructure readiness, and ease of doing business. The absence of a coordinated promotional campaign to promote Bangladesh as a tech investment hub adds to the problem.

The BHTPA was established with a vision to develop an ICT-driven ecosystem and contribute to the nation's economic growth by fostering innovation, entrepreneurship, and job creation in the tech sector. However, without addressing key bottlenecks such as infrastructure delays, skill shortages, and regulatory inefficiencies, BHTPA's impact will remain limited. To overcome these challenges and achieve its goals, BHTPA needs to take a proactive approach otherwise its efforts to establish Bangladesh as a technology hub may continue to falter, and the country's potential in the ICT sector may remain untapped. In the long run, fostering innovation and nurturing entrepreneurship will be key to realising the country's vision for an ICT-driven economy.

Syed Almas Kabir is an entrepreneur and a policy advocate.​