[🇧🇩] 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.​