Internet Revolution in Bangladesh

Mohammad Atiqur Rahman

MCSD, MBA
e-Commerce Analyst
Email: marahmandk@yahoo.com
 

The Internet is a social and economic foundation, apparently destined for human communication and interaction. It is supposed to allow for more interactive and innovative ways for people to do what they do in `real life’. There is no shilly-shallying to say that at present, internet has become a commanding and useful tool for empowerment and income making in developing countries.

 

It is very difficult to say that at present internet has turned into a popular and useful thing among the Bangladeshi people like students, doctors, engineers, businessmen, researchers as well as politician who are being logged into the internet for getting information what they want.

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Internet Access in Bangladesh:

Though the internet was invented in 1970 but it came late in Bangladesh through UUCPs(Unix-to-Unix copy) email connectivity in 1993 and IP connectivity in 1996. Having launched Internet, on June 1996 National polls result were broadcast through the using of World Wide Web (WWW) that was the first ever practice trial in Bangladesh.

 

On June 1996, the government has approved to allow VSAT (Very Small Aperture Terminal) in the country’s private sector to operate as Internet Service Provider (ISPs). At the end of year, there were only two ISPs in the country and number of users near about one thousand only. But next year in 1997, the total number of ISPs was more than a dozen and the clientele growth was ten times higher than that of the previous year.

 

Present Situation in Bangladesh

From then, the number of internet users and ISPs are increasing significantly in Bangladesh. About 40 ISP are providing internet service among as many as 3, 20,000 users at present out of almost 130 license holder ISP provider but  among the ISPs, most of the ISPs are placed in Dhaka and few are working in Comilla, Sylhet, Rajshahi,Chittagong and Khulna. It should be mention that currently, broadband internet ( Radio, Cable) connection is working side by side dial –up connection where broadband accounts 10,000. On the other hand, the cost of browsing went down to.20 paisa/min and unlimited access 2,000 Tk/ per month.

 

Country

Internet User-Per 1000 inhabitant

Pc user –per 100 inhabitant

Ratio –Internet Users/PC

Bangladesh

1.53

3.4

0.45

Bhutan

14.48

14.5

1.00

India

15.91

5.8

2.74

Maldives

53.76

35.8

1.50

Myanmar

0.21

1.1

0.19

Nepal

2.64

3.5

0.75

Pakistan

3.45

4.1

0.84

Srilanka

10.56

13.2

0.80

Average

12.82

10.2

1.04

 

Dimension of Internet Business


From the ancient age, every epoch of business yields new strategies and new ways of doing business. With the advent of radio and television came the first mass-market advertising. But those days has gone. At this moment, the Internet has so radically changed business that the rules for corporate business strategy used for the last 50 years (since the dawn of television) have begun to crumble. In case of Bangladesh, internet has opened up a new horizon for trade and commerce which is called e-Commerce. There are following three dimension of e-Commerce business which are -

1.      Business to Customers (B2C),

2.      Business to Business (B2B)

3.      Business to Government (B2G).

1. Business to Customer: The business to consumer (B2C) category largely liken to electronic retailing. A consumer can easily buy product at his sweet will wherever he lives any geographical area of the world, but must have a computer with an internet connection. This category has expanded significantly with the advent of the World Wide Web. Nowadays, there are different types of internet based e-commerce web site which are offering all types of consumer goods, from cakes and wine to computers and motor cars. Customers in a retail store pay by cash or check or credit or debit cards, but online customers cannot pay by cash or check, only international credit card accounts number.

2. Business to Business: The business to business category would be a company that uses a network for ordering from its suppliers, receiving invoices and making payments. This category of electronic commerce has been running for several years in many countries of the world mainly using Electronic Data Interchange (EDI) over private or value-added networks.  The B2B is only running in the export sector of Bangladesh, especially in the Garments Sector.  

3. Business to Government: The business to government category covers all transactions between companies/citizens and government organizations. For example, the government of Bangladesh has introduced a new system of collecting government money by filling a form through the online. In this backdrop, each organizations and individual will have to fill up that form and also pay money by credit card account number. In Bangladesh, there is no online e-government system.  

Potential Internet Business

Internet has opened up a new potential business like Business Process Outsourcing (BPO). It can be dramatically change Bangladesh’s economic landscape.  Most of the developing countries have been earning huge currency by business process outsourcing (BPO) through the fastest and cheapest internet service.

Our neighboring country India has been doing well in BPO business through speedy and low-priced internet service. We are lagging behind due to poor internet service. Currently, Indian BPO firms earn annual revenues of $2.4 billion ( Rs 11,300 crore) and employee nearly two lakh people according to consultancy firm Gartner.

On the other hand, last month, 10th November, the Bangladeshi government approved plans to allow voice over internet protocol (VOIP) in the country’s private sector for the first time. It is expected to bring down the telecom expenses of international calls - and help to establish the call center business, at that. It can be also help to strong our economic condition.

Problem  in Bangladesh
For the time being, the internet facility of this country is hobbled by  poor telecommunication infrastructure , high rate of internet connection, lack of computing and networking equipment, few human resources, lack of  government decision, language barrier and limited online internet facility in Dhaka, Chittagong, Sylhet, Rajshahi , and Khulna city, but government has taken some steps to solve these problems soon and government has released a tender for online internet to expend in all of the 64 districts so that rural people can get internet access easily.

In order to have a prosperous and progressive business tomorrow, we need always keep in touch with modern technology even though, being a poor and densely populated country of the world. The government needs to take emergency steps to the growth of internet facility. These steps are:

 

  1. Easy to get telephone connection
  2. Price reduction for VSAT import
  3. Introducing International Credit Card
  4. Providing computer training for rural area at a minimum cost
  5. Establish  modern IT institute
  6. Training for IT based English language

 

Wrapping up:

Internet is a totally new unexplored creative area for people. It can be used as a marketing tool, as a communications tool, as a learning toll. If we would like to face the challenges of 21st century and would like to build our IT industry, we will have to build a strong internet infrastructure through establishing better IT educational institute and job opportunities in rural area.  

May be next year Bangladesh would be connected with Submarine Cable.  With delighted to say that the days are not far off that after connecting with submarine cable Bangladesh will enter into a new horizon to establish internet business such as e-Commerce, that would have greater impact on built up our economy and social structure – which is our core expectation.

N.B. :
This article has been appeared in the Bangladeshi reputed daily english newspaper-"THE BANGLADESH OBSERVER"- on January 24, 2004 .