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‘Ailing ICT sector needs structural reform’

AKM Fahim Mashroor
09 Oct 2024 23:23:42 | Update: 09 Oct 2024 23:23:42
‘Ailing ICT sector needs structural reform’
— Courtesy Photo

Over the past decade and a half, Bangladesh has been overwhelmed with development projects, many of which were unnecessary, especially in the ICT sector. These projects, carried out under the banners of "Digital Bangladesh" or "Smart Bangladesh," saw thousands of crores of taka spent with little to no benefit for industries or citizens. Instead, they largely amounted to a waste of resources.

These unrealistic initiatives were often designed and executed with ulterior motives, primarily serving the financial interests of certain groups—much like what we have observed in the construction, power, and energy sectors. However, the ICT sector holds unique potential for positive impact.

In the past five years alone, the now-ousted Awami League government spent at least Tk 5,000 crore on mega infrastructures such as IT parks, hi-tech parks, and data centres. If even a fraction of this had been directed towards fundamental improvements that could tangibly improve the quality of life for citizens, we would not now be reflecting on the last 15 years as a missed opportunity.

Now, with the current political shift, we have an opportunity to address the oversights of the past through structural reforms. I sincerely hope the interim government will prioritise meaningful development that truly meets the needs of the people.

Internet costs must be reduced

One of the key issues I want to highlight is the high cost of internet access in Bangladesh. Many argue that, compared to global standards, internet prices here are relatively low. However, I must point out that, when considered in relation to the purchasing power of the average Bangladeshi citizen, the cost is actually quite high.

For middle-class users, especially those who have access to broadband, the cost is manageable. But it is important to remember that around 80 per cent of Bangladeshis do not have access to broadband. Currently, only 10 million people use broadband, leaving a vast majority—around 80 per cent of the population—without broadband access, a figure that needs to be drastically increased.

A large portion of our population lives in rural areas where establishing immediate broadband access is challenging. These areas rely heavily on mobile data, which remains extremely expensive. Strangely enough, while broadband costs have been dropping globally, mobile data prices in Bangladesh have remained stubbornly high.

The interim government must identify why mobile data costs remain so high despite the global trend of decreasing broadband prices.

Our entire internet infrastructure has become burdened with unnecessary layers, established primarily to serve the interests of large business groups. These layers need to be reassessed and, if necessary, removed. Furthermore, steps must be taken to prevent monopolies in the mobile internet sector. The government should also consider issuing new licences to ensure fair competition if necessary.

It is also concerning that the telecom sector has become one of the government's main revenue streams. When a consumer purchases a Tk 100 voice or data package, as much as Tk 60 goes to the government through various taxes like VAT, supplementary duties, revenue sharing, and social obligation funds.

The telecom sector is a communication medium, not just a revenue-generating industry, and it should be treated as such. It is time to rethink the approach to this sector in light of how the general public uses it. This sector needs reform if we are to make internet access affordable for all, identifying different layers that hinder its reach to the general public and removing them if necessary.

Increasing smartphone usage

Compared to other South Asian countries, smartphone usage in Bangladesh is notably low. Various studies show that fewer than 40 per cent of people in the country use smartphones, while the majority rely on feature phones. In contrast, in countries like Nepal, Bhutan, and India, smartphone usage is between 70 and 80 per cent. This digital divide needs urgent attention.

The interim government could implement policies to make smartphones more accessible. Telecom companies, for example, could offer annual packages in instalments, much like the EMI (equated monthly instalment) systems used in other parts of the world.

If such packages were introduced, smartphones could become more accessible to people across Bangladesh. With policy adjustments from the Bangladesh Telecommunication Regulatory Commission (BTRC), this could be achieved within two or three months.

Once smartphones are more widely available, the government could introduce toll-free services, not just for voice calls but also for app-based services. Government and payment apps, for example, could be toll-free, allowing people to use them without the burden of purchasing data.

If telecom operators and service providers can collaborate on this, it will significantly increase smartphone and data usage among marginalised communities.

Without these measures, the benefits of information and communication technology will remain out of reach for most Bangladeshis. The world is advancing rapidly, and these are primary services that should be ensured first. Investments in mega projects like IT parks and hi-tech parks will mean little to us if basic services like affordable internet and smartphone access are not prioritised.

Tackling issues like corruption, traffic with AI

Corruption, particularly at lower levels, was one of the most problematic issues under the previous government. While many attempts were made to bring transparency through technology, significant challenges remain. The advent of technologies like artificial intelligence (AI) and machine learning could help tackle these issues.

For example, traffic management in Dhaka, which is currently a huge issue, could be vastly improved with AI-driven systems. Many countries have successfully implemented such technology to manage congestion. It is time we explored these solutions.

Corruption is also rampant in many government services. Simply filing forms or submitting tax returns online will not stop bribery. Despite the automation of tax collection, corruption continues. AI and machine learning could help detect trends in corruption and eliminate them.

Much of this corruption happens at lower levels and is often termed "petty corruption." Even well-intentioned government officials can struggle to combat this. Social media offers a powerful tool for the public to expose these activities. People may hesitate to lodge formal complaints with the Anti-Corruption Commission (ACC), but they can make such corruption go viral online, utilising social media platforms, forcing regulatory bodies to act.

We need to work together to ensure transparency, accountability, and efficiency, and modern technology is key to achieving this.

Combating cybercrime

Cybercrime has become a growing concern in recent years. While technological advances have made our lives easier in many ways, they have also facilitated crimes such as hacking, online threats, and financial scams.

A particularly troubling issue involves organised groups who hack into mobile financial service (MFS) accounts, stealing money from unsuspecting individuals. Furthermore, online betting scams have robbed thousands of people of their life savings. These scams often draw people in with misleading advertisements, as seen in the past with companies like Evaly and Destiny.

What is more concerning is the complicity of the media. Even celebrities, politicians, and sports figures like Shakib Al Hasan have been involved in promoting these schemes. These are not just isolated incidents—they are part of an international network of financial criminals.

Through the exploitation of IT and digital payment systems, these scammers have siphoned off crores of taka from the hard-earned savings of thousands of ordinary people. As a result, public trust in MFS has been severely undermined.

To tackle these crimes, the Bangladesh Financial Intelligence Unit (BFIU) of Bangladesh Bank must step up its monitoring and take urgent policy measures. However, one of their key challenges is identifying the real perpetrators. There is a loophole allowing individuals to own up to 15 SIM cards using a single NID, which scammers exploit to carry out their operations undetected.

To address this issue, cooperation is needed between the BFIU, BTRC, the Election Commission, and telecom operators. Policy reforms are essential, and technology must be leveraged to combat this growing threat.

Looking ahead

ICT has the power to transform our lives for the better, and globally, people’s living standards are improving due to technological advances. However, Bangladesh has been left behind in the race for technological advancement. We still lack a robust identity infrastructure, and we must prioritise small, targeted policy implementations instead of continuing to invest in unnecessary infrastructure projects.

Rather than focusing on flashy, unnecessary infrastructure projects, the interim government should concentrate on enacting these policy reforms over the next few years. We may not know how long the interim government will remain in place, but they have a unique opportunity to lay the groundwork for meaningful change in the ICT sector.

AKM Fahim Mashroor is a founder and CEO of Bdjobs.com.

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