BTRC Chairman Envisions ISPs as Digital Service Providers
Internet users in Bangladesh currently pay a 42% tax on their usage, while internet service providers (ISPs) must share 5.5% of their revenue with the Bangladesh Telecommunication Regulatory Commission (BTRC). As a result, out of every 100 BDT earned, 60 BDT goes to the government, impacting not only businesses but also government revenue in the long run. To address this issue and reduce internet costs, the Taskforce on Economic Restructuring has recommended ensuring interoperability, open technology standards, and equitable access in the sector.
During the second session of the two-day recommendation meeting organized by the Centre for Policy Dialogue (CPD) at BRAC Centre in Dhaka on Monday, Fahim Mashroor, co-founder of Bdjobs and former president of BASIS, presented the keynote speech on behalf of the 12-member task force. He highlighted the socio-economic challenges faced by the people of Bangladesh in comparison to other countries. He stated, "The high cost of mobile internet, excessive taxes on consumers, over 20 layers of licensing, and the dominance of only two politically backed NTTN companies in internet imports have hindered access to internet services in remote areas for over a decade."
Responding to these concerns, BTRC Chairman Major General (Retd.) Md. Emdad Ul Bari emphasized the need to increase the productive use of the internet and integrate ISPs as digital service providers alongside connectivity providers.
Criticizing the unproductive use of internet data, he said, "Out of the 6.5 GB of data consumed per person, 60-70% is used for infotainment and social networking. The value of digital services is being shaped from a corporate perspective rather than addressing people’s actual needs. For example, a young boy in a village might be watching BPL online, which is fine, but instead of betting on BPL, he should be searching for information about seasonal seeds, fertilizers, or online loans. Unfortunately, large corporations are not addressing this need."
Referring to the evolution of the telecom sector, he added, "In the 1990s, inclusion and connectivity progressed hand in hand. During the transition from the MDGs to SDGs, data became an integral component. When the world was engaged in the Cold War, it was realized that development cannot rely solely on government initiatives; private sector involvement was necessary. That’s when regulators came into play. Over time, the telecom sector developed multiple gateways, necessitating accountability. Although reducing the number of licenses would be beneficial, the interests of stakeholders must also be considered."
He pointed out that many unnecessary licenses issued in 2010 under the government's telecom policy have now become major obstacles to reducing internet costs. "We often forget that telecom today is a facilitative sector, benefiting every industry. Those investing in this sector should not merely aim for a large consumer base; rather, they should see consumers as investment partners."
To address these issues, he announced that BTRC is working towards balancing the interests of the government, businesses, and consumers. "We have identified disparities among these three stakeholders and are now prioritizing equal participation to make consumer services sustainable. To achieve this, we are simplifying network topology entirely, which is expected to be completed by the end of March or April," he added.
Earlier, in his presentation on digital transformation and inclusive growth of the MSME sector, Fahim Mashroor emphasized the importance of leveraging technology to ensure efficiency and accountability in public services. He remarked, "We have heard many appealing narratives about digital services, which have led to some flawed policies. Yet, we have failed to deliver citizen services effectively due to a lack of good governance and transparency. Despite our claims of digital transformation, sectors like healthcare and education still suffer from a shortage of skilled manpower for technology-based solutions."
He also questioned Bangladesh's preparedness for AI adoption, a topic recently emphasized by the Chief Advisor in Cairo. "Are we ready for the technological advancements in robotics and AI? How prepared are our export sectors, including the garment industry, to face the global competition arising from these technologies?" he asked.
Referring to the July protests that were driven by unemployment issues, he noted, "Even now, we have millions of unemployed youths and graduates, yet we are doing little to transform them into a skilled workforce. To ensure future success, we must revamp our digital strategy by ensuring affordable digital inclusion, accelerating an innovation culture, establishing a reliable and sustainable digital infrastructure, and developing a highly skilled workforce for digital services."
Citing data from the Bangladesh Bureau of Statistics (BBS), he stated that more than 50% of the country’s population remains without internet access, with only one-third of users residing in remote areas. Compared to neighboring countries like India, Pakistan, and Indonesia, Bangladesh lags by over 30% in internet usage and device ownership. While mobile users consume an average of 6.5 GB of data per month, broadband users in urban areas consume around 150 GB, meaning urban dwellers use 20% more data than their rural counterparts.
Telecommunications and ICT expert Mustafa Mahmud Hussain pointed out that local entrepreneurs offering unlimited internet services for as low as 500 BDT still face high costs. "Out of this 500 BDT, 30% goes to NTTN, 20% covers bandwidth costs, and the rest is spent on HR expenses. However, the entire amount remains within the country," he explained.
Discussing the keynote presentation, Dr. Manzoor from BIDS, Dr. Shahadat Khan, CEO of Talikhata, telecom expert Rakibul Hasan, Wasim Alim, co-founder of Chaldal.com, Shawkat Hossain, president of the Venture Capital Association, Hossain Sadat, senior director of Grameenphone, Mohammad Sahedul Alam, company secretary of Robi, and Raisul Kabir, CEO of Brain Station, shared their insights.
ICT Secretary Shish Haider Chowdhury joined the discussion virtually, while panel speakers included Sadia Haque, co-founder and CEO of ShareTrip, Nazim Sattar, Deputy Managing Director of SME Foundation, Nowshar Ali from Bangladesh Bank, telecom expert Mahtab Uddin Ahmed, and Miss Martin, interim country manager of the World Bank.
