By Saiful Islam Siddique
On June 3, 2011, the United Nations Human Rights Council declared internet access a fundamental right. Even before this proclamation, nations like Estonia, France, Finland, and Costa Rica had legislated to recognize internet access as a basic right. In recent years, similar demands have gained momentum in Bangladesh, with calls echoing from both former ministers and current advisors.
However, the unprecedented internet blackout from July 18–28 this year severely violated this right. The issue subsequently dominated discussions, with proposals emerging to ensure uninterrupted internet access and make it universally affordable through legislation.
In this context, the country’s internet service sector finds itself in a paradoxical situation, embodying the nation’s technological potential while grappling with systemic obstacles. Although the Internet Service Providers (ISPs) operate as a “social business,” focusing on welfare over profit, they face significant challenges such as halted license upgrades, excessive revenue sharing demands, and systemic constraints.
ISPs as Catalysts for Social Good
The ISP industry in Bangladesh has embraced a social business model, striving to alleviate poverty and income inequality. This sector, long viewed as merely a bandwidth reseller, is now recognized as a dynamic digital ecosystem that facilitates employment, streamlines processes, and empowers citizens. These benefits, however, often remain invisible to the casual observer.
In the past three years, the “One Country, One Rate” policy has exemplified the ISPs’ commitment to delivering affordable internet nationwide. The sector’s contributions align with the “Triple Zero” goals of zero unemployment, zero carbon emissions, and shared infrastructure. ISPs have made strides in sustainability by using green technologies and creating jobs, particularly for underprivileged and youth populations.
The Social Business Model: Impact and Challenges
The ISP sector’s contributions include:
- Welfare-Driven Operations:
Despite licensing hurdles, ISPs deliver last-mile connectivity through a nonprofit model, prioritizing service over profit. - Employment Generation:
The sector employs individuals across educational levels, offering fair wages and a conducive work environment, thereby reducing unemployment and associated social issues. - Minimal Financial Gains:
ISPs rely solely on domestic investments, with breakeven often taking 10–15 years. Investors typically recover only their initial capital, with little to no dividends. - Systemic Losses:
Daily disruptions like cable cuts impose significant costs on ISPs, who must reinvest earnings into maintaining and expanding their networks. - Safety and Security Risks:
ISPs frequently face threats to infrastructure and personal safety, with limited support from law enforcement. Despite these challenges, they have remained resilient, providing essential services even during natural disasters and pandemics.
Policy Roadblocks and Industry Appeal
ISPs have pioneered innovative services such as IPTV and OTT platforms, but restrictive policies have stifled their growth. These hurdles, coupled with the dominance of syndicates and monopolistic practices, hinder the industry’s potential.
A Call for Action
To unlock the full potential of the ISP sector, the following measures are essential:
- Policy Support: Recognize ISPs as a social business and exempt them from taxes and revenue-sharing obligations for the first 10 years.
- Access to Capital: Facilitate SME loans and flexible repayment options for ISP entrepreneurs.
- Encourage Investment: Attract global data center providers like Google and Facebook to establish facilities in Bangladesh, reducing dependency on expensive imports.
- Boost Global Competitiveness: Provide incentives to offer high-speed broadband at affordable rates, aligning with global standards.
ISPs have already proven their role as a transformative force in Bangladesh’s socioeconomic landscape. With targeted support and policy reform, the sector can drive the nation toward achieving universal connectivity and securing its place among technologically advanced nations.
Saiful Islam Siddique is an entrepreneur, technologist, and former Senior Vice President of ISPAB.
