We can celebrate Bangladesh has made notable strides in its digital transformation over the past decade with digital platforms like foodpanda, Daraz, Shikho, and Sheba XYZ are at the forefront of the digital economy, transforming how businesses operate and how people live. These platforms facilitate MSMEs, optimize supply chains, create employment, and promote transparency through recorded, cashless transactions across various sectors. The Bangladesh Telecommunication Regulatory Commission's (BTRC) August 2024 report highlights that nearly 140 million people are now online, and millions of debit, credit, and prepaid cards are in circulation. This clearly indicates a significant shift toward digital payments and a modernized economic structure.
However, the perception of progress does not always align with reality. While this transformation appears impressive on the surface, it remains far from complete. Bangladesh's digital advancement, though commendable, is nowhere near the level of some neighboring countries in the subcontinent or ASEAN nations. Countries like India and Vietnam have seen their digital ecosystems flourish at an accelerated pace, leaving Bangladesh trailing behind.
Despite these encouraging statistics, over 40% of the population remains disconnected, and nearly 60% still lack access to smartphones. This highlights the digital divide that continues to challenge inclusive growth in the country. Thus, the crucial question arises: with which countries are we drawing parallels, why are we falling behind, and what must we do to bridge this gap?
This discrepancy is largely due to the current definition of digital inclusion, which is misleading; an "internet user" is defined as someone who has used just 125KB of data in the last 90 days.
To unlock the true potential of the digital revolution, we must adopt a more meaningful metric, such as defining a user as someone who consistently consumes at least 1GB of data over three consecutive months on a smartphone. Additionally, we must urgently address the barriers to increasing digital access and usage that drive transformation, similar to the successes seen in our peer countries.
To achieve similar progress in Bangladesh, we should consider declaring the internet a public utility, akin to electricity and clean water. Affordable, high-quality internet is not merely a convenience; it is a gateway to education, entrepre- neurship, and financial inclusion. For students in remote villages, the internet offers learning opportunities that traditional education may not provide. For small business owners, it opens new markets both locally and globally.
To drive greater internet adoption and ensure consistent connectivity, one effective strategy could be introducing affordable 30-day auto-renew data packs. By offering these packs with a lower cost per GB than any other option.
The Importance of Smartphones
In addition to reducing internet costs, encouraging telecom operators to provide smartphones on installment plans could significantly increase the number of active users. While nearly 74% of the population owned a smartphone by 2023, according to the Bangladesh Bureau of Statistics, many low-income families still find the cost of devices unaffordable.
To build a truly inclusive digital economy, we must make both internet access and smartphones affordable. The govern- ment could play a pivotal role by offering subsidies or tax incentives to smartphone manufacturers and distributors, thereby lowering the cost of devices and making them accessible to more people. By enabling broader smartphone ownership, we can ensure wider participation in the digital economy, where mobile wallets, e-commerce platforms, and other digital services can drive economic growth.
Digital Literacy and Cybersecurity
Above all, these efforts must be complemented by initiatives to improve digital literacy. Many small businesses, consumers, and micro-entrepreneurs lack the skills to fully leverage digital platforms. Public-private partnerships could play a key role in building awareness, providing training, and empowering the next generation of digital entrepreneurs.
At the same time, cybersecurity must be a top priority. As more people engage in digital transactions, ensuring data protection and cybersecurity is crucial to maintaining trust in digital platforms. Without a robust cybersecurity framework, the progress of the digital economy could be undermined. Policymakers should invest in cybersecurity measures and enforce strict data protection regulations to safeguard both consumers and businesses.
A Collaborative Approach for a Digital Future
The student-led movements that gained momentum across the country would not have been possible without a critical mass of internet users. Now, it is essential to harness this momentum and promote collaboration among policymakers, businesses, and innovators to close the digital divide. Meaningful regulatory autonomy is vital for facilitating necessary reforms in the telecom sector. To enable operators to offer affordable data plans, we must alleviate the tax burden by lowering VAT, supplementary duties, and regulatory fees. While taxes on voice and SMS services may remain unchanged, supplementary duties and VAT on data revenue should be minimized or eliminated. Additionally, the BTRC should ease ecosystem costs and spectrum fees to encourage greater investment in network improvements.
Through collaboration and strategic reforms, we can unlock the full potential of our digital economy and build a future that is equitable for everyone. If Bangladesh can achieve a user base of 100 million monthly active internet users, we can anticipate waves of foreign investment, increased venture capital, and a surge in startups, employment, and innovation, this approach would help ensure that the digital transformation is not merely surface-level but deeply integrated, positioning Bangladesh to compete more effectively with its neighboring countries in the digital race.
