The digital economy in Bangladesh has grown rapidly, with telecom companies playing a crucial role in its transformation. By expanding network infrastructure and making internet access widely available, telecom operators have become the catalysts for reshaping the country's society and economy.
The key players in telco have enabled financial inclusion, digital education, e-commerce, and remote access to vital services, creating new opportunities for millions of people. As Bangladesh aims for even greater digital growth, under- standing the achievements so far and the challenges ahead is essential.
Milestones of the Digital Economy
The rapid growth of Bangladesh's digital economy can be attributed to the pivotal role of telecom companies, which have enabled significant technological advancements across the country. Telecom companies have collectively led the expansion of 4G networks across Bangladesh, making high-speed internet available in rural and remote regions. This has provided over 120 million users with access to digital services, ranging from online banking to virtual education.
The rise of mobile financial services (MFS) like bKash and Nagad has been fueled by the widespread availability of mobile networks. Telecom companies have enabled secure, user-friendly digital payment platforms, helping millions of previously unbanked individuals to participate in the formal economy through digital transactions.
High-speed internet has allowed e-commerce platforms like Daraz and Foodpanda to thrive, enabling small business- es to reach a larger customer base. By offering affordable data packages, telecom companies have supported the growth of digital entrepreneurs and startups, contributing to job creation and economic development.
By extending network coverage, telecom operators have made digital services accessible in rural areas, helping to bridge the gap between urban and rural populations. Digital tools such as Krishi Sheba provide agricultural information to farmers, while online learning platforms like 10 Minute School deliver education content to students in remote locations.
During the COVID-19 pandemic, telecom companies played a vital role in maintaining business continuity by increasing network capacity and offering affordable data packages for remote work and online classes. This ensured that businesses, schools, and healthcare services could operate despite the disruptions.
Challenges to Overcome for the Next 3-5 Years
While the digital economy in Bangladesh has made impressive progress, several challenges remain at large. Telecom companies must address these problems to ensure sustained growth over the next 3-5 years.
One key pain point that keeps creating challenges for the industry is High spectrum cost. It continues to be a barrier for telecom operators, affecting their ability to invest in new technologies. Affordable spectrum pricing is critical for the 5G rollout, which will be essential for smart cities, loT applications, and enhanced digital services. Collaboration with the government is needed to ensure cost-effective spectrum access.
Moreover, the transition to 5G technology requires substantial investment in network modernization and fiber optic infrastructure. The support of public-private partnerships will be key to making these investments sustainable, allowing telecom companies to provide ultra-fast, reliable connectivity that can support digital transformation across sectors. Expansion infrastructure is important to support the growing need for connectivity. But bureaucratic hurdles and complex regulations around obtaining licenses and permits slow down the deployment of new telecom infrastructure. A single-window approval system would streamline these processes, enabling telecom companies to expand their network more efficiently and support the digital economy's growth.
As mobile financial services and online transactions become more common, the need for robust cybersecurity measures is critical. Telecom companies must collaborate with the government to develop strong data protection policies and cybersecurity frameworks to ensure user trust and secure digital transactions.
Operating telecom towers and data centers comes with high energy demands. As the digital economy expands, energy costs and power reliability will continue to pose challenges. Investing in renewable energy solutions like solar-powered towers can help reduce operational costs and contribute to sustainable digital growth.
To address these challenges and drive further digital transformation in Bangladesh, telecom companies should focus on the following priorities over the next 3-5 years:
• Affordable 5G Rollout: Collaborating with regulators to achieve affordable spectrum pricing and leveraging international partnerships will enable telecom operators to roll out 5G services. This will support automation, smart manufacturing, and real-time digital services, propelling Bangladesh's economy forward.
• Partnerships for Digital Literacy: Raising digital literacy is essential for a digitally inclusive society. Telecom companies can partner with educational institutions and community organizations to educate users on digital tools and services, ensuring that more people can safely navigate the digital space.
• Support for Local Innovation: Encouraging local app developers and content creators can help build Bangla- desh-specific digital solutions. Telecom companies can foster innovation through startup accelerators and innova- tion hubs, creating a pipeline of homegrown digital solutions that meet the needs of the country's diverse population. • Strengthening Cybersecurity: As digital adoption increases, investing in cybersecurity infrastructure is critical. This includes training and awareness programs for users on secure digital practices. Strong cybersecurity measures will ensure the safety of the digital ecosystem and help telecom companies maintain consumer trust
• Sustainable Energy Solutions: To address energy challenges, telecom companies should focus on renewable energy initiatives for their network operations. This would help reduce the carbon footprint of digital infrastructure while ensuring uninterrupted service, especially in areas prone to power outages.
Bangladesh has achieved great success in terms of connectivity through a revolution in the telecom sector, but we still have a long way to go. If we can work together, bring industry stakeholders on the same page, our combined efforts will go the extra mile to achieve the digital dream for millions.
