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The National ICT Policy of Bangladesh, Digital Bangladesh 2021, and Vision 2041 goals, enacted in 2018, have encountered challenges. Issues such as corruption, power misuse, and high-profile interventions have resulted in negative impacts on infrastructure, governance, and transparency.
The ICT Ministry of the fascist government received BDT 23,674 crore/$ 2.52 billion for Digital Transformation & Smart Bangladesh projects. Reports (TIB, alleged & internal sources) suggest that 25% to 40%, around BDT 6,000 to 10,000 crore/$1.06 B, is mired in corruption, mismanagement, and inefficiencies.
Inadequate Infrastructure Policy & Planning:
The absence of an actionable infrastructure policy within the National ICT Policy has led to significant challenges. The lack of a comprehensive plan for High-speed internet, particularly in rural and remote areas, has resulted in limited access, hindering economic growth and digital service availability.
Moreover, the prevalence of frequent power outages and inconsistent electricity supply poses substantial obstacles to maintaining stable ICT infrastructure across various regions of the country.
The insufficient infrastructure policy and planning within Bangladesh’s ICT sector presents a considerable obstacle to realizing digital transformation and fostering economic growth.
By tackling challenges such as limited broadband access, sluggish 5G rollout, antiquated telecommunications infrastructure, and fragile public-private partnerships, the nation can fully harness the capabilities of its digital economy. The establishment of thorough, long-term infrastructure strategies and the promotion of sustainability will be essential for Bangladesh to remain competitive in the global digital arena.
Corruption in ICT Projects:
Large-scale ICT projects under the Digital Bangladesh agenda have encountered challenges. Issues of corruption and mismanagement of funds have come to light, particularly in tenders and contracts for ICT infrastructure development, including broadband expansions and e-governance platforms. Criticisms include allegations of favoritism towards specific companies or individuals linked to the political elite.
There has been a concerning lack of transparency and accountability in procurement processes within numerous ICT projects. Allegations suggest that contracts are being awarded based on political connections rather than merit, leading to subpar services, project delays, and increased costs.
There are challenges, including the existence of ghost projects, inflated contract prices, nepotism, favoritism, and political influence.
There are allegations of bribery and kickbacks associated with public contracts in the ICT sector. These practices not only undermine the integrity of the sector but also inflate the cost of ICT projects, making them less accessible to the broader population.
Corruption within ICT projects in Bangladesh represents a considerable obstacle to the nation’s digital transformation and economic progress. The misappropriation of funds, insufficient transparency in procurement processes, political meddling, and inadequate enforcement mechanisms diminish the efficacy of ICT initiatives.
To address this issue, Bangladesh must implement more robust oversight, ensure transparent procedures, and promote public accountability in the management of ICT projects. Mitigating corruption will be essential for realizing these objectives.
Absence of Comprehensive Cybersecurity & Data Protection Policy & Laws:
The absence of comprehensive cybersecurity and data protection policies in Bangladesh presents significant challenges in securing digital infrastructure and safeguarding sensitive information such as national sensitive data & information, organizational information, and personal data. With rising cyberattacks and a lack of strong defenses, there is a pressing need to enhance cybersecurity measures to protect personal and business data effectively.
Without adequate policies in place, users remain vulnerable to privacy breaches and cybercrime, highlighting the urgency for the development and implementation of a cohesive cybersecurity strategy and data protection framework. This initiative should include updated legislation, robust enforcement mechanisms, and dedicated regulatory bodies to fortify ICT infrastructure.
By improving security in digital services, trust can be established, fostering the growth of the digital economy. Strengthening cybersecurity practices is essential to mitigate risks and ensure a safe digital environment for all stakeholders.
Inefficient Digital Governance Transformation Policy in Bangladesh:
Most government functions still rely on manual processes, slowing service delivery and reducing transparency. Resistance to adopting ICT-driven solutions within government bodies hampers the full implementation of Digital Governance Transformation initiatives. Slow adoption of technology, bureaucratic resistance, lack of integration, coordination, accessibility, transparency & accountability, inadequate infrastructure, and concerns about security and privacy.
Addressing these issues requires a comprehensive approach that includes improving inter-agency coordination with EQ/EI, investing in infrastructure, enhancing training and capacity-building, and ensuring transparency and accountability in digital governance initiatives.
By addressing these challenges, Bangladesh can improve its digital governance and better serve its citizens through more efficient and accessible public services.
Regulatory Challenges:
The ICT policy is diverse and complex, encompassing issues related to outdated & ambiguous regulations, unclear Guidelines, inconsistent enforcement, bureaucratic inefficiencies, and gaps in data protection, digital rights, and cybersecurity.
There is Inconsistent Implementation which undermined the effectiveness of regulatory frameworks and created an uneven playing field. Lack of clear enforcement mechanisms and resources for monitoring compliance.
There are gaps in the implementation and enforcement of ICT regulations. This is due to a lack of clear enforcement mechanisms and resources for monitoring compliance.
The Digital Security Act has been evident for its potential to curb freedom of expression online, creating fear of censorship and stifling innovation, Regulatory Capture, and Political influence.
The Digital Security Act has been demolished and needs to be rewritten with the new policy to address Data protection, digital and Cybersecurity with the consideration of humanity and Emotional Intelligence.
Addressing these challenges requires a concerted effort to update and streamline regulations, enhance enforcement mechanisms, and ensure that policies are aligned with current technological trends and public needs.
By doing so, Bangladesh can create a more effective and supportive regulatory environment that fosters innovation, protects stakeholders, and drives the growth of the digital economy.
Digital Divide:
Significant gaps exist between urban and rural areas in terms of internet access, digital literacy, and infrastructure. Many rural areas still lack reliable broadband connectivity and mobile network coverage, leaving large portions of the population excluded from the benefits of ICT.
Addressing this divide requires ICT policy reformation and smart planning with a comprehensive approach that includes improving ICT infrastructure in rural areas, enhancing digital literacy and skills training, reducing socioeconomic barriers to technology access, and implementing targeted policies to support marginalized communities.
By bridging the digital divide, Bangladesh can foster greater social inclusion, economic opportunity, and overall progress in the digital age.
Internet Speed Challenges
Low Average Internet Speed, Infrastructure Deficiencies, High Latency & Network Congestion, Bandwidth & Capacity Limitations, lack of alternative internet gateways & Connectivity
redundancy policy, Regulatory and Policy Gaps, Lack of Effective Oversight, Inadequate Focus, Lack of Competition among ISPs, and Lack of Transparency are significant barriers to the country’s broader goals of digital transformation, economic growth, and social inclusion.
To overcome these obstacles, a more comprehensive ICT policy that focuses on both expanding internet access and improving the quality and speed of internet services is required. Have to define appropriate planning for internet gateways & connectivity with alternative options like submarine, Starlink, and satellite vendors & proper redundancy policy & mechanism.
By addressing these speed-related issues, Bangladesh can enhance its digital ecosystem, improve economic opportunities, and close the digital divide.
Inadequate ICT Pricing Policy:
Pricing regulations for ICT services may be inadequate, leading to potential monopolistic practices or lack of competitive pricing. Without effective regulation, service providers may charge higher prices without corresponding improvements in service quality or coverage. It contributes to barriers to access, affordability, and digital inclusion especially Expensive Internet Access, Limited Affordable Options, Device Pricing, and Accessibility.
There may be inconsistencies in ICT pricing policies, leading to confusion and disparities in pricing across different regions and service providers. ICT pricing policies may not be regularly updated to reflect changes in technology, market conditions, or consumer needs.
This can result in outdated pricing structures that do not align with current market realities.
Lack of a Comprehensive Data Center Infrastructure Policy:
The challenges associated with data center infrastructure within Bangladesh’s ICT policy pose a considerable obstacle to the nation’s aspirations for digital transformation and the establishment of a strong digital economy under the Bangladesh 2.0 initiative.
Critical issues that require attention include the inadequate number of data centers, resistance to adoption, deficiencies in governance, regulatory inconsistencies and gaps, challenges related to capacity and scalability, the absence of disaster recovery and business continuity plans, as well as limited adoption of cloud services.
· It is essential to foster collaboration between the government and major Hyperscale Cloud Providers, including Amazon AWS, Google Cloud Platform (GCP), and Microsoft Azure.
· The Policy needs to define funding and investment in cloud computing and edge computing must be prioritized, particularly concerning local data center infrastructure and improving inter-agency coordination with EQ/EI
· Establishing regulatory frameworks is necessary to guarantee that data center operations comply with international reliability, local and geo-redundancy, disaster recovery, cyber security, physical security, and environmental sustainability standards.
· There is a need for the formulation of robust data protection and cybersecurity legislation to protect data and build trust in local data services.
· Incentives, such as tax reductions and subsidies, should be offered to companies that invest in data center infrastructure and sustainable technologies.
· Enhancing the data center infrastructure is vital for Bangladesh to advance towards a digitally empowered economy, enhance e-governance, promote innovation, and ensure national data security.
Challenges in Telecom:
The Telecom industry in Bangladesh, along with the Internet of Things (IoT) and 5G technologies, presents significant opportunities for advancing digital transformation. Nevertheless, various challenges within the ICT policy framework impede the complete realization of this potential. These obstacles impact infrastructure, regulatory structures, and the overall execution of initiatives.
It is crucial to address several key challenges, such as Spectrum Allocation and Pricing policies, insufficient telecom infrastructure, regulatory complications, the absence of a comprehensive strategy for 5G and IoT, and existing regulatory and policy deficiencies.
To effectively tackle the issues within the telecom sector, as well as the deployment of IoT and 5G, substantial reforms in Bangladesh's ICT policy framework are necessary.
Establishing a more robust policy environment that encourages investment in telecom infrastructure, ensures secure IoT deployment, and accelerates the adoption of 5G is vital for promoting the nation’s digital transformation.
Immediate focus on critical areas such as spectrum allocation, infrastructure enhancement, cybersecurity, and collaboration between public and private sectors is essential to overcome these challenges and fully harness the advantages of contemporary digital technologies.
Absence of a Digital payment ecosystem:
Bangladesh Bank or an impartial organization needs to facilitate interoperability among banks, mobile financial services (MFS), and payment gateways. This initiative would simplify the payment process for customers across various platforms, leading to more efficient transactions.
Furthermore, there is a need to proactively engage and attract international payment gateways such as PayPal, Stripe, and Google Pay to operate with greater flexibility within the country. Additionally, it is important to encourage global credit card companies like MasterCard and Visa to establish their operations in Bangladesh.
Investment in the enhancement of digital payment infrastructure is crucial, encompassing improvements in internet connectivity, secure data centers, and innovative fintech solutions. A robust infrastructure will significantly enhance the speed, reliability, and security of payment processing.
Enhance cybersecurity measures for payment gateways to safeguard against fraud, hacking, and data breaches. This may involve adherence to international standards such as PCI-DSS (Payment Card Industry Data Security Standard) and the implementation of SSL encryption to facilitate secure transactions. Develop comprehensive anti-fraud and anti-money laundering (AML) strategies for payment gateways, aligned with global best practices. This could encompass the enforcement of mandatory two-factor authentication (2FA) and Know Your Customer (KYC) protocols for both consumers and businesses.
Regulatory reforms, advancements in infrastructure, the promotion of financial inclusion through digital financial services, online payment gateway, international credit cards, and the encouragement of interoperability among payment platforms will drive the expansion of the e-commerce sector, enhance financial inclusion, and stimulate economic growth. A transparent, secure, and user-friendly payment gateway ecosystem is essential for realizing a Dream Bangladesh 2.0.
Lack of Transparency and Accountability:
High ICT costs can be a barrier to the growth of businesses, particularly small and medium-sized enterprises (SMEs) and startups. High expenses related to digital tools, services, and infrastructure can limit their ability to innovate and compete.
Addressing these challenges requires a multifaceted approach, including reformation of policy, improved regulation, increased competition, support for infrastructure development, and targeted measures to make ICT services and devices more affordable. By implementing these changes, Bangladesh can enhance digital access, foster economic growth, and bridge the digital divide.
Lack of Digital Literacy and Skilled Workforce:
Numerous educational institutions and regions are deficient in resources, infrastructure, and qualified educators necessary to provide a thorough ICT education.
There exists a significant shortfall of skilled professionals in essential domains such as cybersecurity, artificial intelligence (AI), big data, and software development.
Insufficient training and upskilling opportunities in advanced ICT sectors for employees, particularly in rural regions, hinder the overall competency of the workforce.
Emphasizing digital literacy and enhancing workforce skills will enable Bangladesh to address a significant obstacle in its digital transformation journey.
The government, educational institutions, and private sector need to collaborate effectively in cultivating a workforce that can guide the nation towards a future where digital technologies play a pivotal role in economic and social advancement.
Limited R&D and Innovation:
Bangladesh’s dependence on foreign enterprises for hardware, software, products, services, and skilled personnel significantly hampers the advancement of local innovation and Research and Development (R&D).
Several critical challenges need to be addressed, including inadequate investment in R&D, weak collaboration between universities and industries, restricted access to funding and resources, brain drain, and a deficiency of specialized research facilities.
Enhancing RD, along with innovation, is essential for the digital transformation of Bangladesh. By boosting investments, fostering an environment that encourages contributions from highly skilled professionals and academics residing abroad, promoting collaborations between academic institutions and the industry, and creating a supportive ecosystem, Bangladesh can overcome its current challenges and establish itself as a hub for technological innovation in the region. By prioritizing domestic research and development, the country can cultivate a sustainable, inclusive, and globally competitive digital economy.
Absence of a robust sustainability and e-waste management policy:
The nation currently lacks a comprehensive strategy to address the escalating issue of electronic waste (e-waste), which poses significant environmental hazards. Efforts to promote sustainable and energy-efficient practices within the ICT sector remain insufficient, further exacerbating environmental deterioration.
The deficiency in sustainable practices and effective e-waste management within Bangladesh’s ICT industry is a pressing concern that demands immediate action. In the absence of well-defined policies and frameworks, the adverse environmental and health consequences associated with e-waste are likely to intensify. By implementing stringent regulations, enhancing public awareness, fostering corporate accountability, and investing in environmentally friendly technologies, Bangladesh can confront these issues and progress towards a more sustainable and environmentally responsible ICT environment.
Shape the Future:
The government's next ICT endeavor could be a game-changer with a Transformation Budget of BDT 4,000 crore, just half of the lost to corruption.
Visionary leadership and effective management will be crucial in this journey. To ensure success, onboarding highly skilled personnel is key. These individuals will drive outcomes by establishing policies & strategies, planning & designing, and implementing initiatives.
With a 2-year timeframe, this initiative is projected to generate BDT 60,000 crore annually within five years. It will significantly enhance the socioeconomic status of the country and positively impact the quality of life.
This includes revenue from innovative software, services, products & skilled human resources, and savings from enhanced transparency & efficiency across various sectors & emerging services from the transformed sectors like:
Public Administration: Electronic filing of government documents, digital records, digital signing, and 2E digital transformation of Secretariat.
Healthcare: Digital records, telemedicine, and AI-driven diagnostic services.
Power and Energy: Smart grids and predictive maintenance systems.
Banking and Economy: Enhanced e-governance and fintech solutions.
Transportation and Railways: IoT-enabled management and ticketing systems.
Exciting prospects lie ahead for the ICT landscape, digital economy, and Dream Bangladesh 2.0 with this transformative initiative.
Final remark:
To overcome all these complex challenges requires a comprehensive, holistic multipronged, experiential, and innovative policy & strategy that addresses regulatory, infrastructural, social, and economic issues simultaneously. With effective & diligent planning, stronger & enhanced regulations, and a focus on inclusivity, we will be able to achieve our Dream Bangladesh 2.0, foster innovation, and create a sustainable digital economy.
A collaborative effort involving the government, private sector, civil society, and intellectual experts both domestically and internationally, akin to a team of Collective Genius and international partners will be crucial for effectively navigating these obstacles and realizing the vision of Dream Bangladesh 2.0.
Engr. Johnny Shahinur Alam
Technologist and ICT & Digital Transformation Specialist