A study reveals that, given the right conditions for growth, Bangladesh could have nearly 20 million Internet subscribers by 2020. The study titled “Towards a Connected Bangladesh: Socio-economic Impact of Internet in Bangladesh Economy,” was released with a press conference organized on the sidelines on the last day of the on-going GSMA Conference on Thursday, 21 January 2010.
According to the findings of the report, “with the appropriate initiatives and policy frameworks in place, analysis suggest 18.3 million Internet subscribers in Bangladesh by 2020, equaling approximately 10 subscribers per 100 inhabitants.” These figures translate to a household internet penetration level of 32%, and business adoption of around 66%.
Internet penetration has become a major indicator of social/economic development as countries are using Internet to participate in the international economy and to exploit emerging technologies for the betterment of citizens’ life, modernizing both institutions and markets.
The internet study was conducted by the Boston Consulting Group (BCG) on behalf of the Telenor Group, the majority shareholder of Bangladesh mobile operator Grameenphone. The BCG report was part of an in-depth research into the adoption rate of Internet and its impact in the emerging economies with special focus on Bangladesh, Thailand and Serbia.
Currently about 5 million people in Bangladesh use Internet services offered by both mobile and fixed Internet service providers. Only around 4% of the total population is now connected to Internet – fairly lower than what we see around the neighboring countries. According to a report published by the International Telecommunication Union, Bangladesh has the second lowest Internet penetration in the region.
Governments and regulators play a crucial role in creating awareness and opportunities to experience benefits of Internet. The report indicates the Bangladesh government's policy directive to “ensure Internet for all” highlights the importance of Internet at the policy level, adding that the ICT Policy 2009 has specific direction and guidelines reflecting most of the priorities of the‘Digital Bangladesh’ agenda.
In terms of overall GDP contribution in 2020 for Bangladesh, the report states that Internet is expected to contribute 2.6% of total GDP and suggests that a 10 percentage in Internet penetration is correlated with a 1% increase in the annual rate of new business formation; calculating the creation of over 129 K jobs alone in Bangladesh by 2020. The bulk of the GDP contribution coming from the increased productivity Internet users enjoy, in services, manufacturing, including agriculture, as well as increased diversification of sources of income.
BCG advocates in the study that government and regulators have the responsibility of ensuring that there is a high quality regulatory regime in place as well as the correct policy measures, for example supporting the dispersion of tele-centres and focusing on IT literacy in schools.
The findings are very optimistic about the potential of the telecom industry of Bangladesh with its footprint in every aspect of Bangladesh's socio-economic life. The report concluded that due to limited coverage and poor quality of fixed lines in Bangladesh, it is likely that the majority of Internet subscribers in Bangladesh will be using wireless technologies and that provided with the appropriate investments, over 90% of connections could be wireless in 2020.
Corporate Communication Department
Grameenphone Ltd.
Telephone: 9882990
Website: www.grameenphone.com