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Expert Group Meeting on Regional Cooperation towards Building an Information Society in Asia and the Pacific

Bangkok , Thailand20-22 July 2009

SASM TaifurICT AdvisorInfrastructure Investment Facilitation Center (IIFC)IDB Bhaban (6th floor), Sher-e-Bnagla Nagar, DhakaBangladeshE-mail: jcecnec2002@yahoo.comWeb: www.iifc.net

Situation of Information Society in Bangladesh

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Brief Overview• Brief Introduction of

Bangladesh• Progress on MDG• Progress on PRSP• Progress in Bangladesh to

Towards Building Information Society (C1-C11).

• Problems and constraints• Recommendations

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Public Administration

Division 6

Zila 64

City Corporation 6

Municipalities 308

Upazila 481

Thana 596

Union 4498

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Economic IndicatorsSl no Indicator As per 2009

1 Population (in million) 140.40 (estd 08)

2 Literacy Rate 51.6%

3 Percentage of population below poverty line 40%

4 Life Expectancy at Birth (Years) 64

5 Infant Mortality Rate (per 1000 life birth) 54

6 Tele-density 34.05

7 Growth of Cellular Phone Industry 135%

8 House hold with Electricity (%) 44.23%

9 Household access to Computer (%) 1.36%

10 Household access to e-mail (%) 0.20%

11 Annual population Growth (%) 1.9%

12 Per Capita Income in US $ 695

13 GDP Growth Rate (Annual) 6.0%

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Progress on MDGSl no Goal Progress

1 Eradicate Extreme Hunger and Poverty

Poverty Reduction Gap Ratio decreased to 9% with Poverty Reduction Rate 1.23%

2 Achieve universal Primary Education

Primary and Secondary Students enrolment against the target of 3.1% and 10.3% have been achieved by 3.4% and 13.2% respectively.

3 Promote Gender equality and empower women

Gender gap in the school has been eliminated.

4 Reduce Child Mortality Expected to achieve by 2015

5 Improve Maternal Health In progress

6 Combat HIV/AIDS, Malaria and other diseases

Spread of Malaria and TB has been decreased substantially. Spread of HIV AIDS remains very low.

7 Ensure Environmental Sustainability

Remarkable progress achieved in safe drinking water and sanitary latrines in urban areas.

8 Develop Global Partnerships for Development

Access through Telephone/cellular is significant. But access to computer and Internet is low.

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PROGRESS ON PRSPSl No PRSP Goal Achievement

1 Development of ICT for growth and Poverty reduction

a) ICT Policy has been framedb) E-Government initiatives in many areas have been takenc) ICT Task Force has been formulatedd) Copy right Act has been formulatede) ICT Act has been approved.

2 Human Resource Development

a) Standard Computer training courses at the Division Head Quarters introducedb) One year Diploma Course in Universities introducedc) Registration and ranking of Private ICT training program initiatedd) National ICT certification Examination introducede) Computer aided learning packages introducedf) Employment of youths ITES service introducedg) An ICT business council establishedh) An institute called Bangladesh Korea Institute of ICT has been set upi) Establishment of Hitech park is underwayj) ICT Incubator has been set up

3 Access to the disadvantageous groups to ICT

Several initiatives have already been taken and some are underway, such as:a) Assistance to Secondary Schools for introducing Computer coursesb) Introduction computer training and internet facilities for rural secondary and higher secondary

schoolsc) Development of ICT curriculum for SSC, HSC and college leveld) Establishment of research institute as a “Center of Excellence”e) Establishment of Olympiad competition for primary secondary and university levels in ICTf) Establishment of six training institute in each Divisional Hdqrtrs.g) Fiber optic links established in 50 districts out of 64h) No of ISP’s has been increased with individual bandwidth ranging from 128 kbps to 8 mbps offering

broadband services through DSL/HDSL modemsi) All 64 districts brought under coverage by BTTB through dial up connections

4 Good Governance and disaster management using ICT

This is an ongoing process

5 Expanding Telecommunication Facilities

a) a) Installed Digital Telephone network in urban and rural areasb) b) Interconnection facilities created with BTTB and other operatorsc) c) BTRC has been established

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The role of Governments and stakeholders in the promotion of ICT (C1)

• ICT Policy Formulated in 2002

• ICT Task Force headed by the PM formed in 2002

• E-Government Projects imitated through Support to ICT Task Force Program (SICT)

• e-Government Cell was created in 2006

• Revised ICT Policy -2009

• Study done by International Consultants on a) National e-Governance strategy b) Development of ICT Road Map, c) Development of ICT Network and d) Capacity building under the assistance of WB

• Consultants recommendations are under active consideration of the Government

• GOB’s program on Digital Bangladesh by 2021

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ICT Infrastructure and promotional ActivitiesSl no

Program Achievement

1 Incubator Scheme

Set up in Nov, 2002, 46 Software Companies involving 1800 people, 10% female, GOB provides free internet service and rent subsidy.

2 Hi-tech Park Feasibility study done, Recommended to implement under PPP model. Recommendations are in active considerations of the GOB.

3 Software Park

No software park, great demand. Under consideration of the GOB

4 Call Centers 330 call centers, Nominal fee, Reduced rate (about 60% of normal charge)

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Successful PPP Model projects:Sl No Projects Brief Description

1 Bangladesh Railways Computerized Seat Reservation System

BOT Model, Project Cost-US $ 4.1 million, initially for 30 major stations with estimation of 1.0 million passengers seat reservation system(Details in Annexure A of the main report)

2 Chittagong Custom House Automation: BOOT Model, Project Cost:

Interesting case, No GOB financing, Project cost US $ 0.88 mill (Tk 6.0 cr ). Chamber gave loan of Tk 1.0 cr, Custom House collected Tk 70 perbill of entry and put Tk 2.45 cr and Datasoft put Tk 2.55 cr from the Bank loan. Project is in operation

Expected to get back the financial return within next three and half years.(Details in Annexure B)

3 Grameen Phone Community Information Center (GPCIC):

556 CIC’s in operation in 450 upazillas, where Grameen provides services, GOB provides contents; Local entrepreneurs provide office space and manpower. These CICs’s are operating profitably.

4 Pallitathay Kendra (Village information center

GOB is providing contents and internet facilities at reduced cost and office space where required, Pallitathay Kendra disseminates theservices to the farmers/inhabitants. Most of these Centers are operating profitably.

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Information and Communication Infrastructure (C-2)National Connectivity

Item 2009 2006 2004Pop in million 140.4 138.8 135.2Mob in million 46.41 21.88 4.15PSTN in million 1.40 1.0 0.9Total Telecom users in million 47.81 22.88 5.05Teledensity (%) 34.05 16.48 3.74

Internet AccessThe number of internet users in 2002 was 0.1 million only BUT in 2009 it has increased to more than 0.6 million. At the moment the internet user density has increased from 3 per hundred to 4 per hundred.

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Information and Communication Infrastructure (C-2)

Regional Connectivity:1. South Asian Sub regional Economic Cooperation (SASEC) established in 2001

2. Partners: Bangladesh, Bhutan, India and Nepal

3. Objectives: Improve connectivity, reduced cost, improve economic growth.

4. Project Component: Cross border connectivity, rural access to information, developing human resource Capacity, tele-medicine, distance learning, and e-government services

5. Fund: ADB

International connectivity:

1. Connected with information super high way in 2006

2. Submarine Cable Network SEA-ME-WE-4

3. Internet bandwidth of 24 GB

4. 10 GB data transfer capacity per second

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Bandwidth rental Charge (Excluding VAT) in Bangladesh

Bandwidth through Ethernet Port:Bandwidth (Duplex) Rent /moth/Mbps (Duplex)

3-18 Mbps Tk 27,000 (Us$ 397)20-45 Mbps Tk 26,000 (US $ 382)50-90 Mbps Tk 24,000 (US $ 353)

100 Mbps & above Tk 22,000 (US $ 324)

BTCL offers 75% discount to Public Universities, Colleges, Schools, Madrashas, Training and Research institutes,

30% discount to Government, Semi government , Autonomous organizations, 100% discount Government owned companies and non profit research organization.25% discount to Software incubators and parks under government control, Software companies/ITES services gets 25% discount on rental charge upto 128 kbps.Charges for monthly office use came down to about US $ 10 from about US $ 14.3GOB has withdrawn VAT from the internet user. from July, 2009

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Access to Information and Knowledge (C-3)1. Integral Part of freedom of thinking and speech

2. For accountability and transparency & good governance Access to Information Act enacted in 2009

3. GOB’ s A2I program in the PM office, UNDP assistance

4. 48 Ministries/Divisions providing information to citizen through websites

5. Sustainability of Multipurpose Community Access point

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Capacity Building (C-4)• Adequately covered in ICT Policy-2009

• Eradication of illiteracy in ICT in all levels including PrimarySchools, Secondary Schools, Colleges, Madrashas, Vocational Training Institutes, other Institutes in cost effective way.

• Training in the Divisional HQRS

• Special Allocation for Post Graduate Diploma course in ICT

• Standardized Course Curriculum

• ICT Training Institute by Korean Gov.

• GOB’s Internship Program

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Building confidence and Security in the use of ICT (C5)

Network Security Policy

•Cyber Laws: Formulated•Digital Signature: Law Formulated•Privacy Law: Approved•Intellectual Copyright: Approved•Anti Piracy Law: Approved•Cyber Crime unit : Established

Electronic Transactions in Bank•37 Banks out of 52•ATM Support•SMS Banking•Telebanking•Payment of utility bills•No electronic payment gateway, at present.

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Enabling Environment (C6)Investment ClimateTax Exemptions: Generally 5 to 7 years.

Duty: No import duty for export oriented industry

Tax Law: i. No Double taxation ii. Exemption of income tax upto 3 years

Remittance: Facilities for full repatriation of invested capital, and profit.

Exit: An investor can wind up any time and can repatriate the sales proceeds after securing proper authorization.

Ownership: Foreign investor can set up ventures either wholly owned on in joint collaboration with local partner.

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Enabling Environment (C6)

Public Sector Investment in ICT :Item 2006-2007 2007-08 2008-09 2009-10

Allocation for the ICT Projects (MillionTk)

936.4(US$1.37)

million

1300.0(US 1.91)

million

2943.1(US $ 4.32)

million

5447.4(US $ 8.01)

million

% of the total ADP Allocation

1.34% 1.40% 1.46% 1.78%

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Enabling Environment (C6)FDI Investment :

Year 2005 2006 2007 2008Investment Tk in Billion

43.98(US .07 $)

Billion

37.89(US 0.55 $)

Billion

81.90(US 1.20 $)

Billion

28.67JUNE/08

(US 0.42 $) Billion

Investment by Software companies:• Presently around 500 software and ITES companies are

operating. • Software companies employ over 12, 000 ICT professionals.• The size of the IT market excluding Telecom in Bangladesh is

estimated to be US $ 300 million. • The software and ITES industries share 39%(US $ 117 million)

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Enabling Environment (C6)Software Export:

Year Software Export in Mln US $2004-05 12.682005-06 27.012006-07 26.02007-08 25.02008-09 30.0

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ICT Applications (C7)

• E-GP of GOB: GOB is in the process of establishing e-GP system, providing comprehensive and transparent management information and reporting system as prescribed in Public Procurement Rules (PPR).

• Notable initiatives of SICT: Hajj office, R&H, Finance Division, Planning Division, GIS system of Min/ Education, Board of Investment, National Board of Revenue, Rajshahi City Corporation.

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e-Commerce TurnoverYear No of Passengers ( in Million) Tk in Million

92-93 6.72 52.0493-94 6.35 46.9794-95 5.69 40.8995-96 6.10 40.6896-97 7.28 49.4097-98 8.17 56.5499-00 9.49 74.42

•It may be mentioned here that in three years from 1992 to 1995 prior to computerization passenger volume fell by15.25% and passenger earnings fell by 21.42%.

•In five years since computerization from 1995 to 2000 passenger volume rose 66.64% and passenger earning rose 81.97%

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Cultural Diversity and Local Content (C-8)•Television, Radio and Mobile Phones

•23 Organizations involved in developing ICT Based materials on cultural issues for non formal education sector

•As of now 195 materials 70% developed by NGO’s, with video animations

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Media (C 9)

Television• Television Channels-13

including 1 in Public sector; • 41% household covered by

BTV(Terrestrial channel),• Broadcast:Disaster, Epidemic,

Health, cultural affairs

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Radio communications- 6 FM Stations including 1 in Public Sector• Bangladesh Beter: Government

owned , highest coverage• Cheap, easy to carry, useful at the

time natural calamities• Farmers advice, health advice for

human and animals along with Cultural affairs

• Listeners in the city is less compared to rural areas

• FM Radio in Private sector are popular in the city, services now available at Dhaka, Chittagong & Sylhet.

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International and Regional Cooperation (C-11)

• There will be no discrimination in case of duties and Taxes for the same type of industries set up in public and private sector

• Tax holidays facility for Five to seven years

• Industrial undertakings not taking tax holiday will enjoy 100% depreciation allowance

• Industrial units located within the EPZ’s may freely borrow without any prior approval and remittance towards repayment on these borrowings may be sent without any approval

• Special incentives for non-resident Bangladeshi (NRB) for investment .In case of Initial Public Offering (IPO) of shares Security and Exchange Commission will reserve 10% share for the NRB’s

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Major Problems/Constraints

•Inadequate Access to ICT•Lack of adequate training programs •Lack of reliable maintenance•Inadequate Local Content•Public Awareness about ICTs •Lack of integrated approach•Lack of regulatory/legal framework •Preparedness of local software companies •Supply of electricity across the nation•Absence of processes and systems•Political Commitment•Sustainable financial resources

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Recommendations•Establish e-Government Secretariat•Introduce Cyber Laws•Need for standards and policies•Create one-stop government portal •Prioritization of Services•Need more awareness programs •Improve Power situation•Improve ICT access by citizens•Emphasize Bangla interface for citizen services •Build Internet kiosks around the country•Need training and leadership from the government•Awareness for the use of Open Source•Shared Infrastructure •Payment Gateway•Monitoring and Evaluation

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Thank You

Thank You!