Expert Group Meeting on Regional Cooperation towards Building an Information Society in Asia and the Pacific Bangkok, Thailand July 2009
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1 Expert Group Meeting on Regional Cooperation towards Building an Information Society in Asia and the Pacific Bangkok, Thailand July 2009 Situation of Information Society in Bangladesh SASM Taifur ICT Advisor Infrastructure Investment Facilitation Center (IIFC) IDB Bhaban (6th floor), Sher-e-Bnagla Nagar, Dhaka Bangladesh Web: 1
2 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 2
3 Public Administration Division 6 Zila 64 City Corporation 6 Municipalities 308 Upazila 481 Thana 596 Union
4 Economic Indicators Sl no Indicator As per Population (in million) (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 Growth of Cellular Phone Industry 135% 8 House hold with Electricity (%) 44.23% 9 Household access to Computer (%) 1.36% 10 Household access to (%) 0.20% 11 Annual population Growth (%) 1.9% 12 Per Capita Income in US $ GDP Growth Rate (Annual) 6.0% 4
5 Progress on MDG Sl 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 3 Promote Gender equality and empower women Primary and Secondary Students enrolment against the target of 3.1% and 10.3% have been achieved by 3.4% and 13.2% respectively. Gender gap in the school has been eliminated. 4 Reduce Child Mortality Expected to achieve by Improve Maternal Health In progress 6 Combat HIV/AIDS, Malaria and other diseases 7 Ensure Environmental Sustainability 8 Develop Global Partnerships for Development Spread of Malaria and TB has been decreased substantially. Spread of HIV AIDS remains very low. Remarkable progress achieved in safe drinking water and sanitary latrines in urban areas. Access through Telephone/cellular is significant. But access to computer and Internet is low. 5
6 PROGRESS ON PRSP Sl No PRSP Goal Achievement 1 Development of ICT for growth and Poverty reduction 2 Human Resource Development 3 Access to the disadvantageous groups to ICT 4 Good Governance and disaster management using ICT a) ICT Policy has been framed b) E-Government initiatives in many areas have been taken c) ICT Task Force has been formulated d) Copy right Act has been formulated e) ICT Act has been approved. a) Standard Computer training courses at the Division Head Quarters introduced b) One year Diploma Course in Universities introduced c) Registration and ranking of Private ICT training program initiated d) National ICT certification Examination introduced e) Computer aided learning packages introduced f) Employment of youths ITES service introduced g) An ICT business council established h) An institute called Bangladesh Korea Institute of ICT has been set up i) Establishment of Hitech park is underway j) ICT Incubator has been set up Several initiatives have already been taken and some are underway, such as: a) Assistance to Secondary Schools for introducing Computer courses b) Introduction computer training and internet facilities for rural secondary and higher secondary schools c) Development of ICT curriculum for SSC, HSC and college level d) Establishment of research institute as a Center of Excellence e) Establishment of Olympiad competition for primary secondary and university levels in ICT f) Establishment of six training institute in each Divisional Hdqrtrs. g) Fiber optic links established in 50 districts out of 64 h) No of ISP s has been increased with individual bandwidth ranging from 128 kbps to 8 mbps offering broadband services through DSL/HDSL modems i) All 64 districts brought under coverage by BTTB through dial up connections This is an ongoing process 5 Expanding Telecommunication Facilities a) a) Installed Digital Telephone network in urban and rural areas b) b) Interconnection facilities created with BTTB and other operators c) c) BTRC has been established 6
7 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 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
8 ICT Infrastructure and promotional Activities Sl Program no 1 Incubator Scheme Achievement 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) 8
9 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: 3 Grameen Phone Community Information Center (GPCIC): 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 per bill 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) 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 the services to the farmers/inhabitants. Most of these Centers are operating profitably. 9
10 Information and Communication Infrastructure (C-2) National Connectivity Item Pop in million Mob in million PSTN in million Total Telecom users in million Teledensity (%) Internet Access The 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. 10
11 Information and Communication Infrastructure (C-2) Regional Connectivity: 1. South Asian Sub regional Economic Cooperation (SASEC) established in 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 Submarine Cable Network SEA-ME-WE-4 3. Internet bandwidth of 24 GB GB data transfer capacity per second 11
12 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) Mbps Tk 26,000 (US $ 382) 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 $ 14.3 GOB has withdrawn VAT from the internet user. from July,
13 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 GOB s A2I program in the PM office, UNDP assistance Ministries/Divisions providing information to citizen through websites 5. Sustainability of Multipurpose Community Access point 13
14 Capacity Building (C-4) Adequately covered in ICT Policy-2009 Eradication of illiteracy in ICT in all levels including Primary Schools, 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 14
15 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. 15
16 Enabling Environment (C6) Investment Climate Tax 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: Exit: Facilities for full repatriation of invested capital, and profit. 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. 16
17 Enabling Environment (C6) Public Sector Investment in ICT : Item Allocation for the ICT Projects (MillionTk) (US$1.37) million (US 1.91) million (US $ 4.32) million (US $ 8.01) million % of the total ADP Allocation 1.34% 1.40% 1.46% 1.78% 17
18 Enabling Environment (C6) FDI Investment : Year Investment Tk in Billion (US.07 $) Billion (US 0.55 $) Billion (US 1.20 $) Billion JUNE/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) 18
19 Enabling Environment (C6) Software Export: Year Software Export in Mln US $
20 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. 20
21 e-commerce Turnover Year No of Passengers ( in Million) Tk in Million 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% 21
22 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 22
23 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 23
24 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. 24
25 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 25
26 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 26
27 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 27
28 Thank You Thank You! 28
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