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The Financial Express

Telecom, ICT sector see off an eventful year

| Updated: January 01, 2018 22:56:23


Telecom, ICT sector see off an eventful year

From launching the country's first nano-satellite to the celebrated visit of the world's first 'robot citizen', the outgoing year 2017 has been a year of buzz, hope and surprise for Bangladesh's telecom and ICT sector.

4G, Sophia, PayPal or ridesharing-there are too many buzzwords to choose from to define the last 12 months from a tech perspective.

So, as the eventful year draws to a close, we look back at some significant topics and events that would keep the year 2017 a memorable one for Bangladesh's technology arena.  

Space Satellite- Reaching for the Stars:

The country began the year with the hope that it would celebrate its Victory Day on December 16 with the launching of its first space satellite Bangabandhu-1.

However, following a round of rescheduling, the telecom regulator eventually informed that the long anticipated landmark has been deferred further to March.

While the idea of Bangabandhu-1 was mooted a few years back, the idea began to take shape back in late 2015 when BTRC signed a US$248 million deal with Thales Alenia Space to manufacture and launch the country's first satellite.

Once operational, the satellite will be able to serve SAARC countries, Indonesia and the Philippines, as well as Turkmenistan, Kyrgyzstan and Tajikistan.

Even though, the launching of Bangabandhu-1 was deferred, space enthusiasts of the country received a consolation when Bangladesh's first nano-satellite 'Brac Onnesha' was launched into orbit from Kennedy Space Center in USA in June.

Meanwhile, the Indian Space Research Organization (ISRO) led 'South Asia Satellite', of which, Bangladesh is a part, was also launched into orbit just a few week earlier in May.

4G- So Near Yet So Far:

Similar to space satellite, another topic that has dominated the tech discussion of the country during 2017 is the launching of 4G services.

While there were earlier hopes that the long anticipated 4th generation cellular services will be launched by the yearend of 2017, the process has now been reportedly carried over to February next year.

The path towards 4G however has already been marked by several rounds of bargaining and negotiations between the telecom regulator and the operators-which apparently have caused this delay.

Nevertheless, as per the latest decision coming from the government, February 13 of next year has been fixed as the spectrum auction date for 4G while the awarding of licence is scheduled to take place the following day.

Sophia-She Came, She Saw, She inspired:

Despite so many hubbubs around satellite and 4G, probably no other tech issue created more buzz in the country than the visit of Sophia -the world's first robot citizen and one of the most advanced humanoid robots.

And when the celebrated robot's creator David Hanson stated during the annual digital fair in Dhaka that Bangladesh can make Robots like Sophia, he was echoing an optimism shared by many ICT industry insiders in Bangladesh.

"Our IT companies are already making its mark beyond its own backyard," President of Bangladesh Association of Software and Information Services (BASIS) Mustafa Jabbar told the FE. 

"Bangladeshi IT companies are making foray into the Internet of Things or IoT arena in Japan while they are also involved in large digital projects in Nepal and Bhutan," he said.

According to BASIS, Bangladesh software and ITES export, which crossed US$ 7 million during the last fiscal, is expected to reach US$ 1 billion next year.

The amount, however, is still far less than the government target to reach US$ 5 billion export by 2021.

PayPal, a Software Park, Ridesharing and Many More: 

The inauguration of Sheikh Hasina Software Park in early December this year signifies another positive landmark in boosting ICT export and investment.

The initiative is a part of the government's plan to construct a number of IT parks in the country in the coming years-which is expected to boost more local and foreign investments in the IT sector and can place Bangladesh as a major IT hub in the global map.  

Besides, the central bank, earlier in August, decided to give 10 per cent cash incentives on IT export which is expected to act as huge incentive for software and ITES exporters. In addition, import duty was also decreased on the components necessary for manufacturing digital equipment.

"This is a significant move which would encourage local manufacturing of digital equipment. Already, a local company has started assembling cell phones in the country while homegrown assembling of laptops is expected to start next year," said Mustafa Jabbar.

One of the biggest 'talk of the town' throughout the year, however, was ridesharing. The buzz first started late last year when international ridesharing giant Uber and local provider Pathao started their service in the capital.

Consequently, a number of other app-based ride hailing entities have entered the market and they are gradually making a mark among the urban commuters, tapping a longstanding vacuum in the public transportation system in Bangladesh's big cities.

Meanwhile, in October this year, global online payment system PayPal was launched in Bangladesh, thus ending a long wait.

Authorities expect that the move will curb the use of illegal channels for sending remittance as Bangladeshi expatriates will be able to send money home within a few hours while those involved in freelancing and outsourcing will also be able to receive money from abroad.

It is notable that Bangladeshi users will not be able to send out money abroad via PayPal due to the central bank's arcane foreign exchange rules- which will make it just a one-way money channel -- at least for now.

Looking forward however, the industry insiders pointed out relatively high cost of broadband internet as well as the low speed of internet as major hindrances.

"Although, the number of internet users is apparently increasing, internet services are still costly for most of the people in the country while the speed of internet is still quite low compared to global average," noted an industry insider.

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