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Research paper on the Broadband internet in Bangladesh and its impact


1.1-            Introduction:
Bangladesh is a developing country. The internet in Bangladesh has increased significantly. In spite of some facing constraints in expanding internet access and to use, development of the internet and information technology are high government priorities. At first Bangladeshi people used dial- up internet and now broadband internet users are rapidly increasingly.
But Broadband internet is not spread every corner in Bangladesh. This internet is mostly available and cheap in Dhaka city. The definition of broadband as the technology that enables high speed transfer of data.  The primary stages the internet was accessed through dial up[1] mean,  consumer and enterprise demand promoted the development technologies that facilitated access at higher speeds.
Now a days the broadband internet is mostly using the industry, universities, corporate office in Bangladesh and it becomes popular in Bangladeshi people.
It also contributes the economic in the Bangladesh. So it is the challenges for the researchers.
Many broadband internet provider institutions run the broadband internet business and creating employment in our country.


[1]Dial up means technology refers to internet access over conventional voice telephone lines at speeds that do not exceed the 56kbps










1.2-            Objectives of the study
Every research proposal has some objectives. Without objectives research is not fruitful. The main objective of the study are :
·         To identify the cause of the the number of Broadband internet users in Bangladesh growing rapidly.
·         To identify the its economic impact by the broadband internet service.
.

1.3-            Literature Review:
Literature review is conducting a study that is considered as the most important phase of the study. There are many research paper on the broadband series.
Literature review has been conducted to how the broadband impact the American economy. For the popularity of broadband by 2009 there were 471 million broadband subscriptions [1]. Between 2004 and 2010 telecommunications and cable tv companies in the United States invested over 97.7 billion in broadband development [2]. In some emerging countries broadband investment is also increasingly rapidly. Chinese companies have invested 7.44 billion in broadband in 2004[3] while Malaysian operators invested 1.6 billion since 2009[4]. By this amount of capital is invested to the broadband internet technology, it is natural that policy makers and researchers in the social science have begun to analyses the economic and social impact of broadband. So broadband is a new challenge for researchers. First its development has proceeded at an incredibly fast pace. Within 12 years broadband has been adopted by over 62 percent of households in the unites states, 80 percent in the Netherlands and 95.8 per cent in Korea[5]. Second only the countries have to understand early on its economic potential in the broadband internet investment. Third  since broadband is an access technology for data communications , it only has an economic effect in combination with the adoption of information technology and implementation of the organization and to change in enterprise.

[1] . source : internet world statistics ( September 2009)
[2] See Atkinson and Schultz (2010)
[3] source: Sinopac (2009), Taiwan Research
[4] Am Research (2010) . Telecommunication: CAPEX risk from escalating competition in broadband



 1.4 Limitation of the study :
Like many other studies it has a few limitation. The limitations are:
·         Study area : The study area is only the Dhaka city. Others city cannot be counted in the study.
·         Financial support: There is no financial support in the research study.
·         Sample size : No sample and methodology in the study.
·         Time limit: short time in the research study.





1.5Journey from Dial to broadband in Bangladesh:
Firstly in Bangladesh started dial up internet service and that is very slow speed than broadband. However in this condition some young talents started dial up email service and made it commercially available for public use. In late 1995 the government of Bangladesh subscribed the VAST ( VERY SMALL APRTURE TERMINAL) data circuits. On June 4, 1196 the VAST base data circuit was commissioned for the first time in the country. The effort was appreciated in many corners especially among the Bangladesh living abroad. After 2005 Bangladesh got connected  to the SEA-ME-WE 4 submarine cable after that this time when number of internet users increased by quite a big margin as bandwidth quality and price became affordable to general people. As now Bangladesh telecommunication regulatory commission has about one hundred and sixty six registered ISP license holders and there are Four hundred and fifty thousand users connected to them which is about 0.32% of the total population.


1.6 Top Broadband providers in Bangladesh:
There are some wonderful internet service providers in Bangladesh. This list providers a snapshot of top 4 internet broadband providers in Bangladesh.
1.      Bangladesh T&T Broad :
This is the state owned internet service provider in Bangladesh. This organization was established by the government in the year 1979 to provide essential telecommunication connectivity to all citizens. Later it transforms itself to modern facilities such as mobile phones and internet services.

2.       BDcom: Connectivity progress
BD com focusing on online based services operators a famous broadband service named smile. This providers came with high speed broadband internet.





3.      BOL: Bangladesh online Ltd:
This is a service by the IT division of the famous BD export company Ltd . It was established in the year 1998 with the goal of bringing BD in the high speed internal global map.
4.      BRAC net services:
Engineering excellence in connectivity. This organization uses internet devices to connect the nation of Bd.


1.7Others internet providers in Bangladesh:

Mobile operators:
Most Bangladeshis first experience with the internet via mobile services. Estimated 90% of Bangladeshis internet user got their access mobile services in 2010[1]. Out of city cell mobile operators, teletalk, grameenphone and Banglalink offer 3G services in 62 district of Bangladesh. Operators are expanding 3G services on all areas.

WiMAX:
Three companies Banglalion communication Ltd, Brac Bdmail Network Ltd and Augere wireless Broadband Bangladesh Ltd are allowed to operate WiMAX in Bangladesh in September 2008[2]. Three firms purchased the licenses at auction for 2.15 billion (BDT) from the BRTC under an agreement.




[1] See Asian Tiger Capital Research (2010). Bangladesh telecom sector: Challenge & opportunities.


1.8 Growing Fixed Broadband users in Bangladesh:
The number of Broadband users in Bangladesh is increasingly than the mobile operators internet subscribers. In a month the number of subscription has increase by 47 percent. According to BRTC the number of subscriptions of internet providers and public switched telephone networks crossed 1,9 million in September. During the same period in 2014 the number was 1.232 million period and it was 1.223 million. The broadband users is increasingly at homes. By the end of September the number of mobile internet users increased by 1.8 million in a month to cross 54 million. Subscribers’ base of WiMAX continues to dwindle. Within a month its user number dropped from around 168000 to 165000. International telecommunication union and UNESCO “ The state of Broadband 2015” report placed Bangladesh at 149th position among 189 countries worldwide in internet proliferation.


Source: bdnews24.com/business/2015/10/23/number of fixed broadband users in Bangladesh Growing.




1.9 Economic impact of Broadband in Bangladesh:
The economic impact of broadband manifests through four types of effects.
·         Contribution to economic growth.
·         Contribution to productivity gains.
·         Creation of consumer surplus.
·         Improvement of firm efficiencies.




Contribution to economic growth:
Broadband technology is a contributor to economic growth. First the development of Broadband technology across business enterprises improves productivity by facilitating the adoption of more efficient business processes( marketing, inventory organization and streaming of supply chains). Second existence deployment of enterprise by maximizing their reach to labour pools, access to raw material and consumers. The economic impact of broadband is fairly recent. The broadband contribute to increase GDP growth in Our country.

Contribution to productivity:

Logically to assume that productivity of information workers defined as the portion of the economically active population whose working function is to process information depends on the investment in ICT capital. Broadband provides information to the employers. Broadband is a specific component performing this important productivity enhancement.

Impact on job creation:
The Broadband creates the job in our country. Broadband network contribution affects employment in three ways. Firstly Network construction requires the creation of direct job ( such as telecommunication technicians, construction workers). In addition the creation of direct jobs has impact on indirect employment. Finally the household spending based on the income generated from the direct and indirect jobs creates induced employment.
Beyond the employment and output impact of network construction. The study of network externalities resulting from broadband penetration has led to the identification of numerous effects:
·         New and innovative applications and services such as telemedicine , indirect search, e commerce etc
·         New forms of commerce and financial intermediation
·         Mass customization of products

Impact on firm efficiency:
Converging with the aggregate macro- economic research the microeconomic analysis of the impact of broadband has helped understand the multiple effects that the technology has on firm performance. In addition to the impact on productivity other microeconomics studies have focused on the impact of broadband technology on business expansion, product innovation and business creation.


1.10 Conclusion:
The objectives of this study was first to provide evidence on the economic impact on broadband in our country. Although Broadband is not spread all over the country but hopefully it spread over the country. There are many Broadband provider service and subscription increase rapidly. The government is now more invest in the broadband technology. In recently BTCL has  exported broadband india and Bhutan and Bangladesh connect new submarine cable for more speed internet service. The government should  create specific policy for the broadband services in our country.





References:
Atkinson N.R and schulz (2010) , Broadband in America.
Asian Tiger Capital Research (2010). Bangladesh telecom sector: Challenge & opportunities.

The Impact of Broadband on the Economy:  Research to Date and Policy Issues April 2012
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