Facilitating Connectivity in the Digital Bangladesh: Unearthing the Dynamics of the ISP Industry

Written by Muktadir Mubassir, Team MBR

The digital sector of Bangladesh has experienced a noteworthy metamorphosis in the last few decades. From the early adoption of Very Small Aperture Terminal (VSAT) technology to the deployment of submarine cables spanning thousands of kilometres, Bangladesh has steadily expanded its bandwidth capacity, resulting in an era of unparalleled connectivity. Currently, the internet infrastructure in Bangladesh boasts an impressive bandwidth utilisation of approximately 5,000 Gbps.

The Evolution of Internet Access in Bangladesh

Bangladesh’s internet access in the early 1990s was limited to dial-up connections through Bulletin Board Systems (BBSs), serving fewer than 500 users. Email usage was costly, charged by the kilobyte, and relied on international dialup connections via the Unix-to-Unix Copy Protocol (UUCP). However, in June 1996, Bangladesh embarked on a journey towards faster internet by adopting Very Small Aperture Terminal (VSAT) technology and connecting to Thaicom, a Thailand owned satellite. Despite these advancements, internet accessibility remained challenging until 2005–2006, when optical fibre cables replaced copper ones, revolutionising internet speeds across major towns.

The years 2005 and 2006 were watershed moments for a digital Bangladesh, when the country began employing optical fibre cables rather than copper cables to build Internet connections. In 2005, internet speed rose dramatically after ISPs began using this cable to provide connections in all major towns around the country. A significant milestone was reached in May of the following year when Bangladesh joined the South East Asia-Middle East-Western Europe (SEA-ME-WE) gateway through its inaugural submarine cable connection. This cable, SEA-ME-WE 4, spanning approximately 18,800 km, linked Bangladesh with various countries like Singapore, Malaysia, Thailand, Bangladesh, India, Sri Lanka, Pakistan, the United Arab Emirates, Saudi Arabia, Egypt, Italy, Tunisia, Algeria, and France. Positioned in Cox’s Bazar, the cable station facilitated substantial returns for Bangladesh Submarine Cable Company Limited (BSCCL), marking a pivotal moment in the nation’s digital evolution.

 

Submarine Cables at a Glance

A submarine cable is a type of fibre optic cable that links a nation to the global network and is positioned on the floor of the ocean. These cables, which can stretch for thousands of miles, enable the rapid transmission of data. Specially adapted ships are employed to transport and gradually lay these cables on the seabed. The internet cables that are used to transmit data under the sea are carefully laid on the ocean floor using specialised submarine vessels, ensuring that they are installed with the utmost precision to guarantee optimal signal strength. As per the Asia Pacific Network Information Centre (APNIC), the average depth of the sea bed where these submarine cables are placed is approximately 3,600 metres, although they can be laid as deep as 11,000 meters. Bangladesh’s first submarine cable, the SEA-ME-WE 4, spans an impressive 18,800 kilometres, connecting Southeast Asia, the Middle East, and Western Europe. It consists of three fibre pairs and has a design capacity of 40 Tbps. Additionally, Bangladesh is also linked to the Bay of Bengal Intra-Cooperative Cable Network (BIX), a regional submarine cable system completed in 2014 that connects India, Bangladesh, Sri Lanka, and Thailand with a capacity of 2.5 Tbps. These submarine cables play a crucial role in Bangladesh’s telecommunications infrastructure and have significantly contributed to the country’s economic development.

Bangladesh’s second submarine cable, SEAME-WE 5, has been operational since 2017 and has further enhanced the country’s bandwidth capacity, significantly supported by the Islamic Development Bank’s financial assistance. Cox’s Bazar and Kuakata serve as key submarine landing stations, connecting Bangladesh with backhaul service providers.

These submarine cables establish the connection between Bangladesh and the worldwide web. Bangladesh Submarine Cable Company Limited, a government-controlled entity, serves as the entry point for international internet traffic into the country. The traffic is then directed through the International Internet Gateways (IIG) in Bangladesh, which distribute it to different local ISPs throughout the nation. These local ISPs subsequently provide internet services to residences and businesses using various methods, such as fibre optic cables.

At present, the overall utilisation of bandwidth is approximately 5,000 Gbps, with over half of it, around 2,700 Gbps, being sourced through International Terrestrial Cable (ITC) licenses. These licences enable the import of bandwidth from India via land connections. The remaining portion, approximately 2,300 Gbps, is provided by the submarine cables, which facilitate connectivity to the country through two submarine cables.

Meanwhile, BSCCL’s announcement of the SEAME-WE-6 submarine cable project underscores Bangladesh’s commitment to further expanding its digital infrastructure, anticipating a significant boost in bandwidth capacity by 2025. The cable is designed to accommodate three sets of fibre pairs, each capable of transmitting data at a capacity of approximately 15,000 Gbps. Furthermore, with over 2,000 ISPs and 37 International Internet Gateways (IIG) operating within the country, Bangladesh is poised for continued growth and innovation in its digital landscape.

Rapid Expansion and Innovations

According to a recent survey report conducted by the Bangladesh Bureau of Statistics (BBS), internet connectivity in Bangladeshi households has grown by almost eightfold over the span of ten years. Broadband internet has become increasingly popular among both corporate entities and individual users over the past decade, driven largely by the availability of affordable packages. This trend extends to suburban and rural areas, reflecting a broader accessibility trend. With a competitive landscape, ISPs are leveraging diverse technologies, from traditional wired connections to advanced fibre-optic networks and wireless solutions, to cater to varied consumer and business demands. ICC Communications, KS Network, and DoTNet are among the leading Internet Service Providers (ISPs) that are leading the way by providing a variety of customised packages to cater to diverse requirements. These include internet access, along with value-added services such as streaming subscriptions and additional features like IP surveillance and VPN services.

According to data provided by the Bangladesh Telecommunication Regulatory Commission (BTRC), the number of broadband internet users in Bangladesh exhibited steady growth throughout 2023. March marked a milestone as the user count surpassed 12 million, nearing 13 million by December 2023.

Challenges

Despite progress, the ISP industry faces a significant obstacle in the form of inadequate infrastructure. While major cities enjoy a relatively robust internet infrastructure, rural areas often lack even basic connectivity. The construction of infrastructure in these regions is both expensive and logistically challenging, making it difficult for ISPs to extend their services to underserved areas. Additionally, the presence of intricate licensing procedures, bureaucratic red tape, and inconsistent enforcement of regulations increases the uncertainty ISPs face and deters investment in the sector. Another major challenge is the limited international bandwidth capacity, which restricts the speed and quality of internet connections, leading to slower speeds and higher costs for consumers. Furthermore, frequent congestion during peak hours exacerbates the problem, resulting in degraded internet performance. Due to these reasons, many people prefer to use mobile internet, as it offers better availability and lower pricing compared to broadband internet.

Mobile internet providers continue to dominate in terms of subscriber count. As per the Data Reportal, in January 2023, there were a total of 179.9 million active cellular mobile connections in Bangladesh, which is equivalent to 104.6% of the total population. By the conclusion of December 2023, as reported by BTRC, the total number of internet subscribers would amount to 131.37 million. Amongst these subscribers, approximately 118.49 million individuals are utilising mobile internet services, while only 12.88 million subscribers are utilising ISP and PSTN services. This implies that approximately 90.20% of the country’s internet subscribers continue to rely on mobile internet connectivity.

Government Initiatives and Future Prospects

The government’s National Broadband Plan and collaborations within the private sector present opportunities for industry growth and wider connectivity. As digital services, e-commerce, and online entertainment gain momentum, the demand for high-speed internet is expected to soar. Based on the statistics provided by the Data Reportal on Digital Bangladesh 2023, it is revealed that in January 2023, there were approximately 44.70 million individuals in Bangladesh who actively used social media platforms. This accounts for approximately 26% of the country’s total population.

Looking ahead, the future of Bangladesh’s telecommunications industry is promising, with significant developments on the horizon. Summit Communications, CdNet Communications, and Metacore Subcom are responsible for the development of the nation’s first private submarine cable, which represents a significant shift in the environment. This initiative is poised to disrupt the monopoly of the state-controlled wholesale bandwidth provider, Bangladesh Submarine Cables Company, potentially leading to lower internet prices and increased bandwidth availability. According to projections made by the Bangladesh Telecommunication Regulatory Commission (BTRC), widespread classroom connectivity and ongoing digital growth could lead to a spike in bandwidth consumption of 34,000 Gbps by 2025.

The ISP sector in Bangladesh is at the forefront of enabling connectivity in the nation’s digital landscape. With the upcoming introduction of private submarine cables, the industry is set to experience significant growth. These advancements are expected to not only improve internet accessibility but also reduce prices, leading to increased connectivity in urban, suburban, and rural areas. With the projected increase in bandwidth usage and the implementation of 5G networks, ISPs are well- positioned to play a crucial role in shaping the future of Bangladesh. With innovation, adaptability, and a customer-centric approach, the ISP industry is instrumental in realising the vision of a truly connected Digital Bangladesh.