In the era of globalization, people’s daily communication has become easier and more flexible. People are now connecting to the internet, paying their utility bills and buying tickets online using their mobile phones, ultimately creating a mobile-dependent ecosystem.
The growing tendency to use modern technology and devices has created a huge environment for a new industrial revolution, “Industry 4.0”, which is expected to have a probably greater impact on society than the previous three industrial revolutions.
Stimulate GDP growth
Through creating jobs and adding value to GDP, the use of digital devices plays a vital role in improving the economy of a country or region.
According to the GSMA (Global System for Mobile communications Association), mobile technologies and services in 2021 contributed 5% to the GDP of the Asia-Pacific region, and 8.8 million new jobs were created in this region thanks to to this mobile ecosystem during this period. In 2019, Bangladesh’s mobile technology and services generated USD 16 billion in economic value, or 5.3% of its GDP.
During the COVID-19 pandemic, the Internet has played an important role in maintaining a balance between social and professional life. Together with government authorities, local mobile operators have played a crucial role in raising public awareness by providing regular updates on COVID-19. Additionally, the mobile operator customer database and mobile SMS delivery of COVID-19 reports helped key stakeholders take timely action.
Due to the low prices of handset devices and low call rates due to fierce competition between local telephone operators, mobile phones have historically served as a tool to connect ordinary people in LDC countries like Bangladesh. This mobile ecosystem has functioned as a helpline for ordinary people amid the pandemic.
booming e-commerce
An increase in internet usage has led to increased usage of various e-commerce platforms, MFS (Mobile Financial Services) and online streaming platforms.
Local e-commerce platforms that had already achieved steady growth during the pre-pandemic period have seen phenomenal growth during the pandemic. A Dublin-based research firm has predicted a CAGR (compound annual growth rate) of 12.30% in the e-commerce market between 2022 and 2026, which will bring the local e-commerce market size to 56,870 crore TK in 2021 to around TK 1.5 lakh crore by 2026.
Crucial changes in human behavior due to COVID-19 are leading us to a digitized society where technology will play a key role in shaping a country’s economy.
Transition to 5G
Currently, 5G operations are being rolled out in countries around the world to enable the delivery of next-generation offerings such as cloud services, artificial intelligence (AI), Internet of Things (IoT), point, etc.
However, in Bangladesh, after the trial launch of 5G services in December 2021, authorities halted the 5G implementation project and requested mobile operators to improve the quality and scale of 4G services. Amid foreign exchange reserve constraints, which is a timely and calculated move for the country.
Again, it is also a fact that 5G services will play an important role in mitigating the possible challenges imposed by the announced industrial revolution. However, the transition to the 5G era with the existing flaws and vulnerabilities in the current 4G system may not give us the desired results. Some issues need to be properly addressed to ensure an expected transition.
Ahead of contemporary LDC graduates
Nonetheless, Bangladesh is way ahead of other contemporary countries when it comes to internet data affordability, which is a positive sign. The United Nations Broadband Commission has established that entry-level broadband services (two price baskets introduced by ITU – 5GB fixed broadband and 1.5GB mobile broadband) in developing countries development should be made affordable at less than 2% of gross national income (GNI) per month. per inhabitant.
Of the other countries (Angola, Bhutan, Nepal, Lao People’s Democratic Republic, Sao Tome and Principe and Solomon Islands) to graduate from the list of LDCs by 2023-2026, Bangladesh is the only country to have achieved the targets set by the UN Commission in both categories. In addition, 95% of the country’s population lives under the coverage area of 4G services.
However, the main problem arises when it comes to the case of the coverage-use gap (the use-gap means those who live in 4G coverage areas but do not use the services). The new population census suggests that around 6.5 million people aged 18 or over do not use the internet. Again, a GSMA report revealed a significant 4G usage gap of 67%.
Before discussing closing the gap between usage and coverage, we need to remember that many people who don’t use the internet may not know how to use a phone or computer or may not have attachments with content available on the Internet.
Thus, policy makers should formulate such a policy that focuses on improving the knowledge and skills of users and on developing and promoting local content.
In addition, the confidentiality of citizens’ data and information must be ensured by appropriately addressing concerns related to the security of Internet services. There should be a lot of flexibility in the system to leverage the scope of potential collaboration due to changing consumer habits among local MFS players and many banking and non-banking financial institutions.
On its way to graduating from the LDC list and poised to achieve a demographic dividend, Bangladesh has the potential to transform into a prosperous future country where the country’s mobile ecosystem can undoubtedly play a vital role in this transition.
Dr. Mohammad Abdul Hannan Pradhan, Professor, Department of Economics, SUST.
E-mail: [email protected]
Sayed Arafat Zubayer, Undergraduate Student, Department of Economics, Sust, Intern, SANEM.
E-mail: [email protected]
