BANGLADESH MERGES ONTO THE INFORMATION SUPERHIGHWAY

UNCLAS DHAKA 003742

SIPDIS

SIPDIS

DEPARTMENT OF COMMERCE FOR BRIAN LOPP AND DIANA FONOVICH
EB/CIP/BA FOR ROBERT WATTS

E.O. 12958: N/A
TAGS: ECPS TINT ECON TNGD BG
SUBJECT: BANGLADESH MERGES ONTO THE INFORMATION SUPERHIGHWAY


1. Summary: With the inauguration of the submarine
communication cable, the first land-based internet connection
in the country, Bangladesh hopes to position itself as a
competitor in the regional technology boom. Overnight,
internet capacity has increased six-fold. Government and
businessmen hope to now get a slice of the Indian pie, which
looms over its neighbor as a model for information
communications technology (ICT) success. End summary.


2. A consortium of 14 countries jointly developed the 20,000
kilometer cable system that provides connection from
Singapore to Marsailles, France. Econoff met with the BDG
Project Director, Md. Monwar Hossain, to discuss the status
of the project and future plans for this initiative. The
BDG, through its telecommunications company, Bangladesh
Telegraph and Telephone Board (BTTB),spent $35 million on
the submarine cable project. Fiber optic connections between
Cox's Bazaar, Chittagong, and Dhaka have been spent; BTTB
hopes to recoup all expenses by leasing capacity in the
system. Plans are in place for the government to extend
fiber optic lines throughout the country, and to "establish
cyber cafes in each district."


3. Software development firms and other businesses are
excited about this initiative. Twenty-three Internet Service
Providers (ISP) have already connected to the system, which
offers a maximum of 155 megabits per second (mbs) transfer
speed. The previous satellite connections could offer only
24 mbs for users at triple the cost to the ISPs. The ISP
association president told the Embassy that the submarine
cable project is a milestone for the ICT growth in
Bangladesh; the association is proud of the achievement. A
former president of the software producers association told
Econoff that the increased speed has already had some impact
on his industry, as graphics and programs can be sent to
customers online. He noted that the association is working
with the government to negotiate a special rate to boost
business.


4. On May 21, the Prime Minister herself served as chief
guest over the ceremonial inauguration of the communication
connection between the cable landing in Cox's Bazaar and the
capital city of Dhaka. This symbolizes the expectations the
government has for this initiative: that the increased speed
and capacity to internet resources could be a catalyst for a
needed diversification to the country's economic base. Many
in the ICT sector look to the example of India, where
billions of dollars in business through call centers and
software development with US firms have redefined the
country's economic image.
BUTENIS