High taxation, constrained investment, and missing digital infrastructure could slow Bangladesh’s path to an inclusive digital economy
Bangladesh’s digital ambition is both visible and commendable. Over the past decade, connectivity has expanded rapidly, bringing millions into the digital fold and unlocking new pathways for growth. Farmers are reaching markets more efficiently, students are accessing knowledge beyond classrooms, and financial services are increasingly available at the fingertips of citizens.
Yet, as the country advances toward its 2030 development goals, a more fundamental question is emerging: can this momentum be sustained—and more importantly, can it translate into true inclusion?
At the heart of this question lies a defining concept: inclusive connectivity.
Connectivity as infrastructure, not just access
Connectivity must now be understood not merely as a service, but as foundational national infrastructure—on par with energy, transport, and logistics. It underpins economic activity, public service delivery, and social inclusion.
However, expanding coverage alone does not guarantee inclusion. True inclusive connectivity requires that individuals are not only connected, but also able to identify themselves securely, access services seamlessly, and participate in economic activity without friction.
This shift—from access to meaningful participation—defines the next phase of Bangladesh’s digital journey.
Public digital infrastructure: the missing layer
To enable this transition, Bangladesh must strengthen its public digital infrastructure (PDI)—the digital backbone that supports inclusive participation.
Two elements are particularly critical.
First, a secure and verifiable digital identity system. A digitally accessible national identity framework, designed with strong safeguards for data privacy and user consent, can transform how citizens access services. It can enable seamless authentication across banking, healthcare, education, and government platforms, reducing barriers and improving efficiency.
Second, a universal and interoperable digital wallet ecosystem. Connectivity achieves its full value when individuals can transact. Accessible and inclusive digital payment systems allow citizens and small enterprises to participate in the formal economy, reduce dependency on cash, and enhance transparency.
In the coming years, connectivity alone will not be sufficient. The combination of connectivity, trusted digital identity, and accessible digital payments will define whether inclusion is real or merely aspirational.
From connectivity to economic inclusion
When supported by strong public digital infrastructure, inclusive connectivity has far-reaching economic implications.
Digital transactions increase transparency and traceability, strengthening tax compliance and expanding the revenue base. Informal economic activity can gradually transition into the formal economy, improving productivity and access to finance. Public services can become more targeted, efficient, and accountable.
In this context, inclusive connectivity is not only a tool for social progress—it is a catalyst for economic formalisation and fiscal resilience.
The investment reality behind the vision
While the ambition is clear, its realisation depends on the sustainability of the underlying ecosystem.
Digital infrastructure—whether networks, platforms, or payment systems—requires continuous and substantial investment. Yet, the sector operates within a structural imbalance: a relatively high taxation environment combined with low average revenue per user.
This dynamic constrains reinvestment capacity and limits the pace at which next-generation infrastructure can be deployed. Over time, it risks slowing innovation, affecting service quality, and widening gaps in access.
Inclusive connectivity, therefore, is not only a question of vision—it is a question of viable economics.
Policy enablement: from constraint to catalyst
Achieving inclusive connectivity at scale requires a coherent and enabling policy framework.
Digital identity systems must be secure yet accessible. Financial ecosystems must be interoperable and inclusive. Regulatory frameworks must balance innovation with user protection. Above all, the policy environment must support long-term investment.
Encouraging participation from both domestic and global players will be critical. Large-scale infrastructure development cannot be sustained without confidence in regulatory predictability and investment returns.
If policy fragments ecosystems or constrains investment, inclusion will remain partial. If policy enables scale, collaboration, and innovation, inclusive connectivity can accelerate significantly.
A narrow but defining window
The next few years represent a critical window for Bangladesh.
This is the period to align connectivity expansion with digital identity, financial inclusion, and policy reform. Delayed or fragmented action may result in a future where connectivity exists, but meaningful participation remains uneven.
Timely, coordinated progress across these dimensions can position Bangladesh to fully leverage the digital economy and meet its broader development ambitions.
Aligning economics with inclusion
Bangladesh stands at an inflection point. The vision of inclusive connectivity is well established, and the progress to date is significant. The challenge now lies in ensuring that this vision is supported by the right economic and policy foundations.
A few priorities merit particular attention, including rationalisation of the taxation framework to ensure long-term sector sustainability and reinvestment capacity, the creation of a predictable and investment-friendly policy environment that enables large-scale digital infrastructure development, and the acceleration of public digital infrastructure, particularly secure digital identity and inclusive payment systems.
These are not isolated interventions; they are foundational enablers of inclusive connectivity.
Ensuring viable economics for connectivity is not a sectoral concern—it is a national imperative. Without it, connectivity may continue to expand, but inclusion may lag. With it, Bangladesh has the opportunity not only to meet its 2030 aspirations, but to establish a model for inclusive digital transformation.
The author is a veteran telecom professional, corporate strategist and executive coach. The views and opinions expressed in this article are entirely personal to the author and do not reflect the positions of any organisation.
