While developed and developing nations are building digital economies on gigabit-speed internet, Bangladesh remains held back by sluggish connectivity. Despite expanding 4G networks, 47 percent of the population remains offline. Connection speeds and service quality lag behind rising user numbers. The country ranks 91st out of 103 countries for mobile internet speed and 93rd out of 141 for fixed broadband, according to a World Bank report.
Officials and experts warn this fragile connectivity is throttling economic growth. The shortfall weighs on investment, exports, technology-driven trade, freelancing, startups, education, healthcare and the expansion of digital public services. It also threatens the government’s plan to build a cashless society. Experts argue a comprehensive digital overhaul is now vital to navigate future economic headwinds and maintain global competitiveness.
A World Bank report titled “The Unfinished Digital Revolution: Expanding Internet Access” stresses that high-speed internet is no longer just a communications tool, but a primary driver of productivity, investment, employment and innovation. Yet in Bangladesh, where network coverage spans the entire country, individual adoption remains low. The Bangladesh Bureau of Statistics puts the personal internet usage rate at 58.6 percent — up five percentage points in a year — alongside a mobile phone ownership rate of nearly 89.5 percent.
Using Bangladesh as an example, the World Bank notes that although 4G networks covered 100 percent of the population in 2024, only 53 percent actually used the internet. One in three people stayed offline despite living within range of a signal. High handset prices, costly data packages and low digital literacy drive the disconnect, proving that infrastructure alone does not guarantee inclusion. Identifying and removing these barriers through effective policy remains critical if connectivity is to deliver real economic value.
Highlighting the scale of the divide, World Bank data shows that in 27 countries, including Bangladesh, more than half the population has never sent a text message through a mobile phone.
Sluggish internet speeds are frustrating government efforts to curb cash dependency and build a digital economy. Mobile financial services, online banking, point-of-sale terminals and QR code transactions depend on seamless connectivity. Low speeds cause dropped connections, transaction failures and duplicate charges — friction that steadily erodes confidence among merchants and consumers.
Transitioning to a cashless model without reliable, high-speed infrastructure is unworkable, said Muhit Rahman, managing director of One Bank. He told Bonik Barta: “Whatever digital activity we carry out, reliable internet is essential. If speeds are low, the whole system won’t work properly and people won’t develop confidence.”
The Bangladesh Bank governor echoed those concerns recently, Rahman noted, urging the industry to build alternative technologies capable of processing payments when internet connections fail.
Across low- and lower-middle-income nations like Bangladesh, coverage is expanding far faster than speeds, widening the gap with rapidly growing economies. World Bank data on median download speeds puts the United Arab Emirates atop the mobile rankings at 681 megabits per second (Mbps). Even Vietnam, a lower-middle-income country and Bangladesh’s regional peer, registers at 188 Mbps. Bangladesh, meanwhile, averages just 43 Mbps on mobile and 66 Mbps on fixed broadband. Singapore leads fixed broadband globally at 421 Mbps, with Vietnam, Malaysia and Thailand all outperforming Bangladesh by wide margins.
Network specialist Sumon Ahmed Sabir attributed the weak mobile performance to a seven- or eight-year investment drought in infrastructure. “We have nationwide 4G coverage, but service quality has stagnated,” Sabir told Bonik Barta. “Meanwhile, our neighbours have transitioned to 5G. We remain far behind on mobile internet, while broadband speeds fluctuate wildly across regions. So an economic challenge remains.”
The World Bank said internet adoption tracks national economic development closely. In high-income nations, 94 percent of the population is online, rendering access nearly universal. In low-income countries, that figure drops to 23 percent — leaving fewer than one in four connected.
A persistent rural-urban divide explains why lower-middle-income countries lag in both usage and speed. Infrastructure deficits and lower incomes lead to rural connectivity trailing urban centres across all economies. In rural Bangladesh, erratic connections and slow speeds cut residents off from market prices, agricultural support, digital payments, telehealth and public services.
Zahirul Islam, managing director of Smart Technologies, told Bonik Barta: “High-speed, reliable internet is no longer a luxury — it is foundational infrastructure. Internal operations, ERP systems, cloud-based applications, customer support and digital services all depend on web platforms. The world’s leading software solutions rely on stable internet connectivity. When speeds drop or connections fail, delivery slows and productivity falls.”
Building a tech-driven economy requires Bangladesh to upgrade network speed, stability and international bandwidth quality alongside basic coverage, Islam added.
Across low-income nations, weak connectivity and slow speeds drag on economic growth, foreign investment and international trade. Sluggish mobile networks do more than frustrate users; they choke productivity, job creation and capital flows across every sector, the World Bank noted.
Bangladesh must fundamentally restructure its digital landscape, said Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh. “The global economy is pivoting toward a digital framework powered by high-speed internet, allowing regional competitors to pull ahead,” Reaz told Bonik Barta. “Approximately 12 percent of Bangladesh’s exports depend on digital services. Sluggish internet speed directly handicaps them. Banking and financial services rely just as heavily on stable networks. Advanced economies prioritised this sector; Bangladesh must also engineer its own digital revolution now.”
Lutfunnisa Saudia Khan, president of the International Business Forum of Bangladesh, believes fast and reliable internet has become foundational infrastructure for modern enterprise.
“Nearly every activity worldwide now depends on the internet — global trade relies on it just as heavily as domestic commerce,” Khan told Bonik Barta. “Faster speeds and stronger connectivity would break existing monopolies, lower costs, spur competition and push service providers to raise quality. It would also give businesses a wider range of options. Submarine cables can play a critical role here.”
As the government launches fresh initiatives to attract foreign direct investment, digital infrastructure is taking centre stage. Internet connectivity plays a vital role in drawing both domestic and foreign capital, said Nahian Rahman Rochi, an executive member and head of Business Development at the Bangladesh Investment Development Authority.
Rochi told Bonik Barta. “Work is advancing on a third submarine cable, 5G deployment and Starlink’s satellite internet service. Major international telecoms operators are also showing keen interest in expanding their operations into Bangladesh.”