e commarce assignment

8/10/2019 E Commarce Assignment

1/39

Prospects of E-Commerce in Bangladesh
http://www.american.edu/carmel/ap1579a/ecom.htm


2/39

N.M.Sanwarul Islam(Id No. # 200630647)

Md. Mizanur Rahman(Id No. # 200630624)

Md. Nurun Nai !Id No. # 200630480)

MB"# $%th

BatchSchool of Business

"sian &ni'ersit( of Bangladesh !"&B)

Mr. Md. "nwarul IslamB"!*ons.)# M" in English# MB"

+acult( Memer# School of Business"sian &ni'ersit( of Bangladesh

Date of submission: 2nd

December 2006.

2ndDecember, 2006

Uttara Campus, U!


3/39

%r. %d. n&aru' Is'am

B" !*ons.)# M" in English# MB"Part-time +acult( MemerSchool of Business# "&B.

,ear Sir# he report of Prospects of E-Commerce in Bangladesh/# prepare thisreport I rowse http011www.american.edu1carmel1ap2345a1ecom.htm sitesand collect necessar( information.

In this report# gathered what elie'e to e the most complete informationa'ailale. ,uring the process of preparation due to 'arious constraints there

ma( e some mista6es. *owe'er# I apologize for all those and e7pecting (our6ind consideration in this regard.

I sincerel( hope# this report will gi'e (ou principles idea and o'er allinformation of the Prospects of E-Commerce in Bangladesh. I trul(appreciate this assignment. Should (ou need an( assistance in interpretingm( report# Please inform me. I will tr( to m( est effort.

Sincerel(

N.M.Sanwarul Islam !Id No. 8 $99:;9:


4/39

Regarding the outcome of this pro=ect# I would li6e to this opportunit( ofe7press m( gratitude and respect to m( teacher Mr. Md. "nwarul Islam#School of Business# "&B for his guidance# ad'ice# encouragement and e'er(possile help.

N.M.Sanwarul Islam (Id No. # 200630647).

Md. Mizanur Rahman(Id No. # 200630624).

Md. Nurun Nai (Id No. # 200630480).


5/39

S>. No. Contents Page No.

2. E7ecuti'e Summar( 2

$. Introduction$

;. ,efinition of E-commerce a6hs Internet users in the

countr(. So# there is a 'ast chance for the e7pansion of e-commerce in Bangladesh.

E means Internet and commerce means usiness. Ahen we will rea6 e-commerce

into e and usiness# the definition is clear. E simpl( means an(thing done 'ia the

Internet and usiness means usiness. In this regard# electronic commerce is the

process of doing usiness electronicall( or o'er the Internet) It in'ol'es the

automation of a 'ariet( of usiness-to-usiness and usiness to consumer

transactions through reliale and secure connections.

E-commerce can e defined as mar6eting# u(ing# selling and supporting goods and

ser'ice ( using Ae ased technologies# which allow the commerce though

electronic media. Recentl(# the definition of e-commerce has roadened to

encompass usiness conducted o'er the Internet and includes indi'iduals and

companies not pre'iousl( 6nown to each other.

0


10/39

E-commerce encompasses the entire online process of de'eloping# mar6eting#

selling# deli'ering# ser'icing and pa(ing for products and ser'ices purchased (

Internet wor6ed# gloal 'irtual communities of customers# with the support of a

worldwide networ6 of usiness partners. Electronic commerce s(stems rel( on the

resources of the Internet# intranet# e7tranet and other computer networ6s to

support e'er( step of this process# i "ccording to Ba=a= and Nag# DE-commerce

refers to the paperless e7change of usiness information using E,I# Electronics

mail# Electronic mail# Electronic Bulletin# Boards# Electronic +und ransfer and

other networ6-ased technologies. It is not onl( automates manual processes and

paper transactions# ut also helps organizations mo'e to a full( electronic

en'ironment and change the wa( the( operateD. +or the concrete conception aout

e-commerce the following definition can e put here.

E-commerce is aout doing usiness electronicall( and encompasses man( di'erse

acti'ities oth in the usiness-to-usiness mar6et and in the usiness-to consumes

mar6et. "cti'ities include electronic trading of goods and ser'ice# online deli'er( of

digital content electronic fund transfer# electronic share trading# commercial

auction# collaorati'e design and engineering online sourcing# pulic procurement#

direct consumer mar6eting and after- sales ser'ice. It in'ol'es oth products !e.g.

consumer goods) and ser'ices !e.g. information ser'ices# financial and legal

ser'icesD.


11/39

+inall( it can e conclude ( sa(ing that e-commerce is the preeminent uzzword of

the online usiness re'olution. It captures the e7citement and focus of this fast

emerging mar6et. But it is more than a slogan or gli part( line. "t its core it

emodies a concept for doing usiness online.

E-commerce is the use of electronic networ6s to e7change information# products

ser'ices and pa(ments for commercial and communication purposes etween users

!consumers) and usiness# usiness themsel'es# indi'iduals themsel'es# within

go'ernment or etween citizens and go'ernment# and usiness and go'ernment. his

encompasses man( 6inds of acti'ities and is not restricted to purchasing goods and

ser'ices electronicall(. here are two different modes of operation for electronic

commerce# online and offline. ?nline sales s(stems chec6 the authenticit( of the

transaction at the time sale. ?ffline transactions on the other hand do not re@uire

a contact to an6 in order to ma6e sure that the seller recei'es the amount of

mone( promised. Most s(stems are constructed with online methods that re@uire all

merchants to e connected to the networ6. ?ffline s(stems rel( on either

tamperproof intelligent cards that the users carr( with them or account numers

that are gi'en at the time of sale. "ccount numer ased methods accomplish

0


12/39

catching illicit use ( trac6ing sales after the( happen. Ma=or t(pes of e-commerce

in which products and ser'ices can e sold are0

!us-nessto!us-ness1

he usiness-to-usiness 6ind of e-commerce refers to a compan( selling or u(ing

from other companies. It in'ol'es oth wholesale purchasing and electronic data

interchange in etween the usinessman and usiness partners. In B$B# the parties

are Drusted Business PartnersD who ha'e an estalished wor6ing relationship. "s

per the consent and understanding etween the to companies# the( can mutuall( do

the usiness o'er Internets. B$B ha a significant impact on cost

associated with in'entories# sales e7ecution# procurement and distriution.

!us-nesstoconsumer1

he usiness-to-customer 6ind of e-commerce refers to a compan( selling its

products or to the customers using the Internet as the communication medium and

pa(ment is done through Internet echnolog(. his is what most people thin6 e-

commerce is aout. Aithout the merchant ha'ing to suffer pulic emarrassment#

it gi'es the customer what he wants and the price he wants. he transaction will

not e dela(ed and the sales are done immediatel(. No @uestion of middlemen will

e in'ol'ed in this sort of usiness. Aith B$B e-commerce# the retailer is often

selling to un6nown# un-trusted strangers therefore# e7tra effort must e made to


13/39

capture customer and pa(ment information. Besides these# there are another two

t(pes of electronic commerce as follows0

2. Consumer-to-Consumer0

It has also emerged that allows un6nown# un-trusted parties to sell goods and

ser'ices to one-another. E7amples of consumer-to-consumer e-commerce are

auction sites. If a person wants something to sale# than he can get it listed at an

auction site# and others can id for it.

$. o'ernment and e-commerce0

o'ernment can use this 6ind of technolog( for the transmission or receipt of

information !$# $C) to impro'e the con'enience and lower the con'enience and

lower the cost of pa(ment s(stems and ta7 compliance !C$)# and ( usiness to

manage after sales ser'ice and to de'elop direct consumer mar6eting. o'ernment

can also ser'ice and to de'elop direct consumer mar6eting. o'ernment can also use

e-commerce ( issues certificates and licenses# dri'ing licenses renewal# income ta7

return# ill pa(ments etc.

+'ectron-c "ament /stem1

Electronic pa(ment s(stem is li6e the Electronic +und ransfer !E+) which is

defined as an( transfer of funds initiated through an electronic terminal#

telephonic instrument# or computer or magnetic tape so as order# instruct# or

authorize a financial institution to deit or credit an account. E+ utilizes


14/39

computer F telecommunication components oth to suppl( F to transfer mone( or

financial assets. ransfer is information ased F intangile. hus E+ stands in

mar6ed contrast to con'entional mone( F pa(ment modes that rel( on ph(sical

deli'er( of cash or chec6s ( truc6# train# or airplane. Aor6 on E+ can e segment

into three road categories0

. !an-n and $-nanc-a' paments

a) >arge-scale or wholesale pa(ments !e.g.#an6-to-an6 transfer)

) Small-scale or retail pa(ments !e.g.# automated teller machines F cash

dispensers)

c) *ome an6ing !e.g.# ill pa(ment)

2. eta-'-n paments

a) Credit cards

) Pri'ate lael credit1 deit cards !e.g.#=.c. Penne( Card)

c) Charge cards !e.g.# "merican E7press)

3. n'-ne e'ectron-c commerce paments

a) o6en-ased pa(ment s(stems

Electronic cash Electronic chec6s

Smart cards or deit cards

) Credit card-ased pa(ment s(stem

Encr(pted credit cards

hird-part( authorization numers


15/39


16/39

Bank Digital Currency Server

Electronic check

Electronic ch$c6s are another form of electronic to6ens. In the model u(ers must

register with a third-part( account ser'er efore the( are ale to write electronic

chec6s. he account ser'er also acts as a illing ser'ice. he registration

procedure can 'ar( depending on the particular account ser'er and ma( re@uire a

credit card or a an6 account to ac6 the chec6s. ?nce registered# a u(er can

then contact sellers of goods and ser'ices.

o complete a transaction# the u(er sends a chec6 to the seller for a certain

amount of mone(. hese chec6s ma( e sent using e-mail or other transport

methods. Ahen deposited# the chec6 authorizes the transfer of account alances

from the account against which the chec6 was drawn to the account to which the

chec6 was deposited.

Payer


17/39

Payee

i

Bank

Accounting Server

/mart card

Smart cards are credit and deit cards and other card products enhanced with

microprocessors capale of holding more information than the traditional magnetic

stripe. he smart card technolog( is widel( used in countries such as +rance#

erman(# Hapan# and Singapore to pa( for pulic phone calls# transportation# and

shopper lo(alt( programs. Smart cards are asicall( of two t(pes0

i. Relationship-ased smart credit cards0 " relationship-ased smart card is an

enhancement of e7isting card ser'ices and1or the addition of new ser'ices that a

financial institution deli'ers to its customers 'ia a chip-ased card or other de'ice.

hese new ser'ices ma( include

a) "ccess to multiple accounts# such as deit# credit# in'estments or stored 'alue

for e-cash# on one card or an electronic de'ice.


18/39

) " 'ariet( of functions# such as cash access# ill pa(ment# alance in@uir( or funds

transfer for selected accounts.

c) Multiple access options at multiple locations using multiple de'ice t(pes# such as

an automated teller machine# a screen phone# a personal computer# a personal digital

assistant !P,")# or interacti'e s.

ii. Electronic purses and deit card. Electronic purses# which replace mone(# are

also 6nown as deit cards and electronic mone(. It is a wallet-sized smart cards

emedded with programmale microchips that store sums of mone( for people to

use instead of cash for e'er(thing from u(ing food# to ma6ing photocopies# to

pa(ing suwa( fares. he electronic purse wor6s in the following manner.

a) he 'ending machine need onl( 'erif( that a card is authentic and there is

enough

mone( a'ailale.

) he 'alue of the purchase is deducted from the alance on the card and added

to an

e-cash o7 in the 'ending machine.

c) he remaining alance on the card is displa(ed ( the 'ending machine or can e

chec6ed at

an "M or with a alance-reading de'ice.


19/39

C+DI* CD/

i. Encr(pted credit cards

Encr(ption is instantiated when credit card information is entered into a rowser

or other electronic commerce de'ice and sent securel( o'er the net wor6 from

u(er to seller as an encr(pted message. o ma6e a credit card transaction trul(

secure# the following se@uence of steps must occur efore actual goods# ser'ices#

or funds flow0

" customer presents his or her credit card information !along with an authenticit(

signature or other information such as mothers maiden name) securel( to the

merchant.

a) he merchant 'alidates the customers identit( as the owner of the credit card

account.

) he merchant rela(s the credit card charge information and signature to its

an6 or

?n-line credit card processors.

c) he an6 or processing part( rela(s the information to the customers an6 for

authorization appro'al.

d) he customers an6 returns the credit card data# charge authentication# and

authorization to the merchant.

*5-rdpart aut5or-at-on


20/39

In third-part( processing# consumers register with a third part( on the Internet to

'erif( electronic micro transactions. +our interrelated components are wor6ing in

the pa(ment s(stem0 credit cards# an6s# processing agents# and the internet. "n

on line third part( processor !?PP) has created a si7-step process0

Step 2. he consumer ac@uires an ?PP account numer ( filling out a

registration form.

his will gi'e the ?PP a customer information profile that is ac6ed ( a

traditional financial instrument such as a credit card.

Step $. Re@uest for purchase item ( @uoting the ?PP account numer. he

purchase can ta6e place in one of two wa(s0 he consumer can automaticall(

authorize the DmerchantD 'ia rowser settings to access her ?PP account and ill

her# or she can t(pe in the account information.

Step ;. he merchant contacts the ?PP pa(ment ser'er with the customersaccount numer.

Step


21/39

Step :. If the ?PP pa(ment ser'er gets a Jes from the customer# the merchant

is informed and the customer is allowed to purchase.

actors to be cons-dered -n des-n-n e'ectron-c pament sstems

here are se'eral factors that should e addressed efore an( new pa(ment

method can e successful

"r-ac1" user e7pects to trust in a secure s(stem =ust as the telephone is a safe

and pri'ate medium free of wiretaps and hac6ers# electronic communication must

merit e@ual trust.


22/39

/ecur-t1 " secure s(stem 'erifies the identit( of two-part( transactions through

Duser authenticationD and reser'es fle7iilit( to restrict information1ser'ices

through access control.

Intu-t-e -nter$aces1he pa(ment interface must e as eas( to use as a telephone.

Database -nterat-on1 he challenge efore an6s is to tie these dataases

together and to allow customerGs access to an( of them while 6eeping the data up-

to-date and error free.

!roers1 " Dnetwor6 an6erD to ro6er goods and ser'ices# settle conflicts# and

facilitate financial transactions electronicall(.

"r-c-n1?ne fundamental issue is how to price pa(ment s(stem ser'ices.

/tandards1 Aithout standards# the welding of different pa(ment users into

different networ6s and different s(stems is impossile.

!an-n on t5e eb1

hough there are $% an6s in Bangladesh# mostl( head @uartered in ,ha6a # onl( a

select few ha'e we pages. >isted elow are the names of the few that do ha'e

sites. *owe'er# most of these an6s do not offer online or electronic ser'ice such

as ,irect ,eposit. here are some "M machines# though not nearl( as

concentrated as in the &nited States.

rab !an'ades5 !an 9td.


23/39

he first pri'ate an6 of Bangladesh with a long standing e7perience in domestic

and international an6ing. Its 3; ranches in all the ma=or commercial centers of

the countr( and 23$ correspondents worldwide pro'ide proficient an6ing ser'ices

to its customers.

/tandard C5artered !an

Aorldwide an6# with some ser'ices a'ailale for customers li'ing in Bangladesh0

Current "ccounts# ?'erdrafts# +oreign Currenc( erm ,eposits# >ocal Currenc(

Cash Chec6s# Chec6 Purchase# ,rafts# Sa'ings "ccounts# erm ,eposits#

elegraphic ransfers# ra'elers Chec6s# and Personal >oans.

Nat-ona' !an 9td

his is the go'ernmentall( run an6. It had a site ut it was ta6en off due to non

pa(ment of we de'elopment ill.

:ote's

*otels that allow for internet oo6ing are worldwide chains# thus the whole

transaction occurs outside of Bangladesh# despite the fact that the ser'ice will e

performed in Bangladesh.

"t Pacific *otel# susid( of Pan Pacific and person can ma6e reser'ations through a

secure ser'er that is protected ( an independentl( certified Secure Certificate.
http://www.american.edu/carmel/ap1579a/references.html#ecomhttp://www.american.edu/carmel/ap1579a/references.html#ecomhttp://www.american.edu/carmel/ap1579a/references.html#ecomhttp://www.american.edu/carmel/ap1579a/references.html#ecom


24/39

So that a rowser can 'erif( such certificates# the rowser contains details within

its preferences of the 'arious Certif(ing "uthorities. hese details are 6nown as

Root Certificates and for securit( the( all ha'e e7pired dates. he hotels

Certif(ing "uthorit( is hawte Certification# whose Root Certificate in Netscape ;

e7pired on $4 Hul( 255%. In order for Netscape ; to connect to the hotels secure

ser'er !and the estimated $9K of all secure ser'ers using hawte certificates)# a

user needs to go through a Drollo'erD process outlined

at www.thawte.com1certs1ser'er1rollo'er.html.

Ahen the procedure is complete# the user can then return to the Pan Pacific

reser'ation page.

In the earl( da(s of the Internet# organizations le'eraged the eas(-to-use

graphical point-and clic6 interface of the we rowser to access the enormous

!ac()round and /tatus o$ +0Commerce -n !an)'ades51
http://www.thawte.com/certs/server/rollover.htmlhttp://www.thawte.com/certs/server/rollover.html


25/39

amount of information a'ailale on the Internet# Ahile this was happening on the

technolog( side# one also witnessed corporations grappling with new issues-that of

escalating gloal competition# shrin6ing margins demanding customers and a rapidl(

changing usiness en'ironment. "ll these were forcing companies to

re e'aluate the wa( the( did usiness# the t(pes of products and ser'ices offered

and the speed with which the( must ma6e these a'ailale to customers.

herefore# in order to find a new competiti'e edge# companies were forced to loo6

at newer wa(s of differentiating themsel'es. he( soon realized that (

strengthening their lin6s with customers# partners# suppliers and distriutors in a

seamless networ6ed en'ironment# the( could @uic6l( ring to mar6et the precise

products and ser'ices the customer demands and# etter still# when the( wand it. It

is here that Internet !E-commerce) has come to represent the ultimate deli'erance

mechanism of the era. he origin of the Internet has een traced to an

e7perimental networ6s estalished first in 25:3 with funding from the "d'anced

Research Pro=ect "genc( of the &S ,epartment of ,efense !,o,)# to enale the

scientists engaged on ,o, pro=ects to communicate with one another. he National

Science +oundation !NS+) too6 o'er the academic communit( networ6 pro=ect in

the mid-25%9s and created NS+net in 25%4. In 2552# a set of small commercial

networ6s created the Commercial Internet E7change !C>E) or commercial use.

Commercial collaoration# technical support ( e-mail# pa(-for-use dataases# which


26/39

were foridden on the NS+net ecame possile on CIL# and ga'e a ig oost to the

growth of the Net.

"ccording to the Computer Industr(# "lmanac Report from No'emer 2555# there

were 34.3 Internet users per 2999 people on a worldwide a'erage22.

In Septemer 255%# Hohn antz# senior 'ice president at I,C !International ,ata

Corporation# +ramingham# M".) "nnounced that the 'olume of Internet commerce

would approach one trillion dollars ( $99$. It is also felt that %9 percent of that

'olume is usiness-to-usiness transactions with e7pectations of that growing to

5$ percent ( $99;2$. B( $99;# International ,ata estimates that 235 million

people new connected online worldwide will ha'e mushroomed to 329 million.

his communit( is made up of usual mi7 of surfers and legitimate suitcases.

Regardless of the pro=ection one cane ma6e# the realit( is that a significant

increase of Internet commerce acti'it( is e7pected within ne7t two or three (ears.

he growth of the Internet has resulted in critical wars etween consumers and

firms that are engaged in commercial acti'it( as part of gloal online mar6etplace.

If we want to 6now the status of e-commerce in Bangladesh# we must ha'e to 6now

the status of the telecommunication s(stem as well as the I infrastructure. he

Internet has een launched in Bangladesh in 255:.

he numer of Internet users is increasing da( ( da(. In Bangladesh# first

computer was installed in ,ha6a Branch of "tomic Energ( Commission of our part

of the then Pa6istan in 25:


27/39

!B&E) installed its first computer =ust after the independence. ?n Hune :# 255:

on-line Internet ser'ice was first introduced in Bangladesh. Since the financial

(ear 255%-55# computer and its accessories ha'e een 6ept outside all t(pes of

duties and ta7es. "t the eginning of $999# pri'ate sector entrepreneur were

allowed to act as S" !er( small "perture erminal) operator. "fter the

withdrawal of go'ernment control on S"# now the Internet is eing used at much

low cost !6. 9.


28/39

are getting Internet facilities# +ollowings are the arriers of e-commerce in

Bangladesh0

er( minimum numer of users of we sites

Poor telecommunication infrastructure with limited fi7ed-line access# unreliale

connecti'it( and low andwidth !5)

*igh price of computer and hardware the per capital income of our people is

less than &S;99. But in order to u( a computer it is needed &S399 and for

this reason#

it is e(ond the capacit( for a 'illager to u( it. O >ac6 of technicall( efficient

personnel O >ac6 of technicall( efficient personnel

he an6ing infrastructure in terms of electronic pa(ments cards and 'er( few

companies accept credit card pa(ments. "s Such the customers of 3449

ranches of the local an6s are unale to operate their account with the other

ranches of the same an6. Inter an6 transaction is more cumersome as the

clearing-house of the central an6 is not online. "n inter-Ban6 transaction ma(

ta6e e'en $ wee6s if the ranches are different cities. ?nl( $4 ranches of the

eight foreign an6s are interconnected with their respecti'e head officers.

he( are also satisfactoril( computerized. his represents onl(


29/39

>imitations of supporti'e legal s(stem. Such as# e7change controls# protection of

telecommunication monopolies# restricti'e trade practices and prohiitions

"sence of c(er law

Peoples mindset and 'er( slow and e7pensi'e Internet ser'ices O Enterprise

managers lac6 of initiati'e and leadership in ta6ing ad'antage of commerce

Bureaucratic comple7ities and

>ac6 of awareness at go'ernment le'el of e-commerce issues. ,ue to these

prolems# not sufficient on-line users are a'ailale until the clu of Internet

users in the countr( reaches a critical mass# c(er an6ing and thus commerce

is unli6el( to ta6e of among customers.

In the Second Ministerial Meeting of the Aorld rade ?rganization !A?)# E-

Commerce was identified as an area of dut( free access# which would continue until

a decision is ta6en other wise. he increasing use of internet and other electronic

means in international trade in goods

and ser'ices led A? memers# at the ene'a Ministerial Conference !held in

Ma(#255%) to adopt a ,eclaration on loal Electronic Commerce directing the

eneral Council to estalish a comprehensi'e wor6 programmed to e7amine all

trade-related issues relating to gloal electronic commerce. In accordance with

this mandate# wor6 on e7amining whether an( modification or impro'ement are

%u't-'atera' ru'es and -mpact on de.e'opment o$ +0Commerce1


30/39

necessar( in the rules on trade in goods# trade in ser'ices and in the area of

intellectual propert( is going on in the rele'ant A? forums. In addition# the

eneral Council has as6ed the Committee on rade and ,e'elopment to e7amine#

inter alia# the effects of

E-Commerce on the trade of de'eloping countries and particularl( that of small and

medium-sized enterprises in these countries# and the means of ma7imizing their

enefits. he eneral Council is to sumit its report on the wor6 done along with

recommendations for action. " decision was also ta6en to produce a progress

report on E-Commerce with recommendations for action in the hird Ministerial

Meeting of A?. "s a founding memer of the A?# Bangladesh has got to put

the domestic front in order to reap the enefits from E-Commerce including

enactment of c(er laws# de'elopment of infrastructure# oth ph(sical and

institutional# and dut(-free e7port of software electronicall(.

Bangladesh is a countr( of 'illagers. "ll the priorit( regarding the de'elopment of

I infrastructure as well as e-commerce should e gi'en to the 'illage. o

o'ercome the arriers in the wa( of the de'elopment of e-commerce

infrastructure in Bangladesh# we should ta6e the following steps0


31/39

Proper infrastructure de'elopment of telephone industr(

,e'elopment consciousness aout the enefits of e-commerce to

the manufacturer1'endors and customers

Ensure proper securit( aout customers information !e.g. Credit card

numer of c(er cafe through pri'ate entrepreneurs

Encourage nonresident Bangladeshis to purchase countr( product through

usiness-to-commerce

,e'elopment of proper educational institution to create efficient I

professional and de'elop re@uire 6nowledge and s6ill ( gi'ing computer

training and asic education to the 'illagers

Infrastructure de'elopment of port customs and courier ser'ice facilities

for e-commerce

o increase the use of computer and Internet facilit( o'ernment must

withdraw all ta7es from computers and its accessories

Proper an6ing infrastructure de'elopment for issue Credit1,eit card and

online mone( transaction facilities

Proper go'ernment support for the de'elopment of I sectors and Internet

facilities

o'ernment should create an image of e-commerce awareness and leadership

and demonstrate to the usiness communit( the importance of e-commerce.


32/39

>astl( it can e concluded ( sa(ing that the an6ing infrastructure needed at the

local# consumer side of e-commerce ma( e consideral( more difficult to achie'e.

Hust as the ma=orit( of the population does not ha'e access to telecommunications

ser'ices# the( also t(picall( lac6 access to e'en asic an6ing ser'ices# such as#

sa'ings and cha@ueing accounts# credit cards and loans# e'en simple cash currenc( in

man( places. It will re@uire creati'e and cooperati'e efforts on the part of an6s#

go'ernments# usiness# and communit( leaders to de'elop inno'ati'e means for

reaching these unner'ed with ser'ices that are oth appropriate and affordale.

illage Computer and Internet Program !CIP) started on Hul( 2555. he program is

operating at Madhupur in angail ,istrict# which is aout 2:9 6ilometers awa( from,ha6a. he main o=ecti'es of this Program are0

a) +amiliarize the 'illage people# particularl( the (oung generation# with the use of

computers and the Internet

) Pro'ide them computer training at a minimal price# and thus facilitate uilding up

a computer literate generation in the countr(

c) Pro'ide free e-mail ser'ices to teachers and students for educational

purposes and to doctors and =ournalists for emergenc( Purposes

d) Pro'ide e-mail facilities for families ha'ing relati'es sta(ing aroad and local

+acilitate easier access to rele'ant mar6et information# e.g. pre'alent mar6et

prices of specific products in different location. his would help the 'illage people

to ha'e etter argaining capacit( in selling their produce

a) Pro'ide computer compose and printing facilities at a low cost in rural areas


33/39

) Enale student contact with educational1research institutions and liraries

aroad

c) ?rganize I wor6shop# seminars and e7hiition in rural areas

d) Create I related =o opportunities.

he enefits of the program0

CIP is pro'iding important enefits to rural societ( in Bangladesh. he aspects of

these enefits are0

") "ccess to the Information0

CIP is pro'iding all sorts of I facilities to the 'illagers. he 'illagers can ha'e

access to information will get enefits ( using computers.

B) "'ailailit( of Information0

illage people# go'ernment and also the local N? or institution are getting

information on education# health# agriculture# en'ironment etc.

C) Ho creation0

CIP is creating =os in rural areas. "t present rameen Communications has

recruited two staffs for operating the center.

,) Reducing the migration from 'illage to cit(0

he lac6 of =o opportunities in 'illages creates mass migration from 'illages to

cities. "ccess to the Internet will open man( Possiilities for emplo(ment. +rom

data entr( to we mar6eting. E) International and local correspondence0


34/39

hree is a large and growing Bangladeshi e7patriate population in Southeast "sia#

Middle East# Europe and North "merica. hrough e-mail ser'ices instantl( and at

'er( low cost.

+) Reducing the impact of the middlemen0

illage residents !oth producers and consumers) will e ale to chec6 current

mar6et. But these t(pes of initiati'es are 'er( few in the countr(. Because of

ureaucratic constraints# the speed of reform of the telecommunication sector is

also slow. he electric power suppl( is not as the I sector demands and policies

instailit( further hinders the growth of the sector.

Situation of E-Commerce in Bangladesh0 "s a de'eloping countr( she adl( needs to

participate in the worldwide trend and e7plosion on E-Commerce that means I. It

is a fact that our countr( has a 'er( right prospect for de'elopment and e7port

of software# home-page design# data processing# and data entr(. Realizing this

prospect# the go'ernment has alread( announced data processing and software

e7port as a thrust sector.

he go'ernment has deregulated the telecommunication sector and internet

ser'ices in a ma=or polic( decision to remo'e ostacles in the wa( of oosting

0


35/39

software usiness and opening up the options of high speed data transfer. "n

inter-ministerial meeting recentl( decided that Bangladesh elegraph and

elephone Board !BB) would select 'endors for suppl(ing -S" ! er( Small

"perture erminal) immediatel( for connection to the local ISP !Internet

Ser'ice Pro'ider).he BB would now get onl( a license fee amounting to &S

;#399 per (ear which means the ISP would ha'e to spend less than &S ;99 as

license fee per month. herefore the cost would come down to aout one-tenth of

the present price for data transfer if the decision is properl( implemented. But

still the user ase of computer is e7tremel( low ecause of high cost of computers

and peripherals. he e7isting an6ing procedure# asence of domestic industr(#

asence of source of fund# lac6 of mar6et promotion and asence of RF, are the

main factors for slow growth. But things are e7pected to mo'e fast towards

growth in the (ears ahead.

o enale the de'eloping countries to face the gloal challenges and to cope up

with the latest situation of E-Commerce# Bangladesh as an >,C memer seriousl(

needs human resource de'elopment. he international organizations with

responsiilities for 6e( areas of rules formation and economic de'elopment in this

field should ta6e necessar( action to train and de'elop re@uired I professionals.

In this connection institutional chain oth in the pulic and pri'ate sector should

e de'eloped. Bangladesh also needs fund for RF, and di'ersification of areas and

creation of awareness aout securit( of E-Commerce. Bangladesh Parliament in its


36/39

recent session has passed the Cop( Right "ct# $999. But this alone cannot protect

the c(er crimes.

?ur neighoring countries including India ha'e made significant progress in this

respect. " comprehensi'e c(er law is 'er( important for the Internet Ser'ice

Pro'iders and upcoming phenomenon in Bangladesh of E-Commerce !Electronic

Commerce) and M-Commerce !Moile Commerce).It is heartening to note that the

Internet accessiilit( in Bangladesh has een growing 'er( rapidl( since the last

few (ears ut it is far elow the desired le'el. "n increasing competition is eing

oser'ed among the ISPs.

he rate of different Internet ser'ices is in rapid declining trend after

deregulation of -S" ( BB. "ll these positi'e indicators entail that there

remains a huge potential in this sector. "t this stage the serious need# among

others# is the de'elopment of human resource !*R) capacities in educational

institutions. here is alarming inclination towards migration of I specialists and

students from Bangladesh. It has een mentioned in the stud( of echBangla I

Research Cell !IRC) that aout %2K of teachers and I professionals are planning

to migrate from Bangladesh and %3.$K of students ha'e plans to mo'e to a foreign

countr(.

he go'ernment should announce suitale remuneration pac6age for those who ha'e

potentials to contriute in this sector and create congenial educational en'ironment

to stop rain drain. Considerale awareness for e-commerce can e oser'ed in


37/39

Bangladesh and few companies are tr(ing to appl( e-commerce for conducting

usiness. hree important re@uirements for e-commerce are ade@uate information

infrastructure# appropriate legal framewor6 and s6illed manpower. &nfortunatel(

the first and third of these are not sufficient and the second is none7istent in the

countr(. But currentl( the go'ernment controls almost the whole telecommunication

sector. "lread( the go'ernment is tr(ing to prepare the communication technolog(

polic(.

he first draft of a sort of communication technolog( polic( was prepared and

presented in Hul( $999. he Bangladesh Computer Council prepared the draft under

the auspices of the Ministr( of Science and technolog(. It details clear polic(

instructions regarding infrastructure# the de'elopment of technolog(# creating an

en'ironment for e-commerce and go'ernance. he draft pro'es that the polic( is

going to e well planned and well-designed $2. Now the short term !+J $992-$993)

I Polic( has een adopted ( the go'ernment. Besides this# he National

elecommunication Polic( was also formulated in 255%. In addition# Bangladesh is

soon to ha'e a new elecommunication "ct. "ccording to the proposed "ct. a new

telecommunication regime would e created where( pri'ate sector in'estment

would e encouraged. he go'ernments role as a regulator( od( would e

transferred to a new independent elecommunication Regulator( Commission$;.

he o'ernment of Bangladesh has ta6en steps to oost up the I industr( for the

de'elopment of e-commerce. he steps are as follows0


38/39

a) Aai'ing all ta7es and duties from importing the hardware and software

) Ending BBs role for the use of S"s ( ISPs who now directl( negotiate

with foreign carriers

c) a7 free e7port of software with


39/39

he importance of I in the conte7t of ,ha6a# Bangladesh and the role it can pla(

in the socio-economic de'elopment cannot e o'er emphasized. he world has

witnessed phenomenal growth in this sector o'er the last few decades. he

countries that too6 timel( decision# made unprecedented growth. Ae need to in'est

in oth ph(sical# institutional and human infrastructures# specialized education and

training# and pro'ide an appropriate legal framewor6 for conducting commerce

electronicall(. It should e clearl( noted that in the gloalize world# personal

usiness de'elopment depends on electronic commerce. E-commerce# as a 'ehicle to

oost up trade# especiall( international trade# has alread( een recognized (

international usiness communit(# especiall( in European &nion# North "merican

Mar6ets and some of the other de'eloped nations li6e Hapan# Singapore# *ong ong

!now a part of China) etc. *owe'er e-commerce and its related technologies are

still in its infanc( stage in Bangladesh. ,espite e7istence of a lot of arriers in the

de'elopment of e-commerce is an option# since the world is mo'ing towards e-

e'er(thing# so we should tr( to o'ercome all the arriers and also tr( to de'elop

such en'ironment that is fa'orale for the de'elopment of e-commerce in ,ha6a#

Bangladesh.

e commarce assignment

Documents