This is the age of information and communication technology. Better communication and management with the use of information tech-neology is the leading concern of electronic revolution. In present information technology E-commerce has become a catchword. All forms of business can use this process to conduct operations through computer network and digital communication financial markets have all added to the pressure on organizations have pressure to response effectively to survive and succeed because of Increasing domestic and global competition, changing marketing trend, poor economic condition, unpredictable financial market. Ecommerce can help an organization create competitive advantage and to be more responsive. In order to face the various challenges and cope up with the changing business structure Bangladesh should also embrace E commerce. The objective of this paper is to analysis the future of ecommerce in Bangladesh along with background and current situation.
Ecommerce can support all aspects of trade in physical goods except the actual delivery. Digital goods, on the other hand, can even be delivered electronically (Clarke, 1998). Ecommerce is an emerging concept that can be described as business interaction using information and communication technology, which is useful to all business functions (finance, marketing and human resources etc) (Alter, 1999, McLeod & Schell, 2001, Turban, 2000).
E-commerce or electronic commerce is a business over the internet with the support of linked computers, which form a network. Most people think ecommerce is just online shopping but web shopping is only a small part of ecommerce. We can say that e-commerce is buying and selling of goods and services and transfer of funds through digital communications.
Infrastructures and Basic requirements for ecommerce:
Competitive, High speed international broadband access connected with high density of local telecommunication facility is essential for growth of ecommerce.
Telecommunication network is major physical infrastructure
legal norms and standards
privacy protection,
rights of intellectual property
Process and technical standards of payment through internet are accepted
Consumer protection, and liability assignment
security, authentication, encryption,
Connectivity protocols, Digital signatures etc.
PAST AND PRESENT OF ECOMMERCE IN BANGLADESH
INFRUSTRUCTURE OF ECOMMERCE IN BANGLADESH
E-commerce sector started developing in Bangladesh encouraged by the Internet penetration growth. It's important that in such a in a poor country like Bangladesh online transaction would encourage the GDP growth, But here it's still on the lowest stage of progress. Bangladesh has made noteworthy progress in different spheres of human development will surely stipulates ITC progress. The member of IT users is increasing day bay day. ICT already has trained IT professionals who are working with ISPs and per month get only Tk.6000 (90 dollar!).Emergence of e-commerce would open new employment opportunities because it already has a plenty of trained IT professionals. IT has also progress in other spheres of the modern government. IT will be very interesting to find what Bangladesh Internet and e-commerce sector will looks in future because it has poverty on the one hand and progress signs on the other. Though Bangladesh has lowest Internet and e-commerce penetration rate it tries to carry on with the modern world in order to become ICT developed country
The Internet connection emerged in Bangladesh in 1996, First, UUCP email in 1993 and IP Connectivity in 1996. The growth of the ICT sector is hindered inside the country by high internet tariff. Development of Internet and e-commerce in Bangladesh is slowly and Cost of high speed internet connection is much more than in other south Asian countries though broadband connection is available in comparison with other Asian countries. In 2005 the total volume Internet Service Providers operating were 180.The private sectors in cellular phones and as Internet Service Providers (ISP) have been allowed Although (BTTB) continues to be a monopoly.
Bangladesh had 450,000 internet users in 2007, mobile phone users 45.09 million In October 20, 2008. More than15, 000 people are connected in "Face book". All the districts headquarters have cyber cafes. Youth, more than 35% of the total population gives Bangladesh an edge or power to choose e-commerce. (International Telecommunication Union (ITU) report)
6 satellite earth stations provide Satellite Internet in the country. Broadband Global Area Network (BGAN) Service is offered by Tempe Telecom. Internet connection in Bangladesh can also be available via SEA-ME-WE 4 cable - an optical fiber submarine communication and Cox's Bazar is the landing site is in Bangladesh.
For Bangladesh Internet country code top-level domain is bd. bd or com.bd registration for Two years agreement is very expensive - $399.Registration is open but government and mil sub domains registration, are limited to authorized entities and all these activities are administered by the Ministry of Post & Telecommunications of Bangladesh.
Bangladesh has the draft IT Act that contains provisions for actions as hacking, manipulating computer source codes and publishing or transmitting of secret or obscene information. . Bangladesh Copyright Law, 2000 provides protection for IT Bangladesh entered in World Intellectual Property Organization (WIPO) Convention in 1985.
SECTORS USING ECOMMERCE IN BANGLADESH
Few segments of the Bangladeshi business community has accepted technology with success though our country is a under developed country. Use of Mobile telephones, Personal computers and the Internet is increasing as day-to-day business tools. This
Positive indicator indicates the future potential of eCommerce in Bangladesh.
Sectors using ecommerce in Bangladesh are:
Banking sector
Education
SME sectors
Shoe industry
Online shopping
Web hosting, domain
Online gift, cards
Oil and gas sector
Auction site
Online gallery of Bangladeshi arts.
FUTURE OF ECOMMERCE IN BANGLADESH:
B2C ecommerce
Because of low per capita income, lack of infrastructure and proper legal environment and trust between business and consumers B2C ecommerce would not be used much in the near future. B2C for cross border trade is also limited moreover factors will discourageB2C such as difficulties in accessing international credit cards, restrictions on foreign currency remittance, informal payment and delays at customs clearance even for small value and quantity items.
B2B ecommerce
The B2B application already exists in the Ready-Made Garments (RMG) industry and its dependence on ecommerce will grow in future. Some individual producers have already posted a website which would enable them to seek information about potential buyers and raw material suppliers. However, if Bangladeshi producers are unable to embrace transfer of payment and other features of ecommerce, countries that have developed such systems will take the business opportunity.
B2G ecommerce
On a limited scale at this stage B2G ecommerce is possible in Bangladesh. Because of government buys goods and services from the private sector. it could invites tenders by offering 'Request for Proposal' (RFP) and other relevant documents on-line. Reduction of time costs, corruption and the lengthy bureaucratic procedures as well as increasing transparency would occurred by on-line Transactions involving information collection, obtaining various governmental forms, registering activities.
So the government needs to work out a realistic e-commerce law ensure the reliable internet connection for successful e-commerce business, it should also collaborate with the commercial sector, which has flexibility and potential for accepting new technologies.
RECOMMENDED SECTORS FOR USING ECOMMERCE IN FUTURE:
Hotels: In our country only a limited number of hotels have websites.
Software Industry: Government could invest on software and hardware industry
Education: public and private universities and colleges should open website.
Public Banks: ecommerce is already exists in banking sector in our country but most of them are private so public banks should embrace e commerce
Retail Business and shop: Retail business and shop should use ecommerce.
Infrastructure:
Too few telephone connections. BTTB has restrictive pricing and regulatory strategy on ISPs and its monopoly over long distance and international voice traffic remains protected until 2000 and 2010 respectively (NTP98). This has been a consistent obstacle for the growth of e-commerce. Internet services are directly dependent on the telecommunication infrastructure of a country which is characterized by poor level of penetration, high access cost and a lengthy waiting period in our country.
Voice over Internet which is a proven important catalyst in the promotion of e-commerce, is prohibited in Bangladesh; there is lack of hardware and software investment and Lack of technically knowledgeable personnel with minimum web user.
Recommendation:
Bring an end to BTTBs monopoly and Establishment of the Bangladesh Telecommunications Regulatory Commission (BTRC) as independent of governmental control and political influence.
Allow Voice over Internet Protocol (VoIP). Abolish the provision of obtaining permission from the Ministry of Posts and Telecommunications (MOPT) and bandwidth should not be limited by the VSAT operating licenses
Suggestion of establishing an independent regulator, the Bangladesh Telecommunications Regulatory Commission (BTRC) (The NTP98, enacted in 1998).
.
Rules and regulation:
Lack of cyber law and encryption law that prevents acceptance of digital signature and IT (Electronic Signature) Acts should immediately be implemented. Still wide spread pirated software is used in our country. The maximum business laws and regulations of Bangladesh are outdated coming from subcontinent rules.
Recommendation:
Government should modify and update the existing laws of commerce and additional laws should be enacted or include because there are no specific legal frame-works of international or national laws for e-commerce.
The government should make a realistic and time relevant business law and it must be worked in teamwork with the private sector
Financing:
Lack of access to trade financing, has constrained Bangladesh's export expansion and high interest rate ceilings on export loans. Dependency on LC to conduct international transactions and few credit card users exist and Restriction on issuance of international credit cards also prevails. Foreign counterparts get wrong signals and they think that Bangladeshi businessmen are unable to make speedy payments through international credit cards because of Lack of internationally accepted credit card facilities.
Recommendations:
In order to compete in the highly competitive export market easy access to credit and a well-developed financing mechanism is essential
Companies should introduce of electronic documents.
A physical signature is necessary to make any contract valid in the eyes of the law (Evidence Act (The Negotiable Instrument Act, 1881; Revised up to 1999)
EFT (Electronic Fund transfer) should be introduced By Government, Bank, household, retail business and other business to be competitive.
CCG(credit card get way )should be established, it is a server that makes online credit card transaction safe( Skinner,2005)
BGMEA can play a significant role in creating awareness among business associations and organizations about the benefits of e-commerce.
Commerce Issues
Conducting business at the Chittagong port is comparatively more expensive because of frequent strikes (locally known as hartaals) and arbitrary work stoppages by the trade unions.
Definitions of deductible business expenses are strict and not clear. Tax system is not client friendly, appeal procedures are lengthy, high Interest rate on export loans and high corporate taxes exist resulting in widespread tax evasion. Customs clearance and procedures continue to be burdened with delays and informal payments.
Recommendations:
Government should introduce of Pre-shipment Inspection (PSI) agents and the Green Channel to promoting speedy movement of goods. Fines and penalties on PSIs for breach of rules and regulations should also be increased.
Further modernization and improved monitoring systems of the Custom authorities is needed.
Interest ceilings on export loans offered by commercial banks should be reduced or removed.
Governance
Poor governance has an indirect effect on e-commerce development. Bangladesh has a knotty problem of poor governance which has been manifested in the form of continued active involvement of politicians and public officials, in adopting unfair business practices collusion with the private sector so institutions become weak and legal and regulatory reforms are difficult to update and implement.
High cost of doing business characterized by bottlenecks, bureaucratic red tape and corruption make the efficiency gains from e-commerce becomes mute. Small domestic market, poor infrastructural facilities, weak governance and poor law and order conditions are the main reasons for poor (FDI) in Bangladesh
Recommendations:
Government should try to increase growth of FDI because Ecommerce and FDI are likely to reinforce each other.
Government should publish documents and publications including budgetary information on the Web.
Government should offer short courses at training centers such as the Public Administration Training Center (PATC) to teach government officials on the benefits of e-commerce.
Simplification of court procedures should be introduced and administrative and institutional constraints should be removed in settling disputes.
For successful application of e-commerce political commitment to improve governance is essential
Establishment of cyber cafes to allow wide access to Internet should be realized and encouraged by Government and private initiative.
CONCLUSION
This paper suggests that in order to continue with the changing business scenario that Globalization has brought and to be linked with every corner of the world Bangladesh is trying to embrace Ecommerce. In Bangladesh the Information Technology (IT) revolution has been too notable to predict its future growth and relevance of e-commerce to Bangladesh becomes imperative. There are several issues that Bangladesh Government needs to consider in order to have harmonization
Of legal and regulatory systems for e-commerce such as liberalization of Telecommunication, EFT (Electronic Fund Transfer),Consumer protection and intellectual property protection, liability of ISPs, dispute resolution and privacy
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