Bangladesh’s ICT sector suffered heavy losses for prolonged internet shutdown in 2024

With 2024 nearing its end, one of the year's most disturbing events remains to be the prolonged internet shutdown during the July mass uprising in Bangladesh, which not only disrupted communication but also caused an estimated loss of Tk2,000 crore to the nation's ICT and e-commerce sectors.

The internet shutdown was enforced during the student-led mass movement against the Awami League regime led by former prime minister Sheikh Hasina.

The initial disconnection began on 18 July and continued in phases, affecting both mobile and broadband services.

Although broadband internet was restored on 24 July and mobile internet resumed on 28 July, social media platforms such as Facebook, YouTube, and TikTok remained inaccessible until 31 July.

This period saw a significant blow to Bangladesh's burgeoning ICT sector. According to the e-Commerce Association of Bangladesh (e-CAB), the first 10 days of the shutdown alone resulted in losses amounting to Tk1,400 crore.

By the end of the shutdown, the total estimated loss to the e-commerce industry reached Tk2,000 crore.

The impact extended beyond e-commerce, crippling banks, insurance companies, offices, and airports reliant on internet-based operations. Businesses dependent on digital marketing, content creation, and online transactions faced severe disruptions.

Startups and small-scale digital entrepreneurs were particularly affected, many reporting setbacks from which recovery may take years.

Besides, the decision to restrict access to social media platforms aimed to curb alleged anti-government propaganda. But these actions sparked widespread criticism, both domestically and internationally, for impeding freedom of expression and undermining the digital economy.

Former ICT state minister Zunaid Ahmed Palak faced scrutiny for justifying the shutdown with claims of damage to data transmission lines by protesters.

Investigations later revealed no evidence of such incidents, and his statements were dismissed as attempts to deflect criticism.

This extended disconnection has been widely criticised as an unprecedented blow to Bangladesh's ICT sector, tarnishing its reputation as an emerging digital economy.

Experts have expressed concerns that such measures discourage foreign investment and hinder the sector's overall growth.

The interim government has since launched an inquiry into the incident, with ICT Adviser Nahid Islam leading efforts to assess the causes and accountability behind the decision. Preliminary findings indicate that the shutdown was implemented under direct orders from the then-prime minister.

While the internet has long been heralded as a pillar of modern connectivity and economic growth, the 2024 shutdown highlights the fragility of Bangladesh's digital infrastructure in the face of political crises.

For the ICT sector, rebuilding trust and ensuring uninterrupted services remain paramount to achieving long-term stability.