Bangladesh is struggling to keep pace in the global digital economy as sluggish internet connectivity continues to hold back progress, even as developed and developing countries advance with gigabit-speed networks.

Bangladesh ranks 91st out of 103 countries for mobile internet speed and 93rd out of 141 for fixed broadband, according to “The Unfinished Digital Revolution: Expanding Internet Access” portion of the World Bank’s “Atlas of Global Development 2026” report released last month.

Despite nationwide 4G coverage, it said, 47% of the population remains offline, while connection speeds and service quality have failed to keep pace with the growing number of users.

Officials and experts warn that weak digital connectivity is constraining the country’s economic potential. They say it is holding back investment, exports, technology-driven trade, freelancing, start-ups, education, healthcare and digital public services, while also threatening the government’s ambition of building a cashless society.

Experts argue that a comprehensive digital overhaul is now essential to withstand future economic challenges and remain globally competitive.

Internet access alone is not enough

The World Bank measures internet use through household surveys, asking whether individuals have used the internet during the previous three months from any device and location.

Globally, internet use has risen from just 16% two decades ago to more than 70% today, with adoption closely reflecting a country’s level of development. Internet use reaches 94% in high-income economies but only 23% in low-income countries.

While internet access lowers the cost of economic and social transactions, boosts productivity, and drives innovation, trade and job creation, more than 2.2 billion people, over a quarter of the world’s population, remain offline, according to the report.

It also warns that connectivity alone is not enough. Without supportive policies on competition, digital skills and strong institutions, wider internet access may fail to deliver broad-based economic gains and could even widen inequality.

Internet access outpaces adoption

The report says high-speed internet is no longer just a communication tool. It is now a key driver of productivity, investment, employment and innovation.

Yet in Bangladesh, despite nationwide network coverage, internet adoption remains low. According to the Bangladesh Bureau of Statistics, 58.6% of people use the internet, up five percentage points in a year, while mobile phone ownership has reached nearly 89.5%.

Using Bangladesh as an example, the World Bank notes that although 4G networks covered 100% of the population in 2024, only 53% actually used the internet. One in three people remained offline despite living within network coverage.

According to the Bangladesh Telecommunication Regulatory Commission (BTRC), until June 2026, the country had 189.83 million mobile phone users and 135.94 million internet users.

High handset prices, expensive data packages and low digital literacy continue to limit adoption, showing that infrastructure alone does not guarantee inclusion.

The World Bank report says removing these barriers through effective policy is essential for connectivity to deliver real economic benefits.

Highlighting the digital divide, it also notes that in 27 countries, including Bangladesh, more than half the population has never sent a text message using a mobile phone.

Slow internet weighs on the economy

Sluggish internet speeds are slowing government efforts to reduce cash dependency and build a digital economy, according to the report. Mobile financial services, online banking, point-of-sale terminals, and QR code payments all rely on stable connectivity.

Slow speeds lead to dropped connections, failed transactions, and duplicate charges, gradually weakening confidence among businesses and consumers.

Across low- and lower-middle-income countries, including Bangladesh, network coverage is expanding much faster than internet speeds. This is widening the gap with faster-growing economies.

According to the World Bank, the United Arab Emirates leads mobile internet speeds at 681 megabits per second (Mbps). Vietnam, a lower-middle-income country and Bangladesh’s regional peer, records 188 Mbps.

Bangladesh averages only 43 Mbps on mobile internet and 66 Mbps on fixed broadband. Singapore leads globally in fixed broadband at 421 Mbps, while Vietnam, Malaysia, and Thailand all significantly outperform Bangladesh.

Connectivity gaps threaten growth

The World Bank report says internet adoption closely reflects a country’s level of development. In high-income countries, 94% of people are online. In low-income countries, that figure falls to just 23%.

A persistent rural-urban divide continues to hold back lower-middle-income countries. Infrastructure gaps and lower incomes leave rural areas with weaker connectivity than urban centres.

In rural Bangladesh, unreliable internet and slow speeds limit access to market information, agricultural support, digital payments, telehealth, and public services.

The report warns that weak connectivity and slow internet speeds continue to weigh on economic growth, foreign investment, and international trade. Poor mobile networks reduce productivity, slow job creation, and discourage capital flows across sectors.

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Rural and gender gaps persist

A persistent rural-urban divide continues to slow internet adoption in Bangladesh and other lower-income economies. The infrastructure and income gaps are particularly severe in the poorest countries, where only 14% of rural residents use the internet. Even in lower-middle-income economies, around half of the rural population remains offline.

The gender gap is another major barrier to digital inclusion.

In 2025, 280 million more men than women used the internet worldwide.

Women and girls are less likely to be online, particularly in low-income countries, due to high device costs, limited literacy and digital skills, lower awareness, and structural inequalities in income, education and employment.

In some settings, restrictive social norms and lack of family approval further limit women’s access, while some online activities also pose safety and health risks, especially for young women.