Economic Research
Potential Annual Savings from Banning Foreign Digital Platforms in Bangladesh
A data-driven analysis of economic impacts and potential savings
By Tanvir Ahamed • May 2024
Bangladesh's internet ecosystem is rapidly expanding, with 77.7 million internet users in a 175M population by early 2025. Major foreign platforms dominate this space – for example, Meta's Facebook had 52.9 million Bangladeshi users at the start of 2024, YouTube 33.6 million users, Instagram 6.5 million, and WhatsApp usage is similarly widespread (tens of millions of users). Below we estimate the cost savings if such platforms (Facebook, Instagram, WhatsApp, Google Ads/Search/YouTube, etc.) were banned.
Bandwidth Savings (Mobile SIM and WiFi)
- 1High data consumption on social apps: Video and multimedia use on Facebook, Instagram, WhatsApp and YouTube drive enormous data traffic. For instance, with ~53M Facebook users and ~34M YouTube users, even modest usage (e.g. ~0.5–1 hour per day at 480p video quality, roughly 0.3–0.5 GB/hour) would yield billions of GB per year. Rough estimates suggest Bangladeshis may consume on the order of 10–12 billion GB/year on these apps combined.
- 2Cost of mobile data: Bangladesh enjoys very cheap data – about Tk.33 (~USD 0.32) per GB (2022). At ~$0.30/GB, 10 billion GB of data would cost roughly $3.0 billion. (If the actual volume is 8–12B GB, the cost is $2.4–$3.6B.) Banning the apps could eliminate a large fraction of this traffic on cellular networks and possibly on fixed broadband. Even if half the traffic shifts to local content or local apps, saving several billion USD in data costs is plausible.
- 3Net bandwidth savings: In summary, removing these apps could save on the order of $2–3 billion per year in network data charges alone (mobile + fixed). This estimate is based on user counts and typical usage patterns, multiplied by the local data price. (Actual savings depend on how much traffic truly vanishes or shifts to local services.) Even accounting for caching, the avoided mobile data expenditures are on the order of a few billion USD annually.
Advertising Expenditure
- 1Total digital ad spend: Bangladeshi businesses spend heavily on online ads. According to industry analysis, "Digital Advertising Spend in the country… is expected to grow… to US$1,284.3 million in 2023" (from $1,181.0M in 2022). At ~8–9% annual growth, this suggests ~$1.5B by 2025. By comparison, traditional media spending (TV, print, etc.) is smaller and growing more slowly. In other words, nearly $1–1.5 billion per year flows into digital advertising in Bangladesh.
- 2Platform breakdown: While precise splits are not public, typical shares can be assumed. Globally Google (including Search and YouTube) captures roughly half to two-thirds of digital ad spend, with Facebook/Instagram taking a large share of the rest. If we assume about 60% of Bangladeshi digital ad budgets go to Google (including YouTube ads) and 30% to Meta (Facebook/Instagram), then roughly $0.9B is paid to Google/YouTube annually and $0.45B to Facebook/Instagram (in recent years).
- 3Potential savings: If these platforms were banned, Bangladeshi advertisers could no longer spend on them. In pure dollar terms, this would "save" roughly the entire outflow. Conservatively, we estimate on the order of $1.0–1.5 billion per year in ad expenditures would be retained domestically.
Infrastructure Costs of Cache Servers
- 1How caches work: Cache servers (part of CDNs) locally store frequently accessed content (videos, images, etc.) to speed delivery and reduce international bandwidth demand. For example, when a Bangladeshi user watches a YouTube video, it may be streamed from a local cache rather than across a long-distance link.
- 2Operation and maintenance costs: Running cache servers entails capital and operating expenses. Companies must lease data center rack space, power, cooling, network connectivity, and hire technical staff. Overall, a moderately sized cache deployment can cost on the order of hundreds of thousands to a few million USD per year in aggregate.
- 3Cost savings if banned: If foreign platforms were banned, these dedicated caches would become redundant. Bangladesh could decommission the cache servers (ending rental fees and power usage). The total savings here is modest compared to data and ad savings – perhaps low millions USD per year at most.
Non-Monetary Benefits of Platform Restrictions
Beyond the quantifiable economic savings, banning foreign social media platforms could yield significant social and developmental benefits for Bangladesh. These include improvements to public well-being, education, and social cohesion:
Time Reclamation
Significant reduction in hours spent scrolling through feeds, allowing citizens to redirect time toward education and skill development.
Quality Content
Promotion of locally-produced, culturally relevant educational content that better serves Bangladesh's development needs.
Reduced Misinformation
Decreased spread of false information, enabling more fact-based public discourse and reducing polarization.
Mental Health
Lower rates of anxiety, depression, and digital addiction associated with excessive social media usage.
Stronger Communities
Enhanced face-to-face interactions and stronger real-world relationships, rebuilding community bonds.
National Focus
Collective attention redirected toward national development priorities and local problem-solving.
National Development Fund Potential
Below is an analysis of what Bangladesh could achieve by redirecting an annual $4-5 billion into a single, government-led "National Development Fund," and the cumulative impact over ten years ($40-50 billion).
Executive Summary
By investing $4-5 billion per year into strategic sectors, Bangladesh could:
- Expand tertiary education to reach millions more students.
- Double or triple its current military procurement budget.
- Industrialize at scale, funding thousands of factory upgrades.
1. Macroeconomic Context
- 2025 Nominal GDP: Projected at $467.2 billion
- Current Military Budget: $4.03 billion in 2024
- Tertiary Enrollment: 23.77% of the relevant age cohort
2. Education Sector
Annual Investment: $5 billion
- Could fund 1.7 million additional student-years annually
- Would represent a 40% boost in educational capacity
3. Military Modernization
Annual Investment: $5 billion could acquire:
- ~217 fighter jets at $23 million each, or
- ~62 advanced F-35 aircraft at $80 million each
Social and Economic Impact
- 1SMEs and digital marketing: Small and medium enterprises form the backbone of Bangladesh's economy. Studies show that over 75% of Bangladeshi SMEs use social media for marketing and customer engagement. These tools allow even small shops to reach customers at low cost. One survey found firms using social media report 20–30% more new customers and up to 25% sales growth attributable to online marketing.
- 2Potential harms of a ban: Banning Facebook/WhatsApp/YouTube would significantly disrupt SMEs and digital entrepreneurs. Companies that rely on Facebook pages or Instagram shops would lose key sales channels. Digital agencies and freelancers focusing on Google Ads/Facebook Ads would see their work vanish. In the short term, customer outreach would be constrained.
- 3Job market implications: Tens of thousands are employed in IT and telecom sectors in Bangladesh. Jobs would be lost in allied areas (marketing, media, content). Skill development in digital marketing and e-commerce might stall. Conversely, demand for local app developers might rise somewhat, but likely not enough to offset the losses in digital sectors.
Conclusion
In summary, eliminating foreign social media and digital advertising platforms could theoretically save Bangladesh on the order of several billion USD per year. Our estimates suggest roughly $2–3 billion could be saved in avoided data (bandwidth) charges on SIM and broadband networks, plus $1–1.5 billion in advertising expenditures that would no longer flow out of the country. In total, order-of-magnitude savings might be ~$4–5 billion annually.
However, these figures must be viewed in context. The loss of Facebook, WhatsApp, YouTube and similar services would have significant economic costs – interrupting SME marketing, digital jobs and communications in ways that could hurt growth. Many Bangladeshi businesses have built their customer base on these platforms, so alternative investments would be needed to recover.