A new era of connectivity: promises and perils of fixed wireless access

In a rapidly digitising Bangladesh, a silent revolution is on stream. The broadband internet market, long dominated by thousands of small and medium internet service providers (ISPs), is on the cusp of a seismic shift. The entry of three telecom giants-Grameenphone, Robi, and Banglalink-into the fixed wireless access (FWA) arena promises to rewrite the rules of the game, leaving smaller players grappling with an uncertain future.
What fixed wireless access or FWA is needs an elaboration here. Fixed wireless access is a wireless broadband technology that has the potential to bring high-speed internet to the farthest corners of the country. Unlike traditional ISPs that depend on extensive cable infrastructure, FWA uses radio links to deliver internet, bypassing the logistical hurdles of laying cables in remote areas. This technology is seen as a game-changer, especially in regions where connectivity has long been a luxury rather than a necessity.
The three operators already introduced the service --gpfi unlimited, RobiWifi, Banglalink WiFi- in the market. Chief Corporate and Regulatory Officer at Robi Axiata Limited Shahed Alam said Robi has started the service at a limited scale. We will soon start full scale marketing for the RobiWifi as it is the future for quality
digital services. However, the switch to FWA is not an unmixed blessing altogether-- challenges and concerns are associated with it in the transitional phase. The promises of FWA come with their own set of challenges. Spectrum availability, high initial investment, and environmental factors such as weather interference are significant hurdles.
Moreover, the entry of telecom operators into the broadband market has sparked concerns among the country's 2,897 licensed ISPs, who fear losing their foothold on a market they've painstakingly nurtured over the years.
The stakes are enormous. The ISP sector in Bangladesh employs over 500,000 people and generates an annual revenue of Tk 100 billion. According to the Internet Service Providers Association of Bangladesh (ISPAB), the top ten ISPs alone contribute nearly Tk 10 billion to this figure, while mid-level operators account for Tk 54 billion. However, with mobile operators now poised to capture 40-50 per cent of the FWA market, many smaller ISPs face the grim prospect of being edged out.
"The rising costs of equipment due to inflation and the devaluation of the taka have already put us under immense pressure," says Emdadul Hoque, President of ISPAB. "The introduction of FWA services by mobile operators will make it even harder for us to survive. Many small and medium ISPs could be driven out of business, taking away jobs and disrupting local economies."
The issue of illegal operators: Illegal operators further complicate the picture. An estimated 3,000 unauthorised entities currently operate in the sector, earning Tk 10 billion annually and undermining licensed ISPs. This unregulated activity adds another layer of complexity to an already-competitive market.
After all this, the applicability of this latest technology for the internet in Bangladesh, however, cannot be overlooked. The country's unique geography and the digital divide between urban and rural areas make FWA a promising solution. While urban centres are well-served by ISPs, many rural areas lack reliable broadband access. The fixed wireless could bridge this gap, enabling digital education, e-commerce, and telemedicine in underserved communities. Yet, experts caution that this promise must be balanced with the need to protect existing players in the field.
What the regulator says is worth noting in this context. The Bangladesh Telecommunication Regulatory Commission or BTRC, which has issued the FWA licences, insists that its goal is to foster competition and innovation in this fastest-growing sector of what is defined as knowledge economy. "While FWA and Wi-Fi services may appear similar, they serve different purposes," says a BTRC Commissioner. "We believe in creating an ecosystem where everyone can thrive. ISPs must modernize their technologies to remain competitive."
The road ahead: As the telecommunications giants prepare to roll out FWA services, the broadband market braces for dilemmas and disruptions. On the one hand, consumers stand to benefit from improved connectivity and service quality. On the other, the potential displacement of smaller ISPs could lead to significant job losses and market consolidation.
Thus, the road ahead is fraught with challenges and opportunities both in a tradeoff. The success of FWA in Bangladesh will depend on the ability of all stakeholders-telecom operators, ISPs, regulators, and policymakers-to navigate this transition thoughtfully. For the thousands of families whose livelihoods depend on the ISP sector, the stakes couldn't be higher. And for a nation striving to bridge its digital divide, the promise of FWA might just be worth the risk.