Cell-phone cos may elbow out WiMAX, ISPs

Jamal Uddin | Published: February 08, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Mobile phone operators are likely to elbow out Internet Service Providers (ISPs) and WiMAX operators in providing broadband internet service to people in future, industry insiders opine.
At present, two WiMAX operators - Banglalion and Qubee - and about 100 ISPs are giving broadband internet service to some 1.54 million customers. Of them, Banglalion and Qubee have a total of 0.315 million users and the ISPs have 1.225 million users. Â
On the other hand, around 34.24 million people are using internet through their mobile phones, including some 1.0 million broadband internet users, according to the telecom regulator.
The industry insiders said the WiMAX operators and ISPs will not be able to compete with the mobile phone operators in providing internet service.
The telecom operators have wide network coverage across the country, which gives their customers the freedom of using internet from any location.
?Head of Corporate Communications at Grameenphone Tahmeed Azizul Huq said, "Wide network coverage, portability and easy access to internet are the factors behind flourishing mobile-based internet service in the country."
"But lack of these facilities in other modes of internet service restricts their growth," he opined.
The telcos are rapidly expanding their 3G (third generation) network to the major cities of well ahead of the Bangladesh Telecommunication Regulatory Commission (BTRC) deadline.
Of the six mobile phone operators, four private telecom operators -Grameenphone, Banglalink, Robi and Airtel - got 3G mobile phone service licence in last September. The state-owned telecom operator - Teletalk - got special permission for the service in October 2012.
In 2008, the BTRC issued licence to the WiMAX operators with a condition of expanding their coverage to 64 districts by five years. By the deadline, the two operators' subscriber base was supposed to reach 0.5 million each.
But at present, the WiMAX operators have small-scale network coverage up to the divisional cities. Â
Besides, the ISPs' internet service could not flourish beyond the big cities for lack of adequate telecom network infrastructure. Usually people can enjoy the best quality internet service through the ISPs.
In the present situation, the WiMAX companies are trying to hold their existing customers and attract new customers by offering various promotional data packages and increasing data volume in existing packages without increasing charge.
Besides, the two operators have already declared launching of faster internet service using LTE (Long Term Evolution) or 4G (fourth generation) technology after they got necessary permission from the regulator.
Head of market communications at Banglalion GM Faruk Khan said they are facing challenges following penetration of 3G mobile phone services across the country. But it would not be a threat for them.
He said his company is taking different steps to survive in the competitive market.