Country's mobile phone operators are bracing for a tough competition with their BWA (Broadband Wireless Access) counterparts in data based business due to providing dedicated broadband internet service facility to the BWA licencees.
Following recent BWA guideline amendment, the BWA operators known as WiMAX service providers will be able to provide LTE or Long Term Evolution service, which is couple of times better than the 3G or third generation internet service.
Sources said the data business will be more competitive in the country following issuance of new WiMAX licence to the Russian based company Bangladesh Internet Exchange Ltd (BIEL), brand name Ollo, with the allocation of high value spectrum.
The new operator has chalked out a big investment plan to rollout data business across the country within a short span of time. Even the company will offer best quality service at a comparatively cheaper rate, the sources added.
BIEL got licence from the Bangladesh Telecommunication Regulatory Commission (BTRC) on Sunday last.
Preferring not to be named, a BIEL official told the FE that his company`s target is to reach broadband internet service to the rural areas. He said the company has no competition with the mobile operators. He hoped that they will be able to offer quality service so that people could easily enjoy the service.
Moreover, data is also core business of the mobile phone operators next to the voice communication following rapid growth of data based services.
Already, the operators expressed their concern at a recent meeting with the journalists about spectrum allocation process to the BIEL. BTRC gave allocation of 20 MHz spectrum in 2.6 MHz band at a cost of Tk 2.46 billion.
According to the telecom experts, in future internet will be source of all activities including voice communication, financial transaction, shopping, and many more. Therefore voice based business will go down gradually in the country like other developed nations.
At present, four mobile phone operators-Grameenphone, Banglalink, Robi and Airtel-have started giving broadband internet service using 3G technology. However, BWA operators-Banglalion, Qubee and BIEL will give 4G/LTE service.
That is why data business will be more competitive among the operators in near future, the experts forecasted.
In the country, there are around 36.5 million internet users. Of them, nearly 35 million use mobile internet while just above 1.5 million users use internet through ISP or Internet Service Provider and WiMAX connection.
Abdullah Ferdous, sole consultant and auctioneer for Bangladesh 3G spectrum auction, said Broadband availability is a matter of national priority.
He commented that "The government should be more interested than the operators. For operators, it is just a commercial exercise - if they make money they are happy. For government, this is the fundamental structure of development and prosperity."
Talking about bandwidth, the telecom expert mentioned that "Bangladesh has too much surplus bandwidth getting wasted, but not available for the consumers. Government should sell this unused bandwidth to the BWA companies at a very low price. BWA companies would be able to pass the benefits to the consumers."
Awarding a new BWA licence is not bad at all. It might create competition. But more close regulation is required to meet all roll-out obligations, Mr Ferdous opined.
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