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Data service of Citycell, overall market scenario and WiMAX technology

Ahasanul Kabir, CSC, MBA

Abstract
This Paper explores opportunity of diversified data services for the expansion of business and present overall idea about WiMAX technology which is a threat to Citycell and other operator’s data service. This endeavor gives a clear picture of forthcoming business competition and idea of weapons to play in the market. Citycell’s position is not that strong at data service in terms of number of subscribers in telecommunication industry. Nonetheless Citycell has the opportunity to grab good number of unauthorized ISP’s dissatisfied internet subscriber and new acquisition by offering exclusive service. Right initiative should be taken to attain target market share.

Key words: Data Service, WiMAX , T1, E1.

The country's total internet home use subscription level is around 7. unauthorized ISPs usually connect their customers by low quality Ethernet cables. Commitment to up the network or link if there is any technical glitch. Citycell is the sole operator which is providing intranet solution by assigning Fixed IP address through PDSN. It is the data service which has changed the image of Citycell in the industry. provide prompt service would change the image of Citycell. Authorized ISPs usually provide internet connection through fiber optic cable. Migration from one vendor to another service provider is comparatively tough if existing service is up to the mark and satisfactory. Citycell is far ahead than competitor ISP’s for its existing network infrastructure. Besides providing voice. Currently most of the organizations getting this service from some ISP’s but still Citycell has the opportunity to penetrate the market since its solution would be much better than that of the ISP’s. modem cable or digital subscriber line by which subscribers can get good quality services. Wireless internet service for home users: Around 500 unauthorized Internet Service Providers (ISPs) are in business whose quality of internet services for the home users is very poor. Citycell’s nationwide BTS are added advantage for providing connectivity at any point. Chittagong and Sylhet.5 lakh. Upgrade and diversify of existing data service can explore new horizon of business for Ctycell.Citycell is the pioneer telecommunication company and the sole CDMA operator in Bangladesh. On the other hand. are operating mainly in Dhaka. of which around 6 lakh connections are provided by unauthorized ISPs. With the process of time the opportunity to generate good amount of revenue from voice service has been constricted. Cost: Competitive cost with satisfactory level of service will force the organizations to give a second thought for Citycell’s service initially. increase reliability on it which would ultimately help for the proliferation and grab of new business. Connectivity can be provided directly by fiber or by radio from the nearest POP. Nonetheless quality service and reasonable cost can be very effective for migration. A total of 70 authorized ISPs. New Services: Provide connectivity to run software in online for banks and other organizations: Requirements to run Software in online • • High speed uninterrupted dedicated bandwidth. Level of service for migration: Instant act. Citycell has been offering data service for the last couple of years. out of 200 licensees. and provide of excessive connections from a single hub slows the speed . starts its operation in 1993.

The opportunity is very high for us to provide banking service through SMS to all third generation banks. Citycell has very good chance to grab a significant portion of unauthorized ISP’s market share by ensuring quality service as subscribers are highly dissatisfied with existing service. . SMS banking is one of these highly sophisticated services. Level of Internet Subscription for Home Users 700000 Number of Subscriber 600000 500000 400000 300000 200000 100000 0 Unauthorized ISP Authorized ISP Type of Service Provider Market Share in Percentage 20% Unauthorized ISP Authorized ISP 80% SMS Banking: Banks are heading towards prompt technology based service for satisfying customer needs and to be competitive in the market.drastically.

SMS Service: Banks and other organizations send invitation to its clients in various occasions like AGM.. Internal office network infrastructure solution: Besides giving internet and intranet solution Citycell can promote total internal office network infrastructure solutions by taking the help of third party which will give Citycell better opportunity to strength its stance in the industry.5 KBPS and 15. Overall scenario of Data Service in telecommunication industry: Though other operators do not have any dedicated data service like ours but GP is now doing very good in this segment. GP has increased its bandwidth significantly. . A test on performance of data service was jointly conducted by ASA. This service has already been launched by GP. The comparison test reveals GP’s superiority in speed over Citycell’s data service. This is not only the scenario of Motijheel but it is prevailing in other areas of the country as well. This could be an initiative of business diversification and bring the opportunity of effective Co-branding. So bulk SMS at cheaper rate could be a good service of Citycell. I had experience of seeing data service performance of ours and GP’s at National Bank Limited Premise in Motijheel some 4/5 weeks back. where our maximum speed was 6. Gas. 2008.75 KBPS whereas GP’s peak and lowest point was 16.) bill can be paid through SMS.05 KBPS consecutively. Phone etc. Water. which could be replaced with SMS at a cheaper rate.11 KBPS and minimum was 3. National Bank Ltd. Citycell can provide this opportunity to its subscribers by utilizing and upgrading of existing infrastructures. Bill payment through SMS: Utility (Electricity. and Citycell at Dhamrai and Shaturia in Saver in between 12:15 pm to 4 pm on 12th August.

AKTEL’s total data subscriber is roughly 25000. number of subscriber has increased. After launching of AKTEL’s edge on 30th May’08.000 subscribers are availing this service currently. GP will be able to improve its data service dramatically.Kilobyte/Sec 15 10 5 0 Citycell Operator GP Average Speed Max Speed Grameen Phone is expecting to get 3G license soon. .1 million subscribers are sticking with Warid’s data service. Warid Telecom’s data service is becoming popular for its quality and aggressive marketing strategy. After having the approval. Around 0. Recently I have received some complains on deterioration of our data service.Kilobyte/Sec 15 10 5 0 Citycell Operator GP Avg Speed Max Speed Shaturia 20 Speed . Citycell’s 10.Dhamrae 20 Speed . GP’s number of data service user is highest in the industry which is around 2 million followed by BL 1 million.

This number will be increased with the process of time. Square Infotech and BracNet are going to invest TK. 2500 crore jointly for the implementation of WiMAX project.79% AKTEL WARID Threat on Citycell’s Data Service: Three companies (ISPs) are going to get license of WiMAX (Worldwide Interoperability for Microwave Access) by December’08 at first phase.79% BL 31.18% AKTEL 0.Market Share of Data Service WARID 3.89% GP CITYCELL BL CITYCELL 0. Grameen Cybernet is very high to get the license. BracNet has already laid fiber as backbone throughout Dhaka city. 200 base stations will be established to cover the whole city for providing service to subscribers.31% GP 63. . After launching of WiMAX. competition would be fears and that will be a big threat for data service of Citycell. The chance for BracNet.

Application of WiMAX: It is so exciting for it’s broad range of applications such as broadband internet access. mobile emergency response services. backhaul for Wi-Fi hotspots and cell phone towers. covers a small city with one base station Throughput : 72 Mbps Security: Multi-level encryption Qos: Dynamic bandtwidth allocation Good for voice + video Strength of WiMAX: It has the potential to replace a number of existing telecommunications infrastructures. *T1/E1 substitute for businesses.WiMAX Technology WiMAX at a glance: Range : 6 miles. WiMAX has the potential to replace cellular networks. Internet Protocol Television (IPTV) as cable TV substitute. wireless backhaul as substitute for fiber optic cable. the cable TV's coaxial cable infrastructure while offering Internet Service Provider (ISP) services. mobile data TV. In a fixed wireless configuration it can replace the telephone company's copper wire networks. In its mobile variant. . mobile telephone service.

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This service should deliver approximately 40 megabits per second (Mbps) for fixed and portable access applications. also known as customer premise equipment (CPE). Some goals for WiMAX include a radius of service coverage of 6 miles from a WiMAX base station for point-to-multipoint.544 mbps) and thousands of residential customers with the equivalent of DSL services from one base station. That WiMAX cell site offer enough bandwidth to support hundreds of businesses with T1 speeds (1. non-line-of-sight service.Type of WiMAX: Fixed WiMAX Figure: Fixed WiMAX offers cost effective point to point and point to multi-point solutions WiMAX provides fixed. . portable or mobile non-line-of sight service from a base station to a subscriber station.

EvDv and HSDPA. In addition to being the final leg in a quadruple play. mobile WiMAX enables streaming video to be broadcast from a speeding police or other emergency vehicle at over 70 MPH. It potentially replaces cell phones and mobile data offerings from cell phone operators such as EvDo. For example. it offers superior building penetration and improved security measures over fixed WiMAX.Mobile WiMAX Figure: Mobile WiMAX allows any telecommunications to go mobile Mobile WiMAX takes the fixed wireless application a step further and enables cell phone-like applications on a much larger scale. Mobile WiMAX will be very valuable for emerging services such as mobile TV and gaming. .

Point-to-Multipoint (PMP): As seen in the figure above. This is also a scenario for backhaul or the transport from the data source (data center. One base station can service hundreds of dissimilar subscribers in terms of bandwidth and services offered. co-lo facility. point-to-multipoint is synonymous with distribution. Figure: Point-to point and point-to-multipoint configurations Point-to-point (P2P): Point to point is used where there are two points of interest: one sender and one receiver. As the architecture calls for a highly focused beam between two points range and throughput of point-to point radios will be higher than that of point-tomultipoint products. etc) to the subscriber or for a point for distribution using point to multipoint architecture.Wireless architecture: point-to-point and point-to-multipoint There are two scenarios for a wireless deployment: point-to-point and point-tomultipoint. . Central Office. fiber POP.

unlike those earlier technologies. Buildings between the base station and the subscriber diminish the range and throughput. *MMDS for example) were unsuccessful in the mass market as they could not deliver services in nonline-of-sight scenarios. those business plans failed. the signal will still be strong enough to deliver adequate service. This limited the number of subscribers they could reach and. the WiMAX service provider can reach many customers in high-rise office buildings to achieve a low cost per subscriber because so many subscribers can be reached from one base station. WiMAX functions best in line of sight situations and. but in an urban environment. Given WiMAX's ability to deliver services nonline-of-sight. offers acceptable range and throughput to subscribers who are not line of sight to the base station. .Line of sight (LOS) and Non-line of sight (NLOS) Figure: The difference between line of sight and non-line of sight Earlier wireless technologies (*LMDS. given the high cost of base stations and CPE.

048Mbps LMDS : Local Multi-point Distribution System . of 64 KBPS Channels 24 The fundamental frame Organization of T1 E1: Wide-area. optical fibre.T1: Type of broadband telecommunications connection used especially to connect Internet service providers to the Internet's infrastructure.544 Mbps No. digital transmission scheme. full-duplex exchange of data over traditional wire. that carries data at a rate of 2. coaxial cable. T-Carrier T1 Total Speed 1. The “T-carrier systems” offer entirely digital. microwave relay. or other communications media.

t1-bandwidth. Reference: The Daily Star www.MMDS: Multichannel Multipoint Distribution Service is a broadband wireless point-to- multipoint specification utilizing UHF (Ultra High Frequency) communications. DGM. Corporate Sales for the encouragement.com www.wimax. Manager.com I would like to thank Sabbir Bhai. . Product Marketing for providing data on market share of competitor’s Data Service and Rashid Bhai.