Monday, 26/09/2011 17:26

3G networks struggle to keep pace with demand

Users of 3G Internet are concerned that the increasing numbers of customers using the service is causing low connection speeds.

3G Internet is available for computers through USB 3G wireless Internet modems and for mobile phones through 3G simcards. The service was fast when first launched but has since slowed, with many quick to point the finger at the growing numbers of users.

“I have used a USB 3G wireless Internet modem since the service was launched last year. The signal was good at first but it has since become slow,” said Mr Sone from Nongsangtho village in Xaysettha district, Vientiane.

Internet speeds were faster when the service was first launched because there were not many users.

“Now it's too slow and sometimes it takes many minutes just to load a website,” said Mr Sone.

Laos has four telecom operators and three of them provide 3G in the hope of luring more customers.

Lao Telecommunications Company (LTC) and Star Telecom Co Ltd (Unitel) have offered 3G for several years, while Enterprise of Telecommunications Laos (ETL) launched its 3G network at the end of last month.

“I think ETL's 3G network may face similar issues soon,” said an Internet user attending the 1st Lao Banking and Telecom World Conference and Expo 2011 in Vientiane last Friday.

ETL Marketing Division Director Mr Saysanga Bounnaphol said at the event “We believe we will be able to control and maintain the quality of our service because we are ready to expand the network and systems to meet user growth, especially in Vientiane and larger towns in the provinces.”

ETL had 950,000 subscribers before it launched its 3G network “but now we have more than 1 million customers,” Mr Saysanga said.

Since the company introduced its 3G network it has seen sales of 3G simcards soar. “USB 3G and simcard sales have increased 60 to 70 percent. That is almost 1,000 USB 3G subscriptions per day,” he said.

“We expect to sell about 15,000 USB 3G wireless Internet modems this year,” said ETL Chief Executive Officer Mr Khammouane Xomsihapany at the launch of the company's 3G network.

“We have invested about 96 billion kip (US$12 million) in the 3G network and services.”

LTC, Unitel and ETL are competing fiercely for the 3G market and have worked hard to improve their services and networks and present themselves as the best option for customers.

The Lao IT services market is estimated to grow 26 percent in 2011, with a total worth of 800 billion to 928 billion kip (US$100 million to US$116 million), according to material distributed at the Lao Banking and Telecom World Conference and Expo 2011.

The market is expected to reach about 1.2 trillion kip (US$155 million) next year.

IT services include e-Government, e-Education, e-Health and e-Commerce from the public sector and major private investments from the finance industry and telecommunications companies.

vientiane times

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