[PHNOM PENH POST]
The Kingdom’s newest telecom firms have touted fourth-generation
wireless services to set themselves apart from the crowded sector, but
experts have said Cambodia is not yet ready to adopt the technology.
Both
Emaxx and China’s Xinwei Technologies, which received its license from
the Ministry of Posts and Telecommunications (MPTC) last August, claim
they plan to deliver 4G capabilities to consumers.
And there’s
speculation a third company, Alltech Telecom of Russia, which would be
Cambodia’s 11th mobile provider, will utilise 4G speeds as well.
However, experts have pushed back against the claims, saying most
Cambodians could not yet afford the service, and that these companies
are not technologically equipped to offer it.
“The business case
for LTE [a 4G standard] in an emerging market like Cambodia is
difficult, particularly for operations like Emaxx and Alltech who will
have to spend heavily to build a nationwide network,” Shiv Putcha, a
Melbourne-based telecoms analyst at international research firm Ovum,
said in an email.
Emaxx announced in mid 2011 that it would be
Cambodia’s first 4G provider. The company, with 40,000 subscribers, is
the country’s smallest telecom, according to figures obtained by the
Post. The number has remained unchanged since May.
Xinwei also
recently claimed to be the vanguard of 4G technology in the country,
though neither company has offered a deadline as to when these services
would be available.
Analysts and insiders said Russia’s Alltech
was issued a license to sell 4G services in Cambodia in December 2010,
but the company has yet to make an initial investment. An official at
MPTC said yesterday, however, that Alltech had not yet been issued a
license.
“Frankly, I think it’s way too early for 4G services in
Cambodia … it’s not economically viable or needed today,” Tokyo-based
Frost and Sullivan analyst Marc Einstein said yesterday.
The technology is expensive and users would need to buy 4G-compatible phones, he added, a prospect still beyond many Cambodians.
Emaxx
chief operations officer Frank May said yesterday via email that the
company was carrying out network upgrades, and the service “will go
online soon”. He maintained that the demand for data will drive the 4G
market in Cambodia.
CMDA technologies were “core for the move to [4G]”, he said, and “lower cost for [an] operator to use”.
“Many of the current 2G-3G operators will have to upgrade to keep pace with the market,” May said.
The
promise of 4G in Cambodia may be nothing more than a “marketing ploy”,
Frost & Sullivan’s Einstein said. Other telecoms in the region have
advertised 4G on networks, such as WiMAX, which simply don’t support the
technology, he said.
Emaxx’s CDMA technology has similar
problems, according to Einstein. Standard 4G cannot be provided on CDMA
or GSM, which is a standard for 3G networks, he said.
MPTC issued
Xinwei a license for Chinese-developed TD-SCDMA, the Post reported in
January. Despite Xinwei’s 4G claim, analysts say the Chinese technology
it not capable of offering the service.
“TD-SCDMA does not come
close to 4G-like speeds,” Ovum’s principal analyst Daryl Schoolar said
via email, adding that Chinese reports on the technology were negative.
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