Sourced from: NepaliTelecom.com.
CG Net’s 120 Mbps fiber broadband has enthralled the Nepali internet industry. But, will it be able to keep the low-cost bundle or will it have to change the plan in the future? Let us present our argument.
Since its introduction with the spectacular 120 Mbps fiber internet for just Rs.999, CG Net has been making headlines for all the right reasons. With its inexpensive bundle and the motto “speed that matters,” the novice ISP has wowed internet users and existing ISPs alike.
From CG Net’s adoration to cruel comments and memes on incumbent ISPs, social media has been ablaze. CG Net’s Fiber Internet at 120 Mbps for less than a thousand rupees is unique in Nepal, and a price war between ISPs is already underway. Many people believe that CG Net’s product is a forerunner of an internet revolution and that it has the potential to disrupt the market. However, several issues have been raised over the new company’s promotional package.
Some astute Nepalese have expressed reservations about the new company’s promotional fiber strategy. Some are asking if this is just a publicity stunt, while others are concerned about its viability in Nepal’s congested ISP market.
In this regard, we felt obligated to investigate its 120Mbps package and make sense of what might come next for the new company and the entire ISP internet industry in general. So, let’s start with the main draw, the 120Mbps bandwidth speed.
120 Mbps Internet Package, Or Is It?
To begin, let’s start with the big draw: the record-breaking 120Mbps, which has everyone talking. Will home consumers, on the other hand, actually obtain a 120Mbps connection? It’s a little more intricate than meets the eye. Nepali ISPs often distribute their retail bandwidth among 4-8 subscribers. That means that unless there are very few users, the stream of 120Mbps bandwidth will not be going to your router.
Users will get more data speed with CG net than with other ISPs, regardless of the sharing ratio (4 to 8).
CG Net is yet to announce whether all of its 120 Mbps bandwidth speed will be streamed in a shared network or only a piece of it. But don’t worry, we’re still getting a good deal.
Because not all network users utilize internet at the same rate, this will not affect broadband performance for subscribers. Because of their high-speed profile, individuals will be unaware that they are only one component of a shared system. The internet will be engulfed in flames. In theory, a regular 30 Mbps connection would take roughly 10 minutes to download a 2GB file, whereas a 120 Mbps connection would complete the task in just 2 minutes and 23 seconds.
To summarize, the sheer 120Mbps bandwidth throughput (though shared) may be more than adequate to avoid any network compromises. As a result of the extra-high bandwidth speed, CG Net customers will be able to enjoy their fiber internet with ease.
Will FUP Affect 120 Mbps Connection?
The shared internet status introduces us to the idea of peak hours and Fair Usage Policy. As most of the office goers return home and busy themselves on mobile phones, the network receives significant traffic congestion which results in poor internet performance. This is why we frequently experience a decrease in WiFi performance during the late hours. As a result, in order to ensure consistent internet service, ISPs employ a FUP technique to minimize users’ bandwidth misuse.
CG Net, on the other hand, has maintained its generosity in its FUP. It has created a three-tiered category to limit bandwidth misuse while yet allowing for considerable flexibility. A user who subscribes to their 120Mbps FTTH service receives an outrageous 1900GB bandwidth volume every month. If the user reaches it, the speed will be reduced by half, resulting in a still considerable 60Mbps. It is subsequently followed by 30 percent and 10%.
|FUP Tiers||Data Usage Quota||Bandwidth Speed|
|Original Bandwidth||Up to 1900 GB||120Mbps|
|Tier 1||1900 – 2000 GB||50% of 120Mbps|
|Tier 2||2000 – 2100 GB||30% of 120Mbps|
|Tier 3||Beyond 2100 GB||10% of 120Mbps|
Because 1900 GB a month is still a few miles too far for most residential users, it’s possible they’ll reach renewal without even approaching the bandwidth limit. What we can conclude is that FUP is a standard practice for CG, and it does not expect to jeopardize any user’s broadband experience as a result of its large volume bandwidth offer.
How Will CG Net Sustain?
Because our analysis is broad, we can speculate on possible outcomes. There are now 40 ISPs in Nepal. Some have clients in the thousands, while others have consumers in the six digits. Many of those ISPs will never be able to compete with the top ones due to limited resources, reliance on other ISPs for bandwidth, and a lack of cash and marketing.
WorldLink currently has a 38.6 percent market share, followed by NTC fiber broadband, which has a 23 percent market share. Vianet, Subisu, and Classic Tech all have a sizable customer base that helps them stay solvent. However, they have worked hard for many years to get to this point.
CG Net, on the other hand, is a latecomer in the business with bells and whistles. It is primarily motivated by its low-cost offering to appeal to the public, and it has been wildly successful thus far. Its eye-catching internet solution at an affordable price has already piqued the interest of people in and outside of the city. CG Net is now aggressively building its fiber network in Kathmandu and plans to enter more markets in the near future.
Furthermore, because of its low bundle, CG Net has garnered enviable word-of-mouth marketing. Without spending a dime on advertisements (at least to us), the ISP has become a hot issue in the country’s internet sector. The key is their plan and improved technology, which will be crucial in the coming months. If CG Net can increase its customer base in the next months, it will be able to recoup its time investment.
CG Net’s Bulk Bandwidth
In addition to CG’s approach, the company is anticipated to buy bulk bandwidth from an Indian company in the future as part of a long-term agreement. It means that the ISP’s cost-effective bandwidth acquisition will trickle down to Nepalese retailers. Adding more services to the fiber infrastructure may increase customer costs, but with the smallest margin for CG. CG will not risk a PR disaster with its existing pledge and will do everything possible to keep its service charge as low as possible.
CG Net’s 120Mbps: A Bit Too High?
The majority of Nepalese internet usage consists of social media browsing, a few downloads, and the occasional YouTube video viewing. As a result, some internet users have speculated about the potential of CG Net delivering a reduced bandwidth bundle at an even cheaper price.
On a worldwide scale, bandwidth plans in the West are very high. The UK’s Hyperoptic offers an epic 1Gbps internet service, while numerous ISPs in the US offer similar-sized internet services. Asian countries such as Singapore, South Korea, and Japan consistently score first in terms of high internet speeds.
According to Speedtest.net‘s monthly ranking, Nepal’s broadband speed was 27.95Mbps in April, number 110, which is not awful but does not represent the broadband status of all consumers.
The point is, why should Nepal lag behind in terms of internet access while the country’s IT sector is thriving? Entrepreneurship is on the increase, game streaming has taken over YouTube, and information and communication technology (ICT) has become a huge draw throughout the years. It is basic to desire a slower internet connection at a cheaper expense. While the latter is still to be expected, we are acclimated to such price and are receiving a considerably superior internet package through CG Net, so we should be pleased for the time being.
CG Net’s Grander Scheme
Nirvana Chaudhary, the MD of CG Telecom, set forth the bigger aim with its FTTH strategy in a recent media appearance. Concerning the 120Mbps question, he underlined that CG Net is dedicated to its claims and that clients will receive what they see on its website. Furthermore, he claimed that CG Net’s price could be reduced more in the future months as the ISP expands beyond Kathmandu. Concerning the low cost of its internet service, he noted that reducing overhead expenses and leveraging cutting-edge technology will be critical to CG Net’s growth potential.
“CG Net anticipates that its low-cost internet solution will be beneficial in digitizing Nepal’s economic sector and complementing the Nepal Government’s Digital Nepal Framework,” he said. He reiterated CG Net’s motivation to preserve its low-cost plans for the future, citing Nepal’s pricey internet in South Asia. It was also stated that CG Net is planning to introduce its digital TV service with superior technology than what is currently available in Nepal.
It is evident that CG Net would strive to mimic India’s groundbreaking Jio strategy and stamp its own mark in Nepal, and we can only hope that everything goes as planned.
CG Net has an abundance of capital and resources. Furthermore, it will use the latecomer’s techniques to fend off competition with cutting-edge technology and innovation. We believe CG Net will survive and grow because it is backed by the ambition and long-term vision of Chaudhary Group.
To summarize, we believe that CG Net will not only survive, but will also stand out with its larger objectives of providing the latest technology and services to the country. We anticipate that as it spreads further, it will foster healthy competition among ISPs, benefiting internet users in the long run.