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::: SANOG-32, DHAKA, BANGLADESH :::
Next Generation Broadband [ Part – I ]
INTERNET ECONOMICS:
Urban and Rural perspectives
UTHANT RABBANI
Head of Sales
InterCloud
SAYEEF RAHMAN
Head of Systems and Strategy
Digi Jadoo

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“A BRIEF HISTORY OF TIME”
- STEPHEN HAWKING

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Journey of Internet in Bangladesh
1985-90
We started with a
bad luck of missing
the train leading to
SEA-ME-WE-2 and
SEA-ME-WE-3
submarine cables.
1990
First Mobile
Cellphone Operator
Citycell using AMPS
technology (prior to
CDMA).
1993
ILD / UUCP Dial-
up to Hong Kong
for offline e-mails
back in early 1990’s
through Kaifnet,
ISN (BanglaNet).
1996
First VSAT established
by ISN (BanglaNet)
offering 64kbps
through HKT.
1997
First GSM
Operator license
awarded to
Grameen Phone.
2003
First Mobile Internet
(GPRS) service
launched by
Grameen Phone.
2005
First submarine
cable for
Bangladesh – the
SEA-ME-WE-4
commissioned by
BSCCL.
2008-2009
First private fiber
cable NTTN service
provider
Fiber@Home
commences service.
First WiMax licensee
Banglalion pays $25+
million. IIG license.
2012
3G service starts
with Teletalk being
the first mover.
>>> WHAT NEXT
>>>
2018
Bangladesh
launches 4G
services.
Source: Newspapers and Wikipedia

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The scale of Internet subscribers in Bangladesh
Mobile
Subscribers
Internet
Subscribers
150.945
Million
82.024
Million
Mobile Internet Subscribers
* Updated as of June 2018 from BTRC website.
87.79
Million
0.081
Million
WiMax Subscribers
5.685
Million
Broadband + PSTN
Subscribers
93.43%0.09%6.47%
Technology trend is leading towards a
Wireless future

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How Internet reaches the last mile in Bangladesh
Internet
Peer
Foreign
CLS
Coxs Bazar
CLS
BTCL/ITC ISP Consumer
National transmission network
backbone (NTTN / MNO)
IIG
Submarine / Terrestrial
Cable (ITC / BSCCL)
MNO / ISP
backbone
A B C D E F G
Local ISP
backbone
COUNTRY X BANGLADESH
COST
COMPONENT
Local transmission network
backbone (NTTN / MNO)
Considering the cost points how can we try to
Standardize the cost at the last mile?
Bangladesh
Optimization is possible here as 70%-80% of the cost lies in this
part

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Lack of infrastructure limits economic growth at last mile
Proper Physical infrastructure reaching other rural areas
Educational institutions; as a result less qualified resource building options
High yielding economic activity
Financial infrastructure
Development
Interest for service providers to invest
This is why Government can’t decentralize
This means for other areas there is a
LACK of
Development is always centered around Metropolitan cities and
Economic growth centers which are facilitated with basic infrastructure,
access to education, financial institutions and communication infrastructure
AND AS A
RESULT

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A lot of people are flocking towards Urban
cities while others are contributing to the
Digital Divide;
From Regulatory perspectives network
operators have a lot to do here…

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Our Regulatory Framework needs more support from
us
RURALURBAN
Create more
Business friendly
environment
Empowerment of
Associations / Trade Bodies
Fair play
Are we doing enough to
educate customer?
Price protection for
sustainability in market
Creating policies for Digital
Inclusion
Help Enforce law and build
communities for better
future
Raising awareness and
offering VGF to build
infrastructure

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For better economics hack different stages of growth
Stage-1 Stage-2 Stage-3
Subscribers 0 – 1,000 subs 1,001 – 10,000 subs 10,000+ subs
Bandwidth usage Upto 500Mbps Upto 10Gbps Over 10Gbps
Single PoP 2-10 PoP Own Infrastructure and
PoP
Coverage Locality City Multiple city (Urban and/or
Rural)
Services Residential broadband and
some corporates and
scale FTP
Residential, Corporate,
Small scale providers, FTP
services, Gaming,
Residential, Corporate, Small
providers, Cloud,
other VAS such as FTP
Gaming, Cyber Café, Hardware
sales, PC repair, etc…
Service optimization Transit with limited peering
later in Stage-1
Routing optimization, Full
fledged Peering and CDN
10G Peering, Multiple CDN,
Cloud, Portal
Technology Ethernet, trend moving
towards GPON
Ethernet, GPON Ethernet, GPON and yes
tech such as P2P Radio’s!!!
Staff 3-10 11-100 100+

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Why can’t we grow above Stage-3
• Knowledge
• Vision
• Business analysis capability
• Investment
• Educated personnel
• Growth
• Innovation
Basic Internet barely satisfies needs of
Information Hungry
Customers
LACKING

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Why can’t we grow above Stage-3 (Cont’d)
• Access to International Content + Create Localized Content.
• Room for Investment and Growth in content market – Netflix, Amazon, Google, FB.
• Foreign organizations are bringing their focus here.
DARK CONTENT
Being served as an alternative to facilitate demand
90%
Internet
Traffic

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Big Data is the way to grow by consumer data behavior
analysis
Traffic usage pattern (Time of day, Weekend, Holidays)
Types of traffic being used
What are these traffic entities
Routes being taken by such traffic
How you are connected to these routes
What more you can do to optimize these routes
Cost factors involved for optimization (at times you
don’t)
Can you bring in such content and cache them
Plan on how you can offer similar services
Are there any regulatory constraints
Customer charging and packages
Better service brings better yield
Happy customer is willing to pay more
More Revenue = More Growth options

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Which is better: Transit vs Peering vs CDN
• Transit: Start small and don’t have in-depth analysis capability (Stage-1).
• Peering: Once you have grown to a level (talking about having multiple Gbps of
traffic), optimize your costs by connecting other SP’s offering more routes / better
traffic experience (Stage-2).
• CDN: After a certain level you will realize Peering is not enough, and you will
need multiple dedicated CDN to enhance customer experience and drive traffic
(Stage-3).

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Transit and Peering bottlenecks + complexities
10G
GE
10G
GE
GE
10G
10G
10G
GE
GE
GE
GE
Routing | Capacity Limits | Path
Content
resides
here;
Where art
thou?
Local traffic requests being resolved
through Internet in areas such as Cox’s
Bazar
10G
Peering Bottlenecks at
Service Provider levels
Capacity limits to
reach content

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Shifting Economic Trends of the Industry
• 10Gb Ethernet already in mainstream; 100GbE coming into mainstream; 400GbE
and 1TbE will be affordable in a few years.
• Neutrality rulings in US and EU
• Highly varying benefits and downside between US and EU
• Fight with the big boys, bringing benefits to us
• China has secured its own position within this
• The “dumb” pipes problem: Transport and IP services increasingly commoditized.
• Resultantly; the global IP Transit market compresses 16- 18% per year, depending
on region.
• Movements to Private Data Center / Cloud Interconnection.
• Massive improvements in measurement and monitoring traffic.
• Content providers are willing to take content experience to new levels.
• Customers looking for rich, yet simple / seamless service experience.
• Innovation is fueling the Tech disruption.

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Human beings – EVOLVING!
Over the years Mankind has evolved
Our needs have evolved too

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IS IT TIME TO BRING A DISRUPTIVE
PRODUCT / SERVICE
IN
BANGLADESH?

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How to design a disruptive product / service
“If you design first and think later, you may be left with the tower of Pisa.” – Famous quote
• Customer demand
• Technology trend
• Market development
• Infrastructure (available and required)
• Purchasing Capacity of people
• Service mindset
• Innovation
UNDERSTANDING

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And the most essential ingredient
WOW FACTOR

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Case Studies of big boys: Tech Disruption 101
Reliance
Jio
Google Fiber
Amazon FacebookYoutube Whatsapp Tencent
Singtel
Except this guy everyone
started off small
Reference :
IDC; Gartner; Researchgate.net; Case Center; Boston Consulting; Broadband forum; GSM World Congress; Google; Wikipedia
Virgin Media UK

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At last but not the least: The Guru of Tech
Disruption
Reference :
Google; Wikipedia; Newsweek; Times; NASDAQ;
Boston Consulting;
APPLE
INC.
• MAC OS
• MAC (Workstation for high end graphics and programming)
• Mac Book (laptop)
• iTune (replaced Napster / other music services)
• iPod (replaced Walkman / Discman)
• iPhone (True Smart Phone revolution)
• iOS (Mobile phone OS, dethroning Symbian)
• iPad (Smart Tablet)
• Apple TV (Video content)
• Apple Watch (Smart wearable)
• Apple Pay (Wallet)
• Air Pod (Wireless headphones)
• iCloud (Personalized cloud service)
• Coming with AI product soon…
NOW THEY ARE
THE FIRST
US$1
TRILLION
Company

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Some Recommendations
GOVERNMENT PATRONIZATION
• GE and 10G level Peering service availability at Divisional levels connected to main Peering
(NIX) exchanges in Dhaka.
• Internet Gateway availability at District levels offering prices available at Dhaka.
• Equipment import and clearance coordination.
• Building Broadband Infrastructure to stretching to Union levels supporting growth.
• Regulatory Regime support: Licensing and Guideline level bottlenecks.
• Investment friendly credit facility for rural development.
• Tax holiday for rural infrastructure development.
MARKET DEVELOPMENT
• Capacity building (Training / Workshop) for all operators periodically.
• Raising awareness of Internet at Rural levels through a national campaign.
• Enforcement of compliance to protect licensed operators at rural levels.
• Empowerment of trade bodies such as ISPAB / BDNOG.

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UTHANT RABBANI
• 22 years of experience and counting.
• Head of Marketing, InterCloud (Jan 2013 till date)
• Tech enthusiast having an MBA from Dhaka University, with
decades of strategic and operational management experience in
Datacom sector.
• Mastermind, initiator, conceptualizer and the visualizer behind
large number of Bangladeshi Datacom ventures such, BRAC Net,
GETCO, Fusion Net and many more.
• Specialized in VOIP, WIMAX, Network Infrastructure Building,
Data Center, Software Development and Sustainable Project
Planning.
• Played leadership roles in ISPAB over the years.
• Part of “Safe Internet” vision by Police – Cyber Crime Unit
SAYEEF RAHMAN
• 18 years of experience and counting.
• Head of Systems and Strategy, Digijadoo (May 2015 till date)
• Technical consultant for Bongo, Bioscope, A2I, UNDP, Inspur.
• Lean Six Sigma Black Belt certified practitioner specializing in
Process Management and Optimization along with Project
Management.
• Plus close to 80 certificates from Ericsson, Alcatel, Nokia,
Huawei, Cisco, NetApp, Oracle, Microsoft, HP and BLAH BLAH
centered around Networks, Data Center, Cloud, Video, HPC,
Storage, Satellite, etc.
• I conduct Gamestorming, Business Plan Canvas, Value
Proposition Design, Lego Serious Play session.
• Design policies, framework and projects from scratch!

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THANKS A LOT FOR YOUR VALUABLE TIME
::: Artwork credits to www.flaticon.com :::