CG Net’s 120 Mbps fiber internet has rocked the Nepali internet market with sheer amusement. But will it be able to sustain with the cost-friendly package or revise the plan in the future? Let’s make a case of it.
Ever since CG Net debuted with the dazzling 120 Mbps fiber internet for just Rs.999, it has created all the headlines for the right reasons. With the “speed that matters” motto, the newbie ISP has overwhelmed internet consumers and the existing ISPs alike with its affordable package.
Social media has gone abuzz from the adulation of CG Net to vicious trolls and memes on existing ISPs. CG Net’s Fiber Internet at 120 Mbps for under a thousand rupees is unprecedented in Nepal and we can already witness a price war starting among the ISPs. Many have called CG Net’s offering a harbinger of an internet revolution and believe it could disrupt the market. But many questions have been asked about the fresh company’s promotional package.
Some observant Nepalese have been doubtful over the fresh company’s promotional fiber plan. Some of them are wondering whether this could be after all a short-lived PR exercise while others are questioning its viability in a crowded ISP market in Nepal.
In this, we have also felt compelled to delve into its 120Mbps package and make sense of what could follow for the fresh company and the whole ISP internet market in general. So, let’s begin with the major pull first, the 120Mbps bandwidth speed.
120 Mbps Internet Package, Or Is It?
To begin with, let’s start with the major pull: the record setting 120Mbps, which has got everybody talking. But will residential users really get a 120Mbps connection? It is a bit complicated than what meets the eyes. Customarily, Nepali ISPs share their retail bandwidth among 4-8 subscribers. That means the stream of 120Mbps bandwidth is also not be flowing to your router only unless the users are very few.
120 Mbps In A Shared Network
No matter what is the sharing ratio (4 to 8), users will get more data speed with CG net than with other ISP’s.
So far, CG Net has not revealed whether all of its 120 Mbps bandwidth speed will stream in a shared network or a portion of it. But rest assured, we are still getting a bang for our bucks.
As not all the users in the network consume the internet at the same volume, this won’t hamper broadband performance for the subscribers. They won’t realize that they are just one part of the shared system due to its high-speed profile. Internet will run ablaze. Theoretically, A standard 30 Mbps connection would take around 10 minutes to download a 2GB file while a 120 Mbps will do the job in just 2 minutes 23 seconds.
In sum, we can conclude that the sheer 120Mbps bandwidth speed (though shared) could be more than enough to evade any network compromises. And that means CG Net’s consumers can enjoy its fiber internet with a breeze due to its extra-high bandwidth speed.
Will FUP Affect 120 Mbps Connection?
The shared internet status leads us to the concept of peak hours and Fair Usage Policy. As most of the office goers return home and busy themselves on mobile phones, the network gets huge traffic congestion which results in poor internet performance. This is why we often see a drop in WiFi speed in the evening hours. Therefore, to provide uniform internet service, ISPs implement a FUP strategy to limit users’ bandwidth abuse.
But CG Net has maintained its generosity in its FUP. It has drawn a three-tier category to constrain bandwidth abuse but with enough flexibility. Upon subscribing to its 120Mbps FTTH plan, A customer is getting an exorbitant 1900GB bandwidth volume per month. If the user exceeds beyond it, the speed will be throttled by 50% which still makes for a significant 60Mbps. It is then followed by 30% 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|
Since 1900 GB a month is still a few miles high for most residential users, it is possible they will reach renewal even without nearing the bandwidth limit. What we can gather is that FUP is a customary trend for CG and it doesn’t expect to compromise any user’s broadband experience due to its high volume bandwidth offer.
How Will CG Net Sustain?
Since our analysis is general, we can take the liberty of conjuring possibilities. currently, there are 40 ISPs in Nepal. Some have their customers in 6 digits, while others in thousands. Due to limited resources, dependency on other ISPs for bandwidth, and lack of capital and marketing, many of those ISPs will never surpass the top ones.
WorldLink boasts a market share of 38.6% presently, followed by NTC fiber broadband which boasts about 23% market share. Vianet, Subisu, and Classic Tech also have a healthy customer base that keeps them afloat. However, they have lots of years in the making to come into this position.
But CG Net is the latecomer in the business with bells and whistles. It is primarily inspired by its affordable offering to appeal to the masses and it has been ridiculously successful so far. Its eye-popping internet solution at a cost-friendly range has already drawn attention in and beyond the capital. Currently, CG Net is aggressively expanding its fiber in Kathmandu and will tap into other markets soon.
Check out: Classic Tech Internet Packages, Offers, And Price
Additionally, CG Net has received an envious word-of-mouth marketing due to its affordable package. Without investing a penny in ads (at least to us), the ISP has been a hot topic for the internet sphere in the country. The key is their strategy and better technology and it will play a key role heading into the next few months. If CG Net achieves a higher number of customers in the next few months, it will break even with investment in time.
CG Net’s Bulk Bandwidth
Adding to CG’s strategy, the company is likely to buy its bandwidth from an Indian company in bulk for a long-term partnership. It means the ISP’s cost-effective purchase of bandwidth will trickle down to the retailers in Nepal. Adding more services into the fiber setup might increase the cost on the customers’ part but with the slimmest of margin for CG. CG won’t risk a PR mishap with its current promise and do anything to keep its service charge as low as possible.
CG Net’s 120Mbps: A Bit Too High?
Most Nepalese internet consumption comprises of social media browsing, few downloads, and occasional YouTube Video play. This is why a section of internet uses have wondered about the possibility of CG Net offering a lower bandwidth package at a further lower price.
On a global scale, the bandwidth plans are very high in the West. The UK’s Hyperoptic offers an epic 1Gbps internet plan, while the US also has many ISPs offering the same size internet plans. Asian countries such as Singapore, South Korea, Japan regularly top the ranks for high internet speeds.
According to Speedtest.net‘s monthly ranking, Nepal’s broadband speed clocked 27.95Mbps ranking 110 for April which is not bad but doesn’t represent the broadband status of all the customers.
The point is why should Nepal lag on the internet while the IT sector is thriving in the country. Entrepreneurship is on the rise, game streaming has taken over YouTube and ICT has become an immense draw over the years. It is rudimentary to wish for a slower internet speed for a lower cost. While the latter can still be expected, we are accustomed to such pricing already and we are getting a far better internet plan from CG Net so we should be content with it for now.
CG Net’s Grander Scheme
In a recent media appearance Nirvana Chaudhary, the MD of CG Telecom, laid out the broader vision with its FTTH approach. Regarding the doubts about 120Mbps, he reaffirmed that CG Net is committed to its promises and customers will get what they see on its site. Additionally, he asserted that CG Net could further lower its price in the coming months when the ISP shoots off beyond Kathmandu. Regarding the low cost of its internet plan, he stated, minimizing overhead costs and utilizing the latest technologies would be key for CG Net’s growth potential.
Read: Nokia And CG Net Deploy GPON For High-Speed Broadband
“CG Net expects its cost-effective internet solution could prove fruitful in digiting Nepal’s economic sector and compliment Nepal Government’s Digital Nepal Framework,” He said. Citing Nepal’s expensive internet in South Asia, he maintained CG Net’s motive to keep its low-cost plans intact for its future. It was also revealed that CG Net is working on launching its digital TV service soon with better technology than currently seen in Nepal.
It is obvious that CG Net will try and emulate India’s revolutionary Jio strategy and create its own stamp in Nepal and we can just hope that everything turns true as we are hoping for.
CG Net is flush with capital investment and resources. Plus, it will leverage the latecomer’s strategies to ward off competitors with the latest tech and innovation. Backed by Chaudhary Group’s ambition and a long-term vision, we believe CG Net is here to strive and thrive.
To conclude, we believe CG Net will not only sustain but also stand out with its broader ambitions bringing in the latest technology and services to the country. As it expands further, we assume it will create healthy competition among the ISPs that will benefit internet customers in the end.
What do you think of CG Net’s ISP venture with the current package? Do you see a Jio like the revolution in Nepal at the expense of CG Net’s bold ambition? Let us know your perspective in the comments below.
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