Page 10 - SAMENA ELITE - Apr-June 2024
P. 10

ARTICLE
        10     APRIL-JUNE 2024


        that deliver high speeds and stable   interference, which is especially
        connections. Bolstered by 5G, FWA is   relevant for apartment buildings.   The popularization of FWA
        becoming a key player in the market,   A competitive edge is also seen in   and the positive market
        providing an alternative to traditional   Tele2/Altel’s existing provision of 4G   response have shown
        DSL and FTTx connections and         home internet. As 5G is deployed,        demand surpassing
        competing with GPON.                 FWA routers operate in adjacent       expectations. Within four
                                             areas, offering speeds 40-60% higher
        The bias that cable internet is      than standard 4G routers, thus         months of launching the
        more reliable is an obstacle to the   ensuring access even in areas with     FWA service, customer
        widespread acceptance of FWA.        unstable signals.                          preference for 5G
        Nonetheless, experience shows that                                         equipment accounted for
        FWA's stability and speed are on par   FWA primarily targets the suburban/  two-thirds of sales, despite
        with cable counterparts, evidenced   rural sector where cable laying is      5G coverage being less
        by increased sales and reduced       impractical or uneconomical. It's also
        customer churn who have tried the    convenient for rental housing and      than 30% of households.
        technology. Research indicates that   apartment buildings. The benefits are    Customer retention
        Kazakh users primarily consume       clear for traditional households, as   doubled after three months
        content at home, which affects speed   well as those seeking mobility and   of service, indicating the
        characteristics and mobile internet   the ability to quickly transfer internet   potential for further quality
        experience.                          services to new locations without    improvements, and sales of
                                             additional cabling costs, including
                                             freelancers and small businesses.    home internet connections
                                             Mobile operators have the advantage     have doubled from the
                                             of extensive network expansion               previous year.
                                             experience, offering a scalable and
                                             stable connection to an increasing
                                             customer base against rising        instance, a 50% discount campaign
                                             consumption volumes.                demonstrated economic viability
                                                                                 by generating sales that offset
                                             The popularization of FWA and the   the initial high cost of equipment.
                                             positive market response have shown   Innovative approaches to reducing
                                             demand surpassing expectations.     the initial price barrier include rental,
                                             Within four months of launching the   installment plans, and subsidies.
                                             FWA service, customer preference for
                                             5G equipment accounted for two-     Moreover, Tele2/Altel's FWA
                                             thirds of sales, despite 5G coverage   technology integration becomes part
                                             being less than 30% of households.   of a broad ecosystem of services
                                             Customer retention doubled after    offered by the operator. Bundle deals
                                             three months of service, indicating   include additional services such as
                                             the potential for further quality   SIM cards for home internet routers
                                             improvements, and sales of home     and smartphones, access to over
                                             internet connections have doubled   200 TV channels and multiple online
                                             from the previous year.             cinemas, the ability to connect
                                                                                 up to five devices simultaneously,
                                             Tele2/Altel's primary goal is to    and a single billing system, which
                                             ensure the availability of the FWA   simplifies subscription management
        Stepan Glushkov, Converged Product   service, which is easier to install   and positions the service as a direct
        Director, notes that modern FWA      and often exceeds the quality of    competitor to traditional fixed internet
        equipment operating on dual-band     traditional cable internet. The cost   providers.
        Wi-Fi frequencies—2.4 and 5 GHz—     of equipment—a key barrier—is
        offers higher data transmission      being addressed through flexible    Kazakhstan has tremendous potential
        speeds and reduced device            pricing strategies and discounts. For   for FWA development, considering









        SAMENA ELITE
   5   6   7   8   9   10   11   12   13   14   15