According to the traditional calendar of East Asian cultures such as China and Vietnam, the year 2006 will be the Year of the Dog. However, in the realm of high-speed broadband technology, it remains a top priority for the last five years.
During this five-year period, the upward “curve” representing broadband development is gradually becoming straighter, indicating a stronger and faster growth rate.
This upward trend will continue into the next year—2006—when more and more people shift to using broadband, with significant increases in existing access speeds.
Experts note that high speed alone is insufficient; the key issue is developing service models based on broadband infrastructure. Therefore, it can be anticipated that next year will see the launch of a series of broadband-based services.
Ian Fogg, a leading analyst at Jupiter, predicts that 2006 will be the year of the “conflict” between two service platforms—television and telephony.
“This will be the main topic of debate in 2006 as tensions rise between what Internet service providers offer and what other third-party organizations provide,” Ian Fogg stated.
The Voice of Innovation
Companies like the UK’s largest media group, BBC, and Apple will have to compete with Internet service providers to deliver content to users’ computers worldwide. By the end of 2006, “it may still not be called Television,” Fogg added.
Similarly, the Internet telephony arena will see competition among service providers against companies like Vonage and Skype in delivering telecommunications services based on broadband.
2006 will also be the year when experts will gather to focus on blogs, podcasts, and other content types. “However, this issue may remain an interesting hobby, raising the significant question: ‘What will be the impact of users on the Internet through these services?’,” Fogg remarked.
This promises a new generation of creative citizens, helping us reflect on what was said about “the web” or Internet during its early days. To date, while broadband networks are present in over 50% of households in the UK and Europe, there is still room to amplify a certain truth.
Faster and Cheaper
2005 has indeed been an exciting year for broadband users worldwide as broadband speeds have significantly improved. Access speeds continue to rise while prices are rapidly declining, thanks to service providers implementing new technologies.
Looking back at the broadband market in Vietnam, we observe a similar trend. Over the past year, the cost of broadband—ADSL services—has considerably decreased in Vietnam. Service providers are employing pricing strategies to compete for market share, with some providers using both pricing and speed as tactics. Here, we will not delve into service quality, as that remains a topic we need to discuss thoroughly.
For example, the largest Internet service provider in Vietnam, the VDC (Vietnam Data Communication Company), has undertaken measures to reduce the costs of its MegaVNN service aimed at promoting broadband development within the user community.
Clearly, by introducing four different ADSL MegaVNN service packages, varying in access speeds and costs, the ADSL broadband has rapidly developed and is replacing traditional dial-up systems. Furthermore, these four service packages provide users with increased options regarding investment and monthly usage fees. The most notable point is that service costs have significantly decreased compared to two years ago.
Additionally, users have the option of using FPT’s service packages. This provider employs both strategies—cost and speed—to capture market share. FPT’s lowest-priced package is quite affordable and offers much faster speeds than other service providers.
Meanwhile, Viettel, though new to the Internet service field, has decided to enter the broadband market with promotional services and competitive pricing.
Technological Issues
Concerns have arisen regarding a second wave of digital divide—specifically, users in remote areas often experience slower speeds. This issue needs careful consideration as access speeds continue to rise significantly in urban areas.
The analysis firm Point Topic released a report in November emphasizing the limitations of ultra-fast broadband and raised new doubts about how much technology can truly deliver for users.
Even urban users find that the performance of ADSL2+ networks still heavily depends on the distance from the access point to the telephone exchange and the quality of their phone lines.
A lesson for users in 2006 seems to be not to trust all the hype surrounding “ultra-high-speed broadband” services. Users should check their phone lines before signing up for broadband services.
Nevertheless, 2006 is poised to demonstrate that it will be the year for broadband.
