The Birth Of The Cambodian Internet-Based Service Industry

Mr. Andrey Sheen, CEO of Digi Internet Cambodia, says the potential scope and scale of expansion in the Cambodian ISP and telecommunications industry is huge. Currently, just 6% of the Cambodian population is online, with the vast majority of users connecting through mobile data roaming networks. A small percentage of Cambodian internet subscribers use fiber optic broadband services at their homes or businesses, over two-thirds of which are located in Phnom Penh. However, this is not due to a lack of availability. Broadband fiber optic connections are well-established in Cambodia, especially in the Phnom Penh business sphere, easily offering unlimited data usage and high speeds if desired.

Sheen notes that most users operate from smartphones or similar devices and use relatively low-traffic applications. Consequently, most users currently do not demand unlimited data roaming, and only a very limited number of Cambodians can realistically afford a residential fiber connection. While currently dominated by the 3G network, the Cambodian mobile network is sufficient to support a change to 4G LTE, a transition the nation is currently experiencing. The speed is noticeably faster on 4G LTE than the previous 3G standard but still far slower than a cable connection. Wireless operators are unable to provide pure unlimited traffic usage to their users, reserving this benefit for cable users.

Cambodia currently connects to the internet via its neighbors. This means broadband internet is more expensive and somewhat slower than it could be if Cambodia had its own high-capacity, direct-to-international-port submarine cable. However, this project, currently in planning, will not influence the Cambodian ISP market for some time.

Based on Digi’s sizable experience in the Kazakhstan, Russian, and European telecommunications markets, Sheen suggests that Cambodian ISP demand will shift toward broadband, of which Digi is currently the market’s number one residential provider. As internet users increase overall, mobile network use will continue to grow. However, this sector’s rate of growth shall decline somewhat as more users begin to use both mobile networks and home/business broadband, dividing their traffic between the two. As the use of mobile networks increases, including higher traffic usage, such as downloads, and multiple device connections, the relative cost of these connections will also increase. This means it is only natural for these consumers to look to broadband, where speeds are better and data can be unlimited and shared between several household or business members, saving costs in the long term.

Not only will the scale of internet use change in Cambodia’s near future, but so too will the scope. Cambodia is presently seeing the birth of the internet services age. As Cambodians increase their use of the internet, domestic internet sites offering internet-based utilities relevant to Cambodians are now emerging. Currently, 90% of all internet use in Cambodia is spent accessing internationally hosted sites. However, this is changing as Cambodian ISP providers and private companies are increasingly offering internet utilities and services hosted on a domestic server. Some examples include online banking services such as “Pay&Go,” access to foreign/domestic media in the Khmer language, e-learning platforms, and online shopping and delivery services. The market is ripe for a boom in domestic internet utilities such as these.

“Digi World” is one such design, offering entirely internet-based services to subscribers on a local Cambodian server. Digi World hosts and adapts foreign sites to provide Khmer language news and entertainment, offers file exchange hubs, online games, and various other services tailored to local users. On the local server, these sites are safer, faster, and personalized to Cambodian needs. Domestic internet services such as these represent an entirely new shift in Cambodian ISP history, which some businesses will be slow to make. Sheen suggests, however, that given the boom in internet-based service industries in other emerging Asian and European markets, it will be difficult for Cambodian businesses to ignore this potential for much longer.