Investors Attracted to Cambodia’s Increasing Online Growth

As Cambodia’s fixed-line Internet services market continues to grow, so has the number of investors trying to tap into the opportunities of the Kingdom’s online growth.

Since the start of this year, the Telecommunication Regulator of Cambodia (TRC) has issued four licenses to new Internet Service Providers (ISPs) and two to Voice over Internet Protocol (VoIP) providers. This has brought the number of ISPs to 33 and VoIP operators to 18 in Cambodia.

The number of fixed-line subscriptions has reached 88,000 by late June, marking the steady growth of Internet use in Cambodia. Mobile Internet dominates the growth, with more than seven million mobile phone subscribers accessing the Internet through their mobile devices.

Despite the new ISPs, VoIP operators, and a growing use of the Internet in Cambodia, many areas of the country still face limited Internet access. Im Vutha, Director of the TRC’s Regulation and Dispute unit, believes that this opens up gateways for potential investors. “This is still room for customer growth in the market and with increased investment, the user base could expand in remote areas where there is limited Internet access,” he said to the Phnom Penh Post.

The low quality of Cambodia’s Internet services as compared to regional countries also serves as a mountain of opportunity for investors. Keuk Meng Leang, Director of ISP Maximum Business Information Technology (MaxBIT), told the Phnom Penh Post, “This provides investors with an opportunity to bring better technology to the market.”

Additionally, the popularity and commercialisation of Internet services such as social media and e-commerce are further incentives for investors to expand fixed-line networks to expand their reach. “We have seen the popularity of e-commerce and social media in Cambodia, especially amongst younger generations,” Leang said.

Since the start of the year, the TRC has also revoked eight ISP and three VoIPs of their licenses. According to Vutha, these operators have failed to fulfill their contract obligations.

 

Source: The Phnom Penh Post