Empirical Analysis of Internet User in Dhaka City

Empirical analysis of internet user in Dhaka city BY Md. Faisal BBA (Studying) 4th year Major in International Business Faculty of Business Studies University of Dhaka Email:faisal. [email  protected] com Customer Analysis A questionnaire survey method has been used to analyze the customer of internet services in Dhaka city. We basically tried to find the percentage of internet user, using pattern, nature of expenditure, satisfaction level, and the opportunity for a new business to enter into the market. The percentage of internet user in Dhaka City Among all respondents of our survey, 78% people use internet and the rest 22% do not use internet. This is given in the following graph: Figure1. 1: The percentage of internet user in Dhaka City From the above figure, we can easily understand the percentage of internet user in Dhaka City. Among all 78%user, majority are students, businessman, and private employee. On the other hand among all 22%non user, majority are government employee, small and medium (SME) business owner. Using pattern There are many internet services provider in Dhaka City that provide different internet package. As a result the using pattern of people is different. Using pattern can be divided into the following categories: A) Forms of internet used by the people B) Brand preferences C) Package preference A) Forms of internet used by the people Internet can be divided into different forms. These are: (A1) Broadband internet (A2) Wireless Modem (A3) Mobile Internet (A4) Wi-Fi In Dhaka city, people use different forms of internet. The graphical figure of different forms used by the people is given below: Figure: 1. 2 Forms of internet used by the people (%) The figure (1. 2) shows that 74% people use wireless modem, 17% use broadband internet, 7%use mobile internet and 2% use Wi-Fi. This figure clearly mentions that people prefer wireless modem over broadband internet. The reasons are the following: (1)Wireless modem internet provides better speed than broadband. (2)Low connection Cost (3)Prepaid package (4)Suitable for both Desktop computer and the Laptop The people specially the university student have the facility to use Wi-Fi. The Wi-Fi coverage area is very limited in Dhaka City. Some people also use mobile interne B) Brand preferences Many companies in Dhaka city provide internet services. These are the followings: A)Broadband Services provider B)Banglalion Wimax C)Qubee D)Citycell E)Airtel F)Robi G)Banglalink H)GP People use Different Brand. Brand preferences are shown in the following graph: Figure: 1. 3 Brand Preferences The above figure shows that 17% people use broadband internet,30%use banglalion wimax,23%use qubee,7. 5%use citycell ,2. 5%use airtel,and20. 51%use Grameenphone (GP) internet. We can say from our survey that top two brands are banglalion and qubee. Others are the broadbandservics provider, GP, citycell and the airtel. C) Package preference There are many types of internet packages are available . People use different package based on their demand, cost structure, and brand preferences. The following graph shows the different packages used by the people: Figure: 1. 3 package preferences According to the figure 1. 3, it is clear that 43. 5%people use unlimited package, 7. 39%people use internet minipac, 5. 51%people use a package that has limitations of more than 800MB. 35. 56% people use 800MB-1GB package, 7. 69% use 1-2. 5GB package. And 2. 56% use other package. Basically business man and rich people prefer unlimited package. On the other hand students and low income group normally prefer the rest of the package. So 56. 5% do not prefer unlimited package. So the internet services provider of Dhaka city must be careful about this issues while developing new packages. 3. 3: Nature of Expenditure Expenditure for using internet services can be divided into two parts. These are: 1. Initial Connection Charge 2. Monthly using charge 1. Initial connection Charge: If anyone wants to use internet services, first they have to pay for their connection. Connection charge varies from company to company. In Dhaka city the range of connection charge is BDT 1000-3500. 2. Monthly using Charge: Monthly using charge depends on the internet packages which are used by the internet user in Dhaka city. The following table shows the monthly for different packages: Packages Monthly Payment UnlimitedMore than 1000 taka Minipac internetLess than 250 taka 450MB-800MB250-300 taka 800MB-1GB300-350 taka 1GB-2. 5GB350-600taka 2. 5-5GB600-750taka Table 1. 1: Monthly using charge From table 1. 1 we have found that there is a correlation between the internet packages and monthly payment. When the using volume increases the monthly expenditure also increases. 3. 4: Satisfaction level When the people were asked whether they satisfied or not about their internet services, majority replied that they are not satisfied. The following figure shows the satisfaction level of the internet user in Dhaka city: Figure 1. 4: Satisfaction level of the Internet User in Dhaka City The above figure shows that 71. 79% internet users are dissatisfied with their current package. The rest 30. 76% are satisfied. The main reasons of Dissatisfaction are the slow browsing and download speed. From our survey, we found that 96% people get browsing speed less than 256kbps. Only 4% people get browsing speed more than 256kbps. In case of download speed, 30%people get speed less than 20kbps. 35. 89% people get the speed which range is 20-50kbps. 30. 6% people get the speed which range is 50-80kbps. And 5. 12% people get speed more than 100kbps. Because of these slow speeds the internet user has to spend long time to download anything from internet. It also increases their opportunity cost. So they are dissatisfied. Opportunity for a new business to enter into the market: â€Å"Is there any opportunity for a new business to enter into the market? † the answer is yes. The following arguments support this answer: Among all respondents of our survey, 78% people use internet and the rest 22% do not use internet. The user rate is very high. So we can say that the market is potential. Demand is there. Through analysis this demand, a new firm can enter into the market. When the people were asked whether they satisfied or not about their internet services, 71. 79% replied that they are not satisfied. But still they are using internet services. They want to get better. All will prefer high speed internet services. About 67. 85% people suggested to have unlimited packages and they are ready to pay on an average 750 taka per month for their packages. About 32. 15% people suggested having minimum 3GB internet packages and they are ready to pay on an average 350 taka per month for their packages. They are ready to switch their services if any company can satisfy their demand. If a new firm can think that they will satisfy the needs of the customer, they can easily enter into the market. The market is really potential. Many people do not use internet because of their low income level. The price of desktop computer or a laptop is high. But recently Bangladesh has produced its own laptop and notebook at more reasonable prices. The brand name is DOEL. Still now it is not available in the local market. Recently our government has said these laptop and notebook will be available in the market as early as possible. When these will be available in the market, the computer user will be increased. As a result the internet user will also be increased. So it will become an opportunity for a new business to enter into the market. The need of information is increasing rapidly. Internet is the major sources of information. Increasing information needs can be a major opportunity for a new business to enter into the market. The use of internet to market, sells, promote, or buy a product or services are increasing rapidly. This may be another opportunity for a new business to enter into the market.