Ready for Flight

The emergence of Internet and the World Wide Web has opened up infinite
avenues of knowledge, entertainment, and flexibility. And with increasing
adoption of wireless broadband technologies in India, WiMax is emerging as a far
more dependable alternative compared to fixed line access, offering a potential
for extensive and inexpensive connectivity to every region.

According to the V&D 100 survey, total broadband subscribers in India reached
3.9 mn in FY 2007-08, as compared to 2.6 mn in the FY 2006-07. Though, this
growth of over 50% reflects a good pace, we are still very far from reaching the
broadband target of 20 mn by 2010. The only route to this seems to be further
and faster acceptance of wireless technologies such as WiMax and Wi-Fi. At
present, nearly 85% of Indian broadband subscribers have access through DSL
technology, and the rest (Wi-Fi, WiMax, FTTx, VSAT, etc) contribute a meager
15%.

Clearly, we have not been able to utilize the benefits of wireless
technologies to reach our broadband dream. But with fixed WiMax already gearing
pace in the Indian market, mobile WiMax seems to be the best solution for last
mile connectivity, to achieve broadband targets.

Further, the 802.16e version introduces mobile capabilities like GSM, GPRS/EDGE,
and 3G. With this users can be handed off from one base station to another while
they move across cell boundaries with consolidation of access service network
gateways.

However, due to the absence of clear notifications and endorsements by the
WiMax Forum, WiMax deployments are dominated by proprietary equipment. To become
really useful for mobile applications, WiMax needs some real time investments
and a little maturity in the present environment.

In addition, to make WiMax a success story in India, operators need adequate
spectrum, frequent access to cell sites, and broadband backhaul transmission
lines to link base-stations to the Internet, for the purpose of higher speeds.
While few operators like BSNL boast of these key-enabling assets, the others
will take a while to put all the patches together.

Mentioning the benefits of mobile WiMax, Markku Hollstrom, head, Broadband
Wireless Product Management, Radio Access, Nokia Siemens Networks says,
“Compared to fixed WiMax, mobile WiMax has enhancements in radio interface
capabilities and in mobility, and has wider carrier bandwidths. The market
currently shows a trend toward mobile WiMax, which can also be used for
residential or stationary (wireless broadband) user cases.” Furthermore, the
technology would provide end-users the ability to utilize true broadband at
moving speeds of 60-120 kms/hr.

The adoption of mobile WiMax is already being witnessed in an extensive
manner in the US, Europe, and Taiwan, and would be available in Japan next year.
Early services are being provided through a PC-based mobile broadband access,
with concurrent development of portable devices, smartphones, PDAs, portable
games, and navigation systems under the mobile WiMax technology.

“Data, and mobile voice and video services on broadband wireless technologies
such as mobile WiMax will help increase penetration levels and raise operator
revenue,” says Shankar Allimatti, VP, Next Generation Networks, A group of Tech
Mahindra.

Echoing similar insights, Commodore Shyam Kaushal (Retd), Regional Director
India, WiMax Forum says, “Broader Internet adoption, driven by cost-effective
technologies like WiMax can speed up and extend the reach of government services
at a reduced cost to both the people and government.”

Current Scenario

In the Indian scenario, broadband is far from reaching its goals.
Infrastructure woes and last mile connectivity continue to remain the biggest
challenges in the Indian context. Although the government is taking the matter
seriously, the topography of the Indian subcontinent demands for major extracts
of capital.

Summing up the entire scenario of broadband in India, Tarvinder Singh, head,
Marketing and Product Management, Networks and Enterprise, Motorola India, says,
“We are in an era where the Internet has changed the way we live, work,
entertain, and educate ourselves. Hence, ubiquitous access to the Internet with
rich user experience can be termed as a “killer” application for broadband
services. Today, subscribers want constant user experience while accessing
Internet applications, whether they are at home, work, or on-the-go. Service
providers are also looking to provide the same set of applications, irrespective
of the device subscribers use. With very little wired infrastructure for
broadband delivery and a flexible network architecture, 16e WiMax becomes a
natural choice for an emerging market to deliver fixed, nomadic, and mobile
broadband access at high speeds.” Motorola currently has nineteen commercial
contracts being executed over sixteen countries.

The bigger operators have already begun 3G trials, and await a policy from
the government to roll out full-fledged 3G networks. A few of them are also
deploying WiMax networks as a part of their stratagem to provide connectivity to
enterprises. Although, major operators are quite excited, service providers are
waiting for a constructive policy to initiate the deployment of mobile WiMax
networks.

While Motorola is investing in the mobile WiMax space in an aggressive
manner, Intel is also working with service providers around the world to deploy
WiMax networks. MTNL is already offering WiMax broadband services on a trial
basis. Its preparations are underway for a commercial launch of WiMax services
in both Mumbai and Delhi, once the government makes spectrum available.
According to MTNL spokesperson, “Mobile WiMax is a spectrally efficient
technology and provides more throughput compared to earlier versions. Also,
copper as an access media is very costly to deploy, therefore, MTNL in Delhi and
Mumbai is planning to deploy WiMax for broadband services.”

The incumbent operator is also looking at ways to provide broadband
connectivity at affordable rates. The challenge before the operator is to have a
cost effective technology for broadband access, be it WiMax, Wi-Fi, 3G, or
landline.

According to Rajesh Sharma, DGM, Marketing, Alcatel-Lucent, “Operators do not
have much choice but to move broadband deployments from wireline to wireless.
And the best choice of technology available for this is mobile WiMax that can
drive broadband growth exponentially, and help DoT meet the designated broadband
targets for the country.”

Another state-owned incumbent, BSNL has chosen SOMA to deploy the industry's
largest mobile WiMax network across three of India's fastest-growing telecom
circles, ie, Gujarat, Maharashtra, Goa, and Andhra Pradesh. This new SOMA-based
infrastructure will provide broadband data services to more then 200 mn people.

The deployment will help BSNL customers with a number of services and
applications including entertainment, educational, governmental, and financial
services for both rural and urban customers. The initial service offering will
be for basic broadband data services, with more advanced applications to follow
over time. Services will begin to roll out this fiscal, with accelerating
availability in expanded areas and new applications in 2009 and beyond.

While Tata Communications also plans to connect 200,000 retail customers
through WiMax this fiscal, Reliance has acquired global WiMax operator eWave
World and is looking to invest $500 mn over the next 3-5 years to build and
acquire WiMax networks globally.

“India is no doubt going to be an exciting country for the WiMax space. The real challenge however would be end-consumer pricing and speedy rollouts” Bryan Wang, research director, Connectivity Research, Springboard	“Using WiMax for fixed broadband is like installing a Ferrari engine on a lawnmower” Braham Singh, founder and CEO, Red Snapper, and CEO, YOU Snapper

Are we Ready?

In spite of all the big talks and discussions, the key concern is the
readiness of the Indian market for the adoption of new technologies. Many
industry experts feel that in the present context, it does not make sense for
India to deploy mobile WiMax. The primary demand of mobile connectivity is
already poised to serve by tested and proven 3G UMTS standards where basic
network equipment and handsets have sprung up. So, there is no need for
additional cellular technology like mobile WiMax, as it could be much more
expensive than the former.

But interestingly, the market agreed to the fact that the technology offers a
couple of advantages over 3G technologies, which include better spectrum
utilization and higher data transfer rates.

“It is only in FY 2009-10 that mobile WiMax will be available in the market.
That coupled with the cost factor, government allocation of spectrum, etc, will
determine the actual deployment scenario in the country. We feel that 2010 will
be the start of the actual deployment of mobile WiMax, and it's still early to
talk about the numbers,” says Paramjit Singh Puri, business development manager,
Advanced Technologies, Cisco Systems, India & Saarc.

Echoing similar thoughts, RK Kayyar, VP, Engineering, California Software
Company, feels, “It will take years before mobile WiMax can be effectively
introduced. In the first place, regulators all over the world have just started
to resolve spectrum licensing issues. Initially, handsets and subscriber
equipment will tend to be more expensive. While 802.16e can offer multi-megabit
speeds, applications will take some time to evolve. Of course, there will be
early adaptors who consume multi-media services, but I don't think we are
ready.”

Globally, the industry is witnessing much trial in the mobile WiMax, however
most of these are in early stages. While Korea has been one of the early
adopters, Europe is also witnessing blistering debates in relation to the
spectrum allocation.

Taking a strong stand against the present market picture, Desi Valli, COO,
Net4India says, “From the current market trends and user base, it is very easy
to say that the market is not ready for mobile WiMax. However, the mobile market
grew because there was a user base that was ready to accept it immediately when
it was launched in 1994. So it is not appropriate to say that the Indian market
is not ready for mobile WiMax. It should be seen from a future perspective.”

The technology also ropes multi-antenna processing and other advanced
features that offer superior wireless range and higher subscriber capacity
compared to fixed WiMax, thereby opening up exciting avenues for fixed broadband
to home applications.

“In case of India, mobile WiMax can guarantee lower pricing only when there is a single worldwide standard that is completely evolved” Sujai Karampuri, founder and CEO, Sloka Telecom	“With very little wired infrastructure for broadband delivery and a flexible network architecture, 16e WiMax becomes a natural choice for an emerging market” Tarvinder Singh, head, Marketing and Product Management, Networks and Enterprise, Motorola India

“Mobile WiMax can open up new vistas for communication and commerce and can
help bridge the knowledge divide,” says Neeraj Gulati, MD, Ciena India. “While
India is globalizing rapidly and families are on the move, richer and faster
communication technologies can really spur the economy by removing some
bottlenecks experienced due to lack of physical infrastructure in the country,”
he adds.

It is also worthwhile to mention that the wide deployment of WiMax can
eventually put a lot of pressure on the existing networks, both in terms of
spectrum, as well as capital expenditure. There is a strong need to scale the
existing networks in a cost effective manner that it should not lose the
essential high QoS targets and network robustness.

According to R Venkatesh, CEO, Ordyn Technologies, “In developed countries,
mobile WiMax needs to compete with cellular broadband services to get a
foothold, while it has an edge in developing economies where broadband services
are in a nascent stage.”

The company provides next Generation Mobile WiMAX suite of Base Stations (BS)
and CPE (Customer Premises Equipment) to cater to the Wimax demand of both rural
and urban markets.

Braham Singh, founder and CEO, Red Snapper, and CEO, YOU Snapper says, “The
Indian tele density was pathetic before wireless technology completely changed
the dismal landscape. I remember the forces opposing cellular phones saying that
India could not afford this new technology, and we should focus on providing
cheap-wired connectivity. Today the same thing is being said about mobile WiMax,
that we cannot afford it and should focus on fixed WiMax. Using WiMax for fixed
broadband is like installing a Ferrari engine on a lawnmower.”

The 16e technology is well placed to satisfy the growing need of broadband in
rural regions. The concepts of telemedicine, e-learning, community programs are
well suited with the deployment of the advanced technology, which offer fully
mobile networks. Since there are no complex measures such as infrastructure
investment in the deployment of mobile WiMax, it could act as the best bet for
rural and emerging markets.

“In practical terms, WiMax would operate similar to Wi-Fi but at higher
speeds, over greater distances, and for a greater number of users. WiMax could
potentially erase the suburban and rural blackout areas that currently have no
broadband Internet access because phone and cable companies have not yet run the
necessary wires to these remote locations,” says Ashish Khandelwal, business
development manager, Projects, Zyxel.

Issues to Address

In India, operators are facing problems because of the limited availability
of spectrums. The reason being that spectrum for WiMax is not harmonized with
the rest of the world. The government has allocated the entire 2.4 Ghz
frequencies and only a part of 5.8 Ghz as free spectrum for Wi-Fi deployment,
whereas WiMax is still to be allocated a free spectrum. Furthermore,
applications requiring mobile broadband connectivity are limited.

Concerning the various roadblocks in the success of mobile WiMax in India,
Sujai Karampuri, founder and CEO, Sloka Telecom says, “In case of India, mobile
WiMax can guarantee lower pricing only when there is a single worldwide standard
that is completely evolved, and a single frequency spectrum. However, both are
missing. The standard is still evolving and the tests for mobility show that
there is a lot more to be done.” He added, “Though mobile WiMax includes newer
technologies such as MIMO, AAS, smart antennas, etc, they also come with a
price, adding to the woes.” The option of choosing spectrums from three of the
globally harmonized bands-2.5, 2.3 and 3.5 GHz-also need to be given to service
providers in the country.

Growth Ahead

The Indian WiMax image is still in its pilot stage, and is fundamentally
driven by few service providers. Although players like Reliance and Tata
Communication have initiated their plans and other players have also tightened
the belt to make their presence felt in the WiMax market, the actual picture is
quite disappointing, as technology has not been implemented satisfactorily.

The real challenge before making mobile WiMax viable in the Indian context is
the lack of standardized and commercially feasible equipment. Further, the delay
in getting the required spectrum is adding fuel to the situation.

“In order to improve the adoption of WiMax in the country, the focus on low
cost CPE/PC penetration and mobile handheld devices needs to be increased.
Creation of relevant content is another important aspect. All of the above helps
trigger mass demand, and hence large-scale adoption of both WiMax as a
technology and a broadband service,” say Sharma of Alcatel-Lucent.

Commenting on the growth drivers for the technology, K Ravichandran,
director, Product Marketing, Telsima says, “E-commerce growth is the first
driver, and mass utility applications are already available. Since services will
practically follow availability of devices, device bundling with services will
be a good possibility in this space. The strategy will be to get as many
customers as possible on to the network and make them experience real broadband
applications to ensure stickiness.”

Gartner has predicted that India will have an estimated 6.9 mn mobile and
fixed WiMax connections by end 2011. Further, Springboard predicted a strong
future of WiMax in the Asia Pacific region, in its latest study and anticipated
that WiMax services revenue could grow from $58 mn in 2007 to $5.46 bn by 2012,
thereby predicting a 148% growth in the said period.

According to Bryan Wang, research director, Connectivity Research,
Springboard, “India is no doubt going to be an exciting country for the WiMax
space. The real challenge however would be end-consumer pricing and speedy
rollouts by operators.”

With the ever-growing increase in end-user demands and off take of computers,
users are expecting much more than just voice and SMS services from their
devices. The market is maturing at a very fast speed, and today users want to
remain connected everywhere.

Also, with the falling ARPUs there is an increased focus on VAS and
downloading activities such as emails, files, music, and videos largely from the
Internet. And, if provided, users will certainly pick for a direct access to the
Internet from mobile devices instead of PCs. But interestingly the question
remains whether the operators are ready to provide direct connectivity similar
to PCs, and lose their GPRS and Blackberry allied revenue.

Jatinder Singh

jatinders@cybermedia.co.in