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Trouble Brewing @ WiMax?

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VoicenData Bureau
New Update

The response to the proposed broadband wireless access (BWA) spectrum auction

slated in the next six to eight months is set to determine the fate of the WiMax

in India.

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In the last two years, big operators' interest in WiMax based broadband

access has not been encouraging. The largest wireless player Bharti Airtel,

which is currently betting big on broadband, is not excited enough to spend

heavily on WiMax.

This is despite Intel's pro-active efforts to push for the success of WiMax

in developing countries. Recently, Intel Capital, and Phi Televentures (Phi

Group's subsidiary for ICT sector) joined hands to float a special purpose

vehicle to bid for WiMax spectrum.

Intel Capital's investments in WiMax companies have already crossed $9 bn in

forty countries. These include $43 mn in Japan's UQ Communications, $600 mn in

the US-based Clearwire, and $11.5 mn in Taiwan's telco VMAX. More investments

from Intel are in the offing.

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A part of large enterprises are waiting in the wings to embrace WiMax. They

want fast broadband access at reasonable prices. They want mobility. But will

operators show enthusiasm to bid for WiMax and start rolling out services?

Considering the recent reports coming from some of the global markets, India

should wait to cheer.

According to Analysys Mason, in the last two to three years WiMax gained

presence in developing countries, wherein there is a need for broadband, but the

fixed infrastructure is poor. But it feels that in the developed markets of

Europe and the US, there may be signs of a difficult future for WiMax.

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For instance, Sprint is rolling out national WiMax network in the US through

its subsidiary Clearwire, but the growth in the number of subscribers has been

disappointing. Google and Intel, among others, have started writing off billions

of dollars they had invested in Clearwire.

India is yet to see these kinds of issues since the adoption is at early

stages. But global meltdown has already affected investments in new telecom

technologies. Analysys Mason says North American CDMA operators may move to LTE,

rather than to WiMax. India is also in the process of looking at LTE

opportunities. Telecom regulator Trai will shortly come out with its

consultation paper to ensure that Indian telcos are not too late to catch up

with the latest LTE initiatives.

India should not miss opportunities associated with WiMax broadband. WiMax is

positioned as the technology for developing nations. Due to delay in spectrum

auction, we already lost big opportunities. During the forthcoming auction,

operators should grab WiMax spectrum and show their commitment for the country's

future.

Baburajan K



baburajank@cybermedia.co.in

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