WiMax losing ground with operators backing LTE

WiMax
, like 3G telephony, is in the nascent stage in India. The commercial
services for retail users have been only launched by the state-run operator,
BSNL
. MTNL
, another state-run PSU, despite having license is yet to commercially
roll out services. WiMax is said to be a major boost to the government's aim to
provide broadband connection in the rural areas.

Using their ISP licences, operators such as Tata Communications, Reliance
Communications, Bharti Airtel, Aircel and Sify Technologies have launched fixed
WiMax services in 3.3 GHz band. The combined user-base of fixed WiMax operators
stands at 6.5 lakh. They primarily target enterprises and high networth
individuals. Reliance Communications and Tata Communications are leaders in the
fixed WiMax segment.

However, hazy clouds are looming over the technology after most of the
players-who have won licenses for BWA services in the recently concluded
auction-are backing long term evolution (LTE) technology rather than WiMax. The
operators who have won the BWA spectrum auction are eager to deploy LTE, which
is faster and cheaper than WiMax. This is a setback to the WiMax enthusiast.

Mukesh Ambani's Reliance Industries backed Infotel-a surprise winner of
pan-India license for BWA spectrum-has made it clear that it would deploy LTE
network to provide the third generation services. Similarly, the US based
Qualcomm
after winning the spectrum in two key metropolitan cities, including
Mumbai and Delhi, was also betting for LTE based network. The major setback was
Tata Communications, which despite having an existing WiMax network did not win
any spectrum to run the premium service.

WiMax and India

So far, WiMax based wireless broadband service has been effectively launched
only by BSNL in rural and urban India in the two circles of Kerala and Punjab in
December 2009 and March 2010 respectively. The user-base of BSNL is in
thousands.

BSNL has committed an investment of Rs 1,200 crore for the procurement of
WiMax devices and about 12,000 BTS and associated elements for the mobile WiMax
services. Nationwide commercial services are yet to be rolled out for the
consumer broadband access across the country.

Recently, BSNL launched WiMax in Cochin which helped to provide Internet
speed of around 33 Mbps. At the initial phase, users in Cochin will get a speed
of up to 2 Mbps, which will be later upgraded to higher speeds. BSNL also
announced attractive tariff plans as part of the launch.

The company aims to put up more than 1,000 WiMax base stations. In the first
phase of rollout, WiMax service would be made available at the district centers
and important cities. The service provider aims to provide complete 3G and WiMax
coverage in the state by the end of 2010. BSNL is targeting both retail and
enterprise users.

The PSU has plans to start wireless broadband services in the National
Capital Region (NCR) in a few months time. The services would be launched in
Dhakor of Greater Noida in Uttar Pradesh in the first phase. In the second
phase, the services would be launched in other parts-including Bisrakh, Dadri,
Jewar and Jahangirpuri.

To popularize its services, BSNL has also offered a free trial of its WiMax
services to customers for a limited period. In that period, customers will not
be charged any monthly rental for thirty days from the day of activation.
Customers were also given free download of 400MB.

Fixed WiMax services are being rolled out by the private operators. Tata
Communciations, Reliance Communications, Bharti Airtel, Aircel and Sify have
committed another 3,000 BTS and about 6 mn devices for fixed WiMax services.
These players will spend about Rs 400 crore on fixed WiMax.

The Road Ahead

India is projected to become the third largest economy after China and the
US. Factors like continued GDP growth in the range of 7 to 8% per year,
expansion of business, consequent rising disposable income and having one of the
youngest population profiles will drive the demand of broadband services in
India by individuals and corporate users. So far, it has not been met by the
current deployed wireline, cable, and wireless technologies like GSM, Edge,
CDMA1X, EVDO and 3G, etc.

A lot more action is also expected from the private players who have won
licenses in the recently concluded auction. BWA auction has been completed and
two auction slots of 20 MHz each would be available with two private players.
Some of these players after getting the spectrum would aggressively roll out
WiMax with a plethora of innovative applications; thereby, meeting broadband
demands of the young India and providing them with high-speed Internet access on
the move and a true broadband experience.

Government of India is planning to connect CSCs and rolling out their
programs of e-governance, e-health, e-learning , e-commerce which would be met
by the rollout of WiMax services.

Akhilesh Shukla

akhileshs@cybermedia.co.in