subject: Operators facing Hurddles over 3G WiMax Deployments [print this page] The Indian government has earned Rs 67,719 crore from the 3G auctions, and Rs 38,543 crore from the BWA auctions. But for operators, these are challenging times. While 3G is supposed to be more voice-centric and already has an established vendor ecosystem in place, WiMax has been a tried and tested technology in other markets, and promises higher data speed. It is also a stepping stone to 4G, which is currently under trial around the world. However, as WiMax lacks the ready devices and infrastructure that 3G has in place, it will be altogether more expensive for rollouts, and the high costs will obviously be passed down to users. For WiMax too, there is a battle going on between TD-LTE and BWA between global giants like Qualcomm, and local telecom operators, which is compatible with 3G WCDMA/HSPA and EVDO.
According to Naveen Mishra, lead analyst, telecom research practice, IDC India, "The successful launch of 3G/BWA networks and services would help to decongest mobile services networks, especially in metros/urban areas and improve the quality of service for the Indian mobile service users. BWA spectrum is expected to help launch WiMax services in rural areas. This would help reach broadband connectivity to the rural masses."
With 3G being delayed once more due to unresolved issues between the government and defense over releasing required spectrum for operators, and hurdles with import of Chinese telecom equipment coming up, operators' grand plans to start 3G services by the end of the year, and a host of 3G enabled handsets flooding the market-are all coming to rubble again. On the other hand, BWA spectrum auction which ended a month after 3G, have already borne fruits in terms of the government allotting spectrum to Infotel, Bharti, Aircel and Tikona, of which Infotel's and Tikona's WiMax rollout plans are already in progress.
And there are those who believe that in India, 2G will still rule the roost for at least the next two to three years. Remarks AK Dinkar, MTNL, "3G is not going to make such a big impact on the masses in India. We expect only 10% of the population to change to 3G. We are targeting 3 lakh 3G subscribers, but will have to compete on the same level as private operators, who will pose stiff competition. As far as separation of spectrum and licenses is concerned, it is not possible, as no operator has a pan-3G presence, so they will have to use 2G in certain areas or seek roaming rights from other operators for circles where they do not have spectrum." Jayesh Easwaramony, director, ICT practice, Frost & Sullivan, APAC says, "A 80-90% penetration is what determines success of a particular technology, and the Indian market is not mature enough to reach those numbers immediately."
Deployment of 3G
With telecom companies together shelling out nearly Rs 50,968.3 crore for twenty year licenses in twenty-two service areas, pricing will be a key component in deployment of services, with operators trying to cash in on RoI, as soon as possible. According to a report by Wireless Intelligence, 3G subscribers will account for 13% of the country's total mobile connections, with 150 mn users by 2014. In order to actually reach these numbers, it is estimated that telecom software and hardware companies are spending close to Rs 15,000 per employee on training.
Operators facing Hurddles over 3G WiMax Deployments
