| Given the abysmal reach of the Internet in rural | | | | bandwidth to provide voice, video, data, and |
| areas, WiMAX (Worldwide Interoperability for | | | | mobile services on the same platform. The range |
| Microwave Access) has been seen by a host of | | | | of applications that can be powered using WiMAX |
| players as the technology vehicle that can enable | | | | is extensive and this includes areas such as traffic |
| them to make inroads into this relatively untapped | | | | monitoring, meter reading, video surveillance, |
| market. Another reason for WiMAX being viewed | | | | distance learning, conferencing, transportation, and |
| with eyes of optimism is due to the way | | | | logistics management. |
| broadband access has been provided to | | | | Further, applications such as IPTV which have |
| consumers in India. Broadband in India has been | | | | been languishing can now take off with the help |
| typically delivered using wires, and is fraught with | | | | of WiMAX. In the past, the high amount of |
| challenges such as taking huge number of | | | | bandwidth required for video streaming services |
| permissions from multiple authorities such as | | | | have acted as an impediment, making DTH |
| municipal corporations and housing societies for | | | | satellite and cables the preferred mediums. |
| laying down the fiber optic network. Even in | | | | Besides the ease and quickness of deployment, |
| areas, where operators installed a fiber optic | | | | WiMAX gives operators the capability to offer |
| network, the volumes seldom justified the price | | | | more services under a common infrastructure. |
| of creating the network. On the other end of the | | | | For example, with WiMAX, the service provider |
| spectrum is the unconnected India - which lives in | | | | has the capability to stream data speeds up to 10 |
| villages, has no access to wired lines, and | | | | Mbps, making it possible to stream videos. |
| accounts for over 70 percent of the population. | | | | Boosting WiMAX |
| Hence, though the latent demand for Internet | | | | For WiMAX to be a success in India, it has to |
| access is high; few service providers have been | | | | position itself as a cost effective and |
| able to match the demand with quality. It is | | | | complementary technology to other technologies |
| common to see several users complaining about | | | | such as DSL. Explains Ajay Kumar Dhir, Group |
| the dismal speeds or abrupt disconnections, on | | | | CIO, JSL Limited, "Price competitiveness will be a |
| discussion boards on the Internet. Not surprisingly, | | | | key catalyst for WiMAX adoption; hence vendors |
| though the broadband subscriber base has been | | | | have to ensure that the high CPE cost should not |
| growing at a fast clip, it is far less than the | | | | serve as the deterrent to the adoption of |
| ambitious target set by the broadband policy of | | | | technology. Finally, the most powerful pricing |
| 2004. The broadband subscriber base, as of | | | | proposition is service bundling. The more services |
| December 2008, stands at 5.45 million, and falls | | | | an operator is able to layer on its network, the |
| way short of the target set by DoT, of achieving | | | | more valuable will be the network." Pricing of |
| a base of 20 million broadband subscribers by | | | | spectrum is crucial, as high tariffs will not be |
| 2010. | | | | conducive for growth for a fledging industry. |
| With WiMAX, telecom players see a sliver of | | | | Like any other new technology, WiMAX will go |
| hope to connect to the rural population, and in | | | | through various cycles of deployment, before it is |
| turn, overcome the infrastructure hurdles that are | | | | finally accepted as a mainstream and dependable |
| present in every city. WiMAX eliminates the need | | | | technology. Says G Radhakrishna Pillai, Chief |
| for building a fiber optic network in rough terrain, | | | | Information Officer, Super Religare Laboratories, |
| or sparsely populated areas - which make the | | | | "To start experiencing WiMAX, the first choice will |
| business case for building a fiber optic network | | | | be remote locations or branch offices. Once we |
| difficult. With WiMAX, all the telecom operators | | | | have confidence, the technology will move to |
| need is a base station, giving them the flexibility | | | | other offices too." |
| to target niche pockets or regions, which are | | | | In the price sensitive Indian market, ensuring the |
| small if targeted individually, but represent a huge | | | | right price will be difficult initially, especially if the |
| customer base collectively. Says Naresh Singh, | | | | volumes are small. "To make WiMAX popular, it is |
| Principal research analyst, Gartner, "India needs a | | | | important that the end subscriber costs go down. |
| wireless technology to grow its broadband | | | | This reduction in price can only happen if |
| subscriber base. In this context, WiMAX is a good | | | | economies of scale are achieved. Therefore, in |
| option for a number of ISPs who do not have | | | | summary, the answer is that initially WiMAX for |
| another choice for last mile connectivity." | | | | home users will go through its maturity cycle and |
| As WiMAX is a scalable wireless access | | | | take about two or three years to replace DSL or |
| technology that can be used effectively to bridge | | | | broadband connections," says Akshay Garkel, |
| long distances with high data rates, leading | | | | Senior Consultant Wireless Security. To achieve |
| telecom carriers have showed intent, with some | | | | economies of scale, Garkel suggests offering free |
| of these players already making a start in building | | | | or subsidized subscriptions for the first few |
| a WiMAX ecosystem. These include major | | | | months, and by providing WiMAX hotspots for |
| carriers such as BSNL, Tata Communications, | | | | enabling people to experience the technology. |
| Reliance Communications, and Bharti Airtel. | | | | Global players such as Alvarion, which have been |
| The Government of India too realized the | | | | instrumental in helping cellular providers such as |
| immense potential of this technology in bridging | | | | Bharti Airtel setup a WiMAX network in India, |
| the digital divide - as it made a decision to allocate | | | | believe that as adoption increases, the usage plan |
| and auction WiMAX spectrum to the 2.3 and 2.5 | | | | of WiMAX will be similar to cell phone devices. |
| GHz frequency bands. Buoyed by the | | | | Says Ashish Sharma, Vice President - Corporate |
| government decision, the WiMAX Forum predicted | | | | Markets Development, Alvarion, "A large |
| that the Indian WiMAX market including devices | | | | ecosystem of device vendors developing WiMAX |
| will be worth $13 billion by 2012. The Forum has | | | | devices for the global market is already present. |
| also said that it will add an Indian certification lab | | | | Once a mass market is developed, we expect |
| to support certification of products in this region. | | | | the devices for WiMAX to be available at price |
| Private players such as Intel too announced their | | | | points similar to cell phone devices." |
| plans to tap this promising market, by working | | | | Mobility is the strongest point for WiMAX, and will |
| with the WiMAX forum to bring affordable low | | | | be a significant factor in influencing adoption. Says |
| cost devices that would help in increasing Internet | | | | Arun O Gupta, Group Chief Technology Officer, |
| access. | | | | Shoppers Stop, "At incremental investment over |
| A spectrum of possibilities | | | | current technologies, we expect WiMAX mobility |
| With WiMAX, telecom operators have the ability | | | | as one of the key drivers towards adoption, |
| to roll out networks for providing broadband | | | | which will help our traveling and out-of-office |
| access quickly, and make inroads into markets | | | | associates to remain connected to office |
| where it has been commercially unviable due to | | | | productivity tools and solutions in a similar way as |
| the problem of last mile connectivity. Agrees | | | | they would be while they are in the office." |
| Neeraj Gulati, Managing Director, Ciena India, "In | | | | Evaluating WiMAX over other options |
| India, last mile connectivity has always been a | | | | For companies that have branch offices within the |
| concern. In fact, due to this fact, more than 70 | | | | same city, WiMAX can be cost effective over |
| per cent of Indian households do not have access | | | | other traditional forms of connections such as |
| to fixed wired telephone services (landlines). This | | | | leased lines or DSL. However, within the office |
| means providing DSL to such households is an | | | | itself, Wi-Fi is preferred over WiMAX. Hence, CIOs |
| even bigger problem. In this context, WiMAX is | | | | must carefully evaluate the choices before taking |
| being examined as a means to solve the challenge | | | | a decision on WiMAX. Explains Dhir of JSL Limited, |
| of last mile connectivity." | | | | "In areas with existing wireline infrastructure, the |
| The last mile connectivity problem is acute in rural | | | | cost of rolling out DSL is significantly lower than |
| areas, and this is where WiMAX can play a | | | | setting up a WiMAX infrastructure from scratch. |
| significant role. Says Subashini Prabhakar, CTM, | | | | This is largely due to the low cost of DSL |
| Dax Networks, "Most places in India, especially in | | | | equipment and other associated infrastructure |
| the rural sector, lack the traditional telecom | | | | costs. However, the cost of setting up a WiMAX |
| backbone infrastructure. WiMAX networks in | | | | base station, on the other hand, can be up to 1.5 |
| these places will be preferred over traditional | | | | times higher than enabling an exchange for DSL." |
| wired connectivity options." | | | | Dhir says that DSL can reach customers within 6 |
| Besides speed of deployment, the initial costs of | | | | km of the exchange, while practical WiMAX |
| deploying a WiMAX network make the technology | | | | implementations are likely to have no more than 3 |
| suitable for addressing rural markets. Says Dr | | | | km reach per base station leading to higher costs |
| Manoj Kanagalu, Senior Director, Wireless & | | | | per square km covered. From the customer's |
| VoIP Solutions, Nortel Networks, "WiMAX is the | | | | perspective, if speed is of the essence, then a |
| lowest cost per Mb solution for offering high | | | | WiMAX solution will definitely help in achieving |
| bandwidth connectivity for enterprises or | | | | faster rollout, especially in areas where there is |
| customers over large geographic areas where | | | | lack of infrastructure. |
| there is no existing fiber or DSL infrastructure." | | | | Research firm Gartner believes that with |
| Nortel has already deployed WiMAX for providing | | | | competing technologies such as 3G available, |
| connectivity for remote offices spread across hilly | | | | WiMAX could be a less preferred option. Says |
| terrains in North East India. | | | | Naresh Singh of Gartner, "While there have been |
| Adds Kiran Pande, President, ECI Telecom India, | | | | positive changes with respect to policy, the |
| "WiMAX technology enables providers to cater to | | | | infrastructure for 3G is already available in the |
| underserved markets in which the initial CAPEX | | | | form of handsets, which is not present for |
| requirements must be minimal, while still enabling | | | | WiMAX today." Singh believes that WiMAX will be |
| high data throughputs to the end-users. As | | | | used primarily as an alternative to wired |
| WiMAX technology is pure Ethernet, the | | | | broadband options. |
| associated costs for backhauling and connectivity | | | | Ensuring WiMAX's success in India |
| are typically much lower than for cellular or wired | | | | For ensuring that WiMAX gets deployed as per |
| networks." | | | | plan, the Government of India has to quickly take |
| WiMAX can also be considered for providing | | | | decisions with respect to the spectrum auction. |
| redundancy. "WiMAX can be a feasible option for | | | | For example, the dates for the spectrum |
| providing backup for wired networks in case of | | | | allocation process were changed recently, due to |
| disasters," says Ketan Parekh, the CTO of | | | | a request from the Finance ministry to double the |
| Sharekhan. For example, in disasters caused by | | | | minimum bid prices. Though the request was |
| the Tsunami in Indonesia, and Hurricane Katrina in | | | | rejected, it again delayed the dates for the |
| the US, WiMAX was used extensively to quickly | | | | spectrum allocation, which the operators have |
| provide communication links to areas, where the | | | | been waiting for a long time. Resolving the |
| communication infrastructure was destroyed. | | | | spectrum allocation issue is crucial for the success |
| Opening the door to a world of applications | | | | of WiMAX, and one can expect the floodgates of |
| While at the basic level, WiMAX opens the door of | | | | opportunities to open, once the spectrum issue is |
| opportunities to tap underserved markets, it also | | | | resolved. |
| gives operators the flexibility, the speed and the | | | | |