Sunday, August 17, 2008

27.5 mn WiMAX users in India by '12: Study

NEW DELHI: India will have over 27.5 million WiMAX users by 2012. About 70% of the WiMAX subscribers will use mobile and portable WiMAX devices to access broadband Internet services, according to a study by the WiMAX Forum. Interestingly, as on January 2008, India had only 3.4 million broadband subscribers, less than the target nine million by 2007 set by the broadband policy makers.

WiMAX, or Worldwide Interoperability for Microwave Access, is a telecom technology that provides wireless data in a variety of ways, ranging from point-to-point links to full mobile cellular-type access. According to the study, low operator capex, innovative return on investment (ROI) models combined with the economies of scale are the factors that will drive down the cost of the wide range of diverse WiMAX devices, fuelling the subscriber base in India.

“India is clearly making the commitment and taking steps to ensure wireless broadband services are a reality that enable operators to meet the needs of India’s diverse and growing population,” said WiMAX Forum president Ron Resnick.

However, research firm Gartner was more conservative in its projection of WiMAX users in India. In a report, it predicted that India will remain a niche market for WiMAX until 2009.

India will have just 6.9 million mobile and fixed WiMAX connections by the end of 2011 according to Gartner. The reason Gartner cites is the failure of the government to effectively motivate operators to roll out country-wide mobile broadband. WiMAX is still a niche technology and limited to enterprise and high-end residential users in urban India, according to Gartner.

Whatever the actual numbers in future, WiMAX does offer a compelling option to users to get broadband access. Last week, the WiMAX Forum complimented the Department of Telecommunications (DoT) for the allocation of and upcoming auction relating to the 2.3 and 2.5 GHz frequency bands.

The auction will enable two 20 MHz blocks to be available for WiMAX in both the 2.3 and 2.5 GHz bands. The WiMAX Forum also lauded the government’s plans to auction blocks in the 700 MHz and 3.3-3.6 GHz bands. The Forum expects to certify the first 3.5 GHz WiMAX products by the end of 2008 and views 700 MHz as a strong contender for mobile Internet services, especially in India’s low-density rural areas.

“WiMAX technology has the potential to bridge India’s digital divide, offering broadband services in dense urban and suburban areas, rural broadband connectivity to enable high-speed wireless applications and services,” the study stated.

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