Intel in talks with telecom operators for WiMax rollout

MUMBAI: Betting big on WiMax in India, chip giant Intel is in talks with telecom operators to enable the growth of WiMax ecosystem through its products for boosting the penetration of wireless broadband in the world’s fastest-growing telecom market.

The US-based company is working with ODMs (original device manufacturers) to evolve new products like WiMax USB dongle, mobile internet devices (MIDs) besides WiMax notebooks with an aim to have wireless broadband networks running by the first quarter of 2009 in India.

“The idea is to utilise existing telecom tower, power and fiber backhaul infrastructure of operators to ensure faster roll out of WiMax networks at the lowest costs and time-to-market. Like the USB dongle, a similar PCM express WiMax card will come from Intel’s ODMs. It’ll be a PC add-on card. Laptops will also evolve to have mobile internet,” Intel’s MD, emerging market, Wimax program office, C S Rao said.

“We are talking to operators to evolve good device partnership models with them. India is the market for Intel. If we are able to add even one-tenth of the 8million-9million subscribers being added every month, it will be huge. Volumes in this market are going to be significantly high,” he said.

WiMax or Worldwide Interoperability for Microwave Access is a wireless communication technology, which can offer high speed connectivity in about 50 km radius. Globally, 484 WiMax products are available for commercial use. While a customer premise equipment (CPE, which resides in the user’s premises) is available for around $100 (Rs 4200), a WiMax notebook from Taiwanese technology major ASUS can be bought for as low as $400 (Rs 16,800). An ecosystem of products and infrastructure is crucial for the success of any new technology and WiMax seems to be ready on these counts.

Right now, India has around 4.5 m broadband subscribers, mostly through copper wire. The targeted user base is 20 million by 2020. “With WiMax, the target may be achieved a little earlier because of high demand and existing ecosystem. Intel has strong distribution channels in India. All those will be used to proliferate WiMax devices,” he said.

In India, Tata Communications (earlier VSNL), Reliance Communications and public sector BSNL are strong proponents of WiMax. “Logistics of wireless broadband roll out are much more easier and cost effective. Telecom infrastructure, like towers can be used for WiMax, resulting in sharing of costs between more parties,” he said.

Comparing WiMax with 3G (third generation), which is a competing technology, Mr Rao said WiMax will offer three times more speed and will be cheaper. Operators like Bharti Airtel and Idea Cellular are betting big on 3G. While 3G-enabled handsets are already available in India, the launch of Apple’s 3G iPhone is expected to formally ring in the rollout of 3G in the country.

“3G has the capability to offer high-speed data services but doesn’t have the scalability. You need more base stations for offering 3G at the same capacity of total bandwidth and with this, the capex per subscriber goes up. And if you add more subscribers, the speed goes down. WiMax is a more cost-effective and efficient technology,” he added.