Monday, September 8, 2008

Taking WiMAX to villages poses next big challenge

NEW DELHI: India, which is expected to have the world’s largest WiMAX deployment by 2012, offers great opportunity and some unique challenges to the wireless digital communications technology. It may perhaps be the market that would define the success of this technology as a solution to connect rural and untapped territories.

With ICT-enabled kiosks or common service centers (CSC) dotting India’s rural map, WiMax could play a major role in delivering various applications to rural India. These include online bill payment, delivery of agriculture, healthcare and entertainment services, solutions for e-commerce activities, including commodity price information, online trading and banking transactions.

Unlike the mobile front, the major initiative for WiMax is set to be from the state-owned telecom provider, Bharat Sanchar Nigam Ltd (BSNL). The company has already announced plans to install WiMAX base stations in 1,000 blocks across India by the end of this financial year and to provide high-speed internet access to 25,000 villages through CSCs.

“Villages will be equipped with infrastructure such as PCs, printers, software and staff for delivery of e-governance services pertaining to health, education and agricultural information,” a BSNL official said. BSNL has also partnered with Intel to promote WiMAX-based broadband access in rural India. Under the pact, Intel will review state-owned BSNL’s road map for the WiMAX rollout in the country and develop basic standards for the rollout and applications.

Private players have not shunned the WiMAX road either. Motorola is strengthening its presence in the hinterlands through extensive broadband wireless access (BWA) projects for state governments. Network major Alcatel-Lucent has set up a joint venture with C-DOT (the R&D arm of the telecom department) to focus on exclusive BWA/WiMAX solutions that are targeted towards rural connectivity.

The company has completed field trials using Aircel’s licensed WiMAX spectrum and the technology is ready for commercial deployment. “WiMAX has the potential to provide India with widespread broadband access that can usher in economic growth, better education and health care, and improved entertainment services,” Alcatel-Lucent chief marketing officer A Sethuraman said. Alcatel Research Centre is also in the process of developing a product that would act as a receiver for WiMAX services, which is expected to cost less than $100.

There remain challenges to these ambitious roll-out plans, including India’s low PC penetration. Players are also watching keenly how the WiMAX spectrum auction will pan out. “While low broadband penetration is a clear opportunity for BWA/WiMAX, the market take-off will require sufficient spectrum, very low cost consumer premise equipment (CPE) and affordable end-to-end connectivity, including the computing platform. A country where broadband’s average revenue per user (ARPU) is estimated at $8-10 requires very low equipment cost,” explains Nokia Siemens Network strategic solution sales head Kai Sahala. Besides Alactel, Nokia Siemens Networks and BSNL, too, are developing CPE costing less than $100. The price is expected to further come down to about $70, once WiMAX rolls out in the country.

Gauging the opportunity in the rural space, new players are also venturing in the arena. “We are developing cost-effective, ready-to-use base stations for rural space. We are attempting up to 70% reduction in base station prices in order to offer low capex to investors,” said Sloka Telecom CEO, Sujai Karampuri. Sloka Telecom is a Bangalore-based wireless infrastructure company.

While Asymmetric Digital Subscriber Line (ADSL) or fixedline broadband services now cover 300 towns with a combined 1.5 million connections, broadband wireless subscriber figures are still negligible in the country. With respect to rural connectivity, the government’s objective is to reach about 80 million rural connections, or one phone per two rural households, by 2010.

Other significant players in WiMAX arena for rural connectivity are Bharti Airtel, Reliance, SIFY and Tata Communications (VSNL), who have acquired licenses in 3.3 GHz range and are in various stages of trials. VSNL has announced Phase 1 pre-WiMAX deployment of Aperto gear in 60 locations, extending to 200 locations within the year.

Source : EconomicTimes

Saturday, September 6, 2008

Airtel, HP to connect more Indians

NEW DELHI: Bharti Airtel announced its collaboration with HP, in a combined effort to promote Broadband and PC penetration in the country. Under the scope of the partnership, Airtel will offer consumers a broadband connection at Discounted Entry Cost with every HP and Compaq notebook and desktop. This alliance is a key initiative by the two industry leaders to join forces to further enhance broadband and PC penetration levels in the country.


Announcing the collaboration, Deepak Srivastava, CEO- North, Telemedia Services, Bharti Airtel said, “At Airtel, it is our consistent endeavor to look at innovative and exciting ways that help our customers derive the most out of their Broadband experience. The synergies of the Airtel-HP alliance will leverage the symbiotic relationship between the PC and Broadband, spurring uptake of best-in-class content and an enhanced on boarding experience for both existing and first time users. This initiative will further enhance our leadership in the broadband space, and is an excellent value for money proposition for our customers.”


According to Rajiev Grover, Director, Consumer Products, HP PSG India, “As the market leader in the Indian PC space, we have continuously worked towards creating an enabling ecosystem by not only creating a diverse product range, but also to create relevant offerings appealing for the dynamic market. With this unique partnership with Airtel broadband service, we have gone a step beyond adding value to the ultimate PC experience that HP has to offer. As more and more consumers log onto the internet for e-commerce, entertainment and gaming, P2P sharing and for downloading applications, this tie up will enable the user to get more from his PC.



Under the offer, Airtel is offering customers buying any HP Compaq notebook an Airtel broadband connection at extremely pocket-friendly/ consumer-friendly terms that include Zero Security Deposit and Installation Fee, Free Wi-Fi connection and Discounts on Broadband Rental upto 14 months.

Source : EconomicTimes

Thursday, September 4, 2008

Net, broadband fail to catch up with mobile growth

NEW DELHI: The debate over Broadband Wireless Access (BWA) spectrum auctions and internet telephony comes at a time when international organizations and analysts are painting a starkly contrasting picture of the Indian telecom and IT sectors.

Recent International Telecommunication Union (ITU) data reveals that the success of India's telecom revolution is restricted to mobile voice with very little to showcase in fixed line and internet access, or high-speed broadband.

For a country that is the global IT and ITeS capital or the world's back office, its own internet penetration remains one of the lowest in the world. Forecasts are equally uninspiring, projecting high-speed internet access to remain abysmal till 2012.

Internet broadband penetration will limp along to eventually reach a measly 3.9 connections for every 100 citizens by 2012. Even though internet users may be multiple times higher, actual broadband penetration will not exceed 18.1 million at the beginning of the next decade.

In contrast, mobile telephony will add as many as 350 million subscribers during this five-year period to end at roughly 615 million by mid 2012.

These forecasts fall short of the government's conservative target of 20 million high-speed internet subscribers by 2010-end. India's broadband penetration is roughly 4.5 million subscribers. Even with a 300% growth rate over the next five years, the sector will fall short of the 50 million mark by 2012.

"The weak numbers can be attributed to a slew of policy failures including inadequacy of fixed line infrastructure, a barely profitable ISP (internet service provider) business, and low domestic PC penetration", says Rajesh Chharia, president, ISP Association of India. It is learnt that ISPs are actively considering a strong representation to the government on these issues.

Weak broadband penetration could severely slow down overall telecom growth, crippling India's ISPs in the process. It will also hurt ambitious government programmes, such as e-governance, e-commerce, telemedicine and e-education all of which are dependent on high-speed broadband internet access.

This gloomy environment has prompted telecom regulator TRAI to recommend internet telephony for ISPs as it believes this has the potential of becoming the killer application that will kickstart growth.

However, the uncertainty of DoT accepting TRAI's recommendations or succumbing to the interests of existing mobile operators to slap an additional entry fee for ISPs is a shadow over the sector.

DoT officials have been confusing, vacillating between welcoming TRAI's recommendations and airing level playing field concerns. "A policy overhaul to include concepts like shared PCs, enhanced scope of services and expanding e-governance applications is critical for the growth of the sector," says Naresh Ajwani, president, Sify Ltd.

Source : EconomicTimes

Wednesday, September 3, 2008

BSNL seeks franchisees for WiMax rollout

NEW DELHI: State-owned telecom operator Bharat Sanchar Nigam Limited (BSNL), which has got spectrum for pan-India rollout of wireless broadband and WiMax services, will soon float expression of interest (EoI) for identifying potential franchisees for launching these services in 16 circles. BSNL will continue with the franchisee model for WiMax rollout in the country.

As first reported by ET, BSNL had already chosen US-based mobile WiMax systems provider Soma Networks as a franchisee to rollout WiMax services in three states including, Gujarat, Maharashtra and Andhra Pradesh. The alliance is expected to provide broadband data and voice services to more than 200 million people.

The deployment process in these states has already surpassed the deadline of August 15 this year, due to frequency issue, a BSNL source told ET. The current franchisee model has a revenue sharing structure of 70:30, with 70% of revenue reserved for the franchisee. This structure will differ from circle to circle, from state to state, according to the franchisee and the framework for bids, the BSNL executive added.

BSNL is also keen on following the franchisee model for rural WiMax deployment. It has floated a tender for 1,000 base transceiver station (BTS) and is expected to shortlist a potential player for deployment of 1 BTS by end of September this year. The operator expects to set up 500 BTSs by March 2009. BSNL has rights to 1,000 blocks.

With a rapidly growing middle class and highly educated population, India is seen as a country that will have enormous potential for broadband services. By deploying end-to-end mobile WiMax solution through franchisee model, BSNL will bring a full range of multimedia services to the entire country. India has 4.38 million broadband internet users as of June 2008, as per the latest report from telecom regulator Trai.

Source : EconomicTimes

Tuesday, September 2, 2008

Government to connect 5,000 blocks with broadband

NEW DELHI: The government on Tuesday said it would connect 5,000 blocks through wireless broadband soon after the allocation of the third generation spectrum.

In a statement, the Department of Telecom (DoT) said this will be done with support from DoT's Universal Service Obligation Fund (USOF) after allocation of spectrum through an auction later this year.

Private players contribute five percent of their earnings to the USOF, which is aimed at promoting rural telephony.

The villages that come in the radius of 10 kilometres of the block headquarters will be connected, DoT said.

With this step, schools, public health centres, village panchayats and the community service centres (CSCs) meant to provide e-governance and data services to rural areas would be benefited.

Currently, the state-run telecom operator Bharat Sanchar Nigam Ltd (BSNL) provides broadband to 1,000 blocks out of around 6,000 in the country.

Similarly, about 50,000 out of a proposed 100,000 CSCs are covered by BSNL broadband. DoT's new initiative is likely to cover the remaining blocks and all CSCs.

Besides, DoT also proposes to support wireline broadband by USOF wherever feasible, the statement added.

The government has held discussions with technology providers, telecom operators and Internet service providers for meeting its wireless broadband plan and to formalise the tender procedures, specifications and deliverable formulation, and benchmarks.

Source : EconomicTimes