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