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: * BSNL will spend about Rs 3,000 crore on a nationwide WiMax network that is expected to cover close to a sixth of India’s population in three years.
* Tata Communications is investing Rs 2,000 crore to launch its WiMax network. Mega plans include a new brand name and a rollout in 115 cities by the year-end.
* Leading research firm, Gartner finds Indian market less attractive for carriers and warns of thin demand for WiMax connections here.
The disconnect is hard to miss. Why are telecom bigwigs willing to sink in mega-bucks in an untested technology in a less attractive market?
Hot action in the WiMax market seems to have completely missed the scepticism or even the hurdles like uncertainty over spectrum and high cost of equipment. India seems to be emerging the latest hotbed of technology that has ignited several debates globally, with Intel, Samsung and Sprint betting heavily on its success and Ericsson, Verizon and Qualcomm pitted against it.
Interestingly, original WiMax proponents including Sprint and Clearwire are busy sorting out their financial woes. And industry is already wondering if the real WiMax champions will come from Asia.
Indian telcos are wiring up to take broadband wireless. While BSNL and Tata’s plans are hitting global headlines and are being counted among the world’s largest WiMax rollouts, Reliance is also reported to be betting heavily on the technology. Bharti, which has already deployed WiMax for companies like Hero Honda, ITC, DLF and Cadila, is learnt to be evaluating the business case of rolling out WiMax on a big scale.
“India has an immense need for connectivity across a varied and wide-ranging demographic population,” BSNL chairman and managing director Kuldeep Goyal explains. “Deficient broadband infrastructure, along with the growing demand and increasing ability to purchase internet services, is making India and other emerging countries as the best market for
WiMax,” agrees Shankar Prasad, president—retail broadband business unit, Tata Communications.
India is one of the most appropriate places to take wireless for broadband and the government seems to appreciate that. Government is pushing it too and has chosen the technology to bridge the connectivity divide with rural areas, where physical local network access is lacking. In phase one, the government will make investments to set up WiMax base stations in 1,000 blocks. After that, the Universal Service Obligatory fund will contribute to connect another 5,000 blocks. “Mega bucks will flow...
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