3G bidders are expected to upgrade their network capability to high speed packet access (HSPA) to cater to the huge mobile broadband demand in India, soon after the 3G auctions.
HSPA could emerge as a choice for operators wanting to offer mobile broadband services to both urban and rural consumer and enterprise users.
HSPA comprises HSDPA, HSUPA and HSPA+, defining the migration path of 3GSM/W-CDMA operators worldwide. With 3G auctions bound to happen within the next few months, operators are singing the HSPA tune rather than WiMax. ?Operators like Bharti Airtel would definitely move on to HSPA as it offers superior coverage than WiMax. HSPA would be an evolutionary step towards long term evolution. Operators across the globe have followed the same path of upgrading 3G to HSPA and India is likely to follow the same,? said a Mumbai-based analyst.
The Gramjyoti rural broadband project by Idea Cellular and Ericsson practically showcased the merits of HSPA technology. ?With site sharing and low cost 3G handsets, we can bring the same economics to 3G that have made 2G such a success. It?s a myth than 3G HSPA is only for urban environments,? said P Balaji, vice president, marketing & strategy, Ericsson India & Sri Lanka. According to the GSMA, India is projected to have about 100 million GSM mobile broadband by 2014 that will generate revenues close to $137 billion by the same period. Moreover, it is a software upgrade of installed WCDMA networks that can be built out using existing GSM radio network sites. Hence, the capex required for upgrading 3G to HSPA would be less than 20% of the cost that would be required for the initial 3G setup.
HSPA gives operators a single network for multiple services and a sound business case built on revenues from voice, SMS, MMS, roaming customers, and mobile broadband.