After moving on from Reliance Communications in 2008 and conceptualising Tikona, Prakash Bajpai, CEO & MD of Tikona Digital Networks, has come a long way. He says that wireless broadband, which was his long-perceived vision, is now turning into reality. The company recently won broadband wireless access (BWA) licences in Gujarat, Uttar Pradesh (East & West), Rajasthan and Himachal Pradesh for Rs 1,058.2 crore. He spoke to FE’s Nikita Upadhyay on the company?s growth strategy, plans for BWA and the opportunity that big competitors in this field bring to him. Excerpts:
You have won BWA licences in five circles. What is the opportunity that you see?
We have spent 8% of the countrywide spent on BWA auction fee and have secured an access to 30% of the country’s urban population. We had raised money through a second round of equity. In India, the broadband penetration is less than 1% at present and in the coming days, the country will witness enormous activity in this space. This is the kind of opportunity that we believe in.
Experts say 3G is three times more spectrum-efficient than 2G. What is the spectrum capacity of 20mhz BWA spectrum?
BWA is much more efficient than 3G. Spectrum capacity depends on how efficiently the network is utilised, depends on network infrastructure, architecture, spectrum quality and quantum of spectrum that one has. Ideally, LTE technology is four to five times more efficient than 3G technology. We are focusing on differentiating our services, on strategy and execution. We are early movers in the private broadband space in the country and our goal is to maximise our early mover advantage.
What is the future for this technology?
Last mile connectivity in India is difficult and hence, wireless is the way ahead. India has got all the three buckets of growth?home,enterprise and mobile broadband. That’s why we see a lot of big players coming in. 4G is relevant to India more than any other country in the world because of its reach and high capacity. 4G can support high data usage and can also ease voice traffic. Voice can be transmitted on anything. 2G, 3G and 4G are only networks which can create capacities.
How prepared are you to launch 4G services? What kind of incremental capex will be needed to put up 4G networks?
Our network is continuously expanding and at different stages, our capex needs differ too. We have sufficient funds to roll out our network and are finalising growth plan for the newer circles that we have won. Till now,we have built only the first phase investing about $150 million. Currently, we get 80% of our revenues from home segment and the rest from enterprises. However, two years from now, mobile broadband will be our largest revenue segment.
What is your opinion on RIL?s entry into this space?
They, being large players, will bring in advantage of scale and scope. This will attract attention of global manufacturers and help in cutting down cost. It will help younger companies like us in removing government hurdles.
