Reliance Industries Ltd (RIL), which through Infotel Broadband is the only operator to have won spectrum for providing broadband wireless access (BWA) services in all the 22 circles, has decided to use the long-term evolution (LTE) technology as opposed to the other competing alternative, WiMAX. While the LTE technology is backed by the San Diego-based chip maker Qualcomm, WiMAX technology has the backing of the chipmaker Intel.
RIL?s veering towards LTE technology would come as a big blow to the rival WiMAX platform since it is the largest BWA operator in the country and its choice of technology would certainly have a bearing on the choice other operators make. Bharti Airtel, which has won BWA spectrum in four circles is still to decide on technology.
Sources said the main reason for RIL to throw its weight behind LTE technology is its old relations with Qualcomm. RIL had opted for Qualcomm?s CDMA technology when it had rolled out its mobile telephony in late 2002 through Reliance Inforcomm. In fact, at that time, there was an understanding between the two that Qualcomm would pick up a minority stake in Infocomm, which later did not materialise.
The other reason cited by officials close to the decision is that by choosing LTE, Mukesh Ambani-led RIL can use the CDMA network of younger brother Anil?s Reliance Communications (Rcomm). When contacted, an RIL spokesperson declined comment.
Qualcomm, which has itself won spectrum in four circles?Delhi, Mumbai, Har-yana and Kerala?has since then offloaded 26% stake to Tulip Telecom and Global Holding Corporation Pvt Ltd.
However, this also means that it would be sometime before RIL commences its BWA services since LTE is expected to be fully ready only by next year while WiMAX has been in place from the last five years. Though the government has already allocated spectrum for BWA and is still to do so for 3G services, operators are expected to roll out 3G services earlier than BWA because most of them are undecided on the choice of technology so far. Only the state-owned BSNL and MTNL have so far started deploying WiMAX for their BWA services.
Broadband offers huge opportunities in the country as there are only meagre 9 million subscribers to this service as on date, which means a penetration level of just 1%.
In fact, shortly after acquiring 95% stake in Infotel after winning BWA spectrum, RIL said in an analyst presentation that the data market today is at the same stage at where the voice market was when Infocomm ventured in 2002. Around that time the total mobile subscriber base in the country was at around 65 million, which currently is at over 600 million.
