Go Rural
Rural connectivity should be a major focus area if India really wants to enhance broadband connectivity in a proper manner.

“ISPs need to deploy wireless technology to connect the unconnected. The first objective is to bridge the urban-rural digital divide and then focus on content,” says BV Raman, country head, CDG.

“It is the poor network infrastructure in remote areas which prevents the rollout of scalable, flexible, and highly available networks. The existing copper last miles are not competent enough to empower broadband as a citizen enabler. One of the very few ways to increase broadband penetration is wireless, which could build up last miles of the best quality in the fastest possible time frames,” says Deepinder Bedi, director, International Marketing, Tulip IT Services.

The company is building its strength on data connectivity to tap the rural market. The company has implemented Haryana state wide area network (SWAN) while the West Bengal and Assam SWANs are in the implementation phase.

There should be a clear vision on the growth of broadband and Internet penetration in rural India as this sector plays a key role in India's economic growth. This will no doubt heighten the potential for wealth creation, education, and medical consultancy that will not only ease the lives of many individuals but will provide high returns on government revenues.

According to Satya N Gupta, chief regulatory advisor, Saarc Region, BT India, “India is a country of unlimited opportunities. You really can't ignore the rural market considering the huge size.”

RN Prabhakar, member, Trai, says, “Putting new copper and optical fiber cables for providing broadband services is not a cost-effective measure in the Indian context. There is a need to make the best use of the existing copper cables and optical fiber networks, mainly in rural areas. The wireless network is also a cost-effective alternative for increasing broadband penetration, provided the availability of spectrum which is a major hurdle in the rollout of wireless broadband services.”

On a positive note, carriers and service providers are gearing up to provide rural connectivity. BSNL has already planned to expand its rural broadband access in partnership with Nokia Siemens Networks.

“With the high speed Internet service of BSNL, the rural broadband project is suitably poised to bridge the digital divide and connect more than 25,000 villages in India by delivering high-speed broadband services,” says Kuldeep Goyal, CMD, BSNL.

“Rural penetration is going to be the buzzword for all the ISPs and the thinking minds. In India, where more than 70% of the population lives in rural areas, there are no means to ignore them at any cost,” says P Balaji, VP, Marketing and Strategy, Ericsson India.

Ericsson has launched the Gramjyoti Rural Broadband Project to introduce the benefits of the WCDMA/HSPA technology to rural India and connect communities to high-speed Internet services. The project aims to showcase the benefits of mobile broadband applications across 8 villages and 15 towns close to Chennai.

The Gramjyoti project is enhancing the user experience and aims to provide a wide range of services such as telemedicine, e-education, e-governance, local infotainment, voice and video call services, etc to the rural population. The project is getting support from partners including Apollo Hospitals, Hand In Hand, Edurite, One97, CNN, and Cartoon Network.

YOU Telecom is also evaluating emerging technologies like Wi-Fi that could enhance their connectivity across twelve operational cities.

“In my opinion, there is a need to study the evolved broadband markets and implement technologies suitable for Indian conditions. It is time to look at technologies other than DSL, like HFC and wireless, to ensure that the benefits of broadband reach everyone. We are planning to increase our footprint to fourteen more cities in the next eighteen months,” says EVS Chakravarthy, CEO, YOU Telecom.

Government Initiatives
The government has taken various initiatives to fuel the growth of broadband in India. It all started in 2006 when the government amended the Indian Telegraph Act to utilize the USO fund for heightening the growth of broadband in rural India.

In this year's budget, the government has proposed to enhance the allocation to the Department of Information Technology from Rs 1,500 crore in 2007-08 to Rs 1,680 crore in 2008-09.

A scheme for establishing 100,000 broadband Internet-enabled common service centers in rural areas and a scheme for establishing SWANs with central assistance are under implementation.

Is WiMax the Answer?
Analyzing the current Indian market, it looks like WiMax can play a key role in improving broadband penetration in India. Lack of last mile access remains a prime issue for service providers. It acts as an alternative to the cable and DSL technologies and could help to roll out economical services catering to the needs of far-flung areas.

“WiMax appears to be a very promising technology for broadband, and is ideally suited for emerging markets like India, where there is lack of robust and widespread network infrastructure for delivering broadband across the country,” says Srinivas Rao, chief marketing officer, Airtel Telemedia Services.

Echoing similar thoughts, Vivek Srivastava, senior director, Communications, Oracle Asia Pacific, says, “WiMax provides high-speed wireless connectivity rapidly and cost-effectively vis-à-vis other cellular technologies. It has the potential for faster deployment, as it does not need the widespread broadband infrastructure.”

“Also, unlike fixed line technologies, it does not require huge investments in creating massive infrastructures or digging of the roads to lay out cables. WiMax offers the advantages of affordability, faster deployment, convenience, and cost-effectiveness,” Srivastava adds.

With the broadband infrastructure still in its initial stages, WiMax has an upper hand to offer the volume advantage as compared to the infrastructure in developed markets like India.

Gartner, an information technology research and advisory company, recently published a report titled “Beware of WiMax Hype in India”, and predicted that India will have 6.9 mn mobile and fixed WiMax connections by 2011-end. The report, however, cautioned that India would remain a niche market for this technology until 2009.

Motorola has already initiated plans, in collaboration with various service providers, to provide WiMax solutions. Currently, Motorola has nineteen commercial WiMax contracts and over seventy-five WiMax engagements across forty-three countries.

“The ability to personalize and carry one's experience with technologies such as WiMax that offer very high-speed, high-quality broadband connectivity will be a key enabler as broadband services become abundantly available,” says Tarvinder Singh, head, Marketing and Product Management, Home and Networks Mobility, Motorola.

“We believe that investing in the right technology, namely IEEE 802.16e-based WiMax, will ensure long-term investment protection along with the ability to deliver and evolve services being offered to end consumers,” adds Singh.

Service providers such as Tata Communications, Reliance Communications, and YOU Telecom are looking forward to catch up with wireless technologies to reach out to the masses.

Tata Communications is looking at an investment of $500-600 mn by 2010 to roll out broadband using WiMax technologies.

“Currently, we are targeting thirty cities withing the next three years,” says Shankar Prasad, president, Broadband and Retail Business Unit, Tata Communications.

Starting with Bangalore, the company hopes to cover the top 10-12 towns in India. Post-Bangalore, the company would look toward Delhi, Mumbai, and Hyderabad.

The company is also keen on enhancing its operations in mobile broadband which is presently not allowed in India due to regulatory restrictions.

Airtel is also operating fixed WiMax networks across nineteen major cities.

Similarly, Idea Cellular is also looking at WiMax as a potential option. “We have successfully completed our trials using WiMax. However, since we don't have broadband spectrum, we couldn't go ahead,” says an Idea Cellular source.

According to Mahendra Lalwani, MD, ZyXEL Technology, “Major telcos are interested in deploying WiMax, but due to spectrum allocation limitation it is still not clear where the industry is heading?

“It is expected that WiMax technologies would be at the second position after DSL broadband and help convergence. However, it will take some more time for WiMax to be a popular technology. Till the time frequency and related security concerns are not addressed, WiMax will move slowly,” he adds.

The Next Level
The Indian masses have already experienced the benefits of getting connected, thanks to the sudden revolution of mobile telephony that has transformed the lives of many. Broadband has the competence to take the communication to the next level.

ISPs will have to look at issues such as quality of service and managed services to make a strong statement among enterprises.

There is a strong need for collaborative effort from the government, service providers, PC manufacturers, and equipment vendors to understand the needs of India and to act according to the broadband goals.

The rural broadband penetration should be taken seriously and the government should make proper investments by giving complete support to service providers.

With a large number of users availing Internet facility at cyber cafes, and shared Internet lease lines/broadband connection, the future looks promising. The success of IRCTC, shopping websites, job websites, and travel portals has already shown that convenience holds the key.

The need is to make a proper assessment of the prevalent market conditions, and act accordingly.

Jatinder Singh
jatinders@cybermedia.co.in