The response to the proposed broadband wireless access (BWA) spectrum auction
slated in the next six to eight months is set to determine the fate of the WiMax
in India.
In the last two years, big operators' interest in WiMax based broadband
access has not been encouraging. The largest wireless player Bharti Airtel,
which is currently betting big on broadband, is not excited enough to spend
heavily on WiMax.
This is despite Intel's pro-active efforts to push for the success of WiMax
in developing countries. Recently, Intel Capital, and Phi Televentures (Phi
Group's subsidiary for ICT sector) joined hands to float a special purpose
vehicle to bid for WiMax spectrum.
Intel Capital's investments in WiMax companies have already crossed $9 bn in
forty countries. These include $43 mn in Japan's UQ Communications, $600 mn in
the US-based Clearwire, and $11.5 mn in Taiwan's telco VMAX. More investments
from Intel are in the offing.
A part of large enterprises are waiting in the wings to embrace WiMax. They
want fast broadband access at reasonable prices. They want mobility. But will
operators show enthusiasm to bid for WiMax and start rolling out services?
Considering the recent reports coming from some of the global markets, India
should wait to cheer.
According to Analysys Mason, in the last two to three years WiMax gained
presence in developing countries, wherein there is a need for broadband, but the
fixed infrastructure is poor. But it feels that in the developed markets of
Europe and the US, there may be signs of a difficult future for WiMax.
For instance, Sprint is rolling out national WiMax network in the US through
its subsidiary Clearwire, but the growth in the number of subscribers has been
disappointing. Google and Intel, among others, have started writing off billions
of dollars they had invested in Clearwire.
India is yet to see these kinds of issues since the adoption is at early
stages. But global meltdown has already affected investments in new telecom
technologies. Analysys Mason says North American CDMA operators may move to LTE,
rather than to WiMax. India is also in the process of looking at LTE
opportunities. Telecom regulator Trai will shortly come out with its
consultation paper to ensure that Indian telcos are not too late to catch up
with the latest LTE initiatives.
India should not miss opportunities associated with WiMax broadband. WiMax is
positioned as the technology for developing nations. Due to delay in spectrum
auction, we already lost big opportunities. During the forthcoming auction,
operators should grab WiMax spectrum and show their commitment for the country's
future.
Baburajan K
baburajank@cybermedia.co.in
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