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What enterprises want from 3G, WiMax and TD-LTE
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| Beryl M |
| Thursday, August 05, 2010 |
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I n the
next twelve to eighteen months, enterprises in India will have options to pick
up 3G, WiMax and TD-LTE (4G)-driven broadband connectivity and other enterprise
mobility solutions. This is for the first time that three competing and
complimenting technologies will land in the Indian telecom market almost at the
same time. All three are going to be the delight of enterprises. But,
enterprises have apprehensions.
For an enterprise, after waiting in earnest for something to
revolutionize their customer offerings and enhance their operational
productivity, no awareness is created by operators about potential offerings.
The current scenario is one of utter confusion-whether to choose 3G or BWA (WiMax
& TD-LTE), which would be best suited for their respective organizations.
According to Nagarajan Narasimhan, director, operations,
CRISIL Research, "Unlike 3G services, WiMax doesn't have an established vendor
ecosystem and we don't expect it to gain traction at the retail level. We expect
100 mn subscribers by 2015 for 3G in India out of a total market of 800 mn
subscribers." However, Satyen Gupta, ex-principal advisor, Trai believes that
BWA is meant only for data, not voice, veering more towards DSL; while 3G will
be voice-centric. Thus, he feels that both WiMax and 3G are complementary
technologies which can co-exist, each having a different focus.
Opportunities and Challenges
Looking at this state of affairs, VOICE&DATA conducted a survey of the top fifty
enterprises in Delhi and Mumbai across different verticals like pharmaceuticals,
power, automation, finance, transport and media to understand what exactly
enterprises feel about these technologies and which is more popular among them.

According to our survey-which was done on the phone-almost an
equal number of CIOs felt that either 3G or WiMax would be more beneficial for
their organization according to their individual needs for voice or data. While
about 2% mentioned that they would use both technologies in different areas of
the organization, at least 5% said that they would prefer to wait till rollouts
are complete to analyze which technology would suit their enterprise better.
However, what emerged strongly from the study was that at least 10% of those
surveyed still do not have a clear idea about the offerings of 3G or BWA, which
makes them hesitant in staking claim to either of the two technologies due to
the prohibitive cost of trial and error.
According to Ajay Meher, VP, IT, Sony TV, "3G helps in
enabling a mobile platform where we can directly publish our content which was
not possible before." Vijay Mahajan, head, infrastructure, Mahindra & Mahindra
agrees with him and says that WiMax will not be available on the mobile platform
so soon. However, seeing that there are few other platforms other than mobile
where 3G can be effectively used, SS Dole, head, IT, INCAT, Tata Motors remarks,
"We have been using WiMax technology and it is working well for us. 3G is still
emerging and there are very few data platforms like Tata Photon Plus on which 3G
will be available. Thus, from a deployment point of view, I feel WiMax scores
over 3G as it is a more reliable, stable, mature and future technology."
High cost of WiMax would lead to enterprises preferring 3G as
it has been used abroad for enterprise mobility for a long time, but problems of
inconsistent network due to not even a single operator having a pan-India 3G
license and the resultant issues with respect to roaming agreements will be
handicaps in implementing a 3G network in an organization. According to P
Chakrapani, CIO, Indus Power, "We would go with 3G as it is fabric ready and is
mature enough for the Indian market at present. Additionally, the quick response
time and service offerings are better. WiMax, on the other hand, requires device
support as well as usage, protocol and application support apart from just
technology. 3G is also more user-friendly."
| Enterprise Concerns |
- WiMax doesn't have an established vendor ecosystem
- WiMax will not be available on the mobile platform
- There are few other platforms other than mobile where 3G can be
effectively used
- High cost of WiMax
- 3G helps in enabling a mobile platform where enterprises can directly
publish content
- WiMax requires device support
- 3G is user-friendly
- Yet to test any application on 3G platform
- WiMax is a tested service
- Ready to wait for LTE
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Explaining about the security apprehensions of rolling out an
unknown technology, Manikkam VS, head, IT, Henkel says, "3G hasn't come in yet
and we need to understand how it works. We have not yet tested any applications
on the 3G platform and are not sure how long it will take to come into the
market. However, lots of people are using wireless; and since it is a standard
and known package, we would prefer that as we have lots of critical applications
and business operations spread across 125 locations on the same network. So, it
is challenging to get into something new as security is a major concern. Thus,
since WiMax has been tried and tested, we would rather go in for that."
A few respondents also remarked that they would rather wait
for LTE. Ajay Masur, CIO, Hirco says, "We would actually prefer to wait for LTE
as it is a far superior technology in terms of bandwidth. People will not really
invest in WiMax as the 3G speed is good enough for now. However, WiMax will be
like fibre in the air which will have good offerings for enterprises as well as
customers. Reliance has already started work on this front, so it will be a
matter of waiting for just eight to nine months."
VAS, managed services and mobile advertising through mobile
apps will determine the revenues of 3G; including gaming, education, health,
e-governance and m-commerce. Telecom-Internet convergence will control the smart
grid, disaster management apps, RFID and sensor based technology, web 2.0,
Internet data center-data farming will be impacted due to 3G and BWA. However,
there will be no single killer app in 3G. The challenge for operators will be to
cater to different needs for tier-1, tier-2 and tier-3 cities. Like for example,
in tier-2 and tier-3 cities, mobile TV and telephony is more popular than gaming
and video streaming which will witness a boost with 3G in tier-1 cities and
ncrease in the smartphone usage with dual and triple SIM handsets, telepresence
mushrooming. WiMax in BPOs and data centers will see a boost with the coming in
of these two technologies.
Next generation services will be a costly affair for
enterprises. Group chairman of Bharti Airtel, Sunil Mittal was recently quoted
as saying, "The amount for spectrum that has been charged is close to Rs 3,500
crore in Delhi and Mumbai. Just to recover the license fees and input cost, it
works out to be Rs 700-900 per month. My view is that pricing would be different
for different circles, and circles which have very high bidding in the 3G
auctions will be priced for subscribers accordingly."
Seamless Connectivity for Enterprises
The future is bright for operators. With the Indian GDP growth set to touch 9%
this year, propelled by telecom revenues, operators have a key role in ensuring
that along with making up quick RoI, they provide more bandwidth-heavy
applications for enterprises at a reasonable fees that fits the security and
seamless connectivity bill as well. At the same time, operators have to also
provide more clarity regarding the next generation services, explaining exactly
how their offerings will help enterprises in upgrading their technology.
Transparency with regard to data pricing and billing is what will make or break
their claim to fame with enterprises.
Beryl M
berylm@cybermedia.co.in Page(s) 1
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