Big operators may be waiting for LTE, but WiMax has the potential to disrupt the market

What are your views on broadband in India?
Broadband in India is slowly growing, though, we should not compare growth between mobile and broadband. The growth of broadband will take place in due course. In the next two years, people will plug devices for several applications such as healthcare, transaction, television, music, etc. In fact, India is transforming. There's so much demand coming from verticals like retail, airport, highways, etc.

Your handset business is going through a tough phase. Have you taken any actions to correct the current situation?
Rationalization is already there. We have been creating competitive products for the market, though at present, we do not have too many products in India. This needs to be corrected. We are looking at twenty five new phones in the next 12 months, covering all consumer segments and price ranges. Also, the positioning of handsets, pricing, and getting the right products for India have been corrected. I strongly believe that we are going to come back to the market.

Your competitors have been heading toward the rural markets. What are your plans for the same?
We have cheaper phones compared to our competitors. Also, we have consumer friendly phones for the rural market. In fact, users want reasonably priced phones with features that can be used. Phones with regional content or FM are not rare or unique in the world. Motorola would like to have a reasonable market share and an enviable position in the handset business.

Motorola has been trying to redefine its strategies for the Indian market which is at the center of a telecom revolution. As India has been recognized as one of the major markets for the company, which is known for communication inventions, the management does not want to leave any stone unturned. For Soumitra Sana, called Sammy by the industry, country president and MD, Motorola India, business is as usual in the country. He is not disturbed by the global downturn that could eventually affect telecom growth in India.

India has also been witnessing some traction, though Motorola is still struggling to regain its lost glory. And Sana is excited about the role the company can play in the India story as it unfolds.

The company has, in fact, completed two decades in the country. And during this period, its presence has evolved from soft manufacturing to high-end applied research, and now hard manufacturing. In an interview, Sana talks about his India plans and new challenges. Excerpts

Mobile WiMax has a great potential as an enabler of 'connecting the unconnected'. The technology can support a number of applications such as distance education, tele-medicine, e-governance, e-commerce, and delivery of local language-based entertainment content to rural markets which remain underserved. Additionally, VoIP support on WiMax creates the ability to deliver low cost voice services with mobility, using the same network infrastructure. We have been making significant investments and playing a pioneering role in commercializing WiMax, so that affordable wireless broadband is accessible to all.

3G services have already arrived in the country. What have been your initiatives in this segment?
The designing of 3G phones is underway. Also, we have already launched some models in the segment. Recently, we had announced the launch of Motozine ZN5, a high quality mobile phone inbuilt with an ultra-fast, 5 megapixel camera in collaboration with Kodak. This is keeping in mind that today's creative consumers not only want to be photographers, but also retouchers, exhibitors, and critics.

3G has been slow to pick up globally, and its success in India will depend on infrastructure and devices. I feel that operators in India will restrict the 3G launch in urban areas. Also, prices of handsets and services will be key factors in the success of 3G services.

WiMax is also yet to take off in India...
Gradually, next-generation technologies such as mobile WiMax and 3G will emerge in the market. I also feel that ultra mobile broadband (UMB) is almost dead. And, hence, WiMax has the potential to provide widespread broadband-based access to Internet services. Existing cellular service providers planning to upgrade to 3G networks in urban cities will also benefit from WiMax.

The advantages of WiMax are spread over voice, data, video, and TV, and not just wireless Internet. And with reliable broadband delivery networks in place, there will be an increased impetus for the industry to deliver VAS. These initiatives will be aimed at generating new streams of revenue while at the same time improve the bouquet of services being offered to end-users. VAS will be used as the prime vehicle for differentiation of services and for attracting new customers while reducing the churn in the existing user base.

Should operators wait for the release of LTE?
WiMax is cheap, and easy to deploy in rural and populated areas. Also, the early adoption of WiMax has been among small operators across the globe. And these operators can always challenge bigger mobile companies. Big operators may be waiting for LTE, but WiMax has tremendous potential to disrupt the market.

What will be your focus areas in the future?
In the 20 years of its presence in India, Motorola has partnered in the country's telecom revolution. Several new initiatives, including those which were industry firsts, were introduced by us. In the B2B space, we continue to support our carrier customers by optimizing their existing networks, and helping them explore alternative revenue streams through our VAS portfolio. We also continue to invest in strengthening our technology portfolio with a wider choice of technology solutions. These help customers plan for their future needs, including migration to next generation OFDM-based technologies such as WiMax and LTE. We also occupy the leadership position in communications solutions for first responders, national and civil defence establishments, and large enterprises requiring private networks tailored to their needs. Our employee strength will be growing from the present 4,000 in line with the growth in the past 4-5 years.

What challenges do you think you will be facing in the future?
Our foremost challenge would be the need to sustain the current momentum, and leapfrog into next generation technologies. While the government has been very supportive and helpful to the telecom industry, we look forward to faster introduction of technologies like 3G.

The entire domestic tariff area sales of SEZ units should be allowed at 50% or less of the total applicable import duties (BCD+CVD) along with complete central sales tax exemption on all telecom and IT products manufactured in India. A key to telecom equipment and increased manufacturing activity is the reduction of excise duty on all telecom equipment from 16% to 8%. This reform will be critical in making India a global hub for international manufacturing.

Another important thing would be the availability of globally harmonized spectrums (2.5 GHz, 3.5 GHz, or 2.3 GHz), with adequate bandwidth of at least 20 MHz per operator. This will enable full and early rollout of broadband and offer players, both public and private, commercially viable options to support further investments in additional telecom infrastructure, which at this point in time is a major challenge. Once spectrums are allocated for broadband networks in India, we are likely to witness robust growth in this presently underserved market opportunity.

Baburajan K
baburajank@cybermedia.co.in