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In India, where the telecom infrastructure is not strong enough and last-mile connections are typically through copper cable, DSL and fibre optic installation costs are high. The ability to provide these connections without wires, therefore, greatly lowers the cost of providing these services. This is why WiMax is an attractive alternative for providing last-mile connection in wireless metropolitan area networks, especially in cellular backhauls. With India targeting a broadband subscriber-base of 9 mn by 2007 and 20 mn by 2010, the industry is going to see more action in future. During 2006-07, the industry has witnessed some major developments taking place in the WiMax equipment segment.

Size of the Market
Former telecommunication minister Dayanidhi Maran's decision to ensure quality broadband access t o customers-both individual and enterprises-has paved the way for the growth of WiMax technology deployments in India with the total WiMax equipment market touching Rs 88 crore during FY '06-07.

However, the size of the certified WiMax equipment market is comparatively lower than the non-certified market because certification of products started recently. The size of the certified market is pegged at Rs 4.4 crore, while Rs 83.6 crore is the market size of non-certified products. Main vendors active in the market are Aperto Networks, Alvarion, Telsima, Airspan, etc. According to estimates, Aperto has emerged as the top player during FY '06-07 followed by Alvarion and Telsima.

Broad-Basing Broadband
Though the year 2007 has been flagged as the Year of Broadband in India, fiscal 2006-07 has already cleared the path for the broadband revolution. The ongoing broadband penetration assisted Indian vendors and operators to take a lead role in the introduction of WiMax technology

. In India, penetration of broadband is still very low as compared to other nations. WiMax will help broadband penetrate into rural markets as one no longer needs to lay copper, hence deployments become faster. Mass scale deployment will also reduce cost of service for users. The government has recently proposed to offer all citizens of India free and high-speed broadband connectivity by 2009, through the state-owned telecom service providers-BSNL and MTNL. Telecom in India is definitely on a roll, and moves like this will serve to help the wireless broadband sector.

Increased PC penetration and increased content and e-commerce, probable saturation of the mobile market in the next two to three years, need for a growth driver to the operator, and e-Governance initiatives may also be main growth drivers for WiMax. On top of this, the government in India is pushing WiMax aggressively. The Department of Telecommunications (DoT) is planning to de-license an additional 50 MHz bandwidth that can be used for commercial WiMax services. The biggest advantage that WiMax offers is a large network range spanning up to 10 km, which would help increase broadband penetration in rural areas where provision for wired connections has been difficult.

However, the current need is to get fixed/nomadic broadband services at affordable cost and have a scalable deployment technology.

Vendor Revenue
The Rs 88 crore market is expected to grow to Rs 132 crore during 2007-08 with certified equipment and non-certified equipment equally sharing the market at Rs 66 crore each.

Alvarion is one of the largest vendors of equipment for WiMax networks. Alvarion is now the driving force behind open WiMax, which brings a fresh attitude to the market replacing a vendor-centric environment developed by large telecom vendors with a disruptive operator-centric culture. It has been the leader by listening to the needs of customers and investing heavily in R&D.

For Telsima, the current revenue stream from DCME and WiMax products is less than $10 mn annually. It is currently working with two large private operators who, between them, control more than 50% of international Internet connectivity. It is also venturing into retail access.

Market Trends
The demand for broadband connectivity from urban homes and small and medium businesses is growing rapidly. Wireless will be the dominant delivery mode for broadband services just as it now dominates voice services. Thanks to its true broadband performance, early availability and cost advantages, WiMax is best positioned to serve the huge Indian market. Several Indian service providers have already acquired suitable spectrum licenses to deploy wireless broadband services.

The innovative 'Village Entrepreneur' model, together with a net-enabled community info-kiosk, is an ideal way to reach many who are not yet connected. Telecom companies are working actively with state governments through Broadband Wireless Association (BWA) / WiMax solutions that are tailor made for India at price points that are comfortable for the Indian consumer.

Globally, there are around 200 WiMax trials, while it has been commercially deployed in forty cities around the globe. In India, WiMax deployment is beginning to take off-deployment in Chennai and trials in Bangalore, Kolkata, New Delhi, and Mumbai have already started. The Pune Municipal Corporation has recently announced a program called 'Unwiring Pune' to launch WiMax and Wi-Fi services in Pune. BSNL's WiMax expansion drive to cover 1,000 cities in India is also of relevance. India is expecting a final policy announcement by DoT on 3G spectrum and broadband wireless access. BSNL has planned a tender for 1,000 base transceivers in July and may begin deployment by September if a policy announcement is made soon.

India will be one of the largest WiMax markets because WiMax is the most cost-effective way to bridge the digital divide and bring broadband services to those areas where there is no existing telecom infrastructure or the infrastructure is not capable of providing broadband services. A huge percentage of the Indian population does not have Internet access today; WiMax is the best technology (lowest cost with best performance) to provide that access.

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