With the government finalising the guidelines for Wi-Max spectrum allocation, the Wi-Max momentum is steadily increasing. However, in order to maintain this momentum, the government must hold the auctions for the 2.3 GHz and 2.5 GHz bands at the earliest. Key stakeholders discuss their current and future Wi-Max plans and other issues in the industry…

What are the opportunities and challenges for Wi-Max in India?

Ankur Agarwal
In India, the deployment of Wi-Max will result in increased network reach in tier 2 and tier 3 cities. Wi-Max is also faster and cheaper to deploy vis-? -vis wireline connectivity. Moreover, this technology can support an array of services such voice over IP, multi-protocol label switchingvirtual private network (MPLS-VPN) quality of service (QoS) and internet leased lines. While there are many advantages to deploying this technology, it also faces key challenges such as limited spectrum availability. The technology also faces threats from alternative technologies like long-term evolution (LTE) and 3G.

Pradeep Nagpal
Broadband penetration in India is abysmally low and there is a huge digital divide between urban and rural India as far as broadband penetration is concerned. As is now well established, communication facilities, especially internet access, improve the GDP of a region. As such, technologies like Wi-Max will help us reduce the digital divide and enable faster rollout of broadband in unconnected areas.

C.S. Rao
India has proven that wireless is the most preferred media option for improving teledensity. The country has an installed base of approximately 200,000 towers and 2.4 million route km of optic fibre. This cellular and optic fibre infrastructure can be exploited by the operators by adopting Wi-Max technology to roll out broadband services on wireless media in the quickest possible time, thus offering a faster go-tomarket model for broadband growth.

Wi-Max as a technology is proven for its average subscriber throughput of 1 Mbps with average loading of 600 subscribers per base station. Also, Wi-Max is an all-IP technology, easy to install, easy to commission and easy to integrate into the existing optical network and the core MPLS router platforms which are already operational. Thus, Wi-Max is the natural and most viable choice for solving the country’s broadband penetration issue.

Given its true broadband performance capabilities, early availability, cost advantages, government support and upcoming auctions relating to the 2.3/2.5 GHz frequency bands, Wi-Max allows subscribers access to all applications available over wired connections with the added advantage of mobility and portability. With the influx of Wi-Max-enabled mobile devices into the market, an emergence of new applications especially suited for mobile access is expected. Robust QoS and low latency make Wi-Max especially well suited for real-time applications like content streaming and online gaming, and vertical applications such as those for safety and surveillance. Broadcast applications can also be supported through multicast broadcast service. Because the Indian telecom sector operates in a volume-driven market, the country is not only positioned to spur one of the world’s largest broadband wireless markets, but also to support an ancillary ecosystem that will generate further employment, enhance development in semi-urban and rural areas, and

lead towards true sustainability.

The limiting factors of Wi-Max in India are:

  • Adequate availability of spectrum on a per operator basis in the 2.5/2.3 GHz frequency band
  • High base reserve price
  • Ultimate auction price at multiples of the base reserve price
  • Statutory government duties, levies as well as taxes.

    P .K. Saji
    Like any other wireless technology, WiMax can serve the data/voice requirements of the Indian telecom market. This is especially relevant for the Indian market as the copper is not unbundled as in other matured markets, and operators have not rolled out 3G services in a big way. WiMax can be a last mile technology for enterprise customers as well.

    What initiatives can the government take to expedite the roll out of Wi-Max and ensure its uptake by the masses?

    Ankur Agarwal
    The government can expedite the release of spectrum which would enable companies to drive higher bandwidth per base station. It can also take steps to lower the approval in principle/licence recurring charges.

    Pradeep Nagpal
    This pertains to the government.

    C.S. Rao
    With the broadband wireless access (BWA) auctions delayed and expected to be held after the Parliamentary elections in May 2009, the WiMAX Forum has communicated the major impacts and projected revenue loss aspect to various central government ministries. The delay in auctions is causing substantial loss to the country’s growth and economy engine.

  • The country is losing its ability to add 2.5 million broadband subscribers over mobile Wi-Max in 2009.
  • The government is losing revenue in terms of spectrum usage fees and termination charges from operators and customs duty from vendors besides several other taxes, amounting to around $2 billion in 2009 alone.
  • Operators, equipment vendors, device manufacturers and content developers are losing service revenue potential.

    P.K. Saji
    First, the government must allocate spectrum for a reasonable fee. With elections round the corner, there are indications that the spectrum auctions will get delayed for another four to six months. Linking the BWA spectrum fee with 3G makes it unviable for any data player to participate as it doesn’t form a reasonable business case.

    What is the current status of your company with respect to Wi-Max deployments and what are your future plans?

    Ankur Agarwal
    Tata Communications is a key player in this field and has rolled out this technology in more than 125 cities across India. We will continue to focus on Wi-Max and increase and optimise the network reach with this technology to further geographies based on business opportunities.

    Pradeep Nagpal
    Wi-Max is a key focus area for BSNL and the company has taken several initiatives in this space. For Wi-max deployment in Andhra Pradesh, Gujarat and Maharashtra, the company entered into a franchisee arrangement with Soma Networks in December 2007. The Department of Telecommunications allocated BSNL 20 MHz of spectrum for this project in July 2008 in frequency division duplex mode (2540 MHz and 2640 MHz) with 10 MHz in each band. Services have been launched in Ahmedabad with 25 base stations while services in Vizag and Goa will be launched very soon.

    The company also intends to deploy Wi-Max in Kerala and Punjab as well as in other circles. A total of 1,600 BTSs will be procured for deploying Wi-Max; 900 for Kerala and 700 for Punjab. And approximately 800,000 customer premises equipment (CPE) will be procured.

    For the remaining circles, 20 MHz of spectrum has been allocated in time division duplex (TDD) mode with a carrier frequency of 2645 MHz. The expression of interest for 16 local service areas (LSAs) has been floated by Southern Telecom Project, Chennai. The franchisee will deploy, operate, maintain, sell, market and upgrade BWA on a revenue share basis.Spectrum for 16 LSAs has been allotted by the Wireless Planning and Coordination wing in TDD mode.

    In order to bridge the digital divide, the company plans to set up 1,000 base stations as part of its Rural Wi-Max Project Phase I. An advance purchase order (APO) for 582 base stations has been released to Huawei Telecommunications and the APO to Gemini Communications is expected soon. The project is fully funded (Rs 1,600 million) by the Department of Information Technology for core and base station equipment. Only the CPE is not funded.

    In Phase II of the Rural Wi-Max Project, BSNL plans to deploy 6,876 base stations across various circles in the rural areas to provide broadband backhaul to all the remaining common service centres being deployed for e-governance.

    P.K. Saji
    The deployment plans will be formulated based on spectrum allocation.

    Is there a business case for Wi-Max given that 3G services are being provided in the global markets and that LTE is going to be launched in the near future?

    Ankur Agarwal
    There is a business case for Wi-Max as this technology also provides for specific enterprise application needs like MPLsVPN quality of service. On the other hand, 3G and LTE services provide for only internet (internet surfing and e-mail access) needs on mobile devices. Moreover, while 3G and LTE will use pooled bandwidth, Wi-Max utilises pooled as well as dedicated bandwidth for catering to retail and enterprise customers respectively. Vis-? -vis 3G, Wi-Max has the following advantages:

  • It uses multiple (time and frequency)duplexing modes.
  • Orthogonal frequency-division multiple access (OFDMA) performs better in suppressing inter symbol interference in Wi-Max.
  • While the CDMA frequency reuse ratio is 1, the OFDMA frequency reuse ratio is 1 to 3.
  • Errors in sub-carriers can be corrected in Wi-Max.
  • OFDMA symbols are longer in duration than CDMA symbols.
  • Better use of adaptive modulation and coding techniques.
  • No need for RACK receivers and direct implementation of algorithmin frequency domain in Wi-Max.
  • Better use of multiple-input and multiple-output and smart antenna.

    Pradeep Nagpal
    BSNL is investing in both 3G and WiMax. The market will decide the future roadmap of both these technologies. At present, BSNL considers that there is a huge untapped market for high speed downloads and video applications.

    C.S. Rao
    Wi-Max is included in the IMT-2000 family of mobile wireless interface standards and is supported by a broad, open and innovative ecosystem including more than 500 member companies in the WiMAX Forum. This open ecosystem is one of the many strengths of Wi-Max ?? it brings the flexibility of the computing industry model to the mobile world. This includes an open IPR (intellectual property rights) model led by the Open Patent Alliance.

    Moreover, Wi-Max has already established itself in the 3.5 GHz band with deployments in every region. This is in addition to large 2.5 GHz deployments in major markets such as the US, Japan and India. As an established technology, WiMax is here now. There are 455 Wi-Max deployments in 135 countries, and there are more major Wi-Max spectrum auctions on the horizon.

    Conversely, LTE currently has zero deployments. While marketed as an “evolution”, LTE networks are a completely new upgrade. They require new infrastructure and new spectrum. While WiMax is already in deployment, new spectrum or the re-farming of wide swaths of 2G spectrum will be necessary to free up spectrum to deploy LTE and take advantage of the wider channel bandwidths that are supported. LTE networks will also require new client devices and service providers will need to purchase new radio access network equipment in addition to upgrading their core networks to handle additional IP-based traffic. LTE will also take time to roll out, with deployments forecast to reach limited adoption by 2012. In its marketing, LTE claims faster speeds than Wi-Max. However, this comparison is not correct, as the technologies are similar in performance.

    P .K. Saji
    All these technologies can co-exist. With the turbulent global economy, 2009 seems to be a stagnant year for Wi-Max.