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broadband: rollout plans

Reaching out for the broadband dream

Internet technologies used

DSL is still the most used technology
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Over a year has passed by since the broadband spectrum auction, which raised hopes of bringing Internet to the masses. Whats delaying the launch of BWA services? by akhilesh shukla

an Internet penetration in India match the surge in the number of mobile phone subscribers? Its a farfetched thought at the moment. Today, every second person in the country owns a mobile phone. At last count, the number of wireless phone subscribers stood at 840 million and tele-density had crossed the 50% mark. According to Voice&Data, approximately 10 million mobile phones were sold in India every month in 2010, while at the same time, an average of 622,000 new users signed up each day to a mobile service; adding 227 million new mobile subscribers in 2010. In contrast, the total number of internet subscribers in India is just 18 million out of which those with a broadband connection make up a paltry 11 million, according to Telecom Regulatory Authority of India. Thats 9 million less broadband connections than what was originally targeted by the government. India was supposed to double its rate of broadband reach to 2% 20 million broadband connections by 2010, but missed it by a long shot. In comparison, other Asian nations like China, South Korea

and Japan have broadband penetration of 21%, 95% and 75% respectively. According to the latest figures from Chinas Internet Network Information Center, the number of internet users in China rose to 457 million at the end of June, 2010, an increase of about 73 million over the past six months. The figures show that the number of broadband users reached 126 million while the internet penetration rate climbed to about 34%. On the other hand, in India, the rate of growth of Internet connections actually fell to just 4.4% during the December quarter, 2010, or 23% compared to the last three months of 2009. A World Bank study shows that every increase of 10% in broadband penetration can lead to an increase in GDP growth by 1.4%, and can add more than 200 million jobs. Last year, the French government announced a budget of 2.8 billion for broadband penetration. In 2009, when the rest of the world was grappling with recession, the Australian government set aside a specific fund for broadband penetration. Clearly, internet penetration is very im-

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All eyes are on Mukesh Ambani owned Infotel, which should be the first to launch BWA services next year and get the momentum going

DSL

Dialup Wireless Cable Eth- Others Modem ernet/ LAN

Source: TRAI

portant for the economic growth of a country. However, it has been more than a year since Broadband Wireless Access spectrum was auctioned in India, barely days after the controversial 3G spectrum sales. The BWA auction raised Rs.385.4 billion compared with Rs.677.2 billion for the 3G spectrum. But while 3G services were launched by private operators in December 2010, none of the private operators has rolled out BWA services. Only BSNL, which was given startup spectrum much earlier than private operators, has launched BWA services in a few circles on WiMax technology. One reason for delay is that players are still undecided about the use of technology for rolling out the network. For instance,

Reliance Industries Limited (RIL) owned Infotel, the only player to win licences in all 22 circles, has reportedly opted for Long Term Evolution (LTE) technology. LTE is a 4G technology with download speed that is on an average five times higher than that of existing 3G networks. Other players, however, are playing their cards close to their chest over the choice of technology. If things go according to plan, Mukesh Ambanis RIL will most likely be first off the blocks in rolling out BWA. The services are likely to be launched in Delhi and Mumbai first. The company has already conducted trials and is currently evaluating the network vendors. If Reliance pushes ahead with its BWA rollout schedule, other players

such as Aircel, Tikona Digital Networks, Bharti Airtel, Qualcomm and Augere will be forced to play their hands. But the launch of BWA services on LTE technology will most likely be made available through dongles. Thats because the product ecosystem for LTE technology is yet to be fully developed. As of now, no devices are available that are compatibile with LTE; only dongles are available and even they are in the testing phase, says Abhishek Chauhan, Senior Consultant, ICT, South Asia and Middle East, Frost & Sullivans. Another player planning to launch BWA services by the middle of next year is Aircel, which has licence for eight circles. Bharti Airtel, which has BWA spectrum in 4 cir-

cles, is planning to launch its services for the enterprise segment first. But all eyes are on Reliance as it is the biggest player in the space. Its vision and strategy could well shape the course and contours of the broadband industry in India. The company has piles of cash and its expected that it will not cut corners in putting up the most advanced infrastructure for its rollout. The company paid Rs.128.4 billion for buying the spectrum in addition to forking out another $1 billion for buying out Infotel, which originally won the licence for the 22 circles. Despite the delay in launching BWA services, India could well become the test case for the success or failure of LTE technology elsewhere. If players like RIL roll out their BWA networks on LTE, the technology is likely to gain mass acceptance and quick adoption in other parts of the globe where it is being currently deployed on a small scale. Earlier, it looked as if China would lead the ecosystem for LTE. But recently, the telecom ministry in China deferred the launch of BWA services until 2014. China can wait for the BWA services as it has 450 million land-line connections, which can be used to provide Internet connection. But India has only 35 million land-line users and even that number is showing steady decline. So BWA is a must for India, says Satyen Gupta, former Principal Adviser to TRAI. Everybody agrees that broadband could play a key role in bridging the digital divide between the rural and urban areas and the launch of the BWA services is the perfect tool for achieving that aim. The sooner the services are launched the better it will be in boosting Indias internet dreams.

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