ET: But what do you think are the major obstacle for adoption/deployment of newest telecommunication technologies in India (3G and WiMAX is still a distant dream)? NG: The two major obstacles are the regulation and the low average revenue per user (ARPU). Regulatory obstacles are obviously a challenge, in particular, around bandwidth allocation. Despite these challenges, there is no reason why WiMAX should be a distant dream.
The low ARPU is currently an obstacle; but just like with any other technology, we see prices dropping for all kinds of access and end-user equipment. Not all of the technologies have yet reached an appealing price point for much of the Indian population, but that's just a matter of time and effort. In fact, all of the technologies are in place for initial deployments, and we've seen many of these worldwide.
The current market forces are in place to drive the equipment costs down rapidly. However, the manufacturers are holding back on these development and production options because of the delay in actually deploying WiMAX. Once it is clear how organisations such as BSNL are going to deploy, and the rate of deployment, within months the manufacturers will align themselves within the required price points.
ET: How would you compare the two technologies: WiMAX and 3G (are they same or different?)? Which technology makes more sense in India? NG: The truth about 3G is that it does not reach very high bandwidths. It's not really a broadband technology in that sense. For that reason, there is talk of HSxPA, 4G and LTE. WiMAX, on the other hand, is really a broadband technology in terms of the actual bandwidth available.
Another major difference between 3G and WiMAX is the base station range. A 3G base station might reach a few kilometres in an optimistic scenario. Whereas WiMAX base stations are reaching 50 kilometres. For rural areas and areas where there is not any access yet, this has a major impact. It's much more practical to use WiMAX in rural areas where one base station could serve a wide area. Furthermore, WiMAX can be practical for backhaul with those kinds of distances between base stations and with the broadband capabilities.
Operators are going towards the 3G path or the WiMAX path based on their current infrastructure. Carriers with mobile infrastructure are basically looking at the 3G and LTE path for progression towards wireless broadband, while fixed line operators are looking towards WiMAX. 3G is more practical in urban areas. However, in India we are already facing problems with frequency allocation in particularly crowded areas; so it may very well be that the 2G and 3G technologies will live side-by-side with WiMAX technologies.
ET: How much sense does WiMAX make in rural India? Indians are very sensitive when it comes to cost. What would be the cost quotient for WiMAX? NG: WiMAX makes the most sense in the rural areas. WiMAX base stations are particularly cost-effective in rural areas, because of the range of 50 kilometres. Furthermore, in many of these areas, the need for mobility is limited. In rural areas, not many people have motor transport, so mobility is not an issue.
In rural areas, the application which is of major importance is voice. In these areas, there is no other access method. The only question, then, is how to build up the core. At this point, India has made a huge investment in Class 5 switches, and there is still capacity on those switches. Operators are not going to be anxious to move to softswitches. Therefore, when using WiMAX for voice applications, operators will need to use gateway products like Commatch 6004 to provide connectivity of WiMAX end users to existing TDM switches. Using this kind of low-cost solution is an important factor in making WiMAX a feasible technology for an immediate voice access solution in rural areas.
It remains to be seen how inexpensively WiMAX can be deployed, primarily because today's installations are fairly small. Furthermore, when we are talking about rural areas, it's not at all clear what kinds of services are going to be used.
At this time, the biggest cost obstacle is the equipment at the edge of the network. The infrastructure becomes a minor cost compared to the end-user equipment required. Estimates are that Customer Premises Equipment (CPE) for WiMAX in India is going to be as low as $40, quite far from the current price point. In a mass market, however, it doesn't seem that this is going to be a major obstacle. To some degree, it is just a question of timing, and what players are going to be willing to take the risk to manufacture at those price points and quantities. Right now, the demand is not there.
ET: What role could Telrad play in fast deployment and adoption of WiMAX? But before that, will Telrad also get involved in lobbying for such technologies? NG: Telrad isn't involved in lobbying for technologies. Obviously, we speak directly to operators and vendors. Beyond that, there is no lobbying activity.
Telrad has proven the fastest deployment of voice over WiMAX by using access gateways to allow provisioning and switching through existing Class 5 switches, while the edge access is through WiMAX. Implementing a softswitch solution is time consuming, so much so, that some of our customers have come to us to provide interim solutions while they are completing all the preparations for softswitch deployment. The softswitch is proving the most complex part of the network.
Therefore, it makes a lot of sense for operators to deploy the IP infrastructure, lay out the base stations and implement a gateway solution like that available from Telrad. With gateways, voice over WiMAX can be up and running in a matter of hours, with no extra operational overhead. Already, we have had successful deployments in Europe, The Americas Asia; and we are headed towards our first deployment in Africa. It simply works.
ET: Could you name some recent innovations/developments in WiMAX technologies? NG: Obviously, mobile WiMAX is getting a lot of hype. Unfortunately, it's really in its starting stage, and the hype over mobility is holding back some of the investments in existing WiMAX technology, which is solid and proven. It doesn't make a lot of sense for a market like India to hold back on implementing the existing technology in anticipation of future developments. It's important to remember that the return on investment can be relatively fast with existing WiMAX solutions. New technologies, on the other hand, can take years to implement reliably. Therefore, what's happening on the ground is that existing nomadic WiMAX is being implemented on the ground. Around that you see developments focussing on management and quality of service.
ET:Whom are you partnering with in India? Could also give us an idea of your presence in Indian market? NG: At this time, we can't make public all of our connections in the Indian market. We currently have agreements with three major WiMAX base station vendors, including Alvarion. We also have discussions and trials with other vendors and integrators, including ones who are active in India. However, at this time the information can't be made public.
ET: Where do you see the biggest challenge in Indian market? NG: The biggest challenge is going to have to do with the timing. On the one hand, you have the government regulation and the large operators. Large organisations tend to move slowly. Furthermore, getting the actual cost to the end-user aligned with the ARPU is also going to take time. The market, on the other hand, needs a solution now. The big question is when do all of these timelines meet?
ET: How much 'Linux or Open Source' friendly is Telrad? I mean do you have any connection with OSS at any level? NG: Telrad recognises open source as a reliable and cost-effective solution for its products. The Commatch line of products is based on the Linux operating system, and we use open source code wherever practical and expedient.
-- Swapnil Bhartiya |