One million subscribers are expected to enlist to receive Pakistan's biggest mobile WiMAX network so far. Earlier this year Motorola won the contract to provide Wateen Telecom with an 802.16e-based Motowi4 network. Key consequence of the contract is that Pakistan is making up for its previous lack of infrastructure to receive broadband on a mass public level.
In technological terms Wateen Telecoms is benefiting even more from the contract than simply from bringing WiMAX to Pakistan on a grand scale. The company has agreed with Motorola to accept a quality of WiMAX which has only just been allowed by the WiMAX Forum. To be precise, specification 802.16e has been selected in place of the earlier 802.16-2004 standard.
So, not only is this contract a major step forward for Pakistan but it also vindicates Motorola's decision to go for the most up-to-date specification. In the opinion of one company spokesman: "802.16e leads to a much larger market as it addresses mobility needs, but we also felt it could be just as good a solution for fixed broadband."
It is clear that to bring WiMAX to Pakistan on such a large scale, Wateen has opted for mobile WiMAX over fixed. Two manufacturers additional to Motorola, Alcatel and Siemens, are of a like mind.
...meanwhile, next door in India...
Research by Maravedi Research in the USA and by local Tonse Telecom predicts that India could have 13 million WiMAX subscribers in the next six years. At present the figure for broadband users is 1.5 million (including DSL users). This development echoes a feeling among WiMAX analysts that four countries, Brazil, Russia, India and China (known as BRIC) are on the cusp of achieving WiMAX major player status.
Tonse Telecom CEO Sridhar Pai is certainly confident: "In the next six years India has the potential to become one of the top broadband wireless markets on the planet - the resulting ecosystem and opportunities will make India a dream destination for vendors and investors."
To say that India offers potential is a complete under-statement. Approximately 70% of Indian households have no access whatsoever to fixed lines. Enter wireless, enter broadband, enter WiMAX, to mention just a few.
Personal computer penetration levels haven?t helped: 15 million throughout the country to be precise. Broadband is for the moment expensive. Sridhai Pai identifies WiMAX as the key to mass communication: "There is huge potential for broadband wireless Internet and Voice-over-Internet Protocol (VoIP) services in India because there are still more than 600,000 villages with no basic communications services."
It has to be said that one major obstacle looms in the way of widespread WiMAX rollout. Licence holders need to have at least 20 MHz of spectrum to support wide-scale deployments and to build profitable businesses, but most currently have 12 MHz or less. Urgent and radical measures are required. Government agencies are now in discussion with telecoms companies. If the national Department of Defence releases some of its spectrum to civilian operators, there could be more spectrum available.
There is no shortage of local players: Bharti TeleVentures, Reliance, BSNL, and VSNL all have 3.3GHz-range licences in the mobile data 3.3 GHz range. And each is conducting both trials and modest commercial rollout of WiMAX.
As if spectrum is not a big enough problem, then factor in the implications of expensive equipment. The sub-US$100 piece of equipment is in demand from residential customers and the service providers. To be fair local firms in India such as Beceem Communications and Telsima, both of Bangalore, are confronting the financial challenge.
One modem produced by Beceem sends Internet data to a laptop at 15Mb/s, with more efficient chips on the way. Telsima integrates system-on-a-chip design with radio frequency systems and smart antenna. The aim? Cheaper installation for wireless services in dense urban and rural environments.
And the Maravedi conclusion? Look to early 2007 for some larger WiMAX deployments but expect to wait a few years for multi-million rollouts. Freed spectrum will be crucial.
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