One of the events that has been overshadowed somewhat is the proposed auction of WiMAX licenses along with the 3G license auction in a couple of months (hopefully!). Given the low internet penetration within the country, broadband technologies can go a long way in increasing the number of internet users. Of these, WiMAX holds a lot of promise especially to cater to the last mile customers in rural areas and relatively remote urban areas.

Speed is a critical factor while accessing the internet. Slow connections are a major reason for low usage, especially as sites get more data intensive. With video sites becoming popular and every other site having banner ads embedded, the need for speed is being felt even more acutely. Broadband is playing an important role in the country by bringing greater download speeds to the users. As such, the number of broadband subscribers have grown tremendously.

There are various technologies within broadband through which the internet can be accessed. DSL / Cable have been the dominant ones among these technologies upto now. However, these require laying down physical infrastructure to the last mile (i.e. copper wires upto each home). The wireless broadband options available are 3G and WiMAX. While 3G is relatively better for mobility, WiMAX has an edge in terms of speed. As such, 3G would be better used for internet access through mobiles, while WiMAX provides scope for residential and corporate internet access in areas which have been under served upto now.

With potential speeds ranging from a few hundred kbps to >64 Mbps, all kinds of applications (including the data intensive ones) can easily work on WiMAX. This technology also offers enough mobility providing good network within a 30-50km radius from the location of the physical infrastructure.

The critical success factors (CSFs) for WiMAX in the country would be:

1. Accessibility: Ability to reach under served areas and provide decent network quality

2. Affordability: Making the offering price competitive to other ways of internet access such as DSL

3. Content: Development of enough content for various types of customers

There are indications that companies such as Google are wanting to tie-up with some local players and offer WiMAX services in urban areas. Other players are looking at these auctions as a way to enter the India internet service provider market, that is expected to grow manifold in the next few years. Given this and the fact that government has shown high interest towards areas related to ICT (information, communication and  technology), the CSFs will be taken care of to an extent.

WiMAX licenses would be auctioned by the government two days after the 3G licenses. The details can be found in this document provided by the department of telecommunication. 28 companies have bought the tender documents and are expected to participate in the bidding. Two licenses are being auctioned per mobile circle of which one has already been allocated to MTNL or BSNL. So, essentially there is only one license per circle available to bid for.

The hope is that the process would go through without many controversies – and that WiMAX adoption would provide the necessary impetus to internet penetration within the country. It should not be long before one would be able to say “WiMAX running successfully all over the country”.

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