WiMAX in India: an assessment
WiMAX has generated a lot of interest in India. Due to limited 3G spectrum and low broadband penetration, India is expected to be a key growth market for the technology. Many industry players believe that the allocation of broadband wireless access (BWA) spectrum to private sector operators, expected in 2Q10, will open up attractive opportunities for the technology in the country. However, our analysis suggests that WiMAX will only serve a niche market rather than dominating the field.
Executive summary
In a nutshell
Key messages
High-growth potential for broadband services due to pent-up demand
3G and fixed broadband are not sufficient to meet demand
End-user limitations will make mass WiMAX penetration difficult
Spectrum availability also limits the potential
Restrictions on voice services make the business case unattractive
Ovum view
A medium-term opportunity for operators
Despite 16e deployment, WiMAX is likely to remain a fixed wireless broadband service
Affluent consumers and SMEs are the only viable customer segments
Rural deployment is dependent on government aid
Tata, Reliance, and Sify are likely to remain the leading WiMAX operators
Setting the stage
Current state of play
A complement or a competitor?
WiMAX drivers and challenges in India
Pent-up demand for broadband
Low broadband penetration
Government support to increase broadband penetration
Good economic growth with promising prospects
Inadequate alternatives
Challenging deployment of fixed broadband networks
Limited availability of 3G spectrum
End-user limitations
Low computer penetration
Challenging per-subscriber economics
Scale disadvantages
Waning vendor support
Limited success in other global markets
Regulatory hurdles
BWA spectrum (2.3GHz) availability
Restrictions to offer voice services
Future outlook
Focus on maximizing medium-term opportunities
Products and services
Preference for 16e over 16d in the future
Likely to remain a fixed wireless broadband service
Limited advantage of nomadicity
Broadband access may be the only “killer app”
Target customer segments
Viable for SMEs and affluent consumers in large and medium-sized cities
Launch in rural areas only with government aid
Case studies
BSNL
Franchisee model for urban areas
The government-funded rural expansion
Services and pricing strategy
Tata Communications
Activities and success to date
Current offerings and pricing strategy
Future expansion plans
Sify Broadband
Company background
Current WiMAX offering
Reliance Communications
Activities to date
Current WiMAX offerings
Aircel
Company background
Current WiMAX offering
In a nutshell
Key messages
High-growth potential for broadband services due to pent-up demand
3G and fixed broadband are not sufficient to meet demand
End-user limitations will make mass WiMAX penetration difficult
Spectrum availability also limits the potential
Restrictions on voice services make the business case unattractive
Ovum view
A medium-term opportunity for operators
Despite 16e deployment, WiMAX is likely to remain a fixed wireless broadband service
Affluent consumers and SMEs are the only viable customer segments
Rural deployment is dependent on government aid
Tata, Reliance, and Sify are likely to remain the leading WiMAX operators
Setting the stage
Current state of play
A complement or a competitor?
WiMAX drivers and challenges in India
Pent-up demand for broadband
Low broadband penetration
Government support to increase broadband penetration
Good economic growth with promising prospects
Inadequate alternatives
Challenging deployment of fixed broadband networks
Limited availability of 3G spectrum
End-user limitations
Low computer penetration
Challenging per-subscriber economics
Scale disadvantages
Waning vendor support
Limited success in other global markets
Regulatory hurdles
BWA spectrum (2.3GHz) availability
Restrictions to offer voice services
Future outlook
Focus on maximizing medium-term opportunities
Products and services
Preference for 16e over 16d in the future
Likely to remain a fixed wireless broadband service
Limited advantage of nomadicity
Broadband access may be the only “killer app”
Target customer segments
Viable for SMEs and affluent consumers in large and medium-sized cities
Launch in rural areas only with government aid
Case studies
BSNL
Franchisee model for urban areas
The government-funded rural expansion
Services and pricing strategy
Tata Communications
Activities and success to date
Current offerings and pricing strategy
Future expansion plans
Sify Broadband
Company background
Current WiMAX offering
Reliance Communications
Activities to date
Current WiMAX offerings
Aircel
Company background
Current WiMAX offering
LIST OF TABLES
Table 1: BSNL WiMAX packages for business customers
Table 2: BSNL WiMAX packages for residential customers
Table 3: Tata Communications WiMAX packages
Table 4: Sify unlimited usage plans
Table 5: Sify unlimited night usage plans
Table 6: Sify limited usage plans
Table 7: Reliance unlimited usage plans
Table 8: Reliance limited usage plans
Table 1: BSNL WiMAX packages for business customers
Table 2: BSNL WiMAX packages for residential customers
Table 3: Tata Communications WiMAX packages
Table 4: Sify unlimited usage plans
Table 5: Sify unlimited night usage plans
Table 6: Sify limited usage plans
Table 7: Reliance unlimited usage plans
Table 8: Reliance limited usage plans
