Asian 4G developing rapidly but in fragmented pattern

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Asian 4G developing rapidly but in fragmented pattern

Thailand may skip 3G, SKT buys in Malaysia, Indonesia mulls LTE

By CAROLINE GABRIEL

Published: 28 May, 2010

READ MORE: Spectrum | Asia | Regulator | LTE | WiMAX

The pattern of wireless deployments has always been far more varied and fragmented in Asia than in the more homogeneous Europe, and mobile broadband is no exception. As the Indian BWA auction rumbles on, with WiMAX and TD-LTE bidding for a place in the wireless picture, Thailand looks set to leapfrog 3G altogether, Korea is expanding the reach of WiMAX, and Indonesia aims to become a tier one country in terms of fast wireless.

Thailand's regulator, the National Telecommunications Commission (NTC), says it will skip over the 3G stage and will instead allocate the 2.1GHz band, usually used for UMTS, for next generation technologies. The auction will be held before the end of the year, NTC commissioner Pana Thongmeearkom told Dow Jones, offering three licenses for 15MHz of spectrum. This is an increase on the previous plan to offer just one 15MHz slot plus two of 10MHz each, reflecting the greater bandwidth needs of new mobile data services (though many argue that operators really need at least 40MHz to make WiMAX or LTE deliver their full potential).

'3.9G technology', as Pana calls LTE and WiMAX, is "a more advanced technology than 3G, that is based on the 2.1GHz frequencies but allows much faster data transmission which would provide greater benefit to consumers," he said. The regulator will stay technology neutral as to LTE or WiMAX, though analysts expect the most aggressive bidders to be the existing three cellcos - AIS, DTAC and True Move - which have expressed interest in LTE. Delays in the original 3G auction process made Thailand one of the last countries in south east Asia to open the way to 3G or beyond.

Further south in Malaysia, the country's largest WiMAX operator, Packet 1, has announced that Korea's SKT is to pay $100m for a 25% stake in the firm. P1, part of publicly listed Green Packet, has signed more than 175,000 subscribers since its launch in August 2008.

The Korean carriers, SKT and KT, were the first to offer commercial Mobile WiMAX services, initially using a local variant called WiBro (which is now being harmonized with international channel plans). Their services were slow to take off but they have recently revamped their plans, helped by new rules on channelization and MVNO deals, and SKT has resurrected earlier plans to use its WiMAX expertise to build a power base in its region. By acquiring spectrum or stakes in operators, it aims to increase its influence and purchasing power using a technology in which Korea has significant IPR.

In its statement, SKT said the investment was to take advantage "the huge growth potential" of the Malaysian market. It will use its P1 partnership to help build a business in fixed/mobile services across south east Asia, particularly targeting businesses and corporate travellers. This strategy, which it dubs Industry Productivity Enhancement (IPE), is targeted to make $16bn in revenue by 2020 and will involve a range of partnerships and technologies. Green Packet has Malaysia's only nationwide WiMAX license, in a country that has been very aggressive about the technology (and does not have LTE on the horizon). The company also has a license in Singapore and aims to acquire further spectrum across the region.

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