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When the Indian BWA spectrum auctions concluded earlier this year, it seemed that the 2.3GHz TDD band - once considered a clear run for WiMAX - would actually be split between that technology and TD-LTE. While state-owned telcos BSNL and MTNL are already deploying WiMAX in their 2.3GHz spectrum, the privately held winners were more divided. The only one of these players to get licenses nationwide was Infotel, which was quickly snapped up by Indian conglomerate Reliance Industries (RIL). The firm implied that it would choose LTE for its new frequencies, even though Infotel had previously been committed to WiMAX, but now the firm appears to have opted for the more readily available technology after all, in the interests of early market impact

The other BWA victors only gained licenses in selected circles or operating regions. Qualcomm won in four circles and will recruit local partners to create a foothold for its favoured platform, TD-LTE. However, equipment will not be commercially available at prices to suit the Indian market for at least a year so these licenses look set to stay dormant for the time being. Other winners were Aircel, in eight circles, Bharti Airtel in four, Tikona in five and Augere in one. Tikona and Augere are committed to WiMAX while the two cellcos are undecided as yet.

Like RIL, they will face the choice of a technology that is available now, with a growing ecosystem driving down prices; and one that involves a hiatus period but is more closely integrated into the broader LTE market, promising possible economies and synergies in future when operators have deployed LTE widely in FDD spectrum. RIL knows it needs to deploy quickly to meet India's desperate shortage of broadband and wireless capacity and to steal a march on rivals. When it acquired Infotel, it referred specifically to LTE, even though its new ISP arm had been trialling WiMAX and planning to use it if it won licenses. But now it is taking the more pragmatic route and has begun its own WiMAX trials this month, according to company sources, which say the firm has installed five WiMAX base stations, testing kit from Alvarion and Samsung and working on interoperability.

RIL's decision may be the first crack in the armor of TD-LTE, showing that the technology is not as close to market readiness as its supporters suggest. The operator gets a headstart in 4G and an improved bargaining position - buying affordable WiMAX equipment now and setting the benchmark for LTE equipment prices. It may also buy platforms like Alvarion's 4Motion which promise future software-based migration to LTE. But even if it introduces FD-LTE or even TD-LTE in future, there will be coexistence for at least 4-5 years and possibly permanently.

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COMMENTS

Posted by asharma on Thursday 22nd July, 2010

BSNL and MTNL don't use 2.3 GHz spectrum. They use 2.5 GHz.

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