Deployment of 3G and WiMAX streams will generate a reasonable user base over the next 5 year period, before noticeable LTE deployments begin to make an impact in India, according to the latest research by Maravedis in partnership with Indian telecom market research and analysis firm Tonse Telecom.
“Despite delayed spectrum auctions that are impeding a tremendous economic driver, 3G/BWA/WiMAX network activity is already on a roll,” said Sridhar Pai, Tonse Telecom CEO and co-author of the report “India Wireless Broadband and WiMAX Market Analysis and Forecasts, 2009-2013” (3rd Edition). “For the severely underserved Indian broadband market, demand for wireless broadband connectivity continues across all sectors: retail, SOHO, SMEs and large enterprises alike.”
According to the report, the big push will be seen post-spectrum auctions. “However, aided by pre-allocation in the 2.5GHz band, incumbents are already developing massive national rollout plans for both 3G and WiMAX. Expect significant pan-India deployments from other successful auction bidders,” said Maravedis CEO Adlane Fellah.
While the global economy is lying dormant, demand for telecommunications services in India continues to fuel significant growth in the sector. “We estimate that in 2008, approximately 10,000 BWA/WiMAX base station sectors were deployed in total. Currently there are about 300,000 BWA/WiMAX subscribers already using these services,” Pai noted.
“Wireless CAPEX has already reached US$ sub-100 levels per line, thereby confirming the primary transport technology will be wireless,” added Fellah.
Key findings from the report include:
- Internet access is still the big broadband driver in India, with wireless broadband becoming the clear option owing to economics and ease of deployment.
- BWA operators have yet to resolve many service quality issues.
- India is expected to see the world’s lowest end-to-end cost for WiMAX services, with costs driven down faster than in any other market.
- Computer penetration is still very low and the Indian telecom sector operates in a volume-driven market.
- Innovative business models such as public-private partnerships will emerge, together with low cost devices and a vibrant ecosystem.
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