Indian 3G telcos face smooth path to 4G

03-07-2009

There's no spectrum offered, or available now, for 4G in India at the moment; besides, the market for 4G services in India is still being debated. But when the market potential for 4G looks good, India's 3G operators will face a smooth upgrade path

Writing in TelephonyOnline, Dan Warren, GSMA technology director, explains that the migration path to 4G adopted by telcos could vary depending on many variables. Warren categorises telcos according to whether they have old, or less old, 3G networks. However, "there is a third category of operator: those with brand-spanking-new networks. Operators that have deployed 3G networks [in 2008] have base stations that can support all or part of an upgrade from 3G to LTE. They're in the most flexible position right now. They're in a position to do either HSPA or LTE on the same equipment in the future. For them LTE could be just another upgrade."

CDMA operators who buy new equipment would be in the same position. Says Warren: "the latest generation Huawei Technologies' IP radio access gear is "LTE-ready," according to the vendor, though deploying CDMA and LTE on widely different frequency bands might complicate any direct upgrade".

Indian telcos will get their 3G networks in 2009 or 2010, and so will be in a similar, or better, position to move to LTE when needed.

Warren says each operator faces a broad and varied set of factors when making the decision to move to 4G. The competitive landscape in the operator's territory, the market demand for mobile broadband, its spectrum holdings or the availability of future spectrum, and its financial position are all factors. But even if all of those factors work in an operator's favor, 4G isn't necessarily a given. The most critical factors in determining an operator?s near-term technology path, Warren says, are the age and status of its current 3G network.

The older a 3G network, the longer an operator has been recouping its investment in mobile data, clearing the financial hurdles for a major investment in a new 4G network. However, "the guys who have older equipment pay for their upgrades through the nose."

Telcos who went over to 3G a few years ago are in a different position. For instance, Softbank launched its first UMTS network at the end of 2002, but most of its heavy investment in 3G came in 2004. Says Warren: "Softbank, I suspect, aren't in a position to go to LTE right now, not without writing off a significant proportion of their current business".

Since AT&T went into 3G earlier than Verizon, it's taking more time to move to LTE, intent on squeezing the maximum out of its HSPA network iterations.




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