Samsung sees faster WiMax adoption

08-07-2010

"Only way for Indian telcos to recoup auction cost faster"


Samsung on Wednesday said that it is in talks with operators for setting up their networks and indicated that most of them are likely to opt for Wimax technology for offering mobile broadband services.

"We are in talks with most of the operators who had won BWA spectrum. All of them have indicated that they want to roll out services by the end of this year. No one is willing to wait as they have paid hefty amount for the spectrum," Samsung Electronics Vice President Network Business Deepak Bhatnagar told reporters here.

All the operators are evaluating both the technologies, however, since LTE is not yet ready with devices it is likely that the operators don't have any choice but to go for Wimax, he said.

Samsung, which makes telecom equipment, will offer end to end solutions on both the technologies for the players in India.

Indian telecom operators plan to add hundreds of millions of broadband subscribers over the next two to five years, according to Samsung

"We were initially expecting global Wimax numbers to reach 18 million by the end of 2011" said Hung Song, global vice-president, sales and marketing in Samsung's telecom division. "But Indian broadband auction winners are talking about targets of adding 500 million subscribers by themselves" he added.

"The interest cost on the investment on a single slot of nationwide broadband spectrum is around $1.2 million per day (Rs 2,000 crore per year)... I don't think anyone will wait for two years to launch services" Deepak Bhatnagar, India head for network business, said.

Wimax devices, including phones, are already in use in markets like the US while commercial grade LTE-Advanced equipment are expected no earlier than 2013.

"We have investments in both technologies.. but history says that it takes 4-5 years after the standards are set for the technology to become commercial. We can hurry it up, but it will still take at least 2-3 years for any technology" Song said.

Samsung had become only the second device-maker, after HTC, to launch a Wimax phone in the US, home to the World's largest Wimax network.

Song also said the next revision of Wimax, which will put the technology at par with LTE-Advanced, will be issued by the end of the current year. Unlike LTE, he said, the new version of Wimax will be commercialised within 8-10 months and will be backward compatible with the existing Wimax technology. In other words, consumers who buy existing Wimax dongles and phones will still be able to use them after an upgrade next year, Song said.




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