BSNL will get Fund Rs.2395 crore for rural WiMax Deployment

BSNL will be given a grant of Rs 2,395 crore with a list of riders to enable the telco to complete the rollout of its wireless broadband services, an official in the telecom ministry aware of the development told ET.

Last month, BSNL had blared its disgust at operating as a social workhorse without compensation, and the state-owned telco had bluntly told the government that it would continue building wireless internet services across rural India only with a grant of Rs 2,395 crore more to support an unviable business.

The state-owned telecom company, which offers services in all parts of the country except Delhi and Mumbai, had written to the telecom department stating that it is against rolling out services on the rural WiMAX project on a no-profit/loss basis without adequate financial support.

The telecom department in a November 16 communication to BSNL had asked it to rework its estimates for its WiMax initiative and spread the costs associated with the project over a 20-year time frame, while also adding that the additional spectrum cost of Rs 1,662 crore must not be front loaded as this resource can be used over two decades.

The telco has also been asked to scale down its projections that 5% of its total revenues from this service would be incurred towards distribution and 2% towards marketing. It has also been asked to work out infrastructure sharing deals with other operators to lower costs.

The project is divided into three parts, and under phase-I about 1,000 towers for WiMAX are to be set up, followed by 6,863 units in the second phase.

So far, the Department of Information Technology , has agreed to provide subsidies to the tune of Rs 710 crore for the two phases — Rs 160 crore for setting up the first 1,000 towers and Rs 550 crore for the remaining. But BSNL has said that it can support a maximum of 1,798 towers with this level of funding.

This implies it can only build 798 towers when compared to the requirement of close to 7,000 units for completion of phase-II. BSNL’s move to stop the project will see only 17,000 Computer Service Centres (CSCs) get WiMAX-based internet connectivity across rural India against the government’s commitment to link over 62,000 CSCs through this project.

WiMax to be commercially launched in four months in India

WiMax forum has announced that it has been able to convince all the service providers for WiMax trials. The first commercial launch has been scheduled to take place around Diwali. WiMax Forum earlier announced trials are been carried by all spectrum winners except one.

CS Rao, chairman, WiMax Forum, India, said, “We have touched base with all the operators and all the operators understand that WiMax is the only technology that is ready for being deployed, and that our competition is at least one year away from deployment stage. Even operator, which was quoted by media as supporting the rival technology (read Mukesh Ambani-owned Infotel broadband,) is going for a trial of WiMax and we are very optimistic of a win there”.

He said that WiMax answers all the questions from operators, as it is a mature technology, with a mature ecosystem which can deliver equipment right now, and has a clear development path.

There have been reports of Infotel, the only pan India winner of broadband wireless access spectrum is opting for TD LTE, however, after yesterday’s press conference of the Wimax Forum, it seems that the company has not yet made up its mind.

If Infotel opts for WiMax, it will be a big gain for the WiMax lobby, as Infotel is the only pan India player, other winners are expected to follow its footsteps or else risk being trapped in technological islands.

Hinting at the first commercial launch of WiMax in India, Santhanam Gopalkrishnan, head, India operations, Alvarion, said, “Expect a Diwali dhamaka this year”. He said that all the operators are either deploying, or at least testing WiMax without any exception”. Alvarion is a global provider of 4G and WiMax solution..

Nagaland under BSNL WiMAX

BSNL launches WIMAX in Nagaland

BSNL is truly a Pan-Indian mobile operator in terms of speed of spreading the latest technology in every corner of the nation. After the successful launch of 3G internet connectivity all over, BSNL has switched its focus on WIMAX (next generation in high speed internet link).As per the latest news state operated BSNL is all set to launches the WIMAX in Nagaland.

“WIMAX (Worldwide Interoperability for Microwave Access) - the fourth generation of high speed fully mobile internet access has reached Nagaland” Chief General Manager of the BSNL North East Circle II Mr. R Sanyal said “It is targeted to be launched by October. Under OSO scheme of the government of India ‘WIMAX’ would cover 110 CSCs or Customer Service Centres in phase-I”.

He also said that BSNL has already installed and commissioned ‘WIMAX’ towers at fourteen towns in Nagaland. Nine more towers are under construction in many towns.