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INDIA BUSINESS WORLD - JANUARY 16th - JANUARY 31st - 2008


BSNL, US CO IN TIE-UP FOR LARGEST WIMAX DEAL

State-run telecom operator BSNL has tied up with US-based WiMAX solutions firm Soma Networks for the largest WiMAX deployment in the country covering four states in three circles. The proposed infrastructure would provide services to about 20 crore people in Gujarat, Maharashtra, Andhra Pradesh and Goa.

Soma Networks was selected after field trials in urban, suburban and rural areas. In the first phase under the tie-up, WiMAX would be deployed in Ahmedabad which would be up and running by June-July this year. The complete deployment will take three years. The alliance between the country's largest telecom operator and the WiMAX solutions firm is on a revenueshare basis. "BSNL has awarded the contract to Soma for complete deployment in these states. It's difficult to put a value to the contract since it's on a revenue-share basis," BSNL CMD Kuldeep Goyal said.

"We would ride on BSNL's infrastructure and provide our solutions based on the 802.16e-2005 standard, which ensures greater subscriber density," Soma Networks MD Jatinder Ahuja said. The states, he said, were chosen on the basis of their high industrial growth.

BSNL had earlier received some spectrum in the 2.5 GHz frequency band. It plans to roll out WiMax services in 70 cities across the country by mid-2008 and set up 50,000 Common Service Centres (CSCs) - ICT-enabled kiosks - across the country using WiMAX. The government has set itself a target of 20 million broadband lines in service by 2010.

Soma Networks is a leading provider of mobile WiMAX solutions. It's a principal member of the WiMAX Forum. Its solutions are currently deployed in five continents. Headquartered in San Francisco, it has offices in Toronto, Ottawa, Gurgaon, and Singapore.

While WiMax (Worldwide Interoperability for Microwave Access) is still an evolving technology, it is still considered a threat to third generation mobile services. As per global industry experience, WiMax offers data speeds that are 10-30 times faster than 3G. To put this in perspective, the data speeds of 3G networks are over five times faster than those offered by 2G cellular networks that telcos in India currently use.

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