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Rediff.com  » Business » BSNL's wireless broadband services likely to be delayed

BSNL's wireless broadband services likely to be delayed

By Leslie D' Monte in New Delhi
December 04, 2008 09:59 IST
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Bharat Sanchar Nigam Limited's move to implement wireless broadband services across the country will take longer than anticipated, now that it has 'kept in abeyance' the opening of tenders, which it had invited from potential franchisees to provide mobile WiMAX (e version) to its customers in 16 circles.

The bids were slated to be opened on December 4.

WiMAX or Worldwide Interoperability for Microwave Access provides for wireless transmission of data and up to 75 Mb/sec speed. The 802.16d -- also frequently referred to as 'fixed WiMAX' has no support for mobility.

On the other hand, 802.16e has support for mobility and is hence also known as 'mobile WiMAX'.

In an email to all bidders, it cited no official reason. Sources, however, said BSNL has paid heed to the fears of major players who say valuable spectrum could be cornered by smaller ones who did not meet either the financial or techno-commercial eligibility criteria.

The entire exercise, allege sources, is being done to cash in on the telecom game with higher valuations.

Around 28 companies, including majors such as Alacatel-Lucent India, Motorola India, Moser Baer Industrial Infrastructure, Huawei, HCL Infosystems, Intel Technology India, Larsen & Toubro Infotech and TCIL, figure among those who bought the tender documents priced at Rs 10,400 for each circle.

However, there are also smaller- and medium-sized players such as Soma Networks Software Engineering, Adino Telecom, Cals Refineries, Raasi Callnet and Vishal Telecommunications who have bid for the same.

This January, San-Francisco headquartered, privately-held broadband wireless access company, Soma Networks was alloted spectrum by BSNL -- almost a year prior to the bidding -- for three major circles (Andhra Pradesh, Gujarat and Maharashtra and Goa).

BSNL has set a target of around 3.2 million WiMAX subscribers in these circles over the next five years. BSNL and Soma Networks did not respond to email queries by Business Standard.

A source alleged that many small players who do not meet the turnover criteria are offering to partner with the bigger players to form a consortium since the BSNL criteria does allow for this.

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Leslie D' Monte in New Delhi
Source: source
 

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