TATA Communications on Tuesday said that the company will investment $500 million for its wireless broadband venture or WiMax services over the next three years. The company has also said that it has given the contract to Telsima of Sunnyvale, California for supply of WiMax equipment. "The company will invest 500 million dollars by 2010 in Wimax technology and is in talks with investors to sell minority stake in retail business," Tata Communications retail business unit president Shankar Prasad told reporters here. Tata Communications's plan is to connect 200,000 retail customers using WiMax by March 2009 and also rollout wireless high-speed internet services in 110 cities for its enterprise customers and 15 cities for retail customers this year, the company said.
Tata Communications was the first company to launch broadband services on the WiMax platform on a large scale for retail consumers in India. In the initial phase, the company's WiMax network will offer broadband internet access and content services to enterprises and residential customers in Delhi, Mumbai, Pune, Bangalore, Chennai, Hyderabad, Cochin, Chandigarh, and Kolkata. In fact, as per data provided by the company, Tata Communications currently serves over 5,000 enterprise and retail customers across ten cities where it offers this service.
While India's telecom (read mobile) is booming, its braodband sector is witnessing rather slow growth and is way behind the targets set by the Department of Telecom. India has just under 3.5 million braodband users as of January end according to the Telecom Regulatory Authority of India (Trai). 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.
Source: Economic Times, March-05-2008
