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India Excludes ISPs From WiMax Auction
DoT’s recent decision effectively excluding ISP bids for WiMax spectrum revives memories of India’s past flights of fancy. The fantasy this time is the cellular operator’s commitment to nationally deploy 2.5 GHz spectrum for wireless broadband on WiMax and not hoard it or poach it for 3G use should – if the DoT has its way – they get both.
This is yet another kick in the teeth for Indian ISPs as the nation still has a chastity zone around VoIP prohibiting interconnection with the public fixed and mobile networks. Now the drunk internet providers are barred from WiMax in what can only be a total flight of logic.
If the DoT really wants to have an actual, functional, no-nonsense ubiquitous mobile truly “wireless broadband” service that allows the country to keep some whitewash on the “India Shining” plaque at the door, then the guy to deliver it is the one. with no vested interest in legacy air interfaces giving rise to mobility.
Meaning, keep the cellular establishment away from WiMax because they will do everything with it but provide a no-nonsense ubiquitous mobile truly wireless broadband service that cannibalizes existing revenues and kills those hot 3G dreams.
In fairness our current and cellular friends (same difference) would use WiMax for backhaul, meaning it’s a great way to connect base stations back to the mother ship while customers continue to connect to these base stations over existing cellular air interface investments. They would also use WiMax to provide fixed wireless local loops (WLL) into homes in another area, which they consider relatively unexciting compared to the mother lode of cell. Remember how Reliance sneaked cellular to the public in the guise of WLL? It was cellular mobility Reliance craved not boring old fixed wireless local loops. And there’s WiMax’s famed mobility that the cellular establishment wants to keep out of ISP reach and away from the user.
Keeping it real I would probably do the same in cellular shoes. The Internet is synonymous with freebies, long distance and fixed line voice revenue is also going so with the only telecom real estate left to make money inside the mobile phone. You put a WiMax broadband eight-lane highway into the mobile phone and there goes that walled garden.
No one is asking the cellular establishment to be denied spectrum for wireless broadband. They should keep their existing 3.5 GHz portions admirably suitable for WLL but don’t waste god given 2.5 GHz or 2.3 GHz to generate mobility over wireless broadband footprints. Assign that mission to the ISPs.
Globally, the cellular establishment is going to incredible lengths to protect legacy investment and avoid air interfaces that lend themselves more naturally to Internet access. No reason to think their Indian chapter will do anything other than spread like this until legacy costs are fully amortized and beyond. Consumers must pay for cell airtime until the establishment’s books stop requiring a tithe. Until that happens, no access to video, YouTube or VoIP will effectively be allowed to your mobile phone.
3G is the cellular establishment’s answer to broadband and they have already spent $150 Billion worldwide on licenses and similar deployment change. Why would the Indian cellular establishment go with anything else? More so because proven equipment is available today to make 2G and 3G networks look seamless. WiMax is a completely different technology and while roaming is possible, it requires a completely different perspective to provide what is essentially a very data service – something that the cellular operator is not yet comfortable with, unlike the ISP for whom it is very much. bread & butter. Just one look at the imprecations cast about WiMax mobility by the august cellular lobby suggests that their love for any technology other than 3G may not be all-encompassing.
Thus, any spectrum available for true wireless broadband above 2.5 GHz or 700 MHz is least likely to be used by the cellular establishment to rapidly generate mobile access through non-cellular technologies such as WiMax. The sensible way forward would be to have the cellular operator focus on proper 3G deployment while the larger ISPs are left to deliver on national WiMax.
The DoT of course does not see it that way and humors a lobby whose massive investment in legacy networks ensures that they will continue the trends that require that not only more and more Indians will spend more and more time on the Internet but we’ll do it with more high bandwidth and wireless connectivity.
Math, thicker bandwidth translates into at least 3 to 5 Mbits/second of ubiquitous wireless broadband speeds to the mobile phone if we want to go beyond SMS messaging or Blackberry and into the realm of true mobile internet access to our mail servers, for YouTube, Vlogs, interactive gaming and movies.
Considering that the fastest cellular 3G speeds available for mobile today and forever are around 500 to 700 very expensive kbits/sec means we have a situation.
Almost everyone I see on the street in Indian metros flaunts top-of-the-line cell phones and so I suspect there are enough such phones around to make my case. What is the last time you used this Wi-Fi capability? It’s a safe bet that the wireless broadband highway into your cell phone is lying unused while you pay the cellular provider to check email on a Blackberry and to download music files. As for easy online access to YouTube or interactive TV and gaming, forget about it because 3G or no 3G, cellular technology has no answers. The cellular establishment has limited the user and we are all to blame for making this happen.
The reason you don’t use the cell phone’s Wi-Fi feature is because it’s intentionally unfriendly but mostly because you’re hooked on the cell service because of its billion-dollar mobility feature and that’s where you and your phone automatically lock. If ubiquitous mobile true wireless broadband were to happen, you’d happily use it instead of buying expensive airtime on stuffy cellular air interfaces poorly suited for data downloads and you’d stop ditching aids like Blackberry.
Why is all this so important for a still largely poor country like India? Because India today is at the same stage as China when it comes to internet usage. That’s the good news. The sad part is that most Indians still use a landline and we are not even close to China in broadband penetration. Given a proven penchant for mobility and video India is nevertheless fertile ground for massive growth in mobile broadband Internet access. The DoT decision favoring the camp opposing this very possibility does not help generate critical mass to complete with our giant friend soaring over the Himalayas. Today’s defense is in economic growth, where more parts of 2.5 GHz spectrum need deployment, not in the speed of South Bloc.
Earlier this year the Malaysian Regulator MCMC banned Malaysia’s cellular establishment from bidding for wireless broadband. He had good reason for his ruling because the cellular operators have absolutely nothing to show for past wireless broadband commitments.
Pushing further, Google looked to the US cellular behemoth on behalf of ISPs in the current run up to the 2008 FCC auction for nationwide chunks of 700 MHz. At the beginning of August this year the FCC chairman announced ground rules for the slugfest and although not fully granting Google’s petition enough was conceded to secure a “third pipe” allowing ISPs a fighting chance to offer ubiquitous, true wireless broadband mobility in the face of stubborn cell lobby This is the point. In America the arguments have progressed to whether a spectrum owner – Telco or ISP, it doesn’t matter – should allow any and all devices to connect continuously and whether the owner should be forced to offer wholesale spectrum to other providers. The cellular establishments are upset the FCC is also working with wireless broadband proponents to test devices that would access white (meaning unused) space in TV Broadcast spectrum. Rather than engaging the Industry at such sophisticated levels DoT is forcing Indian ISPs to waste time fighting just to be allowed into the auction house.
what we see is that while regulators elsewhere have reason to suspect the good faith of the cellular establishment, the DoT seems starry-eyed in belief and poignantly monogamous in intent.
The DoT may not be aware (who am I kidding?) but their decision helps ensure that new much-needed technology doesn’t keep the cellular establishment from milking their current networks into near-perpetuity.
The preponderance of advantage enjoyed by incumbents means that a regulator or decision-making body like the DoT fails even if it simply remains scrupulously neutral. Whether it is the EU, North America, Australia, Malaysia or India in the past, we see that definitive change only happens through decisions that give a real advantage to newcomers and ISPs. In fairness, the TRAI’s forward thinking on regulatory matters is only matched by an inability to stand up to the DoT. So the ball being in DoT’s court when you see it failing even at neutrality to the extent of openly favoring incumbents, an attempt failure cannot really hide the dislike.
However if the DoT chooses to listen, a radical departure from legacy can do wonders for users as well as the industry. That includes the cellular establishment, whose own long-term interests are ill-served by their current approach. Inviting the ISPs to bid as equals benefits everyone. One can only hope that the DoT does what is best for the Indian consumer and for this amazing technology that allows us so much magic over the ether.
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