Xohm, a business unit of Sprint Nextel — the third largest wireless carrier in the US — is exploring the possibility of managing the Worldwide Interoperability for Microwave Access (WiMAX) networks of telecom operators in India.
“While telecom operators may get a licence for spectrum and have the money to build networks, they may not necessarily have the management skills. We are in talks to explore possibilities of knowledge transfer and help operators build capacities by lowering entry barriers,” Barry West, CTO, Sprint, and president, Xohm, told Business Standard.
Xohm is currently partnering with YTL e-Solutions Berhad (YTLe) — a subsidiary of YTL Corporation Berhad — to help the Malaysian government fulfil its objective of reaching 50 per cent broadband penetration in Malaysia by 2010. The Indian government, too, says it wants to have 20 million broadband (256Kbps and above) subscribers by 2010. The current figure stands at around 5 million.
“Our vision is to get the masses onto the internet for which wireless broadband is a necessity. It’s here that WiMax comes into play,” says West. WiMAX is said to be Wi-Fi on steroids since it covers a radius of around 50 kilometers to deliver internet connectivity on mobile internet devices (MIDs), laptops, cellphones, and ultra mobile personal computers (UMPCs).
WiMax is not new to India. State-owned telecom operators BSNL and MTNL have each received single blocks in 2.1GHz (3G) and 2.5GHz (WiMAX) spectrum. These firms are expected to roll out their 3G and WiMAX services by the end of 2008. Tata Communications (called VSNL earlier) launched WiMAX (fixed) in Bangalore early this year. The company plans to invest $500 million over the next four years to roll out the service in Chennai, Delhi and Hyderabad. Its partner is Telsima, a Sunnyvale, California-based WiMax vendor. Bharti Airtel, too, has WiMax trial rollouts, and so does Reliance Communications.
However, the Indian government is yet to allocate spectrum for both WiMax and 3G (perceived a rival technology to WiMax). iSuppli forecasts 3G and WiMAX will garner 250 million and 19 million subscribers respectively by 2012. WiMAX spectrum is set to be auctioned early next year in blocks of 2x5MHz at the 2.1GHz band and 20MHz at the 2.3GHZ and 2.5GHz bands. Barry West said bidding for spectrum could be a possibility, but “currently, we are focusing on North America”. “Besides”, he added, “the 20 MHz block is too small for a decent WiMax rollout. We would be more comfortable with blocks of at least 30 MHz.”
Globally, Sprint is not doing well. It reported a quarterly revenue of $8.8 billion, down 3 per cent from the trailing quarter, which led to a net loss of $326 million, and disappointed analysts. It lost 1.3 million net subscribers this quarter even as its bigger rivals Verizon Wireless and AT&T posted healthy numbers.
More From This Section
The company is now banking on WiMax to boost its revenues. CEO Dan Hesse touted the recent launch of Sprint’s WiMAX network in Baltimore as well as the recently-approved merger between the company’s WiMAX division and Clearwire as evidence that the company had a bright future in delivering next-generation mobile broadband services.
Sprint Nextel plans to combine its WiMAX unit with that of Kirkland-based Clearwire, in a merger valued at $14.5 billion. The company will continue to be called Clearwire. A vote by Clearwire shareholders, the last major approval needed before closing, is planned for Thursday.