Tata Communications WiMax – More Hurdles

The Tata’s have had a fragmented approach to the Telecom business as was in case of Software a decade ago. Don’t quiet really understand why a separate company for each segment of the business,

  • Tata Teleservices Maharashtra (TTML) and Tata Teleservices (TTSL) in wireless and fixed-line telecom
  • Tata Sky in DTH
  • Tata Communications / VSNL in wholesale voice and enterprise networking

TCOM’s managed services capabilities will allow it to leverage its investments in undersea cable assets and drive margin expansion. However, its WiMax retail broadband service has no signs of revival. Funding remains an issue, and WiMax spectrum auctions may aggravate this constraint.

Given the operating challenges associated with it (CPE still costs cUSD150/subscriber/household, there is no standardised equipment, vendors lack scale), the business case becomes tough. While the poor state of fixed-line structure offers opportunities for wireless broadband solutions, simultaneous auctions of 3G spectrum are likely to limit the opportunity for WiMax.

Author: Webmaster