VSNL's WiMAX broadband services by Jan
The Economic Times — December 12, 2007

Videsh Sanchar Nigam Ltd (VSNL), a Tata Group company, plans to launch wireless broadband service on the WiMAX platform by January. The company is also mulling a new brand identity, similar to that of Tata Indicom for its WiMAX services. VSNL presently provides broadband services on the Tata Indicom platform only.

"VSNL's corporate identity would change to Tata Communications from next year, but for retail business we want to have a different brand name," VSNL senior vice-president Srinivasa Addepalli told ET. He, however, said that there is a possibility that the company may initially ride on the back of Tata Indicom to launch its WiMAX broadband services.

"In the next 2-3 weeks, we will take a decision on the matter," Mr Addepalli said.

WiMAX is a telecom technology that enables high data output. The technology would be very helpful in extending the broadband penetration across the country, especially in the rural areas. The government is already in the process of allocating 700 MHz spectrum for WiMAX users.

VSNL estimates an investment of about $500-600 million for rolling out WiMAX services in 35 cities across the country over the next three years. It would launch the service in Bangalore and then cover other major cities like Delhi, Mumbai and Hyderabad in the first phase. In the second phase, the company plans to reach to customers in about 35 cities across the country - mainly consisting of all the state capitals.

While the company is planning to have a full-fledged presence in 35 cities only, it has also started working towards spreading its wings to about 125 towns. In rest of the centres the services would be available only for corporate clients. VSNL plans to establish 1700 sale centres for its broadband operations. VSNL would be the first company to launch broadband services on the WiMAX platform for retail consumers in India.

Earlier the company was offering the service to only corporate consumers but the potential in the retail market has attracted the company towards launching it on a mass scale. The Tata Group company has tied up with Telsima of US to procure equipment for the WiMAX service. For spreading its services in the tier-II centres, the company will use Tata Teleservices towers.

It is also looking for short-term lease of BSNL towers in areas where Tata Tele towers may not be available.The company has put a target of 7-9 million subscribers or 25-30% of the total broadband market by 2012.