The Hindu Business Line : Sprint’s Xohm in talks with telcos

Virginia, Nov. 18 In a bid to kick-start the launch of WiMax-based broadband services in India, Sprint Nextel’s Internet business unit – Xohm – is planning to offer managed services to operators in the country.

The company is already in talks with some of the Indian players, including Tata Teleservices, to offer its expertise in managing and operating WiMax networks.

WiMax technology will enable users to get high speed Internet access along with voice capabilities.

Speaking in the course of a media tour organised by the WiMax Forum, Mr Barry West, President, Xohm, said, “India is an important market and we are looking at various ways in which we can participate in promoting the growth of WiMax in that market. We have plans to form a managed services company, which will facilitate in sharing our expertise in rolling out a network and developing a business model with operators in other countries including India.”

The US-based mobile operator had launched its mobile WiMax services in September this year under a new subsidiary called Xohm.

Bid for licence

When asked as to whether Xohm will consider bidding for a broadband wireless access licence, Mr West said, “I do not see why we cannot bid for a broadband licence in India, but no decision has been made in this regard.”

Sprint Nextel is the only mobile operator to offer WiMax services in the US because it holds most of the spectrum that is suitable for this technology. It has launched wireless broadband services in Baltimore by rolling out 350 base stations across this city. Subscribers can either opt for a daily pass at $10 a day or take a connection for $30 every month. The network also allows users to access Internet on the move within the city even while driving at over 60 miles per hour.

For more spectrum

Mr West, however, said that Indian operators may find it difficult to roll out WiMax services with just 20 Mhz spectrum being offered by the Indian Government. “I think the Indian regulator has done a big mistake by allocating just 20 Mhz per operator. The business case for an operator would have been better had operators got at least 30 Mhz each. Having said that, I am sure the Indian regulator is seized of the matter and will make available more spectrum when it gets available.”

Mr Atish Gude, Senior Vice-President, Business Operations, Xohm, said that Indian operators may not be able to grow WiMax as fast as they would like to due to the low quantum of spectrum being allocated to them. “This is where Xohm can help Indian operators in maximising the business model as we have a two-year head-start in setting up this business in the US,” Mr Gude said.

Sprint Nextel’s broadband business is being funded by global technology majors, including Intel and Google, and it is likely that even these players will get involved in the Indian WiMax market in a major way. Broadband usage in India has been growing at a dismal pace with just 5 million subscribers till now. The Government is betting big on wireless broadband technologies such as WiMax to boost the growth.