NY Special: What if India leapfrogs to 4G?

Bhaskar Hazarika

New Delhi: India has already missed the bus to launch third-generation (3G) mobile services in the country. But this could be a blessing in disguise for the mobile operators if India leapfrogs to fourth-generation (4G). According to industry experts, Indian operators can move forward to 4G without rolling out 3G services. This could be another instance when India’s neighbour Pakistan is planning to leapfrog to 4G services.

Globally number of countries is testing 4G on the network after implementing 3G on the network. However, for India we are yet to log on to the third-generation services. Leapfrogging to 4G would prove to be a technology advantage for operators, since the 4G technology is 10 times spectral efficient compared to 3G. The 3G frequency bands identified by the ministry of communications and IT are compatible to roll out 4G services.

Joint secretary, department of telecom (DoT), JS Deepak said, “4G frequency bands or Long Term Evolution (LTE) is under consideration with DoT and Wireless Planning and Coordination (WPC). The ministry is carrying out a study on the 700 MHz frequency band if it could be used for WiMax or fourth generation (4G) services.” It should be noted that the government has taken a ‘technology neutral stand’ on the spectrum to be allocated for 3G services. This could be the first initiative from the government to open a window towards the 4G space.

Long Term Evolution (LTE) version 10, which is considered to be 4G, is being designed and will be available by the end of 2010. The present day LTE under implementation is considered as 3.9G. Since the spectrum for 3G will be available for private telecom operators by August 2010, it would be the right move for India to go for 4G, as the equipments for 4G will be available by the end of 2010. Union minister for communications and IT, Andimuthu Raja clearly stated, “Allotment of spectrum to maintain level playing field will be allotted to the successful bidders by August 2010.”

According to telecom expert and former advisor of Telecom Regulatory Authority of India (TRAI), Satyen N Gupta India should leapfrog to 4G and skip 3G, as there has been delay in the auction of spectrum. Gupta said that time is ripe for India to directly move to 4G. “Government and the regulator should be technologically agnostic while allocating spectrum. There should be no mandate that the proposed 3G spectrum should be used only to roll out 3G services. The operators should be given freedom to offer either 3G or 4G services,” Gupta said.

He said that the existing 3G frequency bands, which the government is planning to auction is compatible to offer 4G services. All the 3G frequency bands, which are under International Mobile Telecommunications (IMT), can be used for 4G. The Indian government has identified frequency bands in the 1.9 GHz to 2.1 GHz for auction.

Chief corporate affairs officer, Idea Cellular, Rajat Mukarji said that moving to 4G is a desirable direction… Yes, 3G can be leapfrogged. “We have been talking about 3G for more than 3 years and may be it has lost its meaning. Moving to 4G is a logical direction. We talk about mobile broadband but we should know that it is critical for the country. From the existing 2.5G to 4G is a quantum jump, but on thing that should be noted that it will be expensive to roll out 3G services at this point,” he added.

According to ABI research, the total number of 4G subscribers worldwide, including both LTE and WiMAX, is expected to exceed 90 million in 2013.

What is 4G?

4G technology is sometimes referred as ‘MAGIC,’ --- Mobile multimedia, Anytime-anywhere, Global mobility support, Integrated wireless and Customized personal service.

4G has three major characteristics: The download speed is 100 megabytes per second; It is based on internet protocol technology; Ubiquity as it is interoperable with the lower generation technologies. The distinctive quality of 4G networks is likely to use a combination of WiMAX and WiFi. The International Telecommunications Union (ITU) and The Institute of Electrical and Electronics Engineers (IEEE) have identified that 4G will have data download speed of 100-mega bit per second and it is completely based on IP technology.

© Financial Chronicle

GlobalLogic to restructure biz, plans IPO in 2011

Dec 10 2009, New Delhi

Bhaskar Hazarika

Global offshore product development company, Gl obalLogic India, is re-working its India business plan. It has decided to reorganise its addressable eight business segments into two clear business segments. The company is also planning to go for an IPO in the next 18 months to drive its expansion in the country.

Shashank Samant, president of GlobalLogic, said, “In order to boost our business, we have reorganised the business, making distinct business segments. We see that the focus will strongly reflect in our business performance. The company has reorganised telecom, mobile and embedded into one category and consumer enterprise in the other.”

“The reogranisation wo uld help us strongly focus on the verticals. At present, 55-60 per cent of our business contribution comes from telecom, mobile and embedded category and 40-45 per cent from consumer and enterprise category. The cellphone space is witnessing a massive growth in the country and we are looking at creating applications for Indian consumers,” Samant said.

During the financial year 2008-09, the turnover of the company stood at $90 million. Samant said the market for product development is growing at compounded annual growth revenue (CAGR) of 40-45 per cent.

Samant said the company is also eyeing acquisitions in the product development space given the low valuations. “We will be looking at companies where there are synergies in the domain and technology verticals,” Sam ant added. The company is also looking at expanding markets in eastern Europe and Latin America.

He said in the next five years the revenue distribution globally is likely to change. “At present, the US contributes around 80 per cent which is likely to become 65-70 per cent in five years. Contribution from India is likely to grow as India is growing to be a market in itself,” he added. Israel and India together contributes around 12 per cent now.

© Financial Chronicle