In quest of the CPAEX involved for WiMax and modeling the business case, Citi Analysts spoke to Mr. Lil Mohan, MD (APAC & META) at WiMax Program Office, Intel Corp and here is a brief excerpt from the same,
WiMax Spectrum – Network Deployment – Cost for End User – 2 slots of 20 MHz in the 2.3 Ghz band available for wireless broadband auction in India can be used for any wireless broadband technology (WiMax/LTE). In addition to the spectrum fees, BTS will cost ~US$10-20k depending on the vendor/market. A basic WiMax roll-out in top 100-120 cities in India will require ~20k cell sites for coverage i.e. an implied capex of US$300-400m. And for the end consumer – The average cost of a WiMax dongle (modem) is currently at ~US$50.
WiMax vs LTE – Both are 4G mobile broadband technologies, can use similar spectrum bands (2.3-2.5 Ghz) and offer similar data speeds. But a wide scale adoption of LTE may be some time away. WiMAX’s head start over LTE and open standards give it benefit of lower cost of equipment and the presence of a large ecosystem with commercial equipment readily available.
Lets wait and watch who will win the spectrum and see what LTE’s Business case will be in India. Meanwhile, WImax lobby is active and is hosting a conference – Strategies, Business Model Reengineering & Opportunities for WiMAX Development on April 23rd 2010, at ITC Sheraton – Saket, New Delhi, India. For attending, you can touch base with TEL: +91 (44) 23770517. Or Email us to – delegate@virtueinsight.com.