In a Conference call with Analysts [I couldn’t make it but here are the excerpts] Tata Communications Ltd, erstwhile VSNL acknowledged the end of its WiMax Dream Run.
Credit Suisse Analysts wrote,
Management expressed disappointment over not having won any spectrum in the recently concluded BWA auctions in India. Management indicated that prices crossed their internal realistic valuations quite early in the auction process, and thus it opted out of the bidding.
Jyapee USA Analysts Wrote,
TCL has Wimax operations in 5 cities and has around 50000 subscribers. It was one of the 11 players who bid for the BWA auctions. However, TCL was not able to win any spectrum which could have helped it role out the Wimax services to a broader section. According to TCL, the prices for BWA had crossed the sensible range and there was no business case in it. TCL now plans to give priority to the SME segment for the WiMax services as compared to the retail segment.
Limitations of WiMax as acknowledged by Tata Communications Ltd in the Con Call,
TCOM also acknowledged that fixed WiMax technology had limitations and suggested that its current spectrum allocation would prevent further expansion of mobile WiMax.
This is not the first time that Tata has voiced concern against WiMax, but the second time [Read Earlier Concern here] However, one should note that Tata’s Group Company Tata Teleservices erstwhile Tata Indicom provides Tata Photon+ EVDO based Wireless broadband services across India and has been widely accepted. However, Tata Communications is a massive failure in broadband services.