New Delhi, July 5

Intel Capital-backed Russian telecom operator Yota may strike an alliance with Mahanagar Telephone Nigam Ltd and Bharat Sanchar Niogam Ltd to offer WiMAX-based broadband services in India.

Yota currently offers WiMAX-based services in three regions in Russia including Moscow and St Petersburg.

Speaking to Business Line, Mr Yegor Ivanov, Director, Business Development, Yota said, “India is a key market for us since we are looking at expanding to international markets. We are looking at various options including a partnership with MTNL for offering WiMAX broadband in Delhi and Mumbai, and with BSNL in the rest of the country.”

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Mr Ivanov said that talks with the two PSUs are being done through a local Indian partner.

While BSNL has already floated a tender seeking partnership from private players, MTNL is yet to outline its strategy for the WiMAX space. The two companies are the only operators in the country who have been given spectrum for offering wireless broadband services. By partnering MTNL and BSNL, Yota will have the first mover advantage, apart from not having to buy spectrum through a competitive bidding slated for later this year.

Mr Ivanov said that 20 Mhz of spectrum for broadband services was not enough and would make it tough for operators. “Operators need a minimum of 30 Mhz for offering WiMAX enabled broadband services. With just 20 Mhz operators will have to invest more on setting up the infrastructure. It is doable, but quality of service will be an issue.”

Yota is also offering IPTV services to its broadband subscribers in Russia. In India, IPTV is being offered by operators with copper or optical fibre cable infrastructure.

IPTV services

Mr Ivanov said that IPTV can also be offered using wireless technology such as WiMAX, which increases the average revenue per user for the operators in the long term. “As of now we are offering IPTV free but we plan to charge for it going forward. We are also looking to offer voice service for free since our business is based on data revenue.”

A number of international players are keen to enter the Indian broadband space with the Government looking to auction spectrum for WiMAX services towards the end of the year.

Apart from Russian companies, Japanese and Malaysian players are also in talks with Indian companies to explore the possibility.

Taken from Business Line

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