Why is launch of 4G services being delayed?

  •  BY
  •  In
  •  Dec 12, 2013
  •  1081
  •  0

Despite blowing up billions on BWA spectrum, the operators dont seem to be in a hurry to launch 4G services. Why?

According to sources, Reliance Industries Ltd. (RIL), which is the only BWA licence holding company with pan-India spectrum, is set to start the second phase of its Long Term Evolution Time Division Duplex (LTE TDD) trials from October this year. The trails will be more extensive and will be conducted in outdoor conditions, in the Navi Mumbai area.

A version LTE, the Long Term Evolution Time Division Duplex (LTE TDD) uses the TDD modulation scheme in unpaired spectrum, whereby the same frequency channel is used for both downlink and uplink communication and signals are timed to enable smooth delivery of data. In contrast, LTE uses frequency division duplex (FDD) in paired spectrum, with a separate channel for uplinks and downloads.

The advocates of TDD technology are of the opinion that the single channel makes the network more bandwidth-efficient. But it is also true that operators tend to deal with the spectrum that they have come to own.

Lack of global precedents

It is being believed that these latest series of LTE TDD trails by RIL could mark an important step towards final commercial launch of 4G services in the country. The trails will lead to a greater understanding of the different aspects of the technologies deployed in LTE TDD. This is important not just for RIL but also for other BWA aspirants in the country.

For a time, WiMAX seemed to be a favourite for the roll out of BWA services. The WiMAX had already been implemented in many parts of the world. LTE TDD is a relatively new technology, but it offers the ability of lowering the cost of data services to a very large extent. Hence major operators like RIL have decided to back LTE TDD in India.

As India is leading the way in the implementation of LTE TDD, the modalities that get developed out here will have an impact on the roll out of similar services everywhere in the world. Many analysts have suggested that the lack of real-world experiences from other markets is one of the reasons for the delay in 4G roll out in India.

Are 3G interests responsible?

It has also been suggested that the massive investments that operators, handset makers and other interested parties have made in 3G spectrum, roll out obligations, and development of devices for end-user could be responsible for the delay in 4G rollout. Many of the operators and other concerned parties might not have the funds available to invest on 4G projects after the massive investments that they have made on 3G.

It has also been suggested that, internationally, mobile phone network operators do not see any urgency to move to 4G and they plan to ride out the economic downturn by getting the most from their 3G investments. Perhaps there is some good economic sense in delaying 4G until there is at least some return on 3G investment. At the current state of progress, it could be late 2012, before the implementation of 4G networks hits the ground! This means that major companies are giving themselves 2 to 3 years to generate maximum of their returns on the 3G investments!

The scarcity of cheap and feature rich 4G devices is also a problem. Most of the major handset makers are yet to come up with a substantial range of 4G devices.

The endless wait for 4G

While the governments and the private companies dither over 4G for one reason or other, it is the new generation of data-hungry users who are suffering. There is an acute need for a faster, more reliable network. Only 4G technologies such as LTE TDD can fulfil that need. There is no doubt that 4G is going to have a disruptive effect on 3G and 2G services, but that is the way of every new technology. As new technologies emerge, the older ones fade into obsolesce.

Certain players have also expressed the opinion that there is enough headroom in 3G and 3.5G for enhanced consumer services and thus there is no need to jump into 4G. But this is not the ground reality. 3G tariffs are at sky-high levels. It is possible that once there is competition from a new crop of 4G players, the 3G prices will come down to reasonable levels. If certain operators overpaid for their 2G and 3G spectrum, then they alone should bear the losses. Users should not be penalised for the faulty business decisions made by certain operators.

Accesorios para el running


Add new comment