India is ripe for a major broadband expansion, to be followed by a wireless broadband uptake. Currently, there are 183 ISPs that are operational, with 388 licenses having been signed. There has been a recent easing in regulation that has as a result lowered the market entry barriers, allowing infrastructure sharing among distinct service providers. The idea is to enable cost reduction via optimal utilization.
VSNL (Tata's Videsh Sanchar Nigam Ltd.), Reliance Infocomm, and the state-owned BSNL (Bharat Sanchar Nigam Ltd.) have been testing WiMax services since the start of this year. They are regarding WiMax as a last mile wireless connectivity solution to be used particularly in rural and/or remote regions. If things go as expected, WiMax will provide relief for these operators, as they struggle to meet their rural telephony mandates (there is a huge gap between teledensities in urban regions - about 22% versus rural areas - under 3%).
Also in the WiMax front, Bharti has been already running market trials in Bangalore, Bhopal and New Delhi. Thus far, the results have been good and the company is pretty bullish on the service.
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