| Madan
held that a new operator can build a sound
business case for creating a broadband access
network if there is sharing of resources.
This lowers costs and is a speedier way to
grow the market.
Essar
built a business case on how a retail broadband
network for an operator can be very successful,
Madan pointed out. It took the city of Mumbai,
where Essar had done a case study involving
a 10-year business plan and 500,000 subscribers.
The
operator starts with 300 base stations and
goes up to 700 base stations as the plans
roll out. The Arpu is Rs 300, which is what
BSNL and MTNL charge today. Though the capital
expenditure per base station is on the higher
side, this will be brought down as volumes
increase, Madan explained, adding that if
someone builds a network on his own, he
spends around Rs 2.9 billion and with an
ILR of 29 per cent.
In
a scenario where infrastructure is shared,
cash flows improve dramatically, Madan said,
adding that wireless technologies also allow
for larger bandwith, which can then easily
take services and applications to the consumers.
Wireless
technologies being used include GSM, which
has evolved to 3G. There is also CDMA 2000,
he notes and says Wimax is the preferred
technology for broadband globally.
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