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LMDS promises to make converged
services a reality
Growth in the wireless space has
been phenomenal, especially in wireless communications. But this
has also brought about a spate of disparate technological developments.
For the many operators venturing into this space, the local multipoint
distribution system (LMDS) is one among the new solutions that can
provide the ability to deliver converged services in a cost-effective
manner, says Stanley Glancy
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| LMDS offers a single operator the opportunity
to provide numerous services, right from basic telephony to
cellular services, on a single platform, which effectively reduces
the total cost of the access network, says Vinay Patil |
The Cellular Operators Association
of India (COAI) pegs the total number of cellular subscribers in
India at more than 15 million, as of June 2003—a jump of almost
90 percent from the previous year. This is without taking into account
the burgeoning CDMA mobile subscriber base. With players like Tata
Indicom soon to join the fray these figures are expected to touch
the 50 million mark in less than five years. With a population of
more than a billion, and growing by the day, the Indian market promises
cellular operators vast vistas of opportunities.
But will the current infrastructure
be able to handle rapidly growing volumes? Can operators add more
cells in a cost-effective way, and also ensure that networks do
not get congested? What about critical factors like time-to-market?
How do you connect areas where laying a landline or optical fibre
cable is not feasible? These are issues that are bound to hound
operators if the current growth rates in the cellular space are
anything to go by. But local multipoint distribution systems (LMDS),
a broadband wireless access technology, being aggressively promoted
in India by companies like Hughes Network Systems (HNS), promises
to be a panacea to most of these problems.
The technology has already
found market acceptance in the West. Even countries in the Asia-Pacific
region, such as Hong Kong and Singapore, have issued LMDS licenses
to cellular operators and also basic service providers. India is
not far behind in the race. Hughes Tele.com (now a part of Tata
Teleservices) has already deployed LMDS in Mumbai and is looking
at deploying the technology in other states where it has a presence.
Tata Teleservices has deployed the technology in the Tamil Nadu
circle. Essar Telecom has already entered into a deal with Motorola
India to deploy the technology for offering ISP services in close
to 52 cities in the country. HNS is in talks with telecom majors
like MTNL, BSNL, Hutch and other service providers for offerings
its solutions in all the metros and other cities with a high population
density.
LMDS explained
Cellular operators across the
country currently depend on point-to-point (PTP) systems, which
are limited in the number of applications that the technology can
support. LMDS is a wireless technology that uses a point-to-multipoint
(PMP) architecture. Unlike PTP where microwave transmission equipment
has to be installed at both ends to connect two points, PMP architecture
comprises a central base station that can communicate with multiple
points or remote terminals. A single set of equipment is installed
at the base station, which is then shared by many other points,
thus saving on cost of equipment. One base station can support a
capacity of more than half a gigabit. Typically, the technology
operates in the 26 GHz and 28 GHz frequency, standards that have
been put in place by the European Telecommunication Standards Institute
(ETSI).
The technology also brings
the dream of converged services one step closer. A single LMDS platform
can be deployed to support multiple applications. The architecture
can support TDM (time division multiplexed), ATM and IP traffic
on a variety of CPE and network interfaces. Says Vinay Patil, senior
marketing director for Hughes Network Systems, "The LMDS platform
can support numerous applications. The technology offers a single
operator the opportunity to provide numerous services, right from
basic telephony to cellular services, on a single platform. This
effectively reduces the total cost of the access network."
An operator can leverage the LMDS platform to offer GSM, CDMA, 3G
cell site, WiFi sites, basic services such as telephone, fax and
ISP, and also broadband services.
Benefits
Regulatory issues might pose
a hurdle for operators desirous of offering converged services.
But that shouldn’t stop the operator from earning revenue from the
network. For instance, a cellular service provider can invest in
LMDS to spruce up the existing infrastructure and at the same time
offer the platform to another player who can redeploy it to offer
some other service such as WiFi.
This also offers the advantage
of quick time-to-market. Being a wireless technology the rigmarole
of laying cables and wires for connectivity, which is not only expensive
but also time consuming, is completely done away with.
Talking of costs, another key
advantage offered by the technology is that compared to the existing
PTP architecture the cost declines as the number of cells deployed
goes up because only one microwave transmitter is required at the
base station. According to Patil, for up to three cells the cost
remains the same for a PTP and LMDS network. But if an operator
deploys more than three cells in an area
the cost of infrastructure declines.
Broadband service providers
can also avail of the technology to increase the footprint of a
fibre network. Fibre has several disadvantages—it can’t go everywhere,
it can get cut and also, it is very expensive. LMDS provides the
same capacity as optic fibre technology. But the enhanced footprint
of more than 4 km allows an operator to offer broadband services
to a much wider area. Also, as it takes little time to deploy, time-to-market
is shorter and collection of revenue is that much faster.
Limitations
The technology is not without
its limitations. Similar to other microwave applications LMDS cells
are affected by rain fade. Signals can get distorted by raindrop
scattering and also by absorption of the waves. And being a wireless
technology, line-of-sight is a major issue. Thick walls, especially
the stone walls of Gothic structures in cities like Mumbai, can
block signals. Even hills and thick trees can block, reflect or
distort the signals. But progress in technology should soon find
a way around these hurdles.
Scene in India
Though the Indian telecom sector
has been thrown open to the private sector, certain restrictions
have been placed on players. Currently, regulatory issues pose a
major challenge. But Patil is bullish about the prospects for the
technology in India. He expects all government restrictions, with
regards to the services that can be provided by a service provider,
to be done away with in the next 2-3 years.
This will enable even a basic
telephone operator to provide all services. MTNL already offers
the entire bouquet, right from basic services like telephone, fax
and ISP to GSM and CDMA. With the reach and the network the company
has in place the day is not far off when it will offer broadband
and other related services. Other players are bound to follow this
trend. Most operators are rampantly expanding their networks. Says
Patil, "Every month six lakh subscribers are being added to
the existing list. Subscriptions of cell users are expected to cross
50 million in five years. Reliance and Tata are rolling out CDMA.
Not many companies are taking E1 services but if offered they would.
In a few years the current cell sites won’t be able to handle the
growing volumes. Hence the potential for the technology is huge."
From an operator’s point of
view, tariffs are coming down, so he also has to lower cost of equipment
to maintain profit margins. Sharing resources can also help reduce
cost. Technology is no longer a barrier. Every day sees more and
more developments on this front. But that’s not to say that the
going will be smooth. Like any new technology, education of the
market is a big challenge. Patil’s aim at this point of time is
to get people familiar with the technology. The telecom meltdown
in the not too distant past didn’t help matters. But a change in
perception has been witnessed over the past year. The market seems
to be accepting the technology as a revenue centre and not as an
added cost. With cellular subscriptions on the rise and more and
more giants joining the fray, operators will have to consider technologies
such as LMDS, which hold the promise of reduced costs and better
services.
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