The wireless phenomenon & 3G

It starts with the great 3G debate : another of the events on the telecom landscape to probably closely focus on. It too is abutting the venn-diagram-set of the Consumer versus Citizen debate, how much of the military spectrum should be taken and given to the private operators? What kind of charges to affix on the same - how does one measure the scarcity of spectrum, which like the air is considered by many to be measurably infinite. What kind of inexhaustibility are we talking about here? The issue on pricing also brings up the rules of allocation. Another interesting meme is Misra's quote on "the price of reform".

What would need to get seen too is the implication of this on other allied industries. While most believe that the emergence of 3G would put wired businesses out of business, the same industry also requires a huge investment in structured cabling to enable/ensure effective wireless experience at the user end. One of the driving concerns also seems to be the state of development of the nation, completely underdeveloped or less developed nations (so called) can now leapfrog directly to WiMesh networks, while the developed nations rely on conventional wired Broadband as a route to recover their own investments. Another related issue is the handshake between operators of different technologies to enable the consumer to have a seamless experience as he/she switch thru zones intentionally/unintentionally. Clearly, there are quite a few issues that still need even contemplating and documenting, let alone addressing, but the cost advantage of Wireless Networks in terms of Capex per sub are too significant to ignore.

The other major driver of the wireless revolution (in addition to the reduced Capex/sub) is the emergence of mCommerce applications. It is the combined impact of these two factors that seems to be driving VC money towards the wireless industry, which dominates more than 60% of all global telecom investment.

However, it would seem that the industry too has not yet completely aligned on how WiMax should get rolled out. The disagreement between the GSM and CDMA players on the frequency band for WiMax & the inertia of the government in taking an instant decision has once again come in the way of rapid growth. Globally though, there seems to be progress amidst chaos. Sprint seems to have adopted 4G enabled on WiMax and is knotting loose ends with PC & chip manufacturers to get devices ready to support its investment and initiatives. It is believed that 4G enabled WiMax will offer 4 times the speed of 3G at 1/10th the cost - now those kind of economics, if correct, will indeed transform the way business is being done at present!