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Tatsuo Sato

Thomas K Thomas

Tokyo-based UQ Communications could be one of the players looking to bid for WiMax spectrum in India. eWorld spoke to UQ’s Tatsuo Sato to know how the company is deploying the technology in Japan and its relevance for India.

Why did you choose WiMax technology over other next generation technologies?

UQ selected WiMax because it has fast-mover advantage over other technologies. Both WiMax and LTE use OFDMA and MIMO. However, WiMax is way ahead of LTE, and many WiMax products have been introduced into the market. WiMax, like Wi-Fi, is born through an Internet-based culture. With an open standard, many device manufacturers make a variety of devices, and numerous operators (includes Mobile Virtual Network Operators MVNOs) create various value-added services. As a result, WiMax users can select from a variety of devices/services, and manufacturers can make worldwide compatible devices.

What has been the experience for you so far? Do you think you bet on the right technology?

UQ started its pilot service from February this year and moved to commercial service from July. We received many positive comments from our pilot users. Some of the comments we got are “fast download speed is outstanding’, ‘WiMax speed is way faster than 3G’, ‘It feels faster than ADSL.’

In Japan, household broadband penetration has reached over 75 per cent and virtually everyone wants always-on, fast Internet. On the enterprise side, more and more data traffic is generated because business applications, such as cloud computing, consume more bandwidth. Against the increasing data traffic demand, WiMax brings solutions.

What kind of services are you offering? Is it both voice and data?

UQ provides data only. UQ does not filter users’ data, and users are able to use virtually any protocol. Users may use VoIP, file download, Video phone, etc, without limitation. We open up our network to Mobile Virtual Network Operators to bring a variety of services, including VoIP.

Are you happy with the devices available for WiMax?

In order to realise fast adoption during our pilot service, UQ prepared data cards and WiMax-WiFi consumer premise equipment. UQ’s Data card is sold at about $130, while most 3G data card is sold at about $350.

Device manufacturers started selling their WiMax products from July (price expected to become lower with volume). Since we use 2.5GHz, it is easy to install WiMax into laptop because 2.5GHz WiMax can use the same antenna which has been installed in the laptop for Wi-Fi.

What is the ARPU that you are getting?

UQ’s flat rate service is 4,480 yen per month, which is about $45 per month. That is the lowest among mobile Internet services.

How much spectrum do you have?

We have 30MHz on 2.5GHz band. UQ uses 3 x 10MHz channel.

Who are your vendors? How many base stations have you deployed?

Mostly, we use Samsung base stations and have installed about 500 base stations before February pilot launch. We are now building more. The number of pilot users is about 8,000, but we target to install 20,000 base stations and have 5 million subscribers by 2012.

Would you be interested in investing in the Indian WiMax market?

India is a fast growing country, and many Japanese enterprises are interested in investing in the Indian WiMax market.

When do you hope to break even?

UQ is targeting to make business break even by 2012.

Do you think WiMax is best for providing wireless broadband to the home and offices or is there a business case for providing mobile broadband services as well?

Since broadband penetration is high in Japan, people require high-speed Internet access on-the-go. UQ provides mobile broadband mainly, but many say they want to use WiMax in their home or offices. Some even say they will switch their home Internet from ADSL/fibre to WiMax.

Has WiMax enabled you to create a differentiator in the Japanese market, especially against NTT Docomo?

Of course, we will change the market. 3G cellular network provides only walled garden content or limited Internet access, and 3G handset is tied to a particular operator. 3G users cannot select devices or services freely. UQ will open its network and device to create operator-free device/service environment.

tkt@thehindu.co.in

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