The Worldwide Interoperability for Microwave Access (WiMax) operators in the country still have to subsidise the cost of the Customer Premises Equipment (CPE) for every connection they sell, which is hampering their growth. One of the reasons is that the CPE cost is very high at the moment and ranges between $60-150, and the common man cannot afford it; therefore CPEs are subsidised by WiMax operators.
Pakistan Telecommunication Authority (PTA), in its latest annual report also admits that cost incurred on account of infrastructure and equipment deployment (also known as CPE) charge is still a subject of much deliberation for WiMax technology. It further says that WiMax has been quite well received in the developed parts of the world but in Pakistan the acceptance has been slower. However, PTA remains totally committed to its mission of providing greater access to 4G Wimax USB modem based deployments and other communication modules with 3.5GHz coverage footprints at regulated prices.
In this regard, when asked about what strategy and business model of Wimax and broadband operators should be used to expand their services in small cities and villages of the country, Qubee Chief Executive Officer Mubashir Naqvi, said that broadband must reach all nooks and corners of Pakistan and there are no two ways about it. “As far as the strategy for broadband and especially Wimax operators is concerned, unless cost elements such as CPE and transmission are lowered, the proposition of operating in small towns and villages is not feasible,” he added.
He further informed that the growth of broadband has been extraordinary with almost 150 per cent AGR over the last 3 years, while the market is still young and it is online content which is increasing the market size every day. “Wireless broadband in Pakistan has changed the perception of broadband and ever since 2007 the growth has been in triple figures with number of subscribers doubling every year since,” he added.
While elaborating on the issues and problems the wireless broadband industry is facing generally, he said that by virtue of being a developing country certain impediments to broadband growth in Pakistan are inherent that include low literacy, low PC penetration, lack of local content, high bandwidth cost by Pakistani standards, duties on CPEs, and regulations. According to PTA’s annual report, WiMax is the next generation of competing wireless technology comparable to 3G and wire-line one, which provides broadband internet access at a faster rate than the DSL or Dial-up connections. Currently, the only technology catering to high-speed wireless internet is WiFi which is limited to a distance of a few meters. WiMax, on the other hand, is capable of delivering higher speed (bandwidth) and across a distance of many kilometers for consummating point to point connection.
CPE costs hamper WiMax growth
