Expert View

September 19, 2003
Mobile service providers should embrace Wi-Fi: SoshaCom

Geetanjali Wadhwa & Pradeep Chakraborty

CANADA - Established in 1983 as a computer development corporation, importer of high-tech components and distributor of complete business service systems, SoshaCom Ltd. is an Ottawa-based, federally incorporated company in Canada. Recently, it specialised in system design and management services for the wireless and Internet service industries. The company offers a state-of-the art set of solutions to electronic communications business issues, by designing, financing, managing and deploying, business-ready operational electronic communications systems in difficult environments.

Part of the North America-based consortium, the company excels in communications system design, broadband fiber, innovative wireless, microwave and landline combinations, financial structuring, business modeling, training and intellectual property management. It offers a wide range of solutions to modern communications challenges such as network solutions, converged voice, data and video networks, wireless networks, satellite-based networking, mobile communications network, network security, video solutions, advanced telephone systems, small to medium enterprise solutions, contact centers, unified communications, advanced speech access, etc. As part of its strategic plans, the company is concentrating in developing its presence in the African and Asian markets.

The company, in partnership with RailTel Corp. of India, has developed the first broadband wireless solution in the world that will operate on a single infrastructure and network, and provide services on board moving trains, train stations, and areas surrounding those stations. Convergence Plus met up with Shankar V. Rao, president, SoshaCom, to find out more about the firm's activities and its future plans. Excerpts from an interview:

Convergence Plus: Update us on the activities and performance of SoshaCom in 2003.

S.V. Rao: When we started 20 years ago, we were primarily dealing in electronic and computer components. We have gone through an evolution over the years and now focus on developing solutions and integrating networks. Over the more recent past, our solutions have been largely innovative wireless solutions. In 2003, as part of our strategic plan, we have concentrated our energy in developing our presence in the African and Asian markets.

In West Africa, we have been working with the government of a country, and are at a point of forming a joint venture with them. The new JV Company will operate a national infrastructure designed by us. Designed to meet the government's priority of e-governance, the objective of the new infrastructure is to provide voice and data service to the low population density areas (rural and semi-rural). Based on our discussions with the development banks, our model in West Africa is worth replicating in the region. We are at various stages of discussions with four other countries in the region.

In Asia, we have concentrated our efforts in India. We have already developed some partnerships and should be announcing a few new projects before the end of the year. We are in early stage discussions with the government of another country in ASEAN for developing and deploying a rural and semi-rural connectivity solution. The model under discussion will provide the communication infrastructure required to stimulate the semi-rural and rural economic development.

CP: What are your focus areas in the Asia Pacific, and especially in India?

SVR: The philosophy of our company clearly stipulate "that communication and literacy are the shortest distance to social and economic development." Our focus is to develop and deploy solutions that will provide much needed basic services to underserved areas (rural and semi-rural).

In India, we have been in discussion with several organisations about collaborating on projects. One such project is with the RailTel Corporation of India Ltd. (RailTel). We developed the first broadband wireless solution in the world that will operate on a single infrastructure and network, and provide services on board moving trains, train stations, and areas surrounding those stations. We, along with our Indian associate for the installation and maintenance, LinkQuest Telecom Private Limited, have successfully demonstrated our solution to RailTel.

The solution is the first broadband wireless solution in the world to provide throughput of over 2Mbps to fast moving trains or any other fast moving objects (e.g., automobiles). We are working on the detailed deployment plan and schedule with RailTel. This solution, when deployed, will have the capability to provide services to all the communities along the train tracks, mostly semi-rural and rural.

We are in advanced stages of planning two other solutions that we hope to start deploying before the end of the year in India. We anticipate having the next announcement by October. The projects, over a period of time, will help further our objective of rural and semi-rural connectivity.

CP: Why do you think your solution is ideal for a model such as RailTel's? Wouldn't a 3G wireless solution, such as TD-SCDMA or TD-CDMA, serve the purpose?

SVR: On basic research, it becomes clear that 3G hasn't been successful so far. Most of the places have not deployed 3G technology, and places where is deployed are plagued with problems.

In Europe, several service providers have walked away from their licenses after having invested a great deal. The technology has proven to be very expensive to deploy. In addition, the technology does not deliver the bandwidth that Wi-Fi can. In short, Wi-Fi is stable, proven, provides larger bandwidth, is scalable, and most important much cheaper.

CP: How do you see WLAN taking off in the Asia Pacific and in India?

SVR: WLAN is one of the most economical and viable solutions for providing services to traditionally underserved areas. It will allow for rapid deployment into far-flung areas, providing them with good communication services. The technology is cheaper to deploy, and provides greater bandwidth than several other alternatives like 3G or VSAT.

Such a scalable access infrastructure will allow small and medium businesses to operate from outside of the metropolitan areas. When one provides the public with such capabilities, one will notice that the small entrepreneurs will find setting up their operations outside the large cities more economical. Once you see this happening, it will automatically stimulate the economies of semi-rural and rural areas. In India, as in other parts of Asia Pacific, we see the large players in the market starting to deploy such services through hotspots in high concentration areas. You see this starting with airports, train stations, and shopping malls in cities, and as community access systems in rural areas.

CP: Some theories have been professed about wide area WLAN. Do you subscribe to this idea?

SVR: We most certainly subscribe to some of the theories. MediaLabs East, who is working on rural connectivity, and high performance wireless research and education network in California, is practicing this theory. SoshaCom is in the process of planning and designing such a solution for deployment in Asia in the near future. We are in discussions with a partner in Asia for such a deployment.

CP: How do you see the scope for Wi-Fi phones?

SVR: There are two different markets here -- the Wi-Fi-only phones, and the Wi-Fi/GSM phones. The key to their growth is ubiquity. Applications and pricing will be very critical to attract enterprise customers. The Wi-Fi-only phones may find a good niche in the enterprise space, while the Wi-Fi/GSM phones may get acceptance in the consumer market. As long as the networks are deployed as more than pure hotspots, Wi-Fi phones may find their way into the rural and semi-rural market.

CP: How do you envisage hotspots taking off in India? Is there a successful model, apart from MacDonald's, Starbucks and airports?

SVR: People around the world are jumping onto the hotspot bandwagon, and India will not be an exception. While access to communication has improved a great deal in the last two decades, the hotspot market should find a niche across India as an inexpensive alternative. If done right, it should have an impact on the pricing of existing services. India has no dearth of creative people, who will find new applications, well suited for the local market, to benefit from such deployments.

The hotspot concept, taken to its next logical generation of applications, can stimulate semi-rural and rural economies in India, and become commonplace in the cities. One of the key elements to the success of Wi-Fi will be to see existing mobile service providers embrace it. This will allow them to provide their customers with ubiquitous services with multiple applications around the country.

The best business model is the simplified flat rate structure, where the end users are presented with one bill at the beginning of the month for all the services. In other words, the service providers will have to start bundling services and treat hotspots like they would treat other value-added services.

CP: Do you subscribe to the view that 802.11b and Bluetooth are complimentary?

SVR: Used largely as a vendor specific solution, Bluetooth's success has been limited. However, new applications of Bluetooth, such as hands-free for mobile phones, are finding some acceptance in the market. It will be interesting to see the development of ultra wideband.

Contact:
SoshaCom
Tel: +1-508-410-9494
Email: svr007@rogers.com
www.soshacom.com