Indian Operator Aims at Wireless Broadband Market

Infotel Broadband Services plans to use its 20-MHz worth of national wireless spectrum in India to make a dent in that country's roughly one-percent broadband services penetration. But the company will not be able to offer switched voice services, according to the terms of its license. The restriction means Infotel will offer a fairly focused data access service, with users able to use PC-to-PC calling services to other Infotel subscribers.

The restriction illustrates the foundational impact regulation has on business models. Some observers say Infotel can only get so big while it has no ability to offer full mobile voice, which would require that it acquire another firm able to do so (a 2G or 3G provider, for example).

Government officials note that 30 percent to 40 percent of  36 million fixed line connections in India are not capable of supporting broadband services.

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