Telcos can expand through base stations: Study
The number of base stations an operator has is a crucial determinant of network performance in any environment.
By TNN |
MUMBAI: Instead of clamouring for more spectrum, telecom operators should increase investment in base stations and hardware for improving the quality of services (QoS), says a new research.
The number of base stations an operator has is a crucial determinant of network performance in any environment. "Shortfalls in respect of most external factors, such as spectrum, can be overcome by installing more base stations," according to the study by research firm Crisil.
Indian subscribers tend to talk 50% more than those in the rest of the world. The average minutes of use (MoU) in India, at 475 minutes per subscriber per month, is around 1.5 times the world average of 320. In China, the average is 270 minutes per user per month.
However, India has 1,234 subscribers being supported per base station against the global average of 1,450. This implies that the number of base stations per million subscribers in India is only 25% higher than the global average even as the usage is 50% higher.
"So assuming a 1:1 relationship, base stations will have to increase by 22%-25% to keep pace with growth while ensuring QoS," Crisil research head Manoj Mohta said during a teleconference on ‘network capacity not keeping pace with mobile usage’.
Base station inadequacy is one of the key causes of poor quality of service such as network congestion, call drops, and poor voice quality and asking for more spectrum is the easy way out. Operators, now making healthy margins, should instead increase capex in base stations to support more subscribers, he added.
Network traffic has grown exponentially in India over the last two years - an annual subscriber growth of 73% and an annual 17% growth in average MoU. However, operators have continued to focus on rolling out networks in newer areas over augmenting the capacity of existing networks.
"The telecom sector’s long term growth prospects may be jeopardised if service providers do not act soon. We are of the view that Indian mobile operators need to install many more base stations per million subscribers to achieve adequate QoS," Mr Mohta said.
There are currently about 1,00,000 telecom towers in the country and to support the targeted 500 m subscribers by 2012, the country would need about 3,30,000 towers. While Bharti Airtel and Reliance Communications have announced the doubling of their base stations, the country needs more investments than are being made.
Operators are looking to load more subscribers on incremental spectrum instead of building infrastructure. “It is more attractive to ask for more spectrum as it comes at a variable cost. However, there is a lot more headroom for improving QoS by investing in hardware, which involves capex,” he said.
The number of base stations an operator has is a crucial determinant of network performance in any environment. "Shortfalls in respect of most external factors, such as spectrum, can be overcome by installing more base stations," according to the study by research firm Crisil.
Indian subscribers tend to talk 50% more than those in the rest of the world. The average minutes of use (MoU) in India, at 475 minutes per subscriber per month, is around 1.5 times the world average of 320. In China, the average is 270 minutes per user per month.
However, India has 1,234 subscribers being supported per base station against the global average of 1,450. This implies that the number of base stations per million subscribers in India is only 25% higher than the global average even as the usage is 50% higher.
"So assuming a 1:1 relationship, base stations will have to increase by 22%-25% to keep pace with growth while ensuring QoS," Crisil research head Manoj Mohta said during a teleconference on ‘network capacity not keeping pace with mobile usage’.
Base station inadequacy is one of the key causes of poor quality of service such as network congestion, call drops, and poor voice quality and asking for more spectrum is the easy way out. Operators, now making healthy margins, should instead increase capex in base stations to support more subscribers, he added.
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Network traffic has grown exponentially in India over the last two years - an annual subscriber growth of 73% and an annual 17% growth in average MoU. However, operators have continued to focus on rolling out networks in newer areas over augmenting the capacity of existing networks.
"The telecom sector’s long term growth prospects may be jeopardised if service providers do not act soon. We are of the view that Indian mobile operators need to install many more base stations per million subscribers to achieve adequate QoS," Mr Mohta said.
There are currently about 1,00,000 telecom towers in the country and to support the targeted 500 m subscribers by 2012, the country would need about 3,30,000 towers. While Bharti Airtel and Reliance Communications have announced the doubling of their base stations, the country needs more investments than are being made.
Operators are looking to load more subscribers on incremental spectrum instead of building infrastructure. “It is more attractive to ask for more spectrum as it comes at a variable cost. However, there is a lot more headroom for improving QoS by investing in hardware, which involves capex,” he said.
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