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At CommunicAsia 2008, tele.net spoke to two key vendors that have chalked out ambitious growth plans for the AsiaPacific (APAC) region, including India. While Ben Cardwell, vice-president, sales and marketing, Asia Pacific, Andrew Wireless, talks about the telecom trends and challenges for operators in the APAC region, Sanjay Patel, vice-president and general manager, APAC, Tellabs, talks about the challenges accompanying the transition from 2G to 3G and the company's plans for the Indian market. Excerpts...

What are the key challenges for operators as they make the transition from 2G to 3G?
The biggest challenge for operators in India as they migrate to 3G networks is to recoup the investments made both in acquiring 3G spectrum and in building the infrastructure, given that India has the lowest average revenues per user (ARPU) in the world. Globally, in 3G markets, consumers download a multitude of data services and applications on the mobile phone. Whether that is replicated in India depends on the applications that are offered.

Another challenge for operators is handling the huge amount of data traffic on 3G networks. Globally, the bottleneck appears to be in radio access network backhaul, which is running out of capacity. Backhaul has traditionally been provided over leased lines, and E1 carried over microwave or the operator's fibre infrastructure.

Tellabs offers a platform that allows operators to carry different types of traffic on a packet network, thereby replacing the need for E1s. When operators start offering 3G services, approximately four to eight E1s are required per node B. This puts a lot of strain on the operator. A packet infrastructure leads to reduced costs and the ability to carry multiple types of traffic reliably using quality of service mechanisms and pseudo-wire technology.

How are 3G services likely to impact the ARPUs of Indian operators?
Globally, there has not been a single killer application. I think culture and how subscribers view their mobile devices has a lot to do with the uptake of 3G. For instance, in the Philippines, SMS is huge –­ it accounts for more than 40 per cent of the revenues from mobile subscribers.

In the UK, watching football games on the mobile has become popular. This may have a spin-off in India with people watching cricket. But we will have to wait and see what really takes off in India. 3G services can also be used to access the internet, especially in areas where there are no DSL or high speed Ethernet services.

What are Tellabs' plans for the Indian market?
India is a key market that will fuel Tellabs' growth. In the near future, we intend to expand our infrastructure in the country to tap new opportunities and support our existing customer base, which includes Bharti Airtel.

Over the past one year, service providers have been keen to adopt metro Ethernet. We see an opportunity here for Tellabs, which can leverage its global experience to help Indian operators build the best networks and have the most upgraded technologies at the lowest possible costs.

What are the key wireless trends in the APAC region?
The APAC region is a technology hotspot. Markets like India, Indonesia and Vietnam are witnessing accelerated growth with respect to both 2G deployment and migration to 3G. Technology migration is also a trend in developed markets like Singapore, Japan and Hong Kong, which are looking to upgrade to 3.5G and 4G technologies (Wi-Max, long-term evolution). As these are high subscriber density markets, the migration is primarily being driven by the need to deliver more value-added and data-based services that can increase ARPUs and reduce churn. So, in developing markets, the trend is towards expanding coverage to smaller towns and in developed markets, the focus is on providing value-added services and broadband over wireless to compete with fixed lines.

What are the key challenges faced by operators in this region?
In developing markets like India, operators targeting rural subscribers have to contend with the cost of building infrastructure at a time when ARPUs are going down. Manufacturers need to provide operators with cost-effective solutions that get more coverage from existing infrastructure. To meet the rollout targets in India, operators have to deploy thousands of sites each month. The site building procedure should be standardised to enable relatively low-skill crews to carry out installation.

In developed markets, a key issue is where to deploy a site as there are extensive zoning restrictions. How to allow multiple operators to share the site is another key issue, with infrastructure sharing being more about saving real estate costs and better aesthetics. In India, on the other hand, sharing is more about saving costs for operators and ensuring faster rollout.

What are Andrew Wireless's key thrust areas?
We are focusing on products that allow operators to share sites. For the urban areas, we offer optical distribution systems, concealment solutions for antennas, and filtering solutions that allow multiple frequency bands to collocate on the same site. In India, we offer repeater solutions that expand the coverage from base stations at a low cost. There are also amplifier products that boost power to double coverage.