Smart Broadband Inc. (SBI) is seeking additional frequency bandwidth from the National Telecommunications Commission (NTC) for the expansion and enhancement of its wireless broadband services, including a planned foray into Internet protocol television or IPTV.
IPTV is a digital TV service which delivers television content to the viewer, not through traditional broadcast and cable formats, but through the technologies used for computer networks such as IP.
For residential users, IPTV is often provided along with video on demand and may be bundled with Internet services such as Web access and VoIP (Voice over IP). The commercial bundling of IPTV, VoIP and Internet access is referred to as “Triple Play” service.
Residential IPTV is expected to grow at a brisk pace as broadband has been made available to more than 200 million households worldwide in 2005, and is projected to grow to 400 million by 2010.
Many of the world’s major telecommunications providers, including those in the Philippines, are exploring IPTV as a new revenue opportunity from their existing markets and as a defensive measure against encroachment from more conventional cable television services.
Other new services being eyed by SBI that will utilize the additional bandwidth include VoIP, IP multimedia and e-mail.
SBI filed last March an application for a 48-megahertz frequency bandwidth in the 700 MHz spectrum. It also sought an additional 48 MHz in the same spectrum, for a total of 96 MHz.
SBI legal counsel Enrico Espanol said the application is necessary to enable the company to offer several new services, thereby complying with its commitment to make Internet available nationwide through the fast and immediate deployment of its wireless broadband services such as WiMax.
“It is SBI’s objective to offer quality yet affordable wireless broadband services not only to urban areas but, more importantly, to subscribers in remote and unserved areas as well. This is in active pursuit of the government’s policy on the efficient and effective use of the frequency spectrum to meet public demand for telecommunications service and on availing new and cost effective technologies in the use of methods for the utilization of the said frequency bandwidth,” he told the NTC.
Among the services that can be offered using WiMax (at 700 MHz) are basic services (broadband Internet, email, VoIP and SMS or text messaging via the packet switched network), interactive broadcasting services (broadcasting portal, browser, shopping, SMS/MMS, e-mail, tribes and browser), web applications (HAM radio digitized, wireless video streaming sharing and wireless video blog), and sensor network and digital home integration.
SBI projects the number of subscribers for the WiMax 700 MHz lower band to reach 70,000 for the first year, growing to 150,000 and 200,000 for the second and third years. For the 700 MHz upper band, the number of subscribers is projected at 100,000 on the first year, growing to 180,000 on the second year and 250,000 on the third year.
Last March 26, SBI also requested the NTC for the grant of frequency bandwidth in the 900 MHz spectrum which is necessary for the expansion and enhancement of SBI’s wireless broadband service, Espanol said.
This frequency band,he said, is ideal for non-line-of-sight (NLOS) deployment.
“The quality of service shall be unhampered as the frequency has a good in-building penetration and may be used in rural areas where small cell site advantage is less applicable. The frequency band will enable SBI to offer wider coverage while assuring connectivity in areas where there is obstruction of line-of-sight between the access point or cell site and the subscribers’ units,” he explained.
He added that the frequency band not only supports VoIP, video, short message and data communications but will greatly enhance SBI’s broadband wireless system as it will enable the company to offer portability and mobility.
“It makes possible a field-deployable format suitable for a wide range of conditions and communications needs, including connection to remote work sites, large construction projects, private communications networks, public safety and emergency response applications such as police cars and municipal vehicles,” Espanol said.
For the services utilizing the 900 MHz bandwidth, SBI projects number of subscribers to reach 100,000 on the first year, 270,000 on the second year and 350,000 on the third year.