NEW DELHI, INDIA: In India's spectrum auction, BWA hitched on to 3G as a poor cousin. But broadband wireless access will be a game changer for India.

Not just for mobile executives, but for rapid penetration of “fixed-line” broadband in areas outside suitable wireline reach. I expect to see BWA-based broadband rollout helping ramp up broadband in India, up from its abysmal sub-1% penetration levels.

BWA allows high-speed internet access, IP telephony, TV services, and other voice and data multimedia services. Unlike cellular telephony, it is not designed for extreme mobility; though it can support it, it allows broadband access where you do not have suitable wireline.

Despite its over-50%-mobile phone penetration, India has been really challenged on wireless data availability. The globally well-established wi-fi has had little presence in India: there are few public hot spots outside hotels (which over-charge for wi-fi access, contrary to the global trend of free wi-fi) and offices. So the only option for mobile users has been low-speed data cards, now replaced with 3G data modems.

After picking up nearly Rs. 68,000 crore for the 3G spectrum auction, India's government picked up Rs. 38,300 crore for broadband wireless access (BWA) spectrum license, ending a 16-day auction. Bidding for two slots of 20 MHz each of pan-India spectrum were all the usual suspects, including Airtel, Reliance, Idea Cellular, Aircel, Vodafone and Tata. A remarkably unknown 'Infotel Broadband Services' (now attracting controlling investment by Reliance) picked up a pan-India license (all 22 circles), while Aircel won 8, Bharti Airtel and Qualcomm won in 4 circles.

Again, as with 3G, the government-run BSNL and MTNL got the BWA spectrum well ahead, with the proviso that they'll match the winning bid in each service area. The BWA spectrum license fees add up to $22.7 billion for the government. Mumbai and Delhi, of course, got the highest amounts, of over Rs. 2,200 crore each.

How will the players (especially Infotel) recover the license costs, along with the equipment and rollout costs? That is the genius expected of Indian operators: in this low-ARPU (average revenue per user) market, they have to do it, and still keep their services competitive.

The only caveat: cheap broadband alone will not drive penetration. There's affordable broadband available in cities, and penetration is still low. But I'm optimistic about the ramp-up, driven by a host of applications, from government services to entertainment. It's gradually coming together: the timing is right.