Bharat Sanchar Nigam (BSNL) plans to use both Wimax and 3G to target different user groups, reports the Economic Times.

Wimax offers higher data speed at lower capital expenditure and is expected to increase revenue per user. BSNL considers Wimax suitable for rural areas where public sector has a greater presence and is more suitable for rural areas because laying cables is difficult there. 3G will be suitable for tier one cities that require speeds of two mbps per second.

Other operators may opt for one of the two technologies, while BSNL will enhance its services by offering Wimax with 3G. The department of telecommunication is believed to have allotted both Wimax and 3G to BSNL. However, BSNL is yet to confirm this.

BSNL is planning five million lines for 3G operations for the niche customers at the cost of Rs 3,000 crore ($707.8m). According to the company, 3G will become affordable with increase in volume and will be offered in semi urban and urban areas in phases. BSNL will enter into agreements with handset providers for 3G devices and has shortlisted companies for providing Wimax services in 1000 blocks out of 6000. The contract will be finalised by December. X

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