Monday, August 4, 2008

3G in India by the middle of 2009

3G is the third generation of mobile phone standards and technology, superseding 2G, and preceding 4G.3G technologies enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency. Services include wide-area wireless voice telephony, video calls, and broadband wireless data, all in a mobile environment. Additional features also include HSPA data transmission capabilities able to deliver speeds up to 14.4Mbit/s on the downlink and 5.8Mbit/s on the uplink.

These features are available in USA, UK and Japan. Now in India the Government issuing guidelines for 3G, high speed mobile downloads and live television on mobile finally becoming a reality by middle of 2009. But customers in Delhi or Mumbai may not have much to look forward to due to spectrum constraints; there are merely three Global System for Mobile (GSM) operators that can offer 3G services. With one slot already reserved for MTNL and the other two open for global bids, customers in Delhi and Mumbai may end up missing the 3G bus if they don’t switch operators.

But customers in Tamil Nadu, Karnataka and Kerala could have as many as 10 operators to choose from. Subject to the availability of 3G spectrum, we will have five operators to start with and gradually we may go up to having ten operators. In Mumbai and Delhi, however, they can only have 2-3 operators.

Even private GSM operators admit that limited spectrum will lead to overbidding and could render 3G services unaffordable. If there is a supply constraint and demand excess, obviously there will be overbidding, which could make 3G very expensive in Delhi and Mumbai.

But analysts say it is unlikely that the big GSM players like Airtel and Vodafone will not bid aggressively to ensure they get 3G spectrums, primarily because most customers with an appetite for 3G are locked in the two networks.

No comments: