Would 3G spectrum benefit enterprises ?
by: Lalit Yadav
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Word Count: 584
At one end, the economy is melting down and is crippling, while at other end, a new technology is knocking the Telco sector.
Recently, we had seen lot of new phones being launched in the mobile segment; most PDAs were supporting 3G technology. But how would this technology help the enterprises? Will it prove beneficiary?
At the time of financial stumble, 3G spectrum bid scheduled to be held soon in India will for sure, feel the heat. This article will preview the prevailing scenario of telecom sector and 3G technology.
Starting with, 3G is an acronym for Third Generation and is a technology for mobile services. The usage of 3G technology in mobile segment will revolutionize the Telco sector with its high speed data rates and faster mobile connectivity.
Currently, consumers are using 2G services which is “voice” targeted. It enables you to log onto internet connection but the speed creeps. While, with 3G, users will be offered with faster broadband connection on internet, and will also support services like mobile TV and converged communication services. On second note, 3G offers broader range to mobile service providers to pack in more number of subscribers as 2G service providers are already feeling the crunch in Tier I cities.
3G services will offer better services, including broadband Internet access, interactive gaming and download movies, video clips and other multimedia features like video conferencing, mobile TV etc.
The technology is tad late in Indian markets but in other markets a steady decline in 2G investments can be seen. It will take around four to six months to arrive in India as auction for spectrum is approaching. The service providers are ready with their infrastructure.
According to Gartner, by 2010 3G technologies (CDMA 2000 and WCDMA) will have 41% of subscriber base globally. Interestingly, of the 165 million-odd Indian mobile subscribers, CDMA claims only 45 million subscribers, the rest comprising of GSM subscribers. This indicates that GSM Service providers can expect a head start. To avid this situation, GSM service providers like Airtel are just gunning to offer these services ASAP after spectrum allocation bid is over.
Indian subscribers are ready to offer 3G services and presently, Indian markets have 15-20% of 3G enabled handsets. Meanwhile, the most important question that strikes every Indian user,” Is Indian customer ready for 3G?”
No doubt Indian economy is booming with high incoming middle class and fairly well doing IT sector, but still high end mobiles do not have that strong market appeal. The very first hindrance in its acceptance is the cost related to technology which can hike your bills by almost 50%. Secondly, users will have to upgrade their handset which is also a pricey affair.
Above all, the service providers have to upgrade their infrastructure to offer 3G enabled services. Talking in broader spectrum the challenges linked to faster adoption of this technology in Indian market is the challenge that service providers will face. Many private service providers are offering their services at the lowest possible rate as to grasp the maximum market share against the foreign market’s rates.
But concluding all teething issues, the crux is – technology advances, service providers make investments and consumers upgrade to them as not to be lest aloof in the race. But, 3G will offer you a bunch of multimedia features and whole entertainment kit on your handhelds.
Meanwhile, the question is left to Telco segment, “How they make it to sell HSDPA or 3G phone with cutting-edge multimedia features with average 3G handsets likely to cost Rs 15,000-25,000 in Indian markets?"
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