Kbp Pop Music Competition
Deployment of 3G in India
1. What is 3G?
The third generation technology mobile phone that is known as 3G. This technology is expected to provide enhanced multimedia and the bandwidth broadband and high speed above 2 Mbps in mobile phones. This will facilitate applications such as mobile TV, mobile commerce based services location, video chats and mobile games. Downloads will be faster. For example, a 3 minute song that takes 9 minutes to load on 2G can download in 90 seconds on a 3G phone.
The first phase of generation (1G) of mobile telephony began in 1970 and Phase 2 in Technology CDMA and GSM technology platform was launched in early 1990. Over the past 2 decades, this mobile phone technology continues to offer more bandwidth and multimedia input. The GPRS (General Packet Radio Service), which was launched in 2000 offers broadband speeds up to 114 kbps. In 2003, EDGE (Enhanced Data Rates for Global Evolution) was launched with the speed of 384 kbps. The current state of mobile wireless communication in India is known as 2.5G.
2. World stage
The first commercial launch of 3G services was carried out by NTT DoCoMo in Japan in October 2001, followed by SK Telecom in South Korea in January 2002. Today nearly 132 countries around the world have deployed and India is one of the last countries to adopt this technology. Initially, a large number of 3G subscribers worldwide 2G again due to the lack of value added services available on 3G. No But with the growth of VAS, 3G subscriptions have also been growing steadily and are now 888 million users who work out to about 13% of the global mobile subscriber base.
3G penetration in Europe is estimated at 33% and Japan has already reached 80%. In China, where 3G was launched during the 2009 the number of 3G users is projected to reach 80 million by 2010 end. The U.S. 3G penetration is is around 40%. In Europe, music and games have become the growth engines superior 3G network. In the market of India, the video is expected to play an important role in the growth of 3G.
If While India is launching 3G services, the rest of the work gradually migrating to 4G technology, better known as Long Term Evolution (LTE). India has a long way to catch up with other countries.
3. Spectrum auction
3G services will have an important role in India's economic development since it is estimated that for every increase of 10% in the penetration of broadband services, there will be an increase in economic growth of 1.3% points. 3G will take broadband to rural areas of India that has a very low PC penetration.
India currently has 2 million subscribers to 3G service by the Government-owned BSNL and MTNL. These operators were assigned 3G spectrum for almost 2 years and therefore have an advantage over private actors.
During May 2010, the Government of India concluded the auction of 3G spectrum from private operators. The government initially estimated a goal of collecting 30,000 cr ($ 6.7 billion). However, the final offer was a surprise to the operators and the government and brought an income of 67,710 cr ($ 15 million) to the Government. As a result, no operator managed to bag the 23 circles that touched 16,750 cr ($ 3,720,000,000). highest price was paid by the circles of Mumbai and New Delhi in 3247 cr ($ 722,000,000) and 3,317 cr ($ 737,000,000), respectively. The winning bidders were awarded sepctrum 5 MHz each.
Operators Foreigners do not participate in the tender, due to regulatory uncertainties regarding the eligibility of 2G spectrum with a winning bid for 3G. Secondly, considers that a pure play 3G can not be attractive to operators as it would make no sense for business.
4. Reasons spectrum for high-cost
3G bids have obviously gone beyond anyone's estimation, which has already put pressure on operators. The main reasons that drove prices beyond the level spectrum are reasonable auction format, severe spectrum shortage and political uncertainty.
As there was a severe shortage of spectrum for operators, particularly in the metropolitan areas of Mumbai and New Delhi, traders decided to bid price high for 3G spectrum in the hope that they will use 3G spectrum to move some of the subscribers from 2G to 3G network.
Although it seems a hostile bid actually to be one of the lowest prices for the population. The latest offering from all over India for 23 circles is Rs 16.750 cr (3.72 billion dollars) for a population total of $ 1.2 million. This results in a pop 3G price of $ 3.1 (R 140) per operator. This is much lower than the world average of $ 29 (R 1300) by pop
5. Implications of the high cost of spectrum
However, industry observers are concerned about the "curse winner "of the bidders paying too much for the spectrum, which ultimately could reduce margins and discourage future investment. They fear a repetition the disaster that followed the auction of 3G spectrum in the UK in 2000. At that time, the United Kingdom raised U.S. 34 billion U.S. dollars for five licenses 3G UK operators paid too much and do not have the infrastructure to start. However, the 3G operators in India have a support system for mobile devices compatible applications and a range of affordable, that the British traders were not a decade ago.
It is noted that some of the marginal players have gone beyond their bandwidth and range. With intense price competition increasingly eating on revenue of mobile operators, could force some of these players to eventually succumb to a wave of consolidation.
Given the high cost of spectrum and the investment needed to deploy 3G, 3G is likely to be initially released only in 100 cities and is expected to operators, including the main will take about eight years to recoup their investment in 3G. These investments are required for network deployment costs, marketing and delivery of incremental costs to customers, plus the rate of the spectrum. Urban markets representing 80% the total customer base of 3G in the next three years.
In any case, the 3G operators will need to contain India the cost of debt raised to finance the 3G investments.
6. Market potential of 3G
As there is a threshold limit higher than that of voice ARPU, operators in India are seeking more revenue to come from data and other value-added 3G services. But to achieve this, mobile operators is need to encourage content aggregators and other players EVA to create applications for 3G.
According to a recent report by research firm, services such as video downloads, music downloads, Internet and search applications will see an increase. EVA players also optimistic about the enormous growth in EVA, when the impact of 3G is carried out. The average revenue per user (ARPU) is likely to rise. MTNL says it has seen an increase of 15% to 20% in the ARPU of Rs 140 after services 3G launched
7. Prices of 3G services
3G mobile prices take into account the following factors.
- Recover rate spectrum
- Retrieve the deployment of high-cost network
- The cost of developing content and price EVA
- Prices offered by competitors, at present, BSNL and MTNL
- The migration of existing high-end subscriber base from 2G to 3G
Now, having paid huge fees for 3G spectrum, operators must maintain a high rate. One operator estimated that in the case of Delhi or Mumbai, where he has been the specter of charges to Rs 3,300 million rupees each ($ 737,000,000), monthly installments will be around Rs 900 ($ 20) just to recover the license fees and the cost of entry.
It's interesting that BSNL and MTNL currently operating 3G services will charge their customers. At present rates have remained very low. Initially, these companies launched 3G service more reduced rate but little by little to increase customer base rather than private operators in the market. However, failed to advance much in subscriber additions in spite of tariff reduction.
MTNL now charges half paise per second for a video call made to another subscriber MTNL. Would one paise per second when done with other networks once they start. For downloads of the charges are a paise / sec. According to one observer, private agents are unlikely to charge the field is more competitive.
As a first step, the telecom operators will move the high-end 2G customers to 3G. The other categories of customers probably will move to 3G users are young and strong data. The introduction of MNP could see heavy rotation of the postpaid segment of non-operating 3G.
8. In short
The Indian telecom industry is facing challenging times ahead. The intense competition lower rates, lower margins and the enormous investments required for 3G deployment are some of these challenges. Industry observers are watching what is going to the strategy of private operators and how and when to replicate its success in 2G 3G.
9. Circle wise 3G operators
Meters
Delhi – Airtel / Vodafone / dependence
Mumbai – / Airtel Vodafone / dependence
Calcutta – / Vodfone Aircel / Unit
A Category
Maharashtra – / Vodfone Idea / Tata
Gujarat – Vodafone / idea / Tata
Andhra Pradesh – Airtel / Aircel / Idea
Karnataka – Airtel / Aircel / Tata
Tamil Nadu – Airtel / Vodafone / Aircel
Category B
Kerala – Aircel / idea / Tata
Punjab – Aircel / unit / idea / Tata
Haryana – / Voadfone Idea / Tata
UP East – / Vodafone Aircel / Idea
UP West – Airtel / idea / Tata
Rajasthan – / Relaince Airtel / Tata
Madhya Pradesh – / dependence Idea / Tata
BM – Airtel / Vodafone / Aircel / dependence
Category C
HP – Airetel / unit / idea / Stel
Bihar – Airtel / Aircel / unit / Stel
Orissa – Aircel / unit / Stel
Assam – / Airtel Aircel / dependence
North East – / Airetel Aircel / dependence
J & K – Airtel / Aircel / Relince / Idea
About the Author
The author can be reached at vsmoni@hotmail.com. visit indiatelecomonline.com for more articles.
Estudyante Teaser.avi