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: As the Department of Telecommunications, Government of India, finetunes its policy for the auction of third generation or 3G as well as broadband wireless access or WiMAX spectrum, one thing is clear: India is finally taking the big leap into the future. The presence of multiple telecommunication platforms implies that the market is slowly but steadily maturing. Customers want more and telecom companies are gearing up to provide it.

Of the lot, it’s 3G, however, that holds the most promise. Telcos are particularly excited about it even as they look at WiMAX , which is a competing wireless technology compatible with laptops and personal computers (fixed WiMAX) as well as mobile phones (mobile WiMAX). But there are issues with WiMAX, especially, the mobile version, say experts, which leaves 3G alone as the most viable, front-end option for customers as well as operators.

For one, mobile WiMAX is not a known technology and it is far more expensive than 3G. Fixed WiMAX, in contrast, is cheaper than mobile WiMAX and 3G. It also has more capacity than the two, but is viewed more as a backend option. Explains S Ramani Iyer, formerly chief executive of Mahanagar Telephone Nigam Ltd, Mumbai, and now a telecom analyst based in the city, “Telcos need something to catch the attention of consumers. 3G allows them to do that.”

What 3G will do is to permit an operator to help customers graduate to the next level of usage. It will enable them to increase their usage of data services even as they continue to avail of voice services on the platform. This way the average revenue per user will go up.

Some reckon the increase in

ARPUs would be about 20-25% on account of increase in usage of data services. But the adoption of data services, say observers, in a predominantly voice market is likely to be slow in the initial years.

“One would have to wait and see to what extent these services are taken up,” says Romal Shetty, executive director and head, telecom practice, KPMG. Prashant Singhal, national telecom industry leader, Ernst & Young, says, “Data usage abroad is at least 1.5 to 2 times more than voice. It’s not so here. But I do see an improvement in the data to voice skew going forward.” That is what telcos are counting on as they grapple with low tariff levels currently.