Ringing in 3G

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: Buzz around third generation (3G) mobile communications is getting stronger in India. After months of dithering, the government agencies have finally managed to clear the mist encircling the 3G auctions. Regulatory hurdles such as spectrum pricing and allocation norms have been overcome and the communication and IT ministry seems to be buzzing with action and operators excited about the prospects of the upcoming 3G auctions.

While telecom operators are busy getting their 3G capable networks in place and strategising their moves ahead for auctions,the businesses in the telecom periphery seems to be gearing up. Right from handset manufacturers to the content developers, all are banking high on 3G rollouts. An ever-burgeoning ecosystem of network providers, device manufacturers, content providers, and application developers are making sure that there is something for everyone.

The 3G system represents the next step in the evolution of mobile cellular communication. It will be profitable depending on how operators strategise their bidding either by going for pan-India license or by bidding for selective circles. The 2G system focused on voice communications, while 3G systems support increased data communication and has a markedly greater capacity and spectrum efficiency than 2G systems.

“As non-voice applications grow, a 3G network will permit faster access of data from and to the internet. The additional spectrum would also allow existing voice networks to operate more efficiently. The introduction of 3G services is likely to improve the customer experience while using non-voice services,” says Rajat Mukarji, chief corporate affairs officer, Idea Cellular. He adds: “It will also allow better access to the internet, and other value added services such as music and video download.” Idea has a 2.75G EDGE enabled 3G ready network across the country. “We are ready to deploy services once the process of completion of the spectrum is over,” he reveals.

India’s 3G market is expected to cross the 850-million subscriber mark by end of 2012 and will reach nearly one billion by end of 2013, estimates Evalueserve. Telecom minister A Raja has expressed confidence in carrying out the 3G spectrum auction within a 90-day period (September- November 2009). If the auctions were to take place within the said timeframe, 3G rollout by operators could be expected by the middle of calendar year 2011.