3G norms to push global cos to ?stand alone? India plans

With the new third generation (3G) guidelines in place in the telecom sector, the business metrics of telecom players in India is all set to undergo a sea change. The launch of 3G services in India is expected to shift the volume-based market to high-end markets to a certain extent, and will push international players to take a stand alone approach, experts opine.

Analysts are of the view that Indian metros can play a vital role as 3G services would be largely driven by metros, which would also result in the entry of international players more into metros.

International players such as AT&T and Verizon, amongst others, who are keen to enter India through strategic partnerships, will explore a stand alone approach rather than the acquisition route, analysts say. The 3G spectrum guidelines laid down by the Department of Telecommunications (DoT) for auction and allocation now enable international telecom players to bid for spectrum in India. Romal Shetty, executive director for telecommunications at KPMG said, ?If the international players target only metros they may take a stand alone approach in terms of entering India because the smaller players in the country who have been recently given 2G licences are yet to rollout their services.?

If international players explore this route, the revenues of the tower companies like Reliance Infratel, Indus Towers (Vodafone, Bharti Airtel and Idea) and Tata Telecom Infrastructure is expected to soar to new heighs. Shetty adds, ?Tower companies can gain a major pie of the revenues by leasing out infrastructure to international players.?

Further, analysts feel that if international telecom players took a stand alone approach, they could attract a large subscriber base from the other players, with better customer services as compared to the domestic players. A Mumbai-based analyst said, ?With the number portability coming in place, subscribers who wanted to change their services will be attracted towards these international players who are having experience in providing 3G services.?