As a part of beefing up the existing networks for the upcoming 3G services, telecom operators are consciously asking their gear providers for extensive network management, inter-circle roaming and modes to boost quality of service for their subscribers. Of total capital expenditure for 3G services, network cost only comprises 20% for the operators.

Network and quality of service will be a big driver to churn in subscribers. Competition and high prices for 3G services will drive innovation. Kanika Atri, head of marketing at Nokia Siemens Networks India, said, ?The advent of 3G will usher a new era of telecom revolution in India.This will give both operators and technology providers a reason to find innovative ways to engage with customers while exploring new revenue generation avenues.?

Due to this increase in pressure on the telecom operators to provide superior quality of service, equipment vendors have started outsourcing a part of network management i.e, network maintenance to third party.

?Vendors like Alcatel Lucent, Ericsson and Huawei have already outsourced their network maintenance task so that they can focus on their core competencies of running and managing the network,? said Mahesh Choudhary, CEO, Microqual Techno.

?High and increasing 2G network expenses have hit the profitability of telcos. 3G with an additional 5mhz spectrum comes as a blessing for the telcos. The bigger challenge for operators is to give 2G-like access in 3G, that too without pan India spectrum,? said A Sethu Raman, executive director, product and solution, Huawei India.