Wednesday, December 31, 2008

Why is 3G important in India

Well! the average 2G spectrum held by operators in India is about 7.5MHz while the international average is about 15MHz. Essentially there is not much spectrum left for growth in 2G. Voice will continue to be the revenue generator in the foreseeable future. Data services although looks promising, may not grow too much due to the unclear cost structure and lack of simple yet effective application for data .

It is still popular to club Messaging to be part of Data services. In a country like India, Data services contribute to about 12% of ARPU with significant portion coming from SMS alone.

WCDMA will be able to pack-in more than 2.5 times the subscribers per MHz compared to GSM and with enhanced voice quality. So, 3G becomes extremely important for any of the existing operators to grow.

Are we expecting some killer applications to swamp the market? Of course Yes, we will wait and watch but voice will be the leader even in 3G!

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