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    2009

    GROUP - 7

    IBS PUNE

    7/8/2009

    Future of 3G in Indian Telecom sector

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    Contents

    Telecom Industry !

    "#$or Pl#yers %

    &'#t (s !G) %

    E*olut(on +rom 2G to !G 7

    GS" e*olut(on to !G 8

    &'#t ,(ll !G me#n to users) 9

    e#tures o+ *#r(ous ser*(ces .0

    o, (s !G d(++erent +rom 2G #nd G) .0

    1(m(t#t(ons o+ 2G ..

    o, !G ,ors) ..

    T'e 3d*#nt#4es o+ !G Tec'nolo4y .2

    USER BENEITS .!

    OPER3TOR BENEITS 3N5 "E5I3 OUSE BENEITS .!

    Gu(del(nes +or !G Ser*(ces6 .

    Issues o+ !G .

    urrent st#tus #nd Im#ct o+ !G (n Ind(# .

    Roll-out str#te4(es .%

    "#ret oortun(ty .7

    Gett(n4 su:scr(:ers on t'e !G :#nd,#4on .7

    !G 3l(c#t(ons (n your l(+e;.8

    uture o+ !G 20

    &'(c' com#n(es '#*e #l(ed +or !G l(cense) 20

    &'#t (s t'e r(c(n4 (ssue (n Ind(#) 2.

    &'#t #:out t'e secur(ty (n # !G net,or) 2.

    &'ere ,#s !G sectrum +(rst (ntroduced) 2.

    2

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    1oo(n4 3'e#d; 22

    BSN1 #nd "TN1 #re *ery d(++erently l#ced (n com#r(son to ot'er r(*#te l#yers It

    (s not yet no,n ,'en !G #uct(ons ,(ll '#en #nd ,'(c' com#n(es ,(ll :e (n t'e

    sectrum run &(t' # 'u4e #mount o+ (n*estment only to #c

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    million new customers in "##&' the largest globally. In fact' in (ril "##&' India had already

    overta!en the )S as the second largest wireless mar!et. To ut this growth into ersective' the

    country*s cellular base witnessed close to +# er cent growth in "##&' with an average ,.+

    million customers added every month.

    (ccording to the Telecom -egulatory (uthority of India T-(I/' the total number of telehoneconnections mobile as well as fi0ed/ had touched 3&+ million as of 1ecember "##&' ta!ing thetelecom enetration to over 33 er cent. This means that one out of every three Indians has atelehone connection' and telecom comanies e0ect this ace of growth to continue in "##, aswell.

    The overall cellular services revenue in India is rojected to grow at a 2(G- of $& er centfrom "##&"#$" to e0ceed )S4 35 billion. 2ellular mar!et enetration will rise to %#.5 er centfrom $,.& er cent in "##5.

    The Indian telecommunications industry is on a growth trajectory with the GS6 oerators

    adding a record ,.3 million new subscribers in 7anuary "##,' ta!ing the total user base to "%5.+million' according to the data released by 2O(I.

    India is the fourth largest telecom mar!et in (sia after 2hina' 7aan and South 8orea. The Indiantelecom networ! is the eighth largest in the world and the second largest among emergingeconomies. (t current levels' telecom intensiveness of Indian economy measured as the ratio oftelecom revenues to G19 is ".$ ercent as comared with over ".& ercent in develoedeconomies.

    Indian telecom sector has undergone a major rocess of transformation through significantolicy reforms. The reforms began in $,s with telecom euiment manufacturing being

    oened for rivate sector and were later followed by;ational Telecom 9olicy ;T9/ in$,,The 1ecade of $,=s saw rivate sector being allowed in telecommunications

    euiment manufacturing. 6ahanagar Telehone ;igam ?imited 6T;?/ and @ideshSanchar ;igam ?imited @S;?/ were formed and a Telecom 2ommission was set u togive focus to telecommunications olicy formation.

    http://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdfhttp://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdfhttp://www.iimahd.ernet.in/ctps/pdf/NTP1999.pdfhttp://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdfhttp://www.iimahd.ernet.in/ctps/pdf/ntp1994.pdfhttp://www.iimahd.ernet.in/ctps/pdf/NTP1999.pdf
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    >In $,,#s' telecommunications sector also benefited from the general oening u of theeconomy. ;T9 $,,< was the first attemt to give a comrehensive roadma for theIndian telecommunications sector.

    (vailability of telehones on demand targeted by $,,5/

    )niversal service covering all villages and one 92O er +## ersons in urbanareas at the earliest targeted to be achieved by $,,5/ Telecom services at affordable and reasonable rices Aorld standard uality of services

    >;T9 $,,, brought in the third generations of reforms in the Indian telecommunications

    sector. India is one of the fastest growing telecom mar!ets in the world with an addition of more

    than % million connections er month. F1I inflow in Indian Telecom sector is the highestamong all sectors. It is emerging as telecom manufacturing hub. Bear "##5 was declaredas >Bear of Croadband> in India.

    It is rojected that the industry will generate revenues worth )S4

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    Major PlayersThere are three tyes of layers in telecomservices: State owned comanies CS;? and 6T;?/

    9rivate Indian owned comanies -elianceInfocomm' Tata Teleservices'/ Foreign invested comanies utchisonHssar'Charti Tele@entures'Hscotel' Idea 2ellular' C9? 6obile' Sice2ommunications/

    6ar!et Shares of 8ey India6obile Oerators' "##&

    What is 3G?3G Third Generation/ is the latest wireless technology. It is also !nown as )6TS )niversal

    6obile Telecommunications System/' an imrovement over "G Second Generation/ roviding

    wireless access to the data and information to the users from anywhere and anytime. It is the

    latest mobile technology and in fact it is described by 2ellular "##

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    International 6obile Telecommunications"### I6T"###/' better !nown as 3Gor 3rd

    Generation' is a family of standards for wireless communications defined by the International

    Telecommunication )nion' which includes GS6 H1GH' )6TS' and 216("### as well

    as 1H2T and Ai6(. Services include widearea wireless voice telehone'video calls' andwireless data' all in a mobile environment. 2omared to "Gand ".+Gservices' 3G allows

    simultaneous use of seech and data services and higher data rates u to $

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    GSM evolution to 3G

    8

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    What will 3G mean to users?

    >6obility> will be offered with many services that we currently regard as >fi0ed> L indeed'6obile oerators believes that mobility will become the norm for many communication services.Ae*ll be able to ma!e video calls to the office and surf the internet' or lay interactive gameswith friends at home wherever we may be. Cut 3G is not just about alications that reuirehigh seed data rates. It*s about convenience and seed of access.

    There are various technology comes under various forms of services li!e under $G its (69S'"G its 216(' T16(' GS6' 912 E 3G its A216(' 216("###'T1S216(

    TH2;O?OGB FH(T)-HS

    $G (69S (dvanced 6obile 9hone Service (nalog voice service ;o data service

    "G 216( 2ode 1ivision 6ultile (ccessT16( Time 1ivision 6ultile (ccess

    GS6 Global System for 6obile2ommunications

    912 9ersonal digital cellular

    1igital voice service ,.%8 to $

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    Features of various servicesServices Features Seed Time to 1ownload 36in 63

    song

    "G 9hone 2alls' @oice

    6ail' -eceive SimleHmail 6essages $#!bJsec 3$

    How is 3G different from 2G and G?

    Ahile "G stands for secondgeneration wireless telehone technology' $G networ!s used areanalog' "G networ!s are digital and 3G thirdgeneration/ technology is used to enhance mobile

    hone standards.

    3G hels to simultaneously transfer both voice data a telehone call/ and nonvoice data suchas downloading information' e0changing email' and instant messaging. The highlight of 3G isvideo telehony.

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    !imitations of 2G 1esigned mainly for telehony alication

    2ircuitswitched

    igh CH- Cit Hrror -ate/

    ?ow data bit rate M $ Too many standards globally

    GS6' 216(' 912' 9S etc.

    How 3G wor"s?

    ..

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    The #dvanta$es of 3G Technolo$y

    9erform all those functions that they erform at resent with their mobile devices but at

    much higher seed than before.

    9rovides them with faster connectivity' faster internet access' and music entertainment

    with imroved uality.

    2an avail the benefits of video calling.

    2larity is better and the facility can be enjoyed as long as both of are using the 3G

    technology.

    (ccess any site on the Internet by using your hone as a modem for comuter or lato

    and mail the imortant documents.

    1ownloading games and songs is much faster with this technology

    2an be also used for favorite search engines to find information on news headlines' get

    information about the evening weather.

    9rovide with the data transmission seed of u to "6bs when the users are using the

    hone on stationary mode.

    9rovides significantly faster data transfer rates of connectivity and increased networ!ing

    and most imortantly the resistance to noise.

    Increased the bit rate thus enabling the service roviders to rovide high seed internet

    facilities' increased call volumes and host of the multimedia alications to their

    customers.

    (ll these services can be rovided to the customers on the basis of the amount of data

    they transmit and not on the time for which they use the service thus ma!ing the services

    cheaer. Ceneficiary to the service roviders as well as the intermediaries li!e the content

    roviders and the media houses who are loo!ing for an additional latform mar!et their

    roducts. Casically it holds three way benefits to all the arties involved.

    Imroved erformance over "G' including:

    Aill ease sectrum constraints on the "G networ!s and accommodatesubscriber growth

    Aill imrove data oortunities as sectrum constraints are a major barrier toadotion and usageN Indian consumers already own c"m 3G devices

    3G sectrum will allow incumbents to differentiate services from newentrants and regional layers

    Imroved caacity

    Imroved coverage' enabling migration from a "G deloyment.

    ( high degree of service fle0ibility' including:

    .2

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    Suort of a wide range of services with ma0imum bit rates above " 6bs

    and the ossibility for multile arallel services on one connectionN

    ( fast and efficient ac!etaccess scheme.

    ( high degree of oerator fle0ibility' including:

    Suort of asynchronous interbasestation oerationN

    Hfficient suort of different deloyment scenarios' including hierarchical cell

    structure and hotsot scenariosN

    Suort of evolutionary technologies such as adative antenna arrays andmultiuser detection.

    %&'( )'*'FIT&

    +P'(#T+( )'*'FIT& #*,M',I# H+%&' )'*'FIT&

    .!

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    Guidelines for 3G &ervices-

    The 3G 3rd generation/ mobile telecommunications is the generic name for the ne0t

    generation of mobile networ!s that will combine wireless mobile technology with

    high data rate transmission caabilities. The 3G networ!s will be caable of

    roviding higher data rates and will also be caable of suorting a variety of

    services such as high resolution video and multimedia services in addition to voice'

    fa0 and conventional data services.

    3G sectrum will be ermitted in the ".$ G band.

    The 3G licenses would be granted through a controlled' simultaneous ascending e

    auction' by a secialied agency to ensure transarency in the selection rocess.

    Cesides the initial' one time sectrum charge' it has been decided that the successful

    service rovider would ay additional sectrum charge of #.+ P of their total

    (djusted Gross -evenue (G-/' as the recurring annual sectrum charge. Thisadditional revenue share is roosed to be $P of (G- after 3 years from the date of

    sectrum assignment.

    The roll out reuirements' including rural rollout' as well as stiff enalties for non

    comliance of the same has been stiulated.

    6ergers will not be allowed during the initial five years. ;o tradingJ reselling of

    sectrum is allowed.

    The 216( sectrum in # 6 band for H@1O alications would be treated

    searately from ".$ G sectrum. If the 216( based service roviders/ as! for the

    H@1O carrier of " 0 $."+ 6' they would have to ay an amount roortionate tothe highest bid for sectrum in ".$ G band.

    Issues of 3G(lthough 3G was successfully introduced to users across the world' some issues are debated by

    3G roviders and users:

    .

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    H0ensive inut fees for the 3G service licenses in some jurisdictions

    1ifferences in licensing terms between states

    ?evel of debt incurred by some telecommunication comanies' which ma!es

    investment in 3G difficult

    ?ac! of state suort for financially troubled oerators

    2ost of 3G hones

    ?ac! of coverage in some areas

    igh rices for 3G in some countries

    1emand for high seed services in a handheld device

    Cattery life of 3G hones

    .urrent status and Im/act of 3G in India

    The success of 3G is going to deend on demand for suerior uality voice services and dataheavy' media rich content. The initial ricing has been on the higher side and it will have to droif mass adotion is to ensue.

    Sectrum olicy in India has been the victim of slow decisionma!ing' which has left the

    country lagging behind many others.

    The delay in auction over three years has derived Indian subscribers of the benefits of highseed mobile data services available to over 3## million subscribers residing in over $"+countries with significant concentration around the (mericas' Huroe' and South Hast (siancountries.

    This is also an oortunity for Indian software comanies to join hands with service roviders todevelo alications that will meet the needs of the Indian mobile user. (t a later stage' thesecould be rolled out into other emerging mar!ets..

    3G in India is initially e0ected to rovide additional sectrum for voice services. This wouldave the way for data usage on mobile hones. This is vital as oerators are focusing oncustomer acuisition as well as Qstic!y offerings* to revent churn. 3G enables better @(Sservices due to the higher levels of bandwidth that it can accommodate. The technology ise0ected to drive data card adotion. 2urrently' Tata Indicom and -eliance are the only layersin the data card segment. Aith more layers coming into the mar!et' sales are e0ected to boomwith cometitive rices and attractive schemes.

    .

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    9oor broadband enetration' a large untaed rural mar!et' and the challenge of roviding highbandwidth in rural areas using landlines are all factors favoring a 3G rollout. Aith 3G' networ!oerators can offer wireless broadband services. 6oreover' many oerators are starved ofsectrum and as 3G offers four to five times the voice caacity of "G sectrum' it is a costeffective tool to deliver voice. Services beyond voice and te0t can be offeredN 3G offers a

    latform which can offer true multimedia services.

    The technology will be critical for oerators in enabling the differentiation of their serviceortfolio' by roviding a far richer service e0erience than is currently availableRarticularly inthe deloyment of audiovisual services.

    The fundamental driver for 3G in India is to serve the country*s demand for broadband services.From a technological oint of view' in areas where no fi0edline infrastructure e0ists' deloyinga mobile networ! is much cheaer and it can be rolled out a lot faster than wired infrastructure.

    (evenue from 0alue added &ervices

    (oll1out strate$ies

    Starting in February "##,' CS;? and 6T;?Rthe staterun oerators who were reawarded3G licensesRhave rolled out 3G services in 5# CS;?/ and two 6T;?/ cities nationwideresectively. The rivate telecom oerators are in the rocess of lanning their 3G networ!infrastructure and awaiting final aroval from the 1OT auction to start rolling out theirnetwor!sN they are ready to go fully oerational within si0 months of sectrum allocation.

    1esite the hye around 3G' 6T;? and CS;? have attracted a few thousand subscribers forthese services. ?ac! of attractive alications and content' the high monthly charges and theanticiation of rivate layers entering the 3G arena soon are the li!ely reasons for the lowuta!e of 3G services. 6eanwhile' Frost E Sullivan estimates that the number of 3G subscriberswill be around 5& million by the end of FB "##,$#.

    In the first year of 3G oerations' the oerators are e0ecting 3G subscribers to ay about fivetimes the current "J".+G tariffs. 3Genabled handsets and data modems for latos are also li!ely

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    to be e0ensive. This is a stee increase and will target only niche demograhics' but in thecoming threefour years the oerators will see higher subscriber volumes and better oerationalefficiencies and conseuently the rices will dro to attract a wider audience. The challenge foroerators will be to offer wide coverage including roaming/' high uality service and attractivecontent in the initial years to sustain highaying subscribers long enough to reach the tiing

    oint of growth.

    Mar"et o//ortunity

    (ccording to the Federation of Indian 2hambers of 2ommerce and Industry FI22I/' in India'the 3G subscriber base is e0ected to hit ,# million by "#$3' accounting for $"P of the overallwireless user base. Cy "#$3' 3G service revenues are e0ected to generate 4$+.& billion'accounting for a share of

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    revenues' 3G will certainly enable the carriers to transfer high (-9) customers to thecongestionfree 3G networ!.

    ( combination of better services' innovative alications' and smart handset bundling couledwith right ricing can attract a large base of users to 3G. Cesides' many Indian customers already

    have 3Genabled devices. These eole will be the first movers.

    In order for the customers to !now and get the feel of 3G' 6T;? is initially offering a trial ac!for $+ days. The customer can get a first hand feel of e0actly what 3G is all about. They cane0erience the service' and 6T;? is sure that after getting the feel of the same the customerswould not li!e to go bac! to "J".+G data services.

    To imrove overall service e0erience' oerators will need to allocate sectrum for 3G torovide imroved voice services. owever' this is unli!ely to imact the ability to rovide richer@(S services. The eventual cost of deloying 3G networ!s may deter oerators from rolling out3G networ!s to the entire e0isting customer base' meaning that some segments will not have

    immediate access to 3G. The cost of deloying the networ!s may imact the ricing strategiesfor service ac!ages offered to the mar!et' with oerators adoting different strategies to attractnew subscribers and cover their investment costs.

    3G #//lications in your life4Casically' 3G oens the door to anything you can imagine. Bou will be able to do a multitude ofthings while going through your daily schedule' whether at wor! or at leisure. The scenariosbelow demonstrate just a few alications for 3G and only hint at what will be on offer in thefuture.

    Scenario1:(n e0ecutive at a client meeting realies that he has brought an outdated version of hisresentation. It*s no roblem though because one of his colleagues bac! at the office emails theudated 9ower9oint file directly to his 3G terminal. e transfers it to the lato wirelessly ofcourse/ and is in no time ready to start the resentation.

    Scenario2:This scenario is about three women who are trying to find a gift for their friend. Two of them areout shoing' but they are out of ideas and use a web site that generates gift suggestions based onersonality rofiles. They decide to buy a handbag at a sho situated somewhere near the citycentre but at an un!nown address to the women/.

    ;ot !nowing e0actly where the sho is' they use a ma and ositioning service to find it. Thema is dislayed on their 3G terminal and shows them the sho location and their currentosition.

    (t the sho' they want to ma!e sure that the third woman who was unable to ma!e it/ li!es thegift. They ta!e a digital icture of the bag and send it to her with a hand written note see!ing her

    .8

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    aroval.

    Scenario3:The grandarents are out travelling in Huroe. ere you see them in front of the Hiffel tower.

    The tour guide too! the icture of them admiring the magnificent building/.In order to sharetheir e0eriences with their friends and family' they have created a virtual hoto album on theirersonal web site. This way' anyone with access to the Internet can follow them on their tri.

    Cut what about those without Internet access Aell' that=s been ta!en care of by the Aal!6ailnetwor!. The ictures are rinted' together with the te0t' on high uality aer and delivered asregular ostcards within "< hours.

    Scenario4:

    ( busy e0ecutive doing her grocery shoing hasn*t had time to ueue at a teller machine' butcash is not needed. (t the chec!out' she uses her 3G terminal to ay for the groceries. Itautomatically debits her ban! account' and gives her an udated balance on reuest.

    Scenario5:In this scenario' we see two men tal!ing on their way from a meeting. They decide to go out todinner' but one of the men would li!e to invite his wife along so he chec!s her calendar on his 3Gterminal their calendars are constantly in synch/.

    Scenario6:So far' there has not been an easy way to electronically communicate with character basedlanguages. Cut this drawbac! is over come with the white board alication.

    The erson in this scenario is actually handwriting a message when a friend of his initiates avideo call with him.

    This way of creating a message ma!es the communication more ersonal than a regular emailwhether in 2hinese' 7aanese' Hnglish' French or any language.

    Scenario7:This guy would li!e to catch u with his friends for a coffee. e uses the See!BourFriends

    service to find out who=s online' and then sends a message telling his friends to meet him in agroovy new caf that he*s just discovered.

    .9

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    Future of 3G

    The good news for mobile users is that now 3G has been uloaded in all the latest handsets fromthe leading manufacturers including Sony Hricsson' Samsung' ?G' ;o!ia and 6otorola. Inaddition' a new technology called S19( has been ugraded with the 3G system which wor!sfaster than 3G. The latest gadgets are welleuied with owerac!ed features' enabling you tocommunicate and enjoy loads of fun.

    Today "G is booming' one of the big reasons is the lowriced handsets. This' however' is notthe case with 3G. Oortunities are big' but we will have to ma!e it haen.

    The success of 3G will deend on innovative business models. The most certainly needed thingis favorable regulations in terms of sectrum fees. It is creation and cometition that are the twomantras for the success of 3G in India. There is a need for creating an enthusiasm of technologyamong the consumers' and 3G ortals need not be the only goal of the oerators.U

    The big challenge set before us is the affordability of the 3G devices. Hducating the customer on3G is another challenge. 3G is most certainly going to be e0citing' but also challenging. Ae needthe infrastructural suort and the handset' too' would be at an affordable rice. The sta!eholders

    should come together in order to see some good develoment. There is an oortunity totransform the society' which is ossible as long as all of us can wor! together.U

    One of the advantages of 3G networ! is that it would give better voice clarity. It will shift theInternet largely to the mobile sace and we can ensure a 3G success

    ( matter of concern before us is the !ind of bidding that would ta!e lace. It is euallychallenging to attract consumers to 3G. The reason why (-9)s are on the decline is because theconsumers are not able to see value for money. Ae need to concentrate more on customers. (roer wor!ing strategy will lead to the success of 3G services.U

    Which companies have applied for 3G license

    3G sectrums has been rovided to GS6 layers li!e CS;?' 6T;?' Charti' and @odafone andsome international comanies have also shown interest to carry out an interface chec! on a noncommercial basis ahead of the start of 3G mobile services.

    20

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    (art from 9S) majors' sectrum for carrying out 3G trials has been given to all those who havealied under the ;ational Freuency (llocation 9lan on the ".$ G band. GS6 layersoerate on ,## 6 and $'# 6' while 216( layers oerate on # 6.

    What is the pricin! issue in "ndia

    Ahile Tatas have welcomed Trai*s -s $'

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    3G will not only ma!e its resence felt in cities and towns but also bring in better and fasternetwor!s to rural India.

    In the years to come 3G would ma!e a lot of difference in ma!ing business models moreinnovative. 3G and Ai6a0 will hel solve the roblem of low broadband enetration in India to

    a great e0tent. It is high time the government realies the need and use of 3G. In a fast growingeconomy these technologies have the ower to change the develoment roadma of the country.

    !oo"in$ #head44

    CS;? and 6T;? are very differently laced in comarison to other rivate layers. It is not yet!nown when 3G auctions will haen and which comanies will be in the sectrum run. Aith ahuge amount of investment only to acuire license' a lot of other costs would be involved when

    it comes to networ! building and imlementation.

    Cut the high costs will lead to new services ma!ing its way into the mar!et' esecially the urbanareas. V)nli!e "G' in 3G one has to come u with very innovative alications and tariff lans.

    The enetration level of 3G' however' is still uncertain. The new technology comes with costsattached' and while the uermiddle class business rofessionals might be able to utilie theseservices' a major art of our oulation is still far from the levels of affordability that theseservices as! for.

    Aith a er caita income national average/ of as low as 4,+# er annum -s 3&'###

    aro0imately/' access to these technologies shall remain for the select few. -s &'###' theminimum amount reuired for urchasing a 3G handset' is a lu0ury that most can=t afford. (lso'other gadgets such as latos' which can use 3Grun broadband access' are yet to ma!e inroadsamong the large oulation.

    Hven as most handset manufacturers see a tremendous growth oortunity in the realm of 3Genabled mobiles' it is certain that rice will lay a !ey role in deciding the fate of the newtechnology. To tac!le this concern' mobile hone manufacturers are ma!ing efforts to come uwith hones as chea as -s 3'+##' against the currently available minimum rice of over -s&'###. 6obile ma!ers in India are also e0ecting rices to di' and thus are contemlatingaggressive lans to come u with affordable handsets in this category.

    (nalysts say that 3G first needs to be oular with the middle class segment if it is to bring themuch tal!ed about Vbroadband revolutionU. For such !ind of change to ta!e lace' the rice ofthe handset and the services will lay a crucial role.

    (bout $+"#P mobile hones in India are already 3Genabled' but they have to be madeaffordable. The availability of reasonably riced hones has already made many e0erts rewor!

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    their estimates of the sie of the 3G mar!et to grow from the resent

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    ,is/ute over forei$n Telecom com/anies

    Overseas' 3G has failed to deliver on the hye that often led to frenied license auctions.

    In South 8orea' S8 Telecom 2o and 8TF 2o have been offering 3G services for more than ayear' but high costs associated with subsidies for new hones and mar!eting has been a worryfor "G mar!et leader S8.

    Singaore' Indonesia and 6alaysia are few e0amles where 3G mobile broadband has given aboost to its revenue growth. Investment and the caacity of the investment ossess a toughchallenge before India.U

    Foreign telecom firms could gain access to India=s booming mobile mar!et through a global

    auction of 3G licenses this year' but low call rates and established layers mean it could ta!e

    years to turn a rofit.

    Foreign telecoms with 3G e0eriences are allowed to bid at the auctions' oening the way forfirms such as (TET' Htisalat' ;TT 1ocomo to gain a foothold in the world=s fastestgrowing

    mobile mar!et.

    Cut India=s "G oerators' including Charti' (irtel' -eliance 2ommunications' @odafone Hssarand T6 International bac!ed Idea 2ellular' are not going to cede their territory easily.

    Five 3G licenses will be available for most of India=s "" service ones' although limitedsectrum means there will be a ma0imum of three in large cities such as ;ew 1elhi and6umbai.

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    ;e0tgeneration highend 3G services give users a chance to enjoy fast Internet access' gamesand a host of multimedia content from mas to music on their cell hones' areas where "G hasbeen handicaed by a slower data transfer caability.

    India has set a base rice of "#."# billion ruees 4

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