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Monday, September 27, 2010

4G to make headway in India by 2013


The exponential growth witnessed in the Indian telecom sector is the finest example of synergy of conducive Government policies and the competitive zeal of telecom industry, which have placed Indian telecom sector on the world map. Against the backdrop of common man benefiting with one of the lowest telecom tariffs in the world, we have already crossed the milestone of 600 million connections in the month of February 2010 itself. Continuing the trend, the Indian telecom industry has now achieved total subscriber base of over 688 million as well as over all teledensity of 58%.

While inaugurating the 3G India 2010, Vijayalakhsmi Gupta, Hon'ble Member (Finance), Department of Telecom, Government of India, said, "BWA and 3G have the potential to transform the character of Internet/ broadband scenario in India. On the one hand, BWA will overcome the key hindrance of problem of 'Right of Way' in India. On the other hand, 3G has the potential to make the mobile phone a ubiquitous device for accessing faster Internet."

"3G Technology will drive the next round of sustainable growth for the Indian market through convergence of entertainment, infotainment and voice communications into one single device. The key drivers for the growth of 3G in India will be innovative content, improved customer services and increased affordability of handsets. These drivers will help ensure growth of 3G not just in urban areas but in rural areas as well," she further added.

Commenting on the post-3G era in the Indian telecom industry, Vijayalakhsmi Gupta said, "After 3G rollout, while video-on-demand and other live streaming services may gain prominence amongst the high ARPU customers, enhanced bandwidth may also lead to increased usage of existing mobile VAS (Value Added Services) services. The share of VAS in wireless revenue is likely to increase to 12-13 per cent by 2011. This growth would be driven by increased operator focus on VAS due to continuous fall in voice tariffs, increased penetration of feature-rich handsets, availability of vernacular content and increased user adoption of VAS applications. Further, the market is likely to witness different VAS being offered, which were earlier not possible over the current 2G/2.5G Network."

The sixth edition of "3G India 2010" offered a forum to understand what service will provide the most value to the user and also the technical and policy issues that need to be considered to ensure the success of the 3G strategies in India. It addressed how money will be made out of delivering 3G services and how revenues generated should be shared between the various parties involved.

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