Friday, July 15, 2011

Present and Future of 3G in India

The world is fast changing with increasing trends in the communication sector. Drastic shifts have happened in the way people used to communicate. The adoption of technology, not only in the metros but also in the rural areas is observed in today’s time. This is primarily due to the growing consumer awareness and adaptability towards newer technologies.
In today’s scenario, the increasing use and understanding of technology is augmenting the growth of the communications market in India. The communication market in India is fairly influencing the growth, especially of the mobile handset and service providers. Following are some interesting statistics supporting the same:
As of May, 2011, the mobile subscription base stands at more than 811 million in India which is the world’s second highest after China. The most interesting part about these millions of subscribers is that they are fast changing their preferences to a better mode of communication. No doubt about the fact that the 2G market in India is one of the fastest-growing mobile services markets in the world but the change to 3G is happening. An example of how big 3G is with respect to Indian markets is, GOI expecting INR 35,000 earned INR 67,719 crores against in the 3G spectrum auctions.
Here is an analysis of the present and future of 3G market in India:
Consumer Switch:
Elite subscribers in the high-spending tech-savvy segment are likely to shift from 2G to 3G services. A variety of consumers are shifting from 2G to 3G networks primarily in the urban areas where consumers have shown a higher preference for data services and have better affordability. Currently there are around 11 million 3G users in India but the number is expected to reach 400 million by 2015.
The pricing strategy adopted by various players is very competitive and cheap to start with. The current rates being offered at discounted prices for consumers to experience the service and then take a decision is being adopted. 3G is being looked at a long term investment with high returns.
Handsets Sales:
The decreasing price of 3G enabled handsets is also aiding the whole business. The increasing affordability across different demographics in India is also one of the driving factors. Thus we expect the 3G market to grow invariably.
Tariff Plans:
The tariff levels in India are among the lowest in the world, and this is the primary reason for the wide adoption of mobile services in the country. The mobile penetration rate is expected to reach 97 percent by 2015, with the rural population expected to adopt mobile services.
Communication & Entertainment:
The increasing use of applications on 3G phones is set to drive the sales and awareness as well. This in turn will also act as a revenue generation business for TSPs in the future. The growing popularity of mobile entertainment is a significant growth factor as access to mobile games and video-based content would need high speed. This would result in increased adoption of 3G services.
Security Concerns:
The GOI has always raised a concern on the telecom handsets that is being imported in India. This has largely affected the TSPs’ network expansion and 3G rollout plans. However, the recent lift of the ban on importing equipment from Chinese vendors is likely to improve this situation.
On the whole, the future of 3G looks bright in India but again it clearly depends on factors such as availability of 3G handsets at affordable prices, attractive pricing schemes to suit the needs of Indian consumers and innovation & localization of mobile content. The telecom service providers will always need to deploy innovation and build a comprehensive value proposition to target consumers in India.source

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