India moves to 3G (Finally)

Status
Not open for further replies.

Cool Buddy

Wise Old Owl
It was in 2007 that I first read that 3G spectrum would be auctioned and defence would vacate spectrum which is required for 3G services. It was at that time itself that I read BSNL was setting up an alternative optic fiber network for the defence department. Since then the auctions have been postponed so many times that people have lost count. The alternative network is not yet ready but is expected to be ready as work has commenced. The auction finally commenced when somebody suggested that India could directly move on to 4G as it was too late for 3G to start.

Unfortunately the auctions didn't go as people had expected it to. The bidding was fierce and prices went through the roof. What happens next?
with low call rates and a huge number of people who never have more than Rs. 2 in their prepaid account, telecom companies (telcos from now on) are already looking forward to reduced profitability. no company currently has enough cash to pay the spectrum auction charges. as a result they'll have to raise debt which might further reduce profitability.

More than the reduced profitability, it is the future services that I'm thinking of. With the prices that they are paying, it is unlikely that 3G services will be affordable. As a tech magazine editor had written, "if 3G data charges are at par with 2G data charges, the whole purpose of 3G is defeated."

I am thinking of those things. If tomorrow the telcos decide to charge Rs. 3-5 per MB for data transfer, it is unlikely that even the biggest enthusiast will use it for anything more than facebook & Twitter. This is already possible and we can do it very well on EDGE enabled handsets. so basically we are looking forward to a 3G service which won't be anything more than a showpiece technology which people will drool about. Unfortunately, some analysts say that if things go this way, we could be looking towards a situation where telcos would soon be seeking government help & bailout packages.

The telecom revolution that India has seen in the first decade, is likely to backfire in the second decade. we could see increasing tariffs, bankrupt companies and unusable technology. cheap broadband still remains a dream in India, it is unlikely to change with 3G. High data charges coupled with clogging bandwidth could see another unfulfilled dream for the country, broadband penetration in rural areas remains unlikely in the near future even after 3G service are launched.
 
OP
Cool Buddy

Cool Buddy

Wise Old Owl
Suggested reading in support of my post:
23 August 2009 *www.livemint.com/2009/08/23181626/4G-threatens-to-spoil-Govt82.html
20 May 2010 *www.livemint.com/2010/05/20202850/Rough-ride-on-3G-spectrum.html?h=B
 

6x6

Journeyman
lets wait and see how 3G is implemented by all telcos in stiff competition. how much time will it take to practically cover most of the areas in 3G?

Offtopic: should i purchase new handset with video calling feature, now :)
 
OP
Cool Buddy

Cool Buddy

Wise Old Owl
I suppose you would do better to get a handset with video calling feature. If the services are priced well, you may regret it later if you don't get one today.
 
Have to agree with you. The profitability of 3G is a big question mark. Indian ISP's never really got to the idea of "unlimited" when it comes to high speed networks. A friend of mine spends ~2.3K every month on BSNL-3G "unlimited" plan which has a data cap of 100GB/month.

And then look at the data prices in countries like USA and in India. In USA, people pay ~15$/month (equivalent to Rs. 750/month) for a many-strings-attached 3G data plan. Indians are satisfied with ~2$/month (Rs. 98) very-less-strings-attached data plans.

How much can you expect people (me included) who spend Rs. 100/month on EDGE, to pay extra in favor of 3G ? 200 ? Maybe. 300 ? Really hard but possible. But nothing higher.

3G could end up the way 2G was for a long time before people started using AirTel hacks to browse internet and new companies started having the 100Rs. plans. It might be sensible only for upper-middle class corporate workers with post-paid connections funded by their companies.
 
OP
Cool Buddy

Cool Buddy

Wise Old Owl
Yeah, even today when I ask my friends if they have activated GPRS, many of them say that it's too expensive. of course they don't know about opera mini which saves so much costs. But even if they know....
TATA Indicom has 2 APNs, one dive in which does not allow to use opera mini and another TATA DOCOMO Internet which allows to use Opera mini. When my brother got a new handset he tried to activate TATA DOCOMO Internet APN but the settings just wouldn't come. He called customer care and the person at the other end kept saying "type DIVE IN and send to something something". We could not explain to him that we did not want dive in settings. Similarly, BSNL's GPRS is also mysterious, no matter what I do, I'm not able to connect with opera mini (on dad's phone).
Such is the level of literacy of our countryA saying goes the customer is always right, modify it slightly to the customer care is always wrong.
There's no way people are going to pay high data charges to the company. I for one, wouldn't pay a penny if transfer rates are higher than Re. 1 per MB. Even at that, I would use it just for facebook & twitter & maybe an occassional software or game download for the mobile.
 
And the idiots at reliance say my handset, Nokia 5130 XpressMusic, is not supported and advice me to get another handset. Funny thing was, at the time of calling them, it was the 2nd most popular nokia phone in the world after N73 :lol: but they support same OS phones like 7210 SuperNova and lesser known phones like 2323 Classic. I asked them to send the 7210 SuperNova settings but they were too dumb to understand anything I said.

But still, a lot are able to get around with hacks and tricks and that's the reason the tariff had to be reduced to such low levels as it is now.

But we can't expect the same thing to happen in the case of 3G as well. Granted, there will be hacks and tricks to get free 3G. But lets take the case of AirTel's prime days when it was THE company in India when it came to mobile telephony.

Rs. 200-300 for SIM cards, Re. 1/min for AirTel-AirTel calls and 1.5 for other mobiles and 2 for landlines. SMS'es charged atleast 50ps for local. There existed the "special few" who used it only because of its GPRS speed and the way it can be made available at a low cost with some hacks. But these people were small in number, small enough to not hurt the company much. At the same time, these were the crowds active online and in the media. They voiced out support for the company due to their satisfaction and other people started jumping into the bandwagon. Soon everyone started using AirTel when BSNL Cellone was actually CHEAPER when it came to call costs.

If the same thing happens with 3G data rates, we may find a few people on the internet with moddable phones having free access to 3G while the rest of India either pays a ransom or does not use 3G at all.
 
OP
Cool Buddy

Cool Buddy

Wise Old Owl
GPRS was different, I don't think they'll allow any hacks or anything, just like there's no way to get dataone for free. In my city, the cheapest way to use internet is to take your mobile or laptop, switch on wi-fi and go around the city looking for unprotected signals. One is bound to find them. My friend downloaded atleast a GB or so with his E71 after I showed him an open connection in the vicinity of my college. That's the thing, the E71 was his, but how to use wi-fi for free had to be taught by me. If it wouln't be like this, probably there would not be any unprotected signals at all.
 
Status
Not open for further replies.
Top Bottom