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The long wait for 3G in India finally seems to be over with the government setting December as the deadline for spectrum auction. A new battleground is ready for the state-run operators-MTNL and BSNL-who are already offering 3G services in some circles. With the auctions likely in December, private players will also join the great war for acquiring larger subscriber base and earn higher revenues.

To identify measures that can help operators increase 3G's contribution to their revenue streams, VOICE&DATA organized a two-city event to deliberate on a key concern of the operators, 'Maximizing Revenue Potential of 3G'. Participants in the discussions at Delhi and Mumbai unanimously believed that 3G won't be an instant phenomenon in the country; rather, operators will have to innovate and bring in creative and cost-effective packages to lure consumers to the new technology.

The panel at Delhi was a perfect mix of PSU operators, private operators, and infrastructure solution providers. The panel included names like Randeep Raina, head of 3G business, Nokia Siemens Networks; Sukanta Dey, president, emerging business, Tata Teleservices; CS Rao, chairman, WiMax Forum; Shyam Mardikar, senior VP, network services, Bharti Airtel; Atul Chaturvedi, COO, Idea Cellular; Arvind Bali, president, Datacom; AK Bhargava, principal GM, wireless services, MTNL; and Jyoti Handa, regional director, sales, South Asia, Dialogic.

The Mumbai panel comprised Ranjan Banerjee, GM, strategy, TTSL; Rajiv Singhal, CIO, IDC, Reliance Communications; Darshana Bhatt, head, VAS and marketing, Loop Mobile; Pradeep Dwivedi, senior VP, marketing and product, TTSL; Sunzay Passari, executive VP, Essar Business Group; and Deepak Mukherjee, GM, switching, MTNL.

In his keynote address at Delhi, Kuldeep Goyal, CMD, BSNL shared the operator's experience of the 3G market. He narrated BSNL's story of challenges and success with 3G.

"A lot of hype has been created around 3G. Now is the time to earn revenues. 3G initially takes time; we have rolled out services in 155 cities and have around 54,000 3G connections. We are confident the scenario will improve," said Goyal.

He further added, "Wherever 3G was launched, it had to follow a set product cycle. India is lucky to learn from other countries. European business case has not been very successful. It was a disappointing lesson that many subscribers had to switch back from 3G to 2G."

He believes that services and distribution channels will play a key role in selling 3G. Things that will help operators earn higher revenues from 3G are connectivity, services, stronger distribution channels, and low tariffs.

The CMD also had a piece of advise for the operators. "Avoid making exorbitant bids, just for the sake of getting the spectrum. The government will be the biggest customer of 3G services, as it has several projects for rural connectivity," he said.

The panelists discussed how 3G is different from 2G and what are its strengths.

Panelists at Mumbai

"3G is a different genre from voice. User experience and application usability will decide the revenue flows," Shyam Mardikar, senior VP, network services, Bharti Airtel.

"What service is the consumer getting on what price will decide the success of 3G. The services should be designed around high usability criterion, so that 3G becomes the undisputed choice of access for that service," he said, adding that it is important to keep in mind that 3G is basically a data game.

Arvind Bali, president, Datacom said that ease-of-use of a particular service on mobile using this technology is an important factor that will drive 3G usage in the country.

"In India, like any other market, 3G will have to go through a set product cycle. There is no way it can be escaped, but it can surely be shortened and effort should be to do that. Most of the operators are eying the license as they think customers will be enchanted by operators with 3G license. Essentially, the operators want to first enhance capacity by getting the spectrum. They may not make the right kind of investments to popularize 3G in the beginning," said Atul Chaturvedi, COO, Idea Cellular.

Explaining about the investments that the operators will need to make to lay the 3G infrastructure, Randeep Raina, head, 3G business, Nokia Siemens Networks, said "Investments will depend on whether it will be a carpet coverage or some hotspots."

The panel agreed that broadband is the need of the hour for the country. There was no debate on which technology will be better suited to provide a solution to India's broadband requirements. "The fact is that India needs broadband now, be it any technology-3G or WiMax," said CS Rao, chairman, WiMax Forum.

Pradeep Dwivedi, senior VP, marketing and product management, TTSL suggested operators to focus on large enterprises and SMEs. "The consumers will look up to us to set new benchmarks in 3G, like we have done in voice and VAS services," he said.

Heena Jhingan
heenaj@cybermedia.co.in

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