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The mobile networks are no longer limited to just delivering voice or SMS services. The operators realized long ago that the real money lay in data services. The unified license regime allowed mobile operators to offer data connectivity over their networks. While the pure play ISPs struggle to keep their fiber and Ethernet in good shape and beg for copper from BSNL, mobile service providers have gone ahead with internet over the wireless route.

The credit for introducing surfing over the mobile networks goes to Reliance Infocomm, which offered free surfing through its CDMA handsets. Initially the service was free of cost and the consumers used their handsets to connect desktops and laptops. Shunning the wired route, some cyber cafes began using the mobile sets for better speed than a dial-up connection.

The introduction of GRPS and EDGE over the GSM networks further opened the market but it failed to make a dent like the CDMA phones. While CDMA had the advantage of being data compatible from day one, GPRS and EDGE were enhancements in the networks and hence the services were not available across all circles. Operators offered these services mostly in high demand and high value areas.

Today the revenue generated from data services offered by operators comprises three to 10 percent of their total revenues. This excludes peer-to-peer data connectivity. According to industry estimates, on an average, data revenue is five percent of the total revenue. In the next couple of years, going by the current rate of demand, this is all set to climb up to 9 percent. "The data services are growing faster than the voice part. This does not mean voice is not growing. Only that comparatively the growth in data services has been higher than voice services," said Alok Sinha, general manager enterprise solutions, Tata Teleservices.

Technically, a mobile subscriber was able to connect to the Internet through his handset but the lack of user experience has actually restrained growth in the number of subscribers. Also, most users connected their desktops to handsets due to the limitation of phone screen size. The laptop users preferred Wi-Fi hotspots to access the cyber space. With high penetration of laptops, mobile service providers - GSM or CDMA - could not allow a large number of people on the move, to shift to the hot spots. Thus, PC data cards or PCMCIA cards were introduced.

Almost a year ago, Reliance announced the launch of these cards, closely followed by Tata Teleservices. In July this year, Airtel also came out with GPRS/EDGE data card. According to industry estimates, operators expect that 25-30 percent of the new laptops being sold in the market would have data cards, and 10 percent of the old users would subscribe to these cards. In future, these cards would be in-built, just like every laptop is now Wi-Fi enabled.

An attractive proposition
According to a study by ABI Research the increase in the data transfer speeds, achieved by wireless PC card modems, is expected to increase uptake of the devices over the next five years. The study says with UMTS and EV-DO networks being deployed widely in Europe and the US, falling prices coupled with higher speeds through the cards would increase shipments in these markets dramatically. However, in the Asian market, the intake would be modest.

Though some argue that when mobile phones could be used as modems to access Internet, why spend more on another card? It is not that with the data cards, Internet through mobiles would not happen. But data cards save the worry about the phone battery, or carrying another cable to connect. Above all, the access rate is cheaper on the cards.

The cost of data cards ranges between Rs 9,995 to Rs 12,999 depending on the operator and features available on the card. Unlike the mobile Internet, there are no call charges but just like any Internet package, there are monthly rentals and cost of data downloaded.

On the CDMA networks, the operators claim that there is no difference between the access through card or phones in the throughput and can be as high as 153 kbps. On the GSM networks, phones give an average speed of 15-24 kbps on GPRS and 45-60 kbps on EDGE. However, Airtel claims to offer 100 kbps through the cards.

Another advantage of these cards is that they are active anywhere in India. The roaming charges are nominal around Rs 100 per month and rest of the tariff remains the same. Tata and Reliance are offering roaming throughout their networks, and Bharti has started with 13 circles. GSM users can also cash in on the international roaming arrangements and also use the cards in their laptops while traveling abroad.

Also, these PCMCIA cards are not just for Internet connectivity, they offer SMS and voice features too. The card can be used to make VoIP calls through the laptop. The user can also type in SMS and send it just like he does over a phone.

When mobile operators applied for the cellular licenses, no one would have imagined providing services to the laptops. The game was to target youth and enterprises with voice and value added services. Data services were nowhere on the radar. However, things have changed now and data services are taking over the voice revenues. With EV-DO and HSDPA round the corner, access speed can now be compared with the wired DSL. And, with the PC data cards incorporating the 3G standards, data connectivity offered to the executives on the move, can be a savior for the telecom companies. In India, these cards are post paid but in the western market, Vodafone has come out with a prepaid 3G wireless data card.

Indian operators have learnt from the developments in other countries. The rates have been kept low and users are being encouraged to try out this new connectivity medium. Till now they have gained some attention. However, poor quality of network is still a bottleneck.

In voice world, the user can cope with cracking voice or dropped call to a certain extent, but this would not work for high value customers. All attractions fades if proper throughputs are not attained, particularly while roaming.

Anurag Prasad