According to DoT guidelines, the price of the 1.25 MHz block in the 800 MHz band, which can be used by CDMA operators, will be finalized by the price of auction of 3G spectrums in the 1800 MHz band. Given that the price of the 1.25 MHz block in the 800 MHz band will be one-fourth of the 1800 MHz band.

Interestingly, the guidelines also state that if there was one block available in this segment, the spectrum would be given to the CDMA operator with the highest subscriber base. Simply put-Reliance communications. Commenting on this a telco spokesperson says, “The guidelines clearly reflect the undue advantages offered in favor of some particular companies because of their political connections.”

New Opportunities
In India 3G can play a key role in transforming the entire picture of wireless broadband access, much like cellular services did to perk up the overall tele-density in the country.

“3G will bring efficient voice and rich data services to Indian consumers. We are commited to seeing 3G CDMA standards succeed in the market place,” says Kanwalinder Singh, president, Qualcomm, India & South Asia.

Initially, metros will lend themselves as a target market followed by rural markets.

The incumbent operator BSNL is quite upbeat on 3G services and is planning to kick-start the same over the next six to nine months.It is seeking a total investment of around Rs 3,000 crore for the purpose.

Commenting on the initiatives and future course of action on the 3G front, Kuldeep Goyal, CMD, BSNL says, “3G services will bring a new breed of faster and superior services at the consumers doorstep. At present, we are planning for around 5 mn lines in a year's time, and are also looking at viable options of entering into joint ventures with handset vendors for bringing low-cost 3G-enabled handsets for entry level consumers.” He further adds, “We have already started importing 3G equipment and expect to roll out services within six months of receiving the equipment.” Although the incumbent operator will continue to focus on the rural front, 3G services will take some time to become cost effective for rural customers.

Interestingly, many fingers have turned toward BSNL-the state-run incumbent had already started 3G services in the country on a commercial basis, much before the guidelines of 3G services were issued. Notably, the operator has been providing 2.4 Mbps evolution data optimized or EVDO services in various locations in the country for more than a year. According to various industry experts, this is pure foul play and the incumbent is not following the guidelines.

While DoT confirms that the said service falls under 3G services, Kuldeep Goyal, CMD BSNL, simply rejected the claim saying: “The service comes under the 2.5 category and we are following all the guidelines.”

MTNL, another state-run incumbent is also geared up for bringing the 3G services to consumers within the next five to six months. “We are ready with our core network and will begin with 7.5 lakh lines. We will start our 3G services initially in the Central Delhi region, followed by rest of the city and Mumbai,” says AK Arora, executive directer, MTNL.

AG Rao, chief technology officer, Corporate, TTSL says, “We are presently evaluating our 3G plans and once we get the spectrum, we will be in a position to offer 3G services in six to eight months. The important aspect is the adoption and affordability of the services. Each new service brings a lot of innovation and technical expertise; we are looking at all possible aspects and will surely bring the services in the best possible manner for consumers.”

TTSL, which pioneered the CDMA 1x technology platform in India, has already established a robust 3G-ready telecom infrastructure. It has partnered with Motorola, Ericsson, Lucent, and ECI Telecom for the deployment of the network.

While MTNL is primarily focusing on the GSM forefront to roll out 3G services, Reliance and TTSL are looking to offer services at both GSM and CDMA bands.

The Final Say
The launch of 3G services in India is going to create a big market opportunity for all service providers and equipment vendors. Although, according to experts, the actual implementation and commencement of 3G services could take a much longer time.

“There are several challenges in the 3G roadmap. Network optimization and stabillity to the price will be the key things. However, we do foresee the Indian market operating 3G networks in eighteen months,” says Kiran Pande, president, ECI Telecom.

“We are quite excited after the 3G announcement, while spectrum availability continues to be one of the predominant factors that will drive penetration of wireless technologies, services, and handset pricing, service mix and service quality/reliability will determine the pace of service rollouts and uptake in urban and rural areas,” says Neeraj Gulati, MD, Ciena India.

Leading equipment vendors such as Qualcomm, Nokia Siemens, Ericsson, etc, are working with service providers to develop their market entry strategy, positioning of 3G, product portfolio, and roll-out plans.

BV Raman, country head, CDG says, “We welcome DoT's spectrum guidelines for 3G services.” However, he also lamented about the non-availability of spectrum in 450 MHz and 100 MHz bands. “We trust that this spectrum will soon be made available for bidding to maintain a level playing field with GSM operators.”

Debasis Chatterji, director, Operations, NetXcell says, “While one can wonderfully package voice and data in 3G, India with twenty-six official languages is going to be a big challenge.” The company is presently working on 3G services such as mobile video gateways, etc, and is in talks with various operators.

The immediate priority of Indian telecom service providers will be network decongestion. “Being one of the fastest growing wireless telecom markets globally, the focus of operators should be on improving voice services to achieve heights in the 3G arena,” says Ganesh Guruswamy, country manager and director, Freescale Semiconductor India.

“While incumbents will obtain a certain advantage because of expertise and knowledge about domestic customers, the new entrants will bring new technology and innovative services with them,” says Liam Maxwell, VP, Products, Oracle Communications Global Business Unit.

There are many who think that proper evaluation and categorization is required to fulfill the demands of a broadband hungry nation. While prioritization of the customer segment would be one of the challenges for operators, a cost-effective business model and introduction of innovative and money-spinning services would also be crucial.

India requires a long-term telecom policy. And these policies should assist operators to plan their investments and technology platforms for the next 4-5 years. The Indian government should gear up toward this. And all stakeholders in the development of the telecom sector should have consensus and open mind.

Jatinder Singh
jatinders@cybermedia.co.in

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