Wednesday, September 24, 2008

Is Indian market ready to take 3G services????

Linked In Posting on Success factors for 3G in India

http://www.linkedin.com/answers?viewQuestion=&questionID=325889&askerID=11562313&browseIdx=11&sik=1222255763110&goback=%2Each_TCH*4ITS*4TCI%2Eabq_2_1222255763110_n_o_TCH*4ITS*4TCI&report%2Esuccess=vfLh7ZiQxNtkwQoO3efsNN1zAgQ8WXmCT24lKBBmlHq_pfcN7JydQUoVP_zdv4b8

I have read thru all the other answers. As a marketeer and thru frequent interactions with consumers, my feel is that the Urban population is READY for 3G. Infact the face of Indian telecomunications would be 3G services in towns and WiMAX in rural areas and that would happen in about 4 years from now.

However, in the present context, there are two stumbling blocks as i see it.
1. 3G Licensing fees are exorbitantly price by DoT. Even with infrastructure sharing, Operators have doubts about the cash flows and the RoIs in the near term.
2. Number Portability, as and when it happens, would reduce customer stickiness to the Operator. The operators are wary of this and the inability to estimate the churn may be translating into paralysis and inaction in terms of new investments.

On the flip side
1. 3G would the mantra to counter VoIP revolution when that happens. Ironically due the lobby Raj, VoIP in India depends on the success of 3G in India.
2. 3G would be a tool to increase ARPUs for Telcos.

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