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However, it could take a minimum of 2
to 3 years for this to happen.
The incumbents will have to ensure their
presence on the 3G front in order to
retain their high ARPU 2G subscribers
(the primary target group for 3G), who will otherwise churn to 3G operators.
Operators would have to incorporate this
value erosion due to subscriber churn in
their 3G bid pricing. In spectrum starved
circles, 3G will also be used by the
incumbents to provide better quality voice
services. On the flip side, the new entrants
would try to capture a good part of this
churn. Incumbents, who do not manage to
get 3G spectrum will have to think of ways
to reduce this churn. Providing enhanced
Enhanced Data for Global Evaluation
(EDGE) based data services could be one
Auctions of WiMax and 3G are likely to
happen in January 2009 and February
2009 respectively. Rollout of services is
likely to commence by latter part of 2009
and will be limited to top 20 cities in India.
Initially data services are likely to take off.
As services become further customized
and network coverage becomes wider,
we anticipate nearly 25 to 30 million
subscribers adopting 3G by 2012. 3G
revenues will touch USD 4 billion to
USD5 billion. WiMax, on the other hand,
could attract about 8 million to 10 milion
subscribers and account for about USD1
billion to USD1.5 billion by 2012. (These
projections will be dependent on the kind
of services offered, the availability of
handsets and network coverage). Moving towards MVNO
There is renewed interest in virtual play
in the country as the Indian regulator
released recommendation to allow MVNOs
(Mobile Virtual Network Operator) in
India, soon after the release of 3G and
BWA policy. TRAI defines MVNO as a
“licensee in any service area that does
not have spectrum of its own for access
service, but can provide wireless services
to its customers through an agreement
with the existing providers”. Around the
world, MVNOs begin operations when
3G services are launched. As subscribers
migrate to 3G services, capacity is
available on the 2G network. This is
when operators begin to host MVNOs as
it helps monetize the investment made
to launch 3G services. The MVNO allows
operators to utilize their i...
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This document was uploaded on 03/03/2014.
- Spring '14