Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ound it. 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 such strategy. 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...
View Full Document

This document was uploaded on 03/03/2014.

Ask a homework question - tutors are online