Wednesday, January 16, 2013

Let’s skip a generation!

While auctioning of 3G licensing has been announced, there are still doubts on its successful launch

After much hype, debate and even delay (seems like a part of the protocol), it looks like the 3G spectrum mobile telephony would finally find its way into India. The Empowered Group of Ministers has put an end to all the deliberation by announcing that the auctioning of 3G licensing would start from Rs.35 billion, while the price for the WiMax has been kept at Rs.17.5 billion. There has already been a considerable delay in rolling out 3G services and many of our neighbouring countries such as Pakistan and Sri Lanka have already been offering these services for about a year now.

While it is a step in the positive direction, it does not guarantee when these services will be available.

According to the current agenda, the auctioning process would be completed in 90 days, post which, three to four companies would be allowed to offer next generation services. Then the telecom companies would have to, on their part, do an overhaul of the current equipments (especially established companies like Airtel, Vodafone, Idea, et al), and this process may take anything between 4 months to a year to be completed. Indian consumers would be able to use the services only after that happens.

Another major debate that has now surfaced is in regards to the pricing. Most of the Indians would be introduced to the world of the internet through this screen. And current pricing would be a major barrier for usage.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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