Indian consumers would be able to access new age services such as video-on-demand, live TV etc via upcoming 3G Spectrums. - NAVEEN MISHRA, IDC India

Indian government is on the track to grant 3G and Broadband Wireless Access (BWA) licenses to uplift the sector.

The 3G/BWA auction process moves towards a closure.

Naveen Mishra, Lead Analyst, Telecoms Research Practice, IDC India talks on the possible impact on the wider India Telecom industry.

Q1. Can IDC throw light on the status of the India 3G spectrum bidding and the monies involved?

NAVEEN MISHRA, IDC  India: The formal bidding process, which started off on April 9 is an iterative process and is expected to be completed over the next few days. The base price for all-India licence has been pegged at INR 3,500 Crore (US$ 760 million) for 3G spectrum and INR 1,750 Crore (US$ 380 million) for BWA spectrum. 

The successful launch of 3G / BWA networks and services would help to decongest mobile services networks especially in metros / urban areas and improve quality of service (QoS) for the Indian mobile services user. BWA spectrum is expected to help launch WiMax services in rural areas. This would help reach broadband connectivity to the rural masses. Government initiatives such as connecting Citizen Service Centres (CSCs) and e-Governance programs to provide telemedicine / e-health and other services is further expected to help in the development of the ecosystem. 

Q2. Please describe the two parallel auctions that are going on here, 3G spectrum vs. broadband wireless access (BWA) spectrum?

NM, IDC  India: The 3G spectrum auction involves identification of successful bidders for allocation of 3 or 4 blocks of 2 x 5 MHz in the 2.1 GHz band across 22 service areas or circles. The BWA auction, to be launched two days after the close of the 3G spectrum auction, involves identification of successful bidders for 2 blocks of 20 MHz in the 2.3 GHz band across 22 service areas or circles.

Q3. Can you comment on the rationale for Qualcomm, a vendor, bidding to become a broadband wireless access provider?

NM, IDC  India: Qualcomm has a history of participating in spectrum auctions. In the India auction they have bid for BWA spectrum with the stated purpose of expediting deployment of TD-LTE, which is compatible with 3G WCDMA/HSPA and EV-DO.

Q4. Will it be worth the investment for the successful Telcos in the end?

NM, IDC  India: India is a spectrum-starved market, especially in urban areas. Operators are looking to access spectrum to not only offer new generation data services base to consumers to boost their earnings, but also to improve the quality of service (QoS) offered under the current 2G regime.

Q5. What are the winning bidders going to do differently for 3G in India compared to the countries that have had it for some time?

NM, IDC India: India is a predominantly pre-paid mobile services market. Therefore, the business models of service providers who eventually win the spectrum bids and offer 3G services have to be tailored to this reality. India being a 'young nation' with an estimated fifty percent of the population under the age of 35 years, is expected to see greater demand for content centred around sports and entertainment. Indian consumers would be able to access new age services such as video-on-demand, live TV etc. 

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About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visitingwww.idc.com.

About IDC India

IDC ( India ) Ltd., set up in 1987 is an ISO 9001:2008 company. IDC ( India ) Ltd., a subsidiary of CyberMedia, is regarded as the country’s most comprehensive, dependable and respected source for market intelligence and consulting in the fields of IT, telecommunications and consumer technology. With its head office at Gurgaon (near New Delhi ), the company has branches in Bangalore , Chennai, and Mumbai. Additional information about IDC India's research, advisory and Go-To-Market service offerings can be found at www.idcindia.com

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Courtesy:

Sanjiv Kataria, www.sanjivkataria.com