Can India provide the cheapest 3G services?

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Till now, only BSNL and MTNL have revealed their price plans, having
been offering 3G for the last year or so. With private companies
entering the 3G race, one can only assume that rates will go down and
Indian customers will be able to leverage 3G services at a much cheaper
price than its international counterparts.

As the payments for the 3G spectrum has come to an end, customers
are now awaiting to hear how much exactly do they have to pay in order
to avail 3G services from different telecommunications operators. The
price plan could essentially determine the fate of the companies
offering 3G in India.

Almost a year ago, MTNL revealed its price plan for href="http://voicendata.ciol.com/content/news/110060102.asp">3G
offerings. The price plan stood at Rs 599 for fixed, data transfer at
GPRS/3G/UMTS/HSDPA usage rate at Rs 5 per MB, apart from additional
expenses for for voice and video calls.

BSNL has recently announced a promotional tariff for 3G users, which
will available for 90 days. All local and national video calls from
home LSA will be charged at Rs 0.30 per minute. Barring the promotional
incentive, the company's original price plan that was introduced when
3G arrived in India, painted a different picture. The available plans
that were priced at Rs 250, Rs 400, Rs 650, Rs 1,000 all cost Rs 2/MB
but if one opted for the Rs 3,000 plan, he/she would get unlimited data
transfer access. All plans are valid for 30 days after which it needs
to be renewed.

In the US, Verizon offers a two-year 3G plan for $59.99 (Rs 2,791) a
month with unlimited data transfer, under the standard abuse
restrictions, as long as one purchases a voice plan from them. Coverage
is nationwide,with the emphasis on major urban areas and traffic
corridors. Other operators have a similar deals. With an additional
voice plan, the price of 3G in the US goes up to around $80 (Rs 3,722).

In Australia, telecommunications operator Telstra 3.5G coverage is
extended from major cities to some remote regional locations. The
capped price plan there stands at AUS$ 49 (Rs 1,934). While telecom
major, Vodafone, offers 3.5G coverage at AUS$ 29 (Rs 1,144) but its
coverage is limited.

Three is the major 3G network provider in the UK, covering over
93.95% of the population coverage for 3G services. The company offers
various plans for its customers, priced between £5 (Rs 342) and
£25 (Rs 1,713), depending on the customers requirements. For
example, the £25 plan comes with unlimited Internet usage,
unlimited messaging and 900 minutes of free talk time to any network,
anytime. The contracts are all for two years. However, additional talk
times are charged highly.

Singapore's Starhub, too, offers attractive plans for its customers.
Plans start at SGD 20 goes up to S$201 (Rs 6,678). Once again, the
plans are tailor-made to suit the customers requirements.

A comparison with international markets would reveal that in various
developed economies, where 3G has already made its presence felt,
operators are able to offer a much better deal to its customers than in
India. However, the potential for 3G in India is astounding, once the
private companies start offering their services and start revealing
their price plans.

The road ahead is, however, still complicated with the companies
expected to broaden their infrastructure and equipment standards. Hopes
are still abound that the companies may go for consolidation or share
their networks in 3G spectrum when the mobile number portability (MNP)
is implemented in near future. Aided with 3G spectrum, the real telecom
war will unleash another wave of poaching subscribers from rivals while
smaller players may be pushed to enter into network alliances. However,
it is only strategic planning that will bring 3G success to India.

madhurak@cybermedia.co.in