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As the hectic bidding for one round of
3G spectrum finally drew to a close, the expected winners had a few
things to say, while the unexpected winners, like Aircel, spoke about
how 3G would help them boost their subscriber numbers and expansion
plans all over the country.
Remarked Gurdeep Singh, COO,
“After
several rounds of competitive bidding, Aircel has bagged
thirteen telecom circles in 3G for Rs 6,500 crore, which will allow
us to take our data strategy to the next level. This further opens
new revenue opportunities and gives way to a dynamic business model.
We now cover the whole of southern and eastern belt where we have our
strong presence and in Jammu & Kashmir, Punjab and Uttar Pradesh
(East) as well. With this we will be able to offer seamless
connectivity and meaningful products and services to our consumers
which will eventually change their life and open a world of
possibilities.”
Vodafone, which successfully secured 3G
spectrum in nine circles-which comprises 60% of the company's
subscriber base, for Rs 11,617 crore, and has already prepared a host
of 3G services to be offered on
enabled handsets-believes that
this win was significant in helping them to cater to the niche
market, as well as their wide customer base on the 2.5G network.
According to Vodafone Essar CEO and MD
Marten Pieters, “We are excited to be able to offer 3G services to
our customers and aim to launch the services before the end of the
year. We expect a strong uptake for 3G in these markets particularly
among the high value customers, which is a growing segment-owing to
rising affluence and increasing urban population. We also note with
interest that a significant proportion of our customer base in these
markets already has a 3G enabled device. We will continue to offer
country-wide data services based on our extensive 2.5G networks.”
Airtel-which achieved a
much-needed 3G spectrum win in thirteen key circles for Rs 12,295.46
crore-was happy about the strategic footprint the win provided, but
regretted that the auction format and severe spectrum shortage along
with ensuing policy uncertainty, drove the prices beyond reasonable
levels. As a result, it could not achieve its objective of a
pan-India 3G footprint.
was the only part of the Tata Communications group that
managed to secure 3G, as the others dropped out when the bidding got
too high. According to a company spokesperson, "We are very
delighted with the outcome of the spectrum auctions, especially as we
have bagged the best telecom circles from the perspective of out
cumulative market potential. Particularly so when we take into
consideration the overall spend on these circles. Significantly, we
have covered the entire geography of India on the western side, while
there is no entanglement with category C circles. Therefore, this has
proven to be a most capex optimized bidding for us."
The official added that, “
did pursue the major metros in the country, but decided to drop out
of the bidding when the sheer outlay made these a winner's curse."
Cellular which emerged the winner
in eleven service areas, at a total cost of Rs 5,768.59 crore,
believed that the auction results would significantly enhance Idea's
competitive position in the market.
which has been consistent in its
low-tariff offerings and new gaming and video streaming options
believes that the 3G win in thirteen circles pan-India for less than
Rs 500 crore will only help them do much more. A company official
remarked, “RCom is delighted to have met all key objectives to win
the most attractive circles at conservative spend, and the circles
will optimize immediate potential for 3G services as well as long
term growth potential; while also addressing future spectrum
requirements in highly dense metro cities. We plan to strongly
leverage our media, gaming, cinema and broadcasting capabilities to
offer customers a unique and 'true' 3G experience."
That data usage will significantly
increase with the host of 3G applications being offered, but other
areas like
are also set to see an uptake in the Indian market.
According to Sanjit Chatterjee,
director, global marketing and strategy, REVE Systems, a Singapore
based mobile VoIP solutions firm, “VoIP usage will increase, as
with mobile VoIP applications, consumers will take up 3G
subscriptions and replace high-cost long distance calling by VoIP
calls for peer-to-peer communication. We expect increased usage of
chat and instant messaging as well. Besides this, other significant
areas where 3G will come handy are for mobile data-by connecting
(by wire or Wi-Fi) the phone to the laptop-thereby eliminating the
need for a separate USB data card for music downloads, streaming
music, video (better YouTube experience on the mobile), Internet
radio, and mobile TV.”
He further added, “Service providers
can also introduce 3G Wi-Fi router devices for SMBs to use the same
for data connectivity for home/small office environment. This device
basically takes in a 3G SIM card and sends out Wi-Fi signals and are
good for up to ten users.”
berylm@cybermedia.co.in