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Topic : New Competitive Landscape in Telecom
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Is 3G win will be pyrrhic victory for Telecom Operators in India?

Created by : Alok Singh, Zonal Head Post Paid Operation, Tata Teleservices Ltd.  | 05 27 2010 12:21:06 +0000
Industry : Telecom/ISPFunctional Area : India(Markets)
Keywords : 3g operation viable or not in india.
Activity:  282 views;  last activity : 07 06 2010 20:18:09 +0000

With 67,000 crore to Govt, and no Pan India operation license, almost all the players have tremendous pressure  to boost their ARPU, if they want to remain afloat. To top it all BSNL has already started 3G operation and their prices are very attractive. The private players will find it hard to charge abhorent prices or else users would go to BSNL/MTNL. It will be a catch 22 situation for the private operators.

 
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Company would find hard to survive and would merge. Vs VAS, health care services etc would again put them on growth.
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Already all the telecom operators are bleeding, only a revenue enhancement can make the 3G operational sustainable. As far as even the developed countries has only 15% 3G users, also 4G tecchnology which is far superior to 3G is already available and it is a matter of time that it will be knocking the door as you cann't shut the technology. The major worries for the telecom players to generate volume as well as Revenue. So far ARPU of the telcom firms are already touching the bottom line, with volume also not coming in 3G, it is going to signal death warrent to them. Therefore a major consolidation and carteling among the player would happen. 
By Alok Singh, Zonal Head Post Paid Operation, Tata Teleservices Ltd.  05 27 2010 12:21:06 +0000
 
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YES. They will see huge demand for the 3G and  they will take the amount spend by providing different VAS and exciting offers. And people are also aware of this technology so this is surely a victory for the telecom operators.    
By Sonal Singh, Project Manager, Nortel Networks  05 28 2010 09:37:36 +0000
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India is currently not in the position to lead such VAS services that are offered to polish the Revenue Bags of Existing Operators! A very heavy amount and lots of effort from now onwards are needed to deploy the 3G Circle wise. Also there is one crucial problem that our target customers are not completely educated over the working-functionality of the 3G.There should be help from other big-Industries like Bollywood/ Lollywood/ Share Markets/ Banking Sectors/ Railways-Roadways to increase its usability to remain it live till the 4G comes, but again the question remain same Does India has such potential to prove it success, where we are only considering the Urban population the sole user of this technology and not the Rural user, as they are still struggling to have 2G by operators on less ARPU.
By Abhishek Mishra, Manager (Product Management)  | 05 28 2010 12:42:17 +0000
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3G should certainly help the operators in raising the ARPU. Just because of 3G, I can't opt for BSNL/MTNL services
By Abdul Raheem.Syed, Systems Engineer, Leading CEM vendor  | 07 05 2010 17:15:58 +0000
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Sonal you are right.

3G will be a big hit in health care services & due to it's demand telecom

operators may increase their terrif & may see prospective growth.
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 06 09 2010 09:07:19 +0000
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Hi Alok,

Your justification is very right but why you think these operators will choose an option to die rather than make an increase in the tariff.

I think either it is MTNL or BSNL or any private operator I think if they will not increase the tariffs it is very hard for any of them to survive.

Operators now have a huge pressure to makeover their CAPEX they done in buying license or they will do in rolling out their 3G Nw.

3G gives a wide scope to launch different services but if there are no margins they cann't continue.

I am guessing that 3G will survive and will be a big hit but we are going to see an increase in the tariffs atleast till the time we don't have good number of subscribers.
By Anuj , Senior Technical Project Lead, Huawei Technologies India  | 05 28 2010 11:09:55 +0000
Argue for "Company would find hard to survive and would merge."
Argue for "VAS, health care services etc would again put them on growth."
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