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Topic : 3G Technology and its Impact
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Will the financial crunch affect 3G in India?

Created by : Subhankar Sanyal, Sales/BD Manager, Bharti Airtel  | 10 06 2008 09:53:54 +0000
Industry : Telecom/ISPFunctional Area : Strategy Execution(Strategy & Execution)
Keywords : INDIA IPHONE 3G Affect Technologies Data Centers Protocols 3G Spectrum ETHERNET Financial Crunch
Activity:  771 views;  last activity : 07 06 2010 20:18:09 +0000

The financial meltdown in the global markets could have made the markets jittery and the USD 700 billion bailout package offered by the United States to get the markets' belief back on track would take time to take shape. India, which is one of the main nerve centers for economic activities in not just South Asia but across the world, would feel the heat with 3G spectrum bid all set to take place soon.

Will the financial crunch affect 3G in India? 

  
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I would request you to have a look in my paper on  "Multimedia business over Telecom Network" in this community

3G is a good concept, but concepts by tiself cannot make money. The success of the products depends on the volume of business it can generate, for which, the product should be Available, Accessible and Affordable to comman man. 3G started with  big bang in 2000-2001. It did not take of fully till 2008. In between there were talks about 4 G and NGN to cover up the 3G flop.

The wired and wireless telecom service providers are mainly access providers. Most of the data related e-business are in the infinite number of content and application providers, diverse and widely distributed in the PDN much beyond the service area of individual service providers.  With options of carrier selection, the service providers will lose exclusive ownership of the end users.

Service providers have limitations to function as application providers. Therefore,  inspite heavy investment for multi-media service provision, good chunk of revenue will move from the telecom service provider to the end service providers. VoIP, ultimately will bye pass the telecom network taking away voice call rvenue. DTH TV combined with home wireless network providers is another threat to multimedia over telecom.    With all these, Telecom service providers will find it difficult to get back adequate ROI on their 3G investment.

Revnue collection of multi-media service over telecom network is also an isse. The way out is to have Payment broker systems in PDN that can take care of collection, apportion and sharing of revenue between various stake holdrs in the network.

Till that happens 3G is going to face hurdles.

P. Abraham Paul.    
By Abraham Paul, Senior Telecom Consultant, FCOMNET- Future Groups  02 17 2009 06:51:24 +0000
 
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Any way the general mass is the user group and the actual user group never understand the technicality behind any product. So in India any product will have a mass appeal with its vast population base
By HIRAN SETHY, Research Associate/Analyst, Consulting Engineering Services (I)  03 04 2009 05:17:53 +0000
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they financial prudence and the current economic outlook will delay the 3G roll-out. Anyway the spectrum licenses are yet not bidded/given out. then comes the roll-out and adopton. Now, companies are busy increasing revenues form wireless data and VAS from the edge/cdmarxtt tech. then wll come cdma.

i think the market will embrace such services only in 2011 when we can see enough customer for such services. The capex is significant and gvernement can support 3G roll-out by reducing the spectrum and license fee rather than increasing it (off-course with the condition that spectrum alloted will be used for only 3G network).

 
By Sanjay Chaudhary, Former GM-Global Business, Reliance Communications Limited  | 02 14 2009 12:06:45 +0000
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companies had earlier spent a lot of money on these technologies and it never turned out to be beneficial and operators pooled in a lot of investments for services, which never evolved, and now they are struggling to find investments for 4G. Now, the only thing that has changed the scenario is the advent of iPhone, which has made a major impact in these markets.so we cannot expect future beneficiary in this sector.
By Subhankar Sanyal, Sales/BD Manager, Bharti Airtel  | 10 06 2008 09:54:59 +0000
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NO, the 3G launch was delayed in the starting but now I don't see any reason for a delay in 3G, its already been launched in various cities...

Finally its worth having iPhone 3G, now everyone can explorer the power of 3G... Lets see how will it perform...

Hoping for the best...crossed fingers :D
By Radha Sundaram, Sales/BD Manager, Bharti Airtel  | 03 30 2009 12:34:58 +0000
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yes  iam agree with u Abraham sir...
By varsha , Head/VP/GM-Quality, frac  | 03 22 2009 18:06:14 +0000
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New technology is recession proof, people don't use similar products giving similar features, Ipod has replaced all walkman, even in current market they are getting more and more orders.

Blackberry is penetrating more and more, so that will also 
By Alok Sharma, Retail , Leading Consultancy Firm  | 03 06 2009 07:46:50 +0000
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3 G has limitations.

With WCDMA based 3G, as the data speed increases the cell area become smaler amaller, and also limits the speed of movement of user terminal. For 2 Mbps and above a cell can cover only an area of 10 meter radius ie. about 300 sq. meters and speed of movement  is limited to 10 meters /second.   There fore, to provide 2Mbps data connectivity to an Air port termianl of say 6oo meter square (360000 S.M) , there should be 1200 WCDMA cells.

It is impossible to connect these by wirelss links in cellular technology and therefore, will have to use Optical Fibre cable  connectivity upto the BTS.  In this situation the wirelss portion of the network is only at the end link of 10 meter that can be better managed with higher reach by WiMax / WiFi.

So the viable solution will be Optical Fibre Networking for most part of the network and WiFi and Wimax for the end links.

This philosophy removes the discrimination between Fixed Networks and Mobile networks being the networking technogy can be common for both. Only the type of end user terminal will be the major distinguishing factor.

In the land line part, data links using MPLS technology is evolving as most viable for Multi media transctions.

So 3G in its present form will find big competition in the days tome.

No body appreciated when I said all these ten year back.   
By Abraham Paul, Senior Telecom Consultant, FCOMNET- Future Groups  | 02 22 2009 10:38:12 +0000
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No, financial crisis wont affect 3G in India but the market will surely affect because the segment of population who can go in for 3G is very small ( price fixed for the service is not yet disclosed). 3G service charges are very high in US, and we could also experience the same here. If we are lucky enuf, we could njoy low tariff rates such as gsm, cdma...which are very low when compared those in US and other countries..
By Dayanand Deshpande, Senior Consultant, Ernst & Young  | 02 17 2009 14:33:14 +0000
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There is no change in public mindset, every one is looking for new tech.
By Saravanakaumar N, EA to Chairman/President/VP, Confidential  | 02 17 2009 06:04:19 +0000
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No chace, people are waiting desperately for 3rd generation in mobile telephony

 

 
By Akbar Siddique, QA&QC-Executive, First source  | 12 27 2008 16:02:27 +0000
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The challenges that services providers have are the complexity of services they offer and there is a shift in the core customer demands. Investments by companies are being made heavily in data centers Ethernet, new technologies and protocols, optimizing the productivity of data centers--and the storage market is very hot as well. I think it's a nice way to scale our investments as well as opportunities in these markets.
By Shyamal Maity, Sales/BD Manager, AT&T  | 10 06 2008 09:56:01 +0000
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