Telcos race to tap India's 3G market?

INDIA: The race to tap India's growing mobile telephony market has moved away from 2G to 3G Bharti Airtel, paid nearly US$2.7 billion to win 3G licences in 13 telecom circles.And now it is aggressively marketing its new service, which it will start rolling out by year-end.

• "The large base of two-billion minutes a day usage, which is on 2G, edge network is already available, end equipments are there, brand is common. So we will be able to balance these investments when we enter the market."

Another telecom major, Tata-teleservices, has started the service in nine telecom circles.

• It has kept its 3G prices very competitive at half a rupee per second, setting the stage for another tariff war.
• Deepak Gulati, the Executive President of Tata-teleservices, feels that with the competitive prices, customers will be attracted to 3G services.
• "12 to 15 per cent of all new handsets sold in India are 3G handsets. Those customers, who pay a monthly bill of Rs 500 onwards, will find this service very attractive.
•  Because practically for the same amount, now you get 3G data. The ability to upgrade to 3G life is inbuilt.
• State-owned firms BSNL and MTNL already offer 3G services in the country.

Another player, Vodafone Essar, plans to enter the 3G market by March next year.

1. Earlier, analysts argued that 3G services would cost much more than 2G as the telcos had paid billions of dollars to acquire the network. But as they get ready to roll out the service, the rules of the game seem to be changing in terms of pricing.
2.  Per-second pulse rate on 2G services has gained popularity in India, and telcos will once again be forced to keep tariffs low on 3G.