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To be 3G or not to be: The Indian dilemma

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Deepa
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BANGALORE, INDIA: India has been cruising along for the 3G tag for over a decade now. Whatsoever, the nation is still miles away from becoming one.

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India's 3G roadmap was finalized way back in 2006, however, the auction scenario seems to be going nowhere as the bid itself is being delayed time and again owing to various factors.

Deepika Chaubey, managing analyst, Ovum, says: “The delay in the 3G auctions is primarily because of the changing spectrum policy driven by the government’s intent to derive greater revenues from these auctions.”

Only recently did the government raised 3G spectrum reserve prices to Rs 4040 crore, up from Rs 2020, crore, a move that would help it garner at least Rs 32,320 crore.

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The Indian Government seems to have very well imbibed the art of procrastination. During the past three years,  the nation, which boasts of over 400 million mobile users (and is the world's fastest growing mobile subscriber base), has seen several dates set for the 3G-WiMAX auction, the latest being 'by the end of 2009'!

That experience is enough for anyone to look suspiciously at the '3G auction by the end of 2009', statement by Telecom Minister A Raja.

Has India missed the 3G bus?

A lot of water have flown over India's dream to become 3G enabled. Ten years is not a short period by any means and several industry experts have also opined that India is treading several years behind other nations in terms of 3G.

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Abhay Singhal, co-founder and head, global ad sales, mKhoj, says: “Indeed we are a few years behind other countries with respect to 3G, but India has one of the largest number of mobile phone users which makes it quite interesting market for every content player in the world. The country has always shown tremendous pace in picking up things.”

Debasis Chatterji, CEO, Netxcell Limited, says: “As far as the implementation of 3G is concerned, India definitely lags as we require spectrum for pure voice which is scarce. While most of the operators are going to use the spectrum allocated to them from a 3G perspective for voice, we need 3G for various reasons apart from voice also.”

Singhal expects that the pace at which the new services would be launched in India would be far higher than it has happened in those other countries and in 3-4 years' time-frame, India would be able to catch up with the rest of the world.

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Lack of LTE spectrum: Bane or boon?

India has no spectrum available for the fourth generation mobile technology, Long Term Evolution (LTE). Though the commercial availability of LTE will be no sooner than in 2011, lack of a roadmap is going to harm India in the longer run.

“Having no policy for LTE will be a setback as it is considered a cost-effective technology compared to 3G,” Deepika opines. 

Chatterji from Netxcell also agrees and says: “Having no provision for LTE and will hurt India in the longer run as we are yet to decide upon the spectrum allocation.”

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On a positive note he adds, “We don’t think that it is a set back for us at this point of time. Most international markets except one or two haven't launched LTE and do not have a proven strategy of the business as of now.”

No matter we are spruced up for LTE or not, all eyes are today set on the Telecom Minister's words and India hopes that this one doesn't remain a mere date and end as a dark chapter in the the history of India's race to become 3G enabled.

Also a 3G-enabled India has quite a few enhanced user experiences in store. Want to know that?

Click here: 3G-enabled India: What's in store

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