4G revolution in India: A boom or a bubble?
3G uptake in India hasn't been very impressive with a large
number of users still relying on outdated 2G technology. The reason
behind the slow expansion of 3G is said to be expensive tariff rates,
with telecom operators focussing on improving margins and recovering
costs due to steep spectrum costs. Though the Indian market is projected
to have 100 million 3G users by 2014, it still might not be the most preferred network for end users by then.
Now, however, India is set to witness proliferation of the
fourth-generation wireless data services, or 4G, with Reliance
Industries (RIL), which owns a unified licence for the network, planning
to roll out its services later this year. Also, Bharti Airtel, which
already has launched 4G in select circles, is looking to push its 4G
services with slashed data plans. Videocon is also planning to launch 4G services later this year.
With so much anticipation and hype around 4G, will the fourth-generation telecommunications services revolutionise the Indian data market? What could be the possible challenges to the expansion of 4G? Will the fourth-generation network help India emerge as a qualitative Internet market, instead of a quantitative one?
Affordability is certainly going to be the main mantra for the success of 4G. Reliance's Mukesh Ambani is also counting on the same factor for his company’s 4G network. His company is in talks with Samsung Electronics Co. to launch 4G devices costing less than Rs. 5,000. RIL is also working close with other vendors to launch budget 4G smartphones and other devices.
"Broadband and digital services will no longer be a luxury item - a scarce commodity - to be rationed amongst the privileged few," Ambani, the world's 22nd richest person according to Forbes magazine, told shareholders this month.
It's notable Bharti Airtel has already slashed its 4G data plans by up to 31 percent, and is offering it at almost the same price as 3G. The move is believed to help the operator expand its 4G subscriber base before Reliance Jio rolls out its 4G network.
“Reliance Jio has already suggested offering 4G plans at 2G data tariffs, and the recent data rate cuts are a way for telcos to position themselves for imminent competition,” DNA India quotes Mr. Mahesh Uppal, director, Com First (India) as saying.
With so much anticipation and hype around 4G, will the fourth-generation telecommunications services revolutionise the Indian data market? What could be the possible challenges to the expansion of 4G? Will the fourth-generation network help India emerge as a qualitative Internet market, instead of a quantitative one?
Affordability is certainly going to be the main mantra for the success of 4G. Reliance's Mukesh Ambani is also counting on the same factor for his company’s 4G network. His company is in talks with Samsung Electronics Co. to launch 4G devices costing less than Rs. 5,000. RIL is also working close with other vendors to launch budget 4G smartphones and other devices.
"Broadband and digital services will no longer be a luxury item - a scarce commodity - to be rationed amongst the privileged few," Ambani, the world's 22nd richest person according to Forbes magazine, told shareholders this month.
It's notable Bharti Airtel has already slashed its 4G data plans by up to 31 percent, and is offering it at almost the same price as 3G. The move is believed to help the operator expand its 4G subscriber base before Reliance Jio rolls out its 4G network.
“Reliance Jio has already suggested offering 4G plans at 2G data tariffs, and the recent data rate cuts are a way for telcos to position themselves for imminent competition,” DNA India quotes Mr. Mahesh Uppal, director, Com First (India) as saying.
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