MAKING SENSE OF 3G

This article appeared in The Times of India on 21st May 2010 (Fri).

General About 3G
What is 3G technology and how is it different from 2G?
3G is the third generation of wireless mobile technology which represents an evolution over the existing 2G services provided by operators in India. While 2G networks allow data, text messaging and speech, the 3G technologies allow additional services such as multimedia messaging, customized infotainment, videos, and rich voice
How many countries in the world have 3G networks?
At the last count, nearly 132 countries had 3G networks operational
How many mobile subscribers are there in the world? What percentage has migrated to 3G?
There are nearly 4.7bn mobile subscribers worldwide. Nearly 13% of these have migrated to 3G
What is the growth projection for 3G subscribers in Asia?
One study suggests 570mn 3G subscribers in Asia Pacific by 2013. India is expected to have nearly 6% of this market
Who are the pioneers of 3G technology?
Japan and South Korea are seen as leaders in 3G technology. Additionally, UK, Germany, Italy and US also have widespread usage
Licences In India
How many 3G licences have been given?
Three pan-India 3G licences have been auctioned in 22 circles. In 5 of the 22 circles, a fourth 3G licence has been auctioned. So a total of 71 new 3G licences. BSNL and MTNL already provide 3G services
Why have 3G auctions been delayed?
Till recently, the govt was unable to secure 3G spectrum from the Defence Ministry. The auctions have been delayed more than a year since they were first planned for
Jan 2009
Will competition increase now?
No. Only existing operators have won 3G bidding. In fact, after auctions, further consolidation of the sector is expected within 18 months
Are there rollout obligations for 3G?
Street level coverage in at least 90% service area within 5 years. 50% coverage of district headquarters, of which 15% should be rural areas within 5 yrs Auction Details
What are the payment terms for successful bidders?
Successful bidders will deposit the amount within 10 calendar days of the close of auction, failing which earnest money shall stand forfeited
When will 3G services be available?
BSNL and MTNL already offer 3G services. Other operators may be able to offer 3G services only by end of 2010, but in any case not earlier than Sep 2010
What is the duration of 3G licences?
The right to use 3G spectrum shall be valid for 20 yrs from the effective date. Till the year 2030
Will M&A guidelines apply?
Yes, guidelines as prescribed by DoT. Currently, if two or more operators with 3G spectrum merge, they will be allowed to retain only one 3G spectrum block per service area and have to surrender the remaining
What is Hertz?
Hertz, named after the German physicist Heinrich Hertz, are the measurement of frequency, current, & electricity. Their uses are common in many fields, including sound waves and radiation
1 hertz = 1 cycle per sec (cps) One megahertz is made up of 1 million hertz. In 3G, each operator had bid for 5 MHz of spectrum in the telecom circle(s) of his choice. India has 22 telecom circles