3G India 2005

Bharat Exhibitions held an international conference in Mumbai, India on 3G India 2005. The following are the key highlights from the conference

• The country used the 1G service (analog) till the early 1990s and moved on to 2G/2.5G in the 1990s. 2G is digital in nature using the GSM and the CDMA technology. 2G facilitates both voice and data services. As the number of mobile subscribers grows, the demand for non-voice services increases. Although 2G supports data, it would be insufficient to provide high-end data connectivity. As a result, the country is gearing up to launch 3G services in the next 12 months.
• BSNL, the PSU giant with over 12mn mobile subscribers and 35mn fixed line subscribers is all set to roll out 60mn GSM lines. Of these 60mn, 25% or 15mn would be 3G compatible. The company hopes to achieve a subscriber base of 125mn by 2008, 50% of the subscriber base envisaged by the ministry of communications.
• However, the biggest challenge and concern for the industry at the moment is lack of penetration. The tele-density of the country is very low at 10.66%. The metro tele-density is 31% whereas the rural tele-density is a dismal 2%. In such a scenario, where the basic telephone services are not available to 89% of the population, launching of 3G would be a very costly proposition. A 3G handset would cost anywhere between US $250-275, which would be beyond some people even in the metro cities. As a result, there would be very few takers for this new technology, which could transition India to the next level
• 2GHz spectrum should be allocated to both (Global system for Mobile Communication (GSM) and Code Division Multiple Access (CDMA)) for offering 3G services.