Advertisement


Advertisement

Thread Rating:
  • 10 Vote(s) - 3.4 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Help Telcos may use 3G spectrum to decongest 2G networks: Study
Advertisement
#1

Revenue from 3G services may not be high BY Shilpa Shree Mumbai Touted as the next big thing for the Indian telecom industry, 3G (third-generation) was supposed to cater to everything digital from videos to games to trading to movies. It was supposed to be the panacea for the woes of telecom firms, struggling with low revenues. However, a new study has pointed out that despite all promises, revenue from 3G value-added services (VAS) many not be as high as expected. This is because "operators might use a part of the 3G spectrum to decongest existing voice networks," the study done by technology consulting firm Frost & Sullivan (F&S) said. Mobile VAS revenues contributed only 7.2 per cent of the total revenue from mobile services in India in 2009, generating $1,259.5 million (around Rs. 5,750 crore), which is expected to reach $4,974.6 million by 2016, according to the study. Acknowledging the revenue opportunities from 3G VAS, Tata Teleservices Ltd (TTSL) Executive President for Mobility Deepak Gulati said, "Voice revenues are anyways flattening," adding, "In the near future, it is the data services that will bring in revenues."


On using 3G spectrum to decongest voice traffic on 2G networks, Gulati said, "The 2G network of Tata Teleservices is not fully used, so our 3G network will be used only for 3G services." The chief operating officer of Aircel Ltd, Gurdeep Singh also said that the company's 2G networks remain underutilised. However, larger telecom players such as Bharti Airtel Ltd, Reliance Communications Ltd, Vodafone Essar Ltd and Idea Cellular Ltd refused to comment on the survey findings. Almost 29 per cent of VAS content available at present is mobile entertainment, including music, games, images, TV and video. "Looking at the statistics, the mobile VAS industry is certainly set to grow and contribute to greater revenues for the operators," said Sangeet Chowfla, chief strategy officer of Comviva, a multinational telecom VAS provider. "This is mainly due to the factors attributed to mobile advertising, m-commerce (mobile commerce), multimedia games, mobile internet and also the rural VAS market." The F&S report also found that there would be an increased focus on the rural and bottom of the pyramid (BOP) customers. As rural and BOP customers bring in more business, voice is expected to become a popular mode of VAS delivery, because of language and ease of use are critical.


The report added, "Pricing of 3G-based VAS offerings will play a key role in the uptake of these services and consequently on the revenues earned by operators from 3G as VAS products." Comviva's Chowfla added, "Whilst operators will continue to offer existing services, such as ringback tones, messaging and infotainment services, there will be an opportunity to offer services that require more video- or image-based content, such as e-medicine, wireless teleconferencing and e-learning. With the rollout, this space will see a lot of change and development and will together help in bringing in more revenues to the telecom industry."

Reply
Thanks given by:
Advertisement
Advertisement




Possibly Related Threads...
Thread Author Replies Views Last Post
  General News: Indian telcos offer world's cheapest data but not the fastest. Here's proof nairrk 0 640 03-27-2018, 11:40 AM
Last Post: nairrk
  General News: DoT plans to allot E, V band spectrum through auction nairrk 0 607 12-18-2017, 12:27 PM
Last Post: nairrk
  Update: UIDAI nod to telcos' blueprint on new SIM reverification modes nairrk 0 521 11-16-2017, 07:42 AM
Last Post: nairrk
  General News: Telcos must inform customers about data usage limits on unlimited BB plans: TRAI nairrk 0 820 11-01-2016, 12:01 PM
Last Post: nairrk
  General News: Smartphone batteries produce over 100 toxic gases: Study nairrk 0 715 10-22-2016, 09:06 AM
Last Post: nairrk
  General News: Apple iPhones, iPads have higher failure rate than Android smartphones: Study rahul1117_kumar 0 469 08-26-2016, 04:30 PM
Last Post: rahul1117_kumar
  General News: More Indians Are Now Buying Smartphones Online: Study charger 0 351 05-19-2016, 10:40 PM
Last Post: charger
  Breaking News: Apple, Reliance plan on bringing VoLTE iPhones on Jio 4G networks rahul1117_kumar 0 415 05-19-2016, 01:17 PM
Last Post: rahul1117_kumar
  Breaking News: Slow networks in India restricting Apple, CEO Tim Cook says rahul1117_kumar 0 392 04-27-2016, 11:52 PM
Last Post: rahul1117_kumar
  General News: Call drops: Telcos earning Rs 250 crore a day but not investing, says TRAI nairrk 0 496 04-22-2016, 08:53 AM
Last Post: nairrk

Forum Jump:


Users browsing this thread: 1 Guest(s)
Advertisement