Behavioral Intention for 3G Mobile Internet Technology - Research on Peoples Willingness to Subscribe

Perhaps the most valuable result of all education is the Ability to make yourself do the thing you have to do, when it Ought to be done, whether you like it or not; it is the first Lesson that ought to be learned; and however early a man's Training begins, it is probably the last lesson that he learns Thoroughly. - Thomas H. Huxley, 1825-1895

1 Introduction 1.1 Executive Summary 1.2 Statement of the problem 1.3 Objective of the study 1.4 Hypothesis 1.5 Significance of the study 1.6 Methodology 1.7 Sample Design 1.8 Limitation

2 TeleCommunication in India 2.1 History of TeleCommunication in India 2.2 Indian TeleCommunication Industry 2.3 Major Players 2.4 Current Market Scenario 2.5 Indias Competitive Edge 2.6 Key Trends in TeleCom Industry 2.7 The 2G Spectrum Allocation Scam

The 3G Era

3.1 The Concept of 3G 3.2 History of 3G 3.3 Working of 3G 3.4 3G Phones 3.5 Advantages of 3G 3.6 Applications of 3G 3.7 Issues faced by 3G

3G in India 4.1 The Emergence of 3G in India 4.2 3G Auction 4.3 Future of 3G

Data Analysis and Tabulation

Conclusion

Hypothesis Testing

References Appendix A (Suggestions for further study) Appendix B (Sample of Questionnaire) Bibliography

Introduction

1.1 Executive Summary

This project A Study of Behavioral Intention for 3G Mobile Internet Technology - Research on Peoples Willingness to Subscribe makes a sincere attempt to study the emergence of 3G technology in India and to understand peoples willingness to subscribe to this latest mobile technology. Abundant information has indicated that the proliferation of 3G technology or Mobile Internet allows consumers and businesses to build connectivity by transcending time and place, increasing accessibility, and expanding their social and business networks. The mobile phone is the most widely used electronic device on the planet. Mobile phones are not just devices for occasional use. The usage of this nearly ubiquitous device is rapidly changing away from purely voice communications. The Indian telecommunication industry is one of the fastest growing industries in the world. It is projected that India will have 1.159 billion mobile subscribers by 2013. While there has been an increasing amount of wireless mobile activity, little attention has been given to user acceptance of 3G technology (Mobile Internet) in India. Research on 3G technology acceptance, therefore, will be extremely worthy in providing useful information, especially at this early stage of 3G Mobile Internet development and implementation. Therefore, this study will be primarily beneficial to the mobile service providers since they can understand the innovators and non innovators perception of the service. Furthermore, the results of this study may allow them to better segment and target the market. This project mainly focuses on the emergence of 3G technology in India as well as the Indian TeleCommunication Industry as a whole. It also includes some of the major players in the telecom sector, the current market scenario and the latest trends in the sector. The latest 2G Spectrum Allocation Scam is also elaborated in detail as a part of the study. Furthermore, it includes the working, applications, advantages and issues faced by 3G technology. The details of the 3G Spectrum Allocation Auction also form a part of the study.

1.2 Statement of the Problem

To study the significance 3G technology. To study the peoples perception and thoughts about the newly emerged 3G technology. To understand peoples acceptance and willingness to subscribe to the latest 3G technology.

1.3 Objective of the Study

To study the emergence of 3G technology in India. To understand the perception of people about 3G technology. To understand peoples acceptance and willingness to subscribe to the latest 3G technology. To study the latest trends in the worlds fastest growing telecommunication industry (Indian TeleCommunication Industry)

1.4 Hypothesis
People are quite aware about 3G technology. Mobile internet is gaining importance in the contemporary world. People are willing to subscribe to 3G services in the immediate future. People are willing to spend more for speedy and efficient mobile internet.

The following are the hypotheses of this project:

1.5 Significance of the Study

The project helps us in understanding about the importance of the emerging 3G technology. It facilitates the understanding of peoples thoughts and perceptions about the 3G technology. The project also helps in understanding the Indian TeleCommunication Industry in detail and also the latest trends in the sector. It also includes a detailed study of the latest 2G Spectrum Allocation Scam. This study will be primarily beneficial to the mobile service providers since they can understand the innovators and non innovators perception of the service. Furthermore, the results of this study may allow them to better segment and target the market.

1.6 Methodology
Data Collection Method Primary Data
The data was collected by drafting a questionnaire and thereby interpreted or analyzed by using the Microsoft Excel. The prominent features of the questionnaire were: The questionnaire contained a set of thirteen (13) well structured and organized questions. The questionnaires were filled by fifty (50) respondents. The conclusions were drawn according to their views and opinions. The questionnaire included seven (07) close ended questions (Yes or No) and six (06) multiple choice questions (Alternative Options listed).

Secondary data

Secondary data was collected by the means of Newspapers, Internet, Reports Magazines and Books.

1.7 Sample Design

Fifty (50) respondents were selected from the city of Mumbai to constitute a sample. The sample size was categorized into Male and Female. The sample procedure followed in this study was stratified random sampling. It is a technique generally applied in order to obtain a representable sample. This type of sampling helps in taking equal views from both male and female.

1.8 Limitations
A large number of people could not be contacted for filling up the questionnaire because of lack of time and resources as the survey was conducted by a single student. The survey was carried out on a small scale; the sample size is fifty. The survey was carried out in the city of Mumbai; hence the conclusions and results are restricted to the metropolitan cities because of the typical behaviour and attitude.] Many a times the sample group reveals false information leading to wrong conclusions.

TeleCommunication in India

2.1 History of TeleCommunication in India

Before the introduction of mobile phones
The telephone made a modest entry in India in 1882 with the establishment of telephone exchanges in Calcutta, Bombay and Madras in 1882. Subsequent growth in the Indian telecom sector was relatively slow. Till early 1990s, people had to wait for about 10 years to get a new telephone connection. The number of telephone connections registered a compounded annual growth rate of just over 1% per year and the number of telephone connections rose from 82,000 in 1947 to 8 million in 1994. In order to improve the state of the telecom sector in the country, the Government of India announced a new telecom policy in 1994, through which private investment in the public sector company Videsh Sanchar Nigam Limited (VSNL) was permitted. One of the most significant features of the policy was the decision to launch mobile phone services in the country.

History of Mobile Phone Service in India

Mobile Phone Service was introduced in India in 1995. During the initial years, prices of mobile handsets, tariffs and activation charges were very high and therefore beyond the reach of common people. In 1995, the cost of a mobile handset was about Rs 40,000 and the tariff was as high as Rs 17 per minute. As a result, the growth of mobile phones in India was sluggish and the number of mobile phone subscribers was about 1.6 million in 1999. Since 1997, the government took a number of decisive steps to increase the popularity of mobile phones in the country. Firstly, the government reduced its involvement in deciding the tariffs after the formation of Telecom Regulatory Authority of India in 1997. It also slashed the taxes on mobile phone handsets and services. By 2002, Government reduced its stake in VSNL to 26%. These developments resulted in significant reduction in mobile phone tariffs and made mobile phone affordable to

the middle class people. Today the Indian mobile phone industry has more than 650 million subscribers, and it is the second largest mobile phone industry in the world. India is expected to have more than one billion mobile phone subscribers by 2015. Today Bharti Airtel, Reliance, Tata, Vodafone and Idea, along with BSNL and MTNL are the major players in the Indian mobile phone industry. Amongst them, Bharti Airtel is the largest mobile telecom company in India.

History of mobile phone technology

Attempts to invent a mobile phone had been made since late 1940s at AT&T Bell Labs. Motorola developed the first working model of the mobile phone in the year 1973. However, the first commercial model of the mobile phone was launched in 1979 in Japan. Scandinavian countries like Denmark, Finland, Norway and Sweden followed suit and launched commercial mobile phones in 1981.

2.2 Indian TeleCommunications Industry

The Indian TeleCommunications Industry is one of the fastest growing in the world and India has now become the second largest telecom market in the world. India added 113.26 million new customers in 2008, the largest globally. In fact, in April 2008, India had already overtaken the US as the second largest wireless market. To put this growth into perspective, the countrys cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month. According to the Telecom Regulatory Authority of India (TRAI), the total number of telephone connections (mobile as well as fixed) had touched 385 million as of December 2008, taking the telecom penetration to over 33 per cent. This means that one out of every three Indians has a telephone connection, and telecom companies expect this pace of growth to continue along the years. The overall cellular services revenue in India is projected to grow at a Compound Annual Growth Rate (CAGR) of 18% from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will rise to 60.7% from 19.8% in 2007. The Indian telecommunications industry is on a growth trajectory with the GSM operators adding a record 9.3 million new subscribers in January 2009, taking the total user base to 267.5 million, according to the data released by Cellular Operators Association of India (COAI). India is the second largest telecom market in Asia as well as in the World after China. The Indian telecom network is the sixth largest in the world and the second largest among emerging economies. At current levels, telecom intensiveness of Indian economy measured as the ratio of telecom revenues to Gross Domestic Product (GDP) is 2.1% as compared with over 2.8% in developed economies. Indian telecom sector has undergone a major process of transformation through significant policy reforms. It is projected that the industry will generate revenues worth US$ 43 billion in 2009-10. The Indian rural market is going to be the next big thing for wireless telecom providers

2.3 Major Players

Bharti Airtel is the largest cellular service provider in India, with more than 121 million subscriptions as of October 2010. In India, the company has a 30.7% share of the wireless services market. Bharti Airtel is the world's third largest, single-country mobile operator and fifth largest telecom operator in the world with a subscriber base of over 160 million. The Company also offers fixed line services and broadband services. It offers its telecom services under the brand name Airtel and is headed by Mr Sunil Bharti Mittal. It also provides land line telephone services and broadband Internet access (DSL) in over 96 cities in India. Bharti Airtel is the first Indian telecom service provider to achieve this Cisco Gold Certification.

Reliance Communications, formerly known as Reliance Infocomm, along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). Reliance Communications Limited, founded by Dhirubhai H Ambani (1932 2002), is the flagship company of the Reliance Anil Dhirubhai Ambani Group. Reliance Communications, is India's largest private sector information and communications company, with over 100 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited and National Stock Exchange Limited.

Tata Teleservices Limited (TTSL) is a subsidiary of the Tata Group headquartered in Navi Mumbai, an Indian conglomerate. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. With a total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread across 20 circles. Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has established 3G ready telecom infrastructure. Tata Teleservices Provides mobile services under 3 Brand names: Tata Indicom (CDMA Mobile operator); DoCoMo (GSM Mobile operator); Virgin Mobile (CDMA Mobile operator); Virgin Mobile (GSM Mobile operator); Tata Sky (DTH Satellite TV provider).

Bharat Sanchar Nigam Limited (BSNL) is a state-owned telecommunications company headquartered in New Delhi, India. BSNL is one of the largest cellular service provider, with over 81 million subscribers as of October 2010 and the largest land line telephone provider in India. BSNL is India's oldest and largest Communication Service Provider (CSP). It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by Mahanagar Telephone Nigam Limited (MTNL). As of June 30, 2010 BSNL commanded a customer base of 27.45 million Wireline and 72.69 million Wireless subscribers. BSNL was the first to provide 3G services in the country.

Idea Cellular is a part of Aditya Birla Nuvo, a flagship company of the Aditya Birla Group. With a subscriber base of around 74.5 million, Idea Cellular is the 3rd largest GSM Company in India after Airtel and Vodafone and followed by the state run player BSNL. The wireless telephony company operates in all the 22 telecom circles in India and is based in Mumbai. Ideas footprint currently covers approximately 45% of Indias population and over 50% of the potential telecom market. Revenue (2010) Rs 12,447.08 Crore (US$ 2.83 billion) Operating income (2010) Rs 1,475.87 crore (US$ 335.02 million) Net income (2010) Rs 953.94 crore (US$ 216.54 million)

Vodafone Essar in India is a subsidiary of the Vodafone Group, the worlds leading international mobile communications company. It covers 23 telecom circles in India based in Mumbai. The company now has operations across the country with over 113.77 million customers which amount to around 24.5% of the total market share. Vodafone Essar is the Indian subsidiary of Vodafone Group 67% and Essar Group 33%. It is the second largest mobile phone operator in terms of revenue after Bharti Airtel, and third largest in terms of customers. Vodafone Essar, India's third-largest mobile carrier, will launch third-generation (3G) services in the country in the January-March quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks. Vodafone Essar won 3G licences in nine of 22 telecom zones for Rs. 11617.86 million, and has spent the second highest amount in the May 2010 auction.

2.4 Current Market Scenario

A closer look at Indias growing mobile market
Figure 1: Indias growing mobile market

Source: Telecom Regulatory Authority of India

India has become one of the fastest growing mobile markets in the world and it is currently the second biggest mobile market in the world with fifteen telecom providing services The bar diagram shows the number of subscribers each year. As we can see in the figure above, along the years (2002-2010) the number of mobile subscribers is going on increasing at a tremendous rate. The pie diagram indicates the market share of the various telecom service providers in India. The total number of subscribers in the country is approximately 617.5 million (as on May 2010). As we can conclude from the pie diagram, Bharti Airtel is the largest cellular service provider in India followed by Reliance, Vodafone and others.

Major Investments
The booming domestic telecom market has been attracting huge amounts of investment which is likely to accelerate with the entry of new players and launch of new services. Buoyed by the rapid surge in the subscriber base, huge investments are being made into this industry. The Russian government is likely to pick up equity amounting to US$ 670 millionUS$ 700 million in Sistema Shyam TeleServices Ltd (SSTL), a joint venture between Russia- based telecom major Sistema and Shyam Group in India, by the end of this financial year. SSTL is also planning to invest US$ 5.5 billion over the next 5 years in India. The Norway based telecom operator Telenor has bought a 60% stake in Unitech Wireless for US$ 1.23 billion. The Japanese telecom major NTT DoCoMo acquired a 27.31% equity capital of Tata Teleservices for about US$ 2.6 billion in November 2008. Bahrain's Batelco has signed a deal to buy 49 per cent in Chennai-based S-Tel, a GSM service provider, for US$ 225 million. BSNL, India's leading telecom company in revenue terms, will put in about US$ 1.16 billion in its WiMax project. Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million. Telecom operator Aircel, which launched GSM mobile services in Bangalore in February 2009, plans to invest US$ 220.58 million to set up base stations across the state.

2.5 Indias Competitive Advantage

An analysis of the Indian telecom industry under the Porters Diamond Model reveals that India offers a competitive advantage for firms operating in the country.

Figure 2

India is the fastest growing free market democracy in the world. It has a mature and dynamic private sector, which accounts for 75% of Indias GDP, and a market with enormous potential due to its large size and diversity. It is also expected to achieve the highest growth rate among the BRIC countries (Brazil, Russia, India and China). India offers significant business opportunities to the services, as well as the manufacturing sectors. This is because India offers benefits such as cost advantage in product development and back office processing and the large-scale availability of skilled English speaking professionals. The middle class population is also a significant market for any business entity. AT Kearney ranked India as the second-most attractive democracy in its FDI confidence index. The success of MNCs is a proof that India is an attractive investment destination. Indias huge domestic market and buoyant economic growth have always attracted foreign investors.

Some of the key advantages of investing in India are outlined below.

Stable Economic Outlook Large Market Potential Large Talent Pool Low Labour Cost

Stable Economic Outlook

A decade of reforms has opened the country to greater competition and spurred industries to become more efficient. India is currently the fourth-largest economy on PPP basis and is well positioned on a continuously increasing growth curve. Indias emergence as a leading destination for foreign investment is a result of positive indicators such as a stable 6 per cent annual growth, rising foreign exchange reserves of over US$ 266.18 billion (July 24th 2009) and Foreign Direct Investment (FDI) of US$ 15 billion. Goldman Sachs had earlier predicted that India will become the third-largest economy in the world. However, it has now revised its previous estimates and claims that by 2050, India will even surpass the US and become the second-largest economy after China. The countrys economic growth has become more attractive due to the rising share of the services sector in the GDP.

Large Market Potential

Around 30-40 million people in India join the middle class every year. The countrys upper middle class spends 6 percent of its earnings on telecom services. India is one of the largest consumer markets in the world. Due to rapid economic growth and rise in disposable income, the spending power of consumers is increasing rapidly. It has been forecasted that 15 years down the line, Indians will be approximately four times richer than they are today. As per this forecast, Indians will purchase five times more cars and consume three times more crude oil than they do today. According to the 2001 census, about 54 per cent of the countrys total population was below 25 years of age. By 2013, another 200 million people will be joining the league, representing an exponential growth in the consuming class. India will become a large consumer of world resources (natural or manmade), thereby offering numerous opportunities to marketers around the globe. Approximately 33% of Indias population will be residing in urban areas by 2026, as against 28% in 2001.

Large Talent Pool

The working age population is expected to rise by 83% by 2026. India has over 380 universities and about 1,500 research institutes, which churn out approximately 200,000 engineers, 300,000 post graduates, 2,100,000 other graduates and around 9,000 PhDs. This large base of skilled manpower offers unparalleled advantages to the companies operating in India. As a result, many multinational companies have either established operation hubs in India to leverage this sizeable talent pool, or they have outsourced their work to a third party in India. The numerous BPOs and KPOs flourishing in India are a direct consequence of companies choosing the latter option.

Low Labour Cost

CII estimates that manufactured product outsourcing accounted for US$ 10 billion in 2007. The value will escalate to US$ 50 billion by 2015. India has one of the lowest labour costs among the developing countries, which is the foremost factor for attracting multinational giants in every sector. The Ministry of Commerce, Government of India, has estimated that off shoring operations to India can provide a cost benefit of up to 40 to 60 per cent, as compared to developed countries. The country has also emerged as a major R&D hub with more than hundred Fortune 500 companies based in India. An apt example is Nokia, which has set up its manufacturing operations in India considering the long term sustainable demand for mobile telephony. The company believes that this initiative will help the company in reducing time to market and respond better to customer requirements. It has pumped in US$ 150 million into its Chennai facility.

2.6 Key Trends in TeleCom Industry

Mobile Number portability (MNP)
One of the most frequent definitions that prevail in the telecom circles for number portability is: "Number portability is a circuit switch telecommunications network feature that enables end users to retain their telephone numbers when changing service providers, service types, and/or locations." Why mobile number portability (MNP)? When fully implemented nationwide by both wire line and wireless providers, portability will eliminate one of the most significant deterrents to changing service, providing unprecedented convenience for consumers and encouraging unrestrained competition in the telecommunications industry. In short, this is the best method to increase the efficiency of the service provider by increasing the competition, thereby ensuring better services in all respects. From the subscribers perspective, this is a deceptively simple and very welcome change, because they can change wireless service providers without worrying about notifying friends, family and business contacts that their wireless number is changing. In addition, being able to port a number from one provider to another eliminates the hassle and expenses of changing business cards, stationery, invoices and other materials for businesses. From the wireless carriers perspective the change is anything, but simple. Virtually all of wireless carriers systems are affected. Especially any system that relies on mobile identity numbers (MINs) or mobile directory numbers (MDNs) will be affected. Examples of critical systems and processes that would be affected are: billing, customer service, order activation, call delivery, roamer registration and support, short messages service center, directory assistance, caller ID, calling name presentation, switches, maintenance and CSC systems, home location registers (HLRs), and visiting location registers (VLRs).

The Inhibitors Huge Costs

One of the most common barriers in MNP implementation, within any country, has been the implementation cost. Service Providers have been constantly bargaining for time, based on the cost factor, from their respective governments. Referring to the recent example of the US, where each of the large carriers would need to spend $5060 million to institute the service and an equivalent sum to maintain it. The FCC on this plea gave wireless carriers in the US another year, i.e., till November 2003, for resolving implementation issues. The experience of developed countries exhibits that local number portability for fixed wire line was introduced within two to three years of introduction of competition to incumbent state TeleCos. The cost estimate for the implementation of MNP in developed nations like the US can be very helpful for the other countries, who wish to think on the lines of number portability. To add on increased marketing costs are to be realized as the carriers look to lock up their current base before number portability is implemented, and then aggressively pursue the customers of other carriers thereafter.

Customer Retention/Increased Competition

Every subscriber in a race to retain its customer would like to offer its customers best services so as to save them from porting. Its like a blessing in disguise for the customers, as they would get better service irrespective of the carrier, albeit with the same number.

Infrastructure Upgrade
To support MNP, a company has to upgrade both its hardware and software capabilities, which will amount to some cost. Softwares need to be upgraded to provide proper routing of calls. The carriers need to upgrade their networks to handle portability requests. The provider, which has its portability compatible would be expected to attract maximum customers and will emerge as the winner.

Cost Recovery and Bill Reconciliation/Query Processing

When a customer plans to shift, the Old Service Provider (OSP) has to perform a query to identify if there are any billing amounts pending, which they need to recover before the subscriber moves to the new service provider (NSP)

Wimax v/s 3G
The WiMAX Vs 3G cellular showdown is poised to become one of the next great market battles in the telecom industry. Fortunes will be made and lost in this battle, and the user experience of the Internet will be irreversibly changed in the process. 3G scores for voice; Wimax may lead to increased broadband penetration. With the Department of Telecommunications gearing up for simultaneous release of 3G and WiMax spectrum, analysts expect the two emerging wireless technologies to battle it out for supremacy. WiMAX or Worldwide Interoperability for Microwave Access is a telecom technology that enables wireless transmission of data. The technology is available as IEEE 802.16D (fixed) and IEEE 802.16E (mobile). It offers downloads of up to 70 Mbps as compared to the 15 Mbps provided by 3G. Mobile WiMax offers download speeds of around 20 Mbps. In India, companies like Tata Communications Internet Services, Intel, Bharat Sanchar Nigam Ltd, Bharti Airtel and Reliance Communications are the proponents of WiMax. Most of the companies have had beta-runs of the technology. According to a top official with a service provider, telecom service providers are in various stages of WiMax implementation. Some companies have commercially launched fixed WiMax services in certain cities. While opponents of WiMax say currently it cannot be used for mobile applications, the first mobile WiMax network was introduced in Italy this July. Another reason for the industry pinning its hopes on WiMax is its ability to increase the broadband penetration. WiMax makes huge sense for companies as it enables them to provide cheaper mobile internet and broadband services, in turn, increasing the internet penetration. However, this will have an adverse impact on services like currently used GPRS and email.

2.7 The 2G Spectrum Allocation Scam

The 2G Spectrum Allocation Scam, considered as the mother of all scam in India, caused more than Rs 60,000 crores loss to public exchequer exposes the vulnerability of prevailing laws of the Nation, at the whims and fancies of political middlemen nexus. The word Spectrum simply means the allotment of Electro Magnetic Waves, the property of a Nation to the mobile telephone operators as well as to the others in the communication industry. The entire scam broke out during the dubious decisions taken by the Telecom Minister A Raja, by allotting 2G (second generation) spectrum to new entrants in the telecom sector at damn cheap price. The whole procedure lacks cabinet approval, while such a huge deal seeks mandatory approval of Cabinet Committee on Economic Affairs. The Spectrum was allotted in 2008 beginning at a price fixed in 2001, violating the Telecom Regulatory Authority of India's vehement objection. More over there was no auction, the license were gifted on a first come first serve method. The license fee fixed in 2001, where India had only four million subscribers, were simply applied to when spectrum licenses were granted in 2008 also, ignoring the fact that the subscribers number had crossed 300 million. Nothing prevented Minister Raja to 'gift' licenses to the mobile companies at throw away prices, in spite of objections by TRAI Chairman Nripendra Mishra and Finance Ministry. There is joke in the Telecom sector on the basic root of the spectrum controversy. When Dayanidhi Maran was thrown out of the Telecom Ministry on May 2007, the then Minister for Environment and Forests Raja entered the Sanchar Bhavan, the head quarters of the Telecom Ministry along with the real-estate brokers of Parayavaran Bhavan (Head Quarters of Environment Ministry). According to telecom officials, this spectrum scam is the entry of real estate brokers in the telecom sector or tussle in sharing of the scarce electromagnetic waves (spectrum) between the existing telecom brokers and new real estate

brokers. The joke became a fact, when real estate companies Swan and Unitech bagged the spectrum license at a throw away price and offloaded their shares at a whopping price to multinational telecom giants. The Swan Telecom bagged the license for Rs 1537 crore for operating in 13 circles. Within months (September) it sold its 45 per cent of shares to Etisalat, the telecom giant in UAE for 900 million US dollars (Approximately Rs 4500 crore). Similarly, the Unitech, another real estate company too entered into a bumper deal, without investing anything in telecom infrastructure. The company got license to operate in 22 circles for Rs 1651 crore. Within weeks, it sold 60 per cent shares for Rs 6120 to the Norwegian company Telenor, who is currently a major telecom player in Pakistan and Bangladesh. The way in which these two controversial real estate companies bagged the telecom licenses can be compared to the DDA flat allotments or other real estate allotments in fictitious names. In a crucial strategic sector like telecom the Unitech gave application for licenses in several names. They had applied in the names of Unitech Infrastructure, Unitech Builders and Estates, Aska Projects, Nahan Properties, Hudson properties, Volga Properties, Adonis Projects and Azare properties. But they were able to merge all their licenses, when Raja notified another dubious notification. Swan Telecom, floated just two years ago, earlier known, Swan Capital. Anil Ambani earlier owned this company. Ambani had submitted for GSM license in January 2007, when his Reliance Mobile was permitted to operate only CDMA system. When dual policy was declared, Ambani lost interest in Swan, as he can operate both technologies through Reliance. This company was then taken over by Maharashtra based real estate entrepreneurs Shahid Balwa and Vinod Goenka of Dynamix Balwa group.

There are rumours in the telecom sector that the takeover real estate businessmen were felicitated by Raja. Shareholding pattern of Swan coincides with zoology, where the ownership goes to Tiger Trustees, which controls Parrot Investments in Mauritius, which are owned by Zebra Investments in off shore money parking islands in the Indian Ocean. When all allegations broke out, Raja kept saying he was keeping the rulebook, what his predecessors had followed from 1994. He justified his acts for breaking the cartelization in the telecom sector and claimed 'aam admi' would benefit by his decisions. Even his mentor Karunanidhi rubbished the allegations that the 'leaders of certain political parties can't tolerate the rise of a humble Dalit'. The Pioneer's series of investigative reports became a blow to Raja's pretence of innocence. His money parking methods by floating companies in the name of close relatives is now open. After becoming the Union Minister in 2004, Raja's close relatives started real estate companies. The real estate companies Green House Promoters, Equaas Estates, Kovai Shelters Promoters are filled with his brothers, nephews and nieces as Directors of the Board. He even put his wife MA Parameswari in the board of Green House and Equaas Estates, by violating the service rules and code of conduct of ministers. As a Cabinet Minister, Raja has to inform the Prime Minister on his wife's business and file a mandatory affidavit that there is no clash of interest in the discharge of his duties. Raja's now prefers to say that all the entries in the Registrar of Companies are wrong and he and his wife were unaware that, she was a director. The Equaas Estates' domestic turn over in the very first years show more than Rs 755 crore, which they now prefer to call a wrong entry like Satyam Computer Raju's confession. Green House has even opened an office in Singapore, violating the foreign exchange norms. In Kovai Shelters, one director Dr R Sridhar, nephew of Raja is holding 15% shares, while holding a Class 1 officer post in the Ministry of Environment

The Pioneer reported on December 15, quoting highly placed sources in the Telecom Ministry on the plan of Swan Telecom to acquire 49 shares in Raja's relative's Green House. But this move was aborted and the money parking took a different route. The documents filed with Registrar of Companies, Mumbai reveal the mysterious allotment of shares to Tamil Nadu based businessmen in Swan. On December 17, 2008 the Swan has allotted Rs 380 Cr worth shares to Chennai based Genex Exim Ventures. This company was floated four months ago with just Rs 1 Lakh capital. Earlier, when the spectrum controversy broke out, Raja used to defend that the Swan and Unitech belong to Maharashtra and Delhi and no person from Tamil Nadu was associated with these companies. According to documents filed with the Registrar of Companies in Chennai, Genex was incorporated in September 17, 2008 with two directors, Mohammed Hassan (58) and Ahamed Shakir (41). The company was represented by Ahmed Syed Salahuddin (32) on the board of Swan. All three of them belong to Kilukarai, a small coastal village in Ramanathapuram district in Tamil Nadu. The Tamil Nadu link now gets further strengthened. Ahmed Syed Salahuddin is the younger son of Syed Mohammed Salahuddin, the NRI business tycoon heading the Dubai based real estate conglomerate ETA Ascon Star Group, which in turn began its Indian operations in 2006 by floating several real estate firms across the state. Raja was the then Union Environment Minister and his party the DMK assumed power in Tamil Nadu. The ETA Group entered into a MoU with the Tamil Nadu Government for setting up an IT Economic Special Zone worth Rs 3750 crore, when A Raja became the Union Telecom Minister in May 2007.

Tamil Nadu Chief Minister M Karunanidhi was present at the much-hyped MoU signing ceremony for the project proposed at Kancheepuram, near Chennai on a nearly 500 acre plot.

It is mysterious that a large business group should enter Swan's board through a company with a meager one lakh paid up capital. Incidentally, Genex Exim, having acquired more than Rs.380 Cr of Swan Telecom shares, has not filed any document with the authorities to show their source of income. Raja's favoritsm towards the Swan was exposed in the unprecedented deal with the state owned BSNL. On September 13, 2008 the BSNL had entered an unprecedented deal with Swan. The Intra Circle Roaming deal signed with the Swan was literally silent on the finance part. When controversies broke out the BSNL Chairman and Managing Director Kuldeep Goyal preferred to coin a new terminology for the deal. 'The Limited MoU' described by him is a day light robbery of public assets. Raja shunted out all the senior officials in the BSNL and Wireless Planning Coordination (WPC) wing of Telecom Department who objected the favoritism to the Swan. BSNL has never entered into Intra Circle Roaming deal with any operator till date. With this deal, the Swan could use the spectrum, communication towers and the entire network of BSNL, without any cost. Though the BSNL management suggested charging 52 paise per call, it was mysteriously absent in the MoU. The BSNL was forced to sign this deal, just 10 days before the sale of Swan's shares to Etisalat for 900 million US dollars. The deal literally helped the Swan to pocket huge money, without investing anything. Nothing happened, though the top telecom officials alerted the Prime Minister. Even a Congress MP Dharam Pal Sabharwal wrote to the Prime Minister on this controversial incident on November 2008. However, no action was taken. According to the letter written to the Prime Minister by the CPI (M) politburo member Sitaram Yechury in February 2008, clearly warns the 'scam in the offing', when more than 575 real estate companies and stock broking firms approached the telecom ministry for spectrum license. Even after misleading the Parliament, Raja kept saying he had the concurrence of Prime Minister Raja blatantly lied to the Parliament that his action on 2G-spectrum allocation was never objected by TRAI or Finance Ministry. At present Raja is eager to allot 3G (Third Generation) spectrum before his tenure.

But his attempts were foiled after the Government had decided to refer the 3G auction to Group of Ministers (GoM). The auction was earlier scheduled on January 16, and shifted to January 30 and now deferred indefinitely, after the intervention of Cabinet Secretary, who suggested a 'thorough study'. But the current developments show that the auction may not take place during the tenure of this government. Now the question remains, who authorized Raja to announce the auction dates in advance, before getting Cabinet clearance? Though aware of Raja's daylight robbery at every stage, the compulsions of coalition politics, kept the Prime Minister Manmohan Singh to sit in the gallery as a mute spectator.

Press Release

Raja resigns as Telecom Minister Regulation Policy By: Telecom Yatra | New Delhi, November 15, 2010 Yielding to relentless pressure, controversial A Raja has finally resigned as Telecom Minister after being ordered to do so by his party. He has been under tremendous pressure to put his paper in the wake of allegations that he caused a loss of Rs.1.76 lakh crore to the exchequer while allocating 2G Spectrum two years ago. Raja who got the telecom portfolio after the exit of Dayanidhi Maran in 2007 and retained it after the May, 2009 elections, drove to Prime Minister's residence late tonight to hand in his resignation after coming back from Chennai. "In order to avoid embarrassment to the Government and maintain peace and harmony in Parliament, my leader (DMK chief M Karunanidhi) has advised me to resign," Raja said. After meeting the Prime Minister, Raja, told reporters that "I have tendered my resignation to the PM to avoid further embarrassment to the government and avoid disruption of proceedings in Parliament." "That does not mean I am accepting everything. I will come clean and I will prove that I did everything according to the law. I wanted to send a message across to the people. Whatever I have done is in accordance with the rules. I will prove it," he said. The resignation came ahead of tomorrow's Supreme Court hearing of two petitions alleging involvement of Raja in the spectrum scam. Ironically, Raja had told reporters at the Chennai airport before leaving for Delhi that, "There is no question of my resigning and there is no need for it."The opposition has been demanding removal of Raja after the government auditor CAG is believed to have indicted the minister for not distributing 2G Spectrum in a transparent manner resulting in a revenue loss of over Rs.1.76 lakh crore.

The 3G Era

3.1 The Concept of 3G

3G refers to the third generation of mobile telephony (that is, cellular) technology. It is a form of technology that is mostly used in many mobile phones today. As the latest trend in mobile phones, 3G technology ushers in a whole new perspective on what people can do with their mobile phones. Gone are the days when mobiles were used only to call or send SMS messages. With the introduction of 3G technology, various 3G mobile phones offer plenty of interesting and useful features. 3G mobiles basically combine the key features of a mobile, a TV, and a laptop computer. Because of the many possibilities 3G can offer to mobile phone users, accessing and transferring important data becomes faster and more convenient. Moreover, 3G is not only a recreational technology that allows you to watch your favorite movie or TV show anytime, anywhere. This technology can also support flexible working practices. If your work requires you to be on the road most of the time, a mobile phone with 3G services can work wonders for you. You don't have to access a PC in order to read an important email from your boss or from your client. Through 3G technology, you can simply browse through your mobile phone and access your business email by pushing some buttons on the keypad. Specifically, 3G is a radio communications type of technology with its standards based on the International Telecommunication Union (ITU) standards. The ITU defined the third generation (3G) of mobile telephony standards as IMT 2000 to facilitate growth, increase bandwidth, and support more diverse applications. 3G which is considered as the next generation of mobile communication systems, can enhance services like multimedia, high speed mobile broadband, easy internet access and one can also view video footage in their handsets. 3G technology offers various possibilities when it comes to data transfer and access through the Internet. 3G technology allows you to enjoy seamless video conferencing and mainstreaming.

3G mobiles can introduce more flexible business practices. It can be used to send large amounts of video or voice data and incorporate fax services. Since 3G technology offers high speed Internet connection and a broad bandwidth, 3G mobile phones are multimedia friendly. With these enhanced facilities one can make video calls easily, watch live TV, access high speed internet, receive emails and also download music tracks. One can even download videos and songs easily at a faster rate, use live streaming, news and current affairs, contents of sports and also video messaging. The Third Generation, as the name suggests, follows two earlier generations. The first generation (1G) began in the early 80's with the commercial deployment of Advanced Mobile Phone Service (AMPS) cellular networks. Early AMPS networks used Frequency Division Multiplexing Access (FDMA) to carry analog voice over channels in the 800 MHz frequency band. The second generation (2G) emerged in the 90's when mobile operators deployed two competing digital voice standards. In North America, some operators adopted IS-95, which used Code Division Multiple Access (CDMA) to multiplex up to 64 calls per channel in the 800 MHz band. Across the world, many operators adopted the Global System for Mobile communication (GSM) standard, which used Time Division Multiple Access (TDMA) to multiplex up to 8 calls per channel in the 900 and 1800 MHz bands. 3G has more functionality as compared to 2G and 2.5G services. 3G allows speech and data services simultaneously and also allows data rates at higher speeds. However, to get from 2G to 3G, mobile operators had to make "evolutionary" upgrades to existing networks while simultaneously planning their "revolutionary" new mobile broadband networks. This lead to the establishment of two distinct 3G families: 3GPP and 3GPP2. The 3rd Generation Partnership Project (3GPP) was formed in 1998 to foster deployment of 3G networks that descended from GSM. 3GPP technologies evolved as follows. General Packet Radio Service (GPRS) offered speeds up to 114 Kbps. Enhanced Data Rates for Global Evolution (EDGE) reached up to 384 Kbps. UMTS Wideband CDMA (WCDMA) offered downlink speeds up to 1.92 Mbps.

 High Speed Downlink Packet Access (HSDPA) boosted the downlink to14Mbps. LTE Evolved UMTS Terrestrial Radio Access (E-UTRA) is aiming for 100 Mbps

Need for 3G
Three G technology came about because network providers had to cope with the ever increasing demands of consumers. With technology upgrades being regularly implemented in every technology, the need to implement this type of technology that catered to such demands was foreseen. Thus, 3G technology for mobile communication was in store to be the next big thing for its consumers.

Application
Three G wireless technology offers high speed transmissions, advanced multimedia access and worldwide roaming. Users can access features such as downloading videos, listening to music on the Internet, high speed file sharing, multimedia uploading and downloading and voice centric services. This is one of the main reasons for its wide popularity

Operation
Three G operates in the radio spectrum between 400Mhz and 3Ghz. It employs a process called CDMA (Code Division Multiple Access), a spectrum technology that utilizes a spread concept. When signals move between cell towers, they perform what's called a 'soft hand' off, which allows it to communicate with more than one station at a time. The military has used this for quite some time because of its compatibility with encrypted transmissions.

3.2 History of 3G
The first pre commercial 3G network was launched by NTT DoCoMo in Japan branded FOMA, in May 2001 on a prerelease of WCDMA technology. The first commercial launch of 3G was also by NTT DoCoMo in Japan on 1 October 2001, although it was initially somewhat limited in scope; broader availability was delayed by apparent concerns over reliability. The second network to go commercially live was by SK Telecom in South Korea on the 1x EV-DO technology in January 2002. By May 2002 the second South Korean 3G network was by KT on EV-DO and thus the Koreans were the first to see competition among 3G operators. The first European pre commercial network was at the Isle of Man by Manx Telecom, the operator then owned by British Telecom, and the first commercial network in Europe was opened for business by Telenor in December 2001 with no commercial handsets and thus no paying customers. These were both on the WCDMA technology. The first commercial United States 3G network was by Monet Mobile Networks, on CDMA2000 1x EV-DO technology, but this network provider later shut down operations. The second 3G network operator in the USA was Verizon Wireless in October 2003 also on CDMA2000 1x EV-DO. AT&T Mobility is also a true 3G network, having completed its upgrade of the 3G network to HSUPA. The first pre commercial demonstration network in the southern hemisphere was built in Adelaide, South Australia by m.Net Corporation in February 2002 using UMTS on 2100 MHz. This was a demonstration network for the 2002 IT World Congress. The first commercial 3G network was launched by Hutchison Telecommunications branded as Three in March 2003. Emtel Launched the first 3G network in Africa By June 2007, the 200 millionth 3G subscriber had been connected. Out of 3 billion mobile phone subscriptions worldwide this is only 6.7%. In the countries where 3G was launched first i.e. Japan and South Korea, 3G penetration is over 70%. In Europe, the leading country is Italy, where one third of its subscribers shifted to

3G. Other countries leading in usage of 3G Technology include UK, Austria, Australia and Singapore at a 20% migration level.

Evolution of 3G Technology
1G First generation wireless telephone technology, cell phones. Analog system for mobile communications saw two key improvements during the 1970s: the invention of the microprocessor and the digitization of the control link between the mobile phone and the cell site. 2G - Digital cellular systems were first developed at the end of the 1980s. These systems digitized not only the control link but also the voice signal. The new system provided better quality and higher capacity at lower cost to consumers. Digital mobile phones, including those that use GSM, CDMA or TDMA networks, are the second generation phones. 2G networks were built mainly for voice data and slow transmission. They offer data transfer rates ranging from 9.6 kb/s to 19.2 kb/s. 2.5G - Technologies such as i-mode data services, camera phones, high speed circuit switched data (HSCSD) and General packet radio service (GPRS) that provide some functionality domains like 3G networks, but without the full transition to 3G network. Interim hardware and software solutions are emerging that promise to have real or perceived data transfer rates ranging from 56 kb/s to 170 kb/s. 3G The 3G (UMTS and CDMA2000) research and development projects started way back in 1992. 3G digital phone networks have a nominal maximum data rate of 2 Mb/s, which can handle streaming video, two way voice over IP, and Internet content with high-quality graphics and plug-ins to a wireless phone. 4G - 4G refers to the fourth generation of cellular wireless standards. It is a successor to 3G and 2G families of standards. A 4G system is expected to provide a comprehensive and secure all IP based solution where facilities such as ultrabroadband (giga bite speed such as 100+ mbps) Internet access, IP telephony, gaming services, and streamed multimedia may be provided to users.

3.3 Working of 3G
3G enabled devices including phones and laptops work by sending and receiving radio signals to and from base stations (sometimes known as masts). Base stations link individual phones into the rest of the mobile and landline networks. Base stations are low power radio transmitters and need to be located in the areas they are intended to serve. They provide coverage to a geographical area known as a cell. These cells need to overlap to enable seamless coverage and to ensure a user does not lose connection to the network when on the move. Radio waves used in mobile telecommunications form part of the electromagnetic spectrum. Radio waves used to deliver 3G services are transmitted at a slightly higher frequency than for 2G and travel a shorter distance. As a result the coverage area or cell size for a 3G base station is smaller than for a 2G site. Furthermore, as user demand increases in a particular cell, the size of that cell shrinks making an overlap even more essential. Due to the advanced technology, the location of cell sites is even more critical with 3G networks to avoid interference between adjacent cells. 3G is a packet switched technology, much like the internet. It works on some basic principles of Radio Transmission Technologies (RTTs) like: Simplex and Duplex, TDD and FDD, Symmetric and Asymmetric transmission, 3G Geographical Cells.

Detailed working of 3G Technology Simplex Vs Duplex

When people use walkie talkie radios to communicate, only one person can talk at a time (the person doing the talking has to press a button). This is because walkie talkie radios only use one communication frequency - a form of communication known as simplex. Using a walkie-talkie you have to push a button to talk one-way. Of course, this is not how mobile phones work. Mobile phones allow simultaneous two-way transfer of data - a situation known as duplex (if more than two data streams can be transmitted, it is called multiplex): The communication channel from the base station to the mobile device is called the downlink, and the communication from the mobile device back to the base station is called the uplink. There are two possible methods for duplex i.e. TDD and FDD.

TDD Vs FDD
Wireless duplexing has been traditionally implemented by dedicating two separate frequency bands: one band for the uplink and one band for the downlink (this arrangement of frequency bands is called paired spectrum). This technique is called Frequency Division Duplex, or FDD. The two bands are separated by a "guard band" which provides isolation of the two signals: Uplink and Downlink.

Duplex communications can also be achieved in time rather than by frequency. In this approach, the uplink and the downlink operate on the same frequency, but they are switched very rapidly: one moment the channel is sending the uplink signal, the next moment the channel is sending the downlink signal. Because this switching is performed very rapidly, it does appear that one channel is acting as both an uplink and a downlink at the same time. This is called Time Division Duplex, or TDD. TDD requires a guard time instead of a guard band between transmit and receive streams.

Symmetric Transmission Vs Asymmetric Transmission

Data transmission is symmetric if the data in the downlink and the data in the uplink is transmitted at the same data rate. This will probably be the case for voice transmission - the same amount of data is sent both ways. However, for internet connections or broadcast data (e.g., streaming video), it is likely that more data will be sent from the server to the mobile device (the downlink).

FDD transmission is not so well suited for asymmetric applications as it uses equal frequency bands for the uplink and the downlink (a waste of valuable spectrum). On the other hand, TDD does not have this fixed structure, and its flexible bandwidth allocation is well-suited to asymmetric applications, e.g., the internet (see this PDF file for more details). For example, TDD can be configured to provide 384kbps for the downlink (the direction of the major data transfer), and 64kbps for the uplink (where the traffic largely comprises requests for information and acknowledgements). See this PDF file for more details.

Macro Cells, Micro Cells, and Pico Cells

The 3G network might be divided up in hierarchical fashion: Macro cell - the area of largest coverage, e.g., an entire city. Micro cell - the area of intermediate coverage, e.g., a city centre. Pico cell - the area of smallest coverage, e.g., a "hot spot" in a hotel or airport.

Why is there this sub-division of regions? It is because smaller regions (shorter ranges) allow higher user density and faster transmission rates. This is why they are called "hot spots". TDD mode does not allow long range transmission (the delays incurred would cause interference between the uplink and the downlink). For this reason, TDD mode can only be used in environments where the propagation delay is small (pico cells). As was explained in the previous section on symmetric transmission vs. asymmetric transmission, TDD mode is highly efficient for transmission of internet data in pico cells.

TDMA vs. CDMA

We have considered how a mobile phone can send and receive calls at the same time (via an uplink and a downlink). Now we will examine how many users can be multiplexed into the same channel (i.e., share the channel) without getting interference from other users, a capability called multiple access. For 3G technology, there are basically two competing technologies to achieve multiple access: TDMA and CDMA. TDMA is Time Division Multiple Access. It works by dividing a single radio frequency into many small time slots. Each caller is assigned a specific time slot for transmission. Again, because of the rapid switching, each caller has the impression of having exclusive use of the channel. CDMA is Code Division Multiple Access. CDMA works by giving each user a unique code. The signals from all the users can then be spread over a wide frequency band. The transmitting frequency for any one user is not fixed but is allowed to vary within the limits of the band. The receiver has knowledge of the sender's unique code, and is therefore able to extract the correct signal no matter what the frequency. This technique of spreading a signal over a wide frequency band is known as spread spectrum. The advantage of spread spectrum is that it is resistant to interference - if a source of interference blocks one frequency, the signal can still get through on another frequency. Spread spectrum signals are therefore difficult to jam, and it is not surprising that this technology was developed for military uses. Finally, let's consider another robust technology originally developed by the military which is finding application with 3G: packet switching.

Circuit Switching vs. Packet Switching

Traditional connections for voice communications require a physical path connecting the users at the two ends of the line, and that path stays open until the conversation ends. This method of connecting a transmitter and receiver by giving them exclusive access to a direct connection is called circuit switching.

Most modern networking technology is radically different from this traditional model because it uses packet data. Packet data is information which is: Chopped into pieces (packets), Given a destination address, Mixed with other data from other sources, Transmitted over a line with all the other data, Reconstituted at the other end. Packet-switched networks chop the telephone conversation into discrete "packets" of data like pieces in a jigsaw puzzle, and those pieces are reassembled to recreate the original conversation. Packet data was originally developed as the technology behind the Internet. The major part of a packet's contents is reserved for the data to be transmitted. This part is called the payload. In general, the data to be transmitted is arbitrarily chopped-up into payloads of the same size. At the start of the packet is a smaller area called a header. The header is vital because the header contains the address of the packet's intended recipient. This means that packets from many different phone users can be mixed into the same transmission channel, and correctly sorted at the other end. There is no longer a need for a constant, exclusive, direct channel between the sender and the receiver. Packet data is added to the channel only when there is something to send, and the user is only charged for the amount of data sent. For example, when reading a small article, the user will only pay for what's been sent or received. However, both the sender and the receiver get the impression of a communications channel which is "always on". On the downside, packets can only be added to the channel where there is an empty slot in the channel, leading to the fact that a guaranteed speed cannot be given. The resultant delays pose a problem for voice transmission over packet networks, and are the reason why internet pages can be slow to load.

Graphical Representation of working of 3G

3.4 3G Phones
If one wants to enjoy the benefits of the 3G services, then he/she must make sure that the phone is 3G enabled/compatible because a 2G/2.5G phone cannot make use of 3G services even if the 3G service is activated by the service provider. Here is the list of 3G ready mobile phones available in Indian market currently.

3.5 Advantages of 3G Technology

Perform all those functions that they perform at present with their mobile devices but at much higher speed than before. Provides them with faster connectivity, faster internet access, and music entertainment with improved quality. Can avail the benefits of video calling. Clarity is better and the facility can be enjoyed as long as both are using the 3G technology. Access any site on the Internet by using your phone as a modem for computer or laptop and mail the important documents. Downloading games and songs is much faster with this technology. It can also be used for favorite search engines to find information on news headlines, get information about the weather. Provides a data transmission speed of up to 2Mbps when the users are using the phone on stationary mode. Provides significantly faster data transfer rates of connectivity and increased networking and most importantly the resistance to noise. Increases the bit rate thus enabling the service providers to provide high speed internet facilities, increased call volumes and a host of the multimedia applications to their customers. All these services can be provided to the customers on the basis of the amount of data they transmit and not on the time for which they use the service thus making the services cheaper. Beneficiary to the service providers as well as the intermediaries like the content providers and the media houses who are looking for an additional platform market their products. Basically it holds three way benefits to all the parties involved. Improved performance over 2G, including: Will ease spectrum constraints on the 2G networks and accommodate subscriber growth

 Will improve data opportunities as spectrum constraints are a major barrier to adoption and usage; Indian consumers already own 3G devices. 3G spectrum will allow incumbents to differentiate services from new entrants and regional players Improved capacity Improved coverage, enabling migration from a 2G deployment. A high degree of service flexibility, including
Support of a wide range of services with maximum bit rates above 2

Mbps and the possibility for multiple parallel services on one connection; A fast and efficient packet-access scheme. A high degree of operator flexibility, including: Support of asynchronous inter-base-station operation; Efficient support of different deployment scenarios, including hierarchical cell structure and hot-spot scenarios; Support of evolutionary technologies such as adaptive antenna arrays and multi-user detection

3.6 Applications of 3G
Basically, 3G opens the door to a whole new world of features. One can do a multitude of things like going through the daily schedule, whether at work or at leisure. The scenarios below demonstrate just a few applications for 3G and only hint at what will be on offer in the future.

Scenario 1
An executive at a client meeting realizes that he has brought an outdated version of his presentation. Its no problem though because one of his colleagues back at the office emails the updated PowerPoint file directly to his 3G terminal. He transfers it to the laptop (wirelessly of course) and is in no time ready to start the presentation.

Scenario 2
This scenario is about three women who are trying to find a gift for their friend. Two of them are out shopping, but they are out of ideas and use a web site that generates gift suggestions based on personality profiles. They decide to buy a handbag at a shop situated somewhere near the city centre (but at an unknown address to the women). Not knowing exactly where the shop is, they use a map and positioning service to find it. The map is displayed on their 3G terminal and shows them the shop location and their current position. At the shop, they want to make sure that the third woman (who was unable to make it) likes the gift. They take a digital picture of the bag and send it to her with a hand written note seeking her approval.

Scenario 3
The grandparents are out travelling in Europe. Here their relatives can watch them in front of the Eiffel tower. (The tour guide took the picture of them admiring the magnificent building). In order to share their experiences with their friends a family, they have created a virtual photo album on their personal web site. This way, anyone with access to the Internet can follow them on their trip.

But what about those without Internet access? Well, that's been taken care of by the WalkMail network. The pictures are printed, together with the text, on high quality paper and delivered as regular postcards within 24 hours.

Scenario 4
A busy executive doing her grocery shopping hasnt had time to queue at a teller machine, but cash is not needed. At the check-out, she uses her 3G terminal to pay for the groceries. It automatically debits her bank account, and gives her an updated balance on request.

Scenario 5
In this scenario, we see two men talking on their way from a meeting. They decide to go out to dinner, but one of the men would like to invite his wife along so he checks her calendar on his 3G terminal (their calendars are constantly in synch).

Scenario 6
So far, there has not been an easy way to electronically communicate with character based languages. But this drawback is over come with the white board application. The person in this scenario is actually handwriting a message when a friend of his initiates a video call with him. This way of creating a message makes the communication more personal than a regular e-mail whether in Chinese, Japanese, English, French or any language.

Scenario 7
This guy would like to catch up with his friends for a coffee. He uses the SeekYourFriends service to find out who's on-line, and then sends a message telling his friends to meet him in a groovy new caf that hes just discovered.

3.7 Issues faced by 3G

In some countries the 3G technology has been introduced very successfully. However, in some other countries there are various issues that prevent the technology from being launched. Introducing a new technology is never smooth sailing. An overview of the issues concerning rolling out 3G technology is given below: High Licensing Cost The first issue is an expensive input fee required to earn a 3G service license. This means that there are not many providers who can afford to provide the 3G services. Also there are a large number of differences in the various licensing terms. Billing Current billing starts with the start of a call to the end of it. With 3G, pricing formulas will need to encourage the use of 3G services. A slowdown in adoption to 3G will significantly affect handset manufacturers Equipment and Infrastructure There is a lack of available 3G phones initially and consumers were slow to pick up the new phones. There is also the difficulty of rolling 3G network which is based on a different platform while integrating it with the old 2G network. Intermediate network such as 2.5G is one of the solutions to bring about a gradual change. The necessary infrastructure for 3G is very difficult to build. This is because there is a large amount of debt that is sustained by many telecommunication companies as of now. Content Provision and Marketing Successful operators must be able to meet expectations of providing new and innovative services. The main task at hand is to be able to promote the idea of 3G technology rather than selling the product itself. Content providers must market an attractive range of mobile commerce, entertainment, banking, shopping, information and other services that can cater to the needs of consumers

Malware Technology is a double-edged sword. With the ease of connectivity, there is also the increased risk of malware infection. Flexispy, a spyware billed as the 'world's most powerful spy software for mobile phones'. It can secretly record all activity on a mobile phone. Symantec warned that mobile phones are potentially vulnerable to spyware which can gather a user's information without their knowledge. Industry experts also cautioned that increasing complexity of phones has its downsides. The 3G technique was successfully introduced to different users all over the world. Still the technology is facing some problems. In fact there are some issues that are experienced by both the people providing the 3G service and the 3G users. There is no member state support for the financially troubled 3G operators. Also the 3G phones are really expensive and the battery life is affected as well. There are not many 2G mobile users who want to convert to the new 3G wireless services. There also is a lack of coverage in the 3G communication service, because it is still comparatively new. Another issue faced by the 3G technology is that the 3G mobile services are very highly priced. In some countries, it also includes Internet access which is really expensive for normal users. The 3G service also faces an issue of a lack of 3G voice and data services available in a mobile phone device.

Risks involved with 3G

In spite of these attractive features, 3G technology also has serious concerns. Currently, there is no mechanism to monitor 3G calls on real time as data transfers and voice calls are encoded in 3G and cannot be decoded. As a result, 3G technology has the following risks associated with it.

Misuse by terrorists Terrorists can use 3G technology for better coordination and sending audiovisual signals in real time in order to carry out terrorist and subversive activities. Misuse by money launderers Since mobile phone can be used for making real time financial transactions, money launders and drug peddlers can deposit money in overseas bank accounts before being detected by enforcement agencies. Misuse by sex offenders and paedophiles Since 3G technology offers real time transmission of pictures and videos, the technology can be used by sex offenders and paedophiles for their unscrupulous activities. This can not only reactivate the previous offenders but also attract new offenders as detection is more difficult. Compromise of data security 3G network, being essentially an IP network, it is vulnerable to all the security issues associated with traditional internet network, such as hacking, viruses, Trojans, spam and data interception. Due to difficulty in decoding the data on 3G, these concerns assume more serious dimensions on 3G.

Recommendations
The 3G technology is really a new thing and it has brought a revolutionary innovation in the mobile technology but it still is in an immature stage. The 3G technology will take some time to set in but it will definitely come up as the most wonderful mobile technology. Government and law enforcement agencies will have to come up with effective measures to tackle the risks associated with 3G. Security of 3G networks can be enhanced by using protocols that limit the number of users to a single cell site.

3G in India

4.1 Current Status and Impact of 3G in India

Introduction of 3G technology is yet another bubble in the telecom sector of the Indian economy. The Indian telecommunications industry is one of the fastest growing in the world and India has now become the second largest telecom market in the world after China. The success of 3G is going to depend on demand for superior quality voice services and data heavy, media rich content. The initial pricing has been on the higher side and it will have to drop if mass adoption is to ensue. Spectrum policy in India has been the victim of slow decision-making, which has left the country lagging behind many others. The delay in auction over three years has deprived Indian subscribers of the benefits of high-speed mobile data services available to over 300 million subscribers residing in over 125 countries with significant concentration around the Americas, Europe, and South East Asian countries. This is also an opportunity for Indian software companies to join hands with service providers to develop applications that will meet the needs of the Indian mobile user. At a later stage, these could be rolled out into other emerging markets. 3G in India is initially expected to provide additional spectrum for voice services. This would pave the way for data usage on mobile phones. This is vital as operators are focusing on customer acquisition as well as sticky offerings to prevent churn. 3G enables better VAS services due to the higher levels of bandwidth that it can accommodate. The technology is expected to drive data card adoption. Currently, Tata Indicom and Reliance are the only players in the data card segment. With more players coming into the market, sales are expected to boom with competitive prices and attractive schemes. Poor broadband penetration, a large untapped rural market, and the challenge of providing high bandwidth in rural areas using landlines are all factors favoring a 3G rollout. With 3G, network operators can offer wireless broadband services. Moreover, many operators are starved of spectrum and as 3G offers four to five times the voice capacity of 2G spectrum, it is a cost-effective tool to deliver voice.

Services beyond voice and text can be offered; 3G offers a platform which can offer true multimedia services. The technology will be critical for operators in enabling the differentiation of their service portfolio, by providing a far richer service experience than is currently available particularly in the deployment of audio visual services. The fundamental driver for 3G in India is to serve the countrys demand for broadband services. From a technological point of view, in areas where no fixedline infrastructure exists, deploying a mobile network is much cheaper and it can be rolled out a lot faster than wired infrastructure.

Revenue earned from Value added Services

4.2 Guidelines for 3G services in India

The 3G (third generation) mobile telecommunications is the generic name for the next generation of mobile networks that will combine wireless mobile technology with high data rate transmission capabilities. The 3G networks will be capable of providing higher data rates and will also be capable of supporting a variety of services such as high resolution video and multimedia services in addition to voice, fax and conventional data services. 3G spectrum will be permitted in the 2.1 GHz band. The 3G licenses would be granted through a controlled, simultaneous ascending e-auction, by a specialized agency to ensure transparency in the selection process. Besides the initial, one time spectrum charge, it has been decided that the successful service provider would pay additional spectrum charge of 0.5 % of their total Adjusted Gross Revenue (AGR), as the recurring annual spectrum charge. This additional revenue share is proposed to be 1% of AGR after 3 years from the date of spectrum assignment. The roll out requirements, including rural roll-out, as well as stiff penalties for non compliance of the same has been stipulated. Mergers will not be allowed during the initial five years. No trading/reselling of spectrum are allowed. The CDMA spectrum in 800 MHz band for EV-DO applications would be treated separately from 2.1 GHz spectrum. If the CDMA based service provider(s) ask for the EV-DO carrier of 2x1.25 MHz, they would have to pay an amount proportionate to the highest bid for spectrum in 2.1 GHz band.

Roll Out Strategies

Starting in February 2009, BSNL and MTNL the state-run operators who were pre-awarded 3G licenseshave rolled out 3G services in 70 (BSNL) and two (MTNL) cities nationwide respectively. The private telecom operators are in the process of planning their 3G network infrastructure and awaiting final approval from the DOT auction to start rolling out their networks; they are ready to go fully operational within six months of spectrum allocation. Despite the hype around 3G, MTNL and BSNL have attracted a few thousand subscribers for these services. Lack of attractive applications and content, the high monthly charges and the anticipation of private players entering the 3G arena soon are the likely reasons for the low uptake of 3G services. Meanwhile, Frost & Sullivan estimates that the number of 3G subscribers will be around 7-8 million by the end of FY 2009-10. In the first year of 3G operations, the operators are expecting 3G subscribers to pay about five times the current 2/2.5G tariffs. 3G-enabled handsets and data modems for laptops are also likely to be expensive. This is a steep increase and will target only niche demographics, but in the coming three-four years the operators will see higher subscriber volumes and better operational efficiencies and consequently the prices will drop to attract a wider audience. The challenge for operators will be to offer wide coverage (including roaming), high quality service and attractive content in the initial years to sustain high-paying subscribers long enough to reach the tipping point of growth.

4.3 India - An Ideal Investment Destination

Key aspects of India
Worlds largest democracy Independent judiciary Skilled and competitive labour force Second-largest telecom network in the world after China On an average, around 6 million new users added per month, making India the worlds fastest growing wireless services market Liberal Foreign Investment Regime: FDI limit increased from 49% to 74%; the rural telecom equipment markets also open to large investments Among the countries offering the highest rates of return on investment The large untapped potential in Indias rural markets revealed by the 1.9% teledensity in rural markets as compared to the national level of 19.9%. The Government is promoting telecom manufacturing by providing tax sops and establishing telecom-specific Special Economic Zones Fully reportable dividend income and capital invested in telecom equipment manufacturing. Since Indias telecom sector trails that of other Asian economies by around 10 years, growth is a certainty.

Growth Avenues
The Indian telecom sector offers unprecedented opportunities for foreign companies in various areas, such as 3G, virtual private network, international long distance calls, value added services, etc. The 3G spectrum is among the major investment opportunities and growth drivers of the telecom industry.

The immense potential for 3G is reflected by the 30-40 percent annual growth in value added services The global revenue for 3G is 60 per cent higher than that of other services Cell phone manufacturers are striving to develop US$ 100-priced 3G handsets for the Indian market India expects to replicate its 2G growth in 3G services. The Indian market is well poised to leverage the 3G service offerings in content categories such as sports, games and music. In the present context, 3G technology is extremely relevant for India. It offers voice capacity that is four to five times higher than that of 2G services. Therefore, it is an ideal platform for low-cost cellular services. It can fulfill the need of fast developing mobile penetration in rural areas. It can meet the demand for high-speed data and content rich services in the urban landscape. It can play a vital role in augmenting the competitiveness of the countrys large BPO segment. It can be a way forward to achieve the Governments broadband objectives. In addition, it will be a good solution for education, telemedicine, etc.

Market opportunity
According to the Federation of Indian Chambers of Commerce and Industry (FICCI), in India, the 3G subscriber base is expected to hit 90 million by 2013, accounting for 12% of the overall wireless user base. By 2013, 3G service revenues are expected to generate $15.8 billion, accounting for a share of 46% in overall wireless service revenue. Due to the 52% contribution made by the replacement market, annual sales of 3G devices are projected to reach 81.3 million by 2013. There will also be an increase in the share of non-voice services, including data card access, and short messaging service. The Average Revenue Per User (ARPU)

from these services will rise from the present 9% to nearly 23%. 3G would be initially deployed as a voice technology. The ARPU is not expected to rise significantly in the initial years. The overall impact on ARPU will be determined by pricing/bundling strategies that operators adopt. In some markets, where 3G services have already been provided, operators have adopted a penetration pricing strategy, aimed at building a strong base of 3G users by pricing 3G services attractively. Indian mobile operators already generate significant revenues from non-SMS data services and 3G will see new, exciting data services available to the Indian public. Its worth noting that India already has a dynamic mobile content industry. However, some experts think that apart from data cards, there are no other killer applications in mobile data services. In the enterprise, e-mail may be a major driver for this market. As far as retail is concerned, video streaming could be a driver. This depends upon the pricing of video clips and the download speeds that 3G can guarantee. 3G services are at a nascent phase with only state owned companies offering 3G services in limited pockets so real price cuts cannot be seen

4.4 The 3G Spectrum Allocation Auction

Overview of 3G Auction in India
The winning bids for 3G spectrum totaled Rs. 67,710 crore (US$15 billion), against the government's original expectation of Rs. 35,000 crore (US$7.78 billion). Also ready are mobile device manufacturers with a slew of 3G handsets; providers of hosting, billing and network management services with expanded offerings; and content providers selling cell phone ring tones, wallpapers and graphics. Amid that euphoria, industry observers worry about the "winner's curse" of successful bidders paying too much for the licenses, which ultimately could decrease margins and dampen future investment enthusiasm. Intense price competition is steadily eating into mobile operators' earnings, and that could force marginal players in the 3G market to eventually succumb to a wave of consolidation, they say. Mobile operators Bharti Airtel, Vodafone Essar and Reliance Communications agreed to pay Rs. 3,317 crore (US$737 million) and Rs 3,247 crore (US$722 million) each for the coveted Delhi and Mumbai markets. The government had set a base price of Rs. 320 crore (US$71 million) for each of these two markets. Bharti, Vodafone and Reliance shared licenses for the remainder of the 22 telecom zones on offer with six other bidders that included Idea Cellular and Tata Teleservices. The winning bidders could repeat the disaster that followed the U.K.'s 3G spectrum auction in 2000. At that time, the U.K. raised 22.5 billion (US$34 billion) for five 3G licenses, but the participants paid too much and didn't have the infrastructure to get started. However, that India's 3G operators will have a support system of compatible mobile devices and a range of applications at affordable prices, which the British operators didn't have a decade ago. Take an operator like Bharti [which has 128 million mobile phone subscribers], even if they tap into 1% of their subscriber base in the first year, and steadily increase that by 0.5% each year in the next six to eight years, they will actually more than break even. Estimating operating expenses at 30% and taking into consideration investments in applications, marketing and other services. TRAI has allowed 3G operators to launch their services after September 2010.

To recover their investments, the 3G spectrum winners will have to focus on customers with high ARPUs, or the top 100 million subscribers who want more data services. The voice ARPU has an upper threshold, so if the operators have to generate higher revenues, it has to come from data and other value-added services. But to achieve that, mobile operators would need to incentivize start-ups to create 3G applications. The telecom operators are not capable of driving the innovation themselves; they need to create an ecosystem for it. They could do that by outsourcing their billing function to application developers and incentivize them by sharing up to 80% of the revenues with them. With value added services, the current ARPU of Rs. 100 will go up to Rs. 300 or Rs. 400, voice-based services alone will not lift ARPUs so high. Japanese mobile operator NTT DoCoMo has done precisely that to spur development of applications. India's overall teledensity is 53%. Pyramid Research of Cambridge, Mass, forecasts India's mobile penetration rate at 80% by 2014. In fact, India's net subscription additions forecasts over the 2009-2014 period put it above all other countries in the world, including China, in terms of subscription additions over the next five years." Bharti Telecom leads India's wireless phone services market with a 22% share, followed by Reliance and Vodafone at above 17% each and Idea Cellular at 11%, according to TRAI data as of March 2010. Nine other providers, including the public sector Mahanagar Telephone Nigam Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL), share the rest of the market. In landline services, BSNL and MTNL have 37 million subscribers, or 85% of the market, but they account for a tele-density of just about 3%, according to TRAI. The stakes, however, are getting bigger as India's mobile operators see their ARPUs decline steadily under severe price competition. The monthly ARPU was Rs. 150.23 in the quarter Jan-Mar2010, down 3.45% from the previous quarter, for the majority of the industry that uses the so-called GSM technology (or global system for mobile communications), according to TRAI data. Nokia, which leads the market for mobile devices with a share of nearly 60%, has a portfolio of more than 20 3G-enabled handsets, says V. Ramnath, head, operator channel for Nokia India. The most affordable 3G device in that range is the Nokia 2730, priced at Rs. 4,689. A recent report by research services firm Evalueserve predicts that the Indian market is likely to have 395 million 3G handsets by 2013; about 20 million Indians currently use 3G-enabled handsets.

Services such as video download, music downloads, Internet applications and search will see an upsurge. The urban markets would account for 80% of the total 3G customer base in the next three years according to the Evalueserve report. Others that have unveiled new device offerings include Sony Ericsson, Spice Mobile and Taiwan's High Tech Computer Corp.; the latter is marketing a smart phone in partnership with Bharti Airtel and Qualcomm. Bharti Airtel and Vodafone Essar have launched Apple's iPhone 3G handsets with their mobile services. The country has more than 50 mobile phone marketers, many of them recent entrants such as Micromax, Karbonn and Lava. Everybody is hungry for spectrum; everybody is running at 95%-plus capacity of the network, he says. If they have to add more subscribers, they don't have spectrum available in 2G. They will use the 3G spectrum to vacate some of the subscribers from 2G networks and move high-end subscribers to 3G networks. That also explains the peaking of bids for 3G spectrum in the major metros of New Delhi and Mumbai. Every operator would start with 3G in the urban market, and as they start seeing subscription rates go up, they might extend their 2G networks to the rural markets. The pricing for 3G licenses has gone so high partly because of a scarcity of spectrum. Indias auction for 3G GSM Service licence ended on 21st May with bids for panIndia licence touching as high as Rs 16,751 crore which ensures the Government of India a revenue of Rs 67,719 crore.

India happens to be most lucrative market for telecom due to high population and low teledensity. In last 2 years we have seen hyper competition due to entry of 4-5 new telecom operator dragging the tariff plans to as less as half a paisa per second. Recently all the telecom stocks have taken a beat due to low margins as well as market was sceptical that the telecom companies earnings would take a beating due to paying of license fees for 3 G spectrum as well as investment in creating the infrastructureand backbone for the same. The 3G auction had commenced on 9 April, 2010.There were nine bidders in the fray for the slots of 3G spectrum on the block. The government auctioned three slots in 17 telecom service areas and four slots in the remaining five states of Punjab, Bihar, Orissa, Jammu and Kashmir and Himachal Pradesh. BSNL would be remain the biggest 3G operator in India. Delhi circle emerged the most valuable circle at Rs.3317 crore, followed by Mumbai at Rs.3247 crore. Among the major bidders, Bharti Airtel (India's largest telecom as well as mobile company) paid Rs.12290 cr for 13 telecom circles, Idea cellular paid nearly Rs.5765 cr for 11 telecom circles, Vodafone Essar will paid Rs. 11617 crore for 9 telecom circle while Reliance Commmunication paid Rs 8583 crore for 13 telecom circles. The spectrum price has turned exhorbintly high due to stiff competition, as well as shortage of 2G spectrum. In 995 cases only established players have secured a place. It has also been observed that All these companies have gone for the Circle where they are already having strong positions that is in top 2, Indicating that they had no choice but to grab the license in order to retain their leadership as well as marketshare. Its very unlikely that offering 3G services would fetch them much incremental revenue in short run and it would take long for them to breakeven. Its to be noted that combined license of Delhi and Mumbai circle is for Rs 6500 crores approximately which is 40% of PAN India license fees.

The Full List of 3G Winners (Private Operators)

Delhi & NCR: Vodafone, Bharti, Reliance Communications at Rs 3317 cr Mumbai: Reliance, Vodafone, Bharti Airtel at Rs.3247 cr Maharashtra & Goa: Tata Com, Idea cellular, Vodafone at Rs.1258 cr Gujarat: Tata Com, Vodafone, Idea at Rs.1076 cr Andhra Pradesh: Bharti Airtel, Idea at Rs.1373 cr Karnataka: Tata Telecommunication, Aircel, Bharti at Rs.1580 cr Tamil Nadu: Bharti, Vodafone, Aircel at Rs.1465 cr Kolkata: Vodafone, Aircel, Reliance Communications at Rs.544 cr Kerela: Idea cellular, Tata Telecommunications, Aircel at Rs.312.5 cr Punjab: Idea Cellular, Reliance Communications, Tata Telecommunications, Aircel at Rs.322 cr Haryana: Idea Cellular, Tata Telecommunications, Vodafone at Rs. 222.6 cr Madhya Pradesh & Chattishgarh: Idea Cellular, Reliance Communications, TataTelecommunications at Rs.258.4 cr Rajasthan: Reliance Communications, Bharti, Tata Telecommunications at Rs.321 cr U.P. (West): Bharti, Idea Cellular, Tata Telecommunications at Rs. 514 cr U.P (East): Aircel, Idea Cellular, Vodafone at Rs.364.6 cr West Bengal:Bharti,Reliance Telecom,Vodafone, Aircel at Rs.123.36 cr Bihar & Jharkhand : Stel, Bharti, Reliance, Aircel at Rs.203.46 cr Orissa : Stel, Aircel,Reliance at Rs.96.98 cr Assam: Reliance, Bharti, Aircel at Rs.41.48 cr North East: Aircel, Bharti, Reliance at Rs.42.30 cr

Jammu & Kashmir: Idea, Aircel, Bharti, Reliance at Rs.30.30 cr

Spectrum Price Graph India

Source: TeleCom Regulatory Authority of India

Wireless Spectrum Priving / MHz in India since 1992

1992 Liberalization of the Indian Economy begins First two rounds of the allocation process for nationwide spectrum raised Rs3,400 crore for 4.4 Mhz, valuing each Mhz at Rs770 crore 1999 The third licence in every circle was given free to state-run BSNL and MTNL 2001 Economies recover from the Dot Com Bust and Face 9/11 issue. Government auctions fourth licence for a total of Rs1,651 crore for 4.4 Mhz, valuing each Mhz at Rs375 crore

2008 Five new operators were given spectrum at 2001 rates [Courtesy A. Raja, Telecom Minister of India], despite resistance from telecom bloggers. 2010 The winning bids for 3G spectrum totaled Rs. 67,710 crore (US$15 billion), against the government's original expectation of Rs. 35,000 crore (US$7.78 billion).

4.5 Growth Spurt in 3G

Improvements in infrastructure and increased cap-ex investments by carriers have laid the groundwork for the burgeoning 3G market. At the other end of the value chain, 3G is now revolutionizing how cell phones are used and consumers are responding. Operators are now providing advanced features and services, which means an enriched user experience for the consumer 3G is about multimedia performance, driven by demand for mobile entertainment and on-the-go productivity. Current 3G handsets feature high-resolution color displays, integrated video cameras, streaming of audio and video content, internet access at broadband speeds, location-based services, and multi-user 3D gaming. And these are only the beginning. To be sure, 3G is succeeding by delivering user-rich, value-added services that are influencing consumers to switch to 3G mobile phones and networks. However, 3Gssuccess wont occur in a vacuum. There are three areas to consider for 3G to realize its full potential:

Open standards drive rich value webs and interoperability

Wide adoption of 3G will require introducing innovative services with crossnetwork interoperability. Only a non-proprietary, open approach will foster innovation of new content, services, and applications. Wireless operators must work together with handset manufacturers, semiconductor partners and software providers to promote open standards for 3G networks and equipment.

Economies of scale apply

Deploying 3G comes with a price tag. Hence, economies of scale will help make the 3G UMTS market main stream. Chip manufacturers must deliver higher performance, lower power, lower cost and more integrated complete solutions through smaller process geometrics and innovative silicon technologies.

Multimedia rich applications will define 3G, but not at the expense of the user experience.
The underlying 3G technology platform must deliver upon user expectations in key areas that may not have been as important in prior generations of wireless technology: multimedia quality for pictures, video and audio. This trend will only increase, with the expected surge of even higher performance multimedia applications and a strong trend to deliver consumer electronics experience to the cell phone.

Infrastructure
For infrastructure providers 3G will be a value-add during slowdown, as they would get to put in a lot of new developments. Layout of next generation networks that are 3G compatible will help in better manageability of services over the networks. Even service providers believe that 3G would make the entire mobility space much more accessible. The broadband connection, as they have not reached the set target, will also benefit with 3G coming to India. 3G will help service providers manage their existing infrastructure better and remain competitive in a mobile number portability (MNP) regime. It will also generate a more addressable market to the GSM service providers. They can go back to their existing customer base and provide them with enhanced data services 3G will not only make its presence felt in cities and towns but also bring in better and faster networks to rural India. In the years to come 3G would make a lot of difference in making business models more innovative. 3G and WiMax will help solve the problem of low broadband penetration in India to a great extent. It is high time the government realizes the need and use of 3G. In a fast growing economy these technologies have the power to change the development roadmap of the country.

Technology Acceptance Model (TAM)

The technology acceptance model is an influential extension of Ajzen and Fishbeins theory of reasoned action (TRA). It was introduced and developed by Fred Davis in 1986 (Davis et al., 1989). TAM is a model derived from a theory that addresses the issue of how users come to accept and use a technology. The model suggests that when users are presented with, for instance, a new software package, a number of variables influence their decisions about how and when they will use it. There are two specific variables, perceived usefulness and perceived ease of use, which are hypothesized to be fundamental determinants of user acceptance. (Davis and Arbor, 1989).

Figure: Technology Acceptance Model (Davis et al., 1989)

4.6 3G Tariff Plans

The roll out of 3G services has begun in India, hence it is very important to analyse the tariff rates of the various service providers. As of now, Tata DoCoMo has come up with its tariff plans and with this has commenced the tariff war, yet again. The tariff plans launched by Tata DoCoMo have been labeled affordable and hence we can expect other private operators rolling out comparably lucrative tariff plans to lure subscribers towards 3G.

Telecom Talk has put up the tariff plans for TATA DoCoMo's 3G Life services
Tata DoCoMo 3G services are available in all the nine circles where it has the 3G license-Karnataka, Kerala, Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, UP (West), Punjab, Haryana, Maharashtra and Goa. All plans announced would be effective from November 10 in the aforementioned nine circles. Now let's take a look at different 3G Life plans announced by Tata DoCoMo. For those who just want to try out 3G Data plans can look out for 3G Data Top-ups which are basic data packs. To begin or experience 3G, one can go for Data Top Up of Rs 90 that offers 100MB usage at 21Mbps with a validity of a week. Furthermore if you want to try it out for a month (30 Days) you can go for: Rs 200 Top-up with 200MB usage at 21Mbps Rs 500 Top-up with 650MB usage at 21Mbps Rs 2000 Top-up for unlimited usage at 21Mbps till 15GB of download and then the speed drops to 256Kbps. Also, a typical video call would cost 0.66 paise per second which sums up to almost 39.6 paise per minute. We're sure you'd rather go for video chat over the Internet connection because video calls over 3G would require more bandwidth. Unless you don't care for the bills, video calling is going to be a costly affair. Small Screen Voice and Data Plans: Meant for 3G supporting smartphones, these plans are available for both Pre-paid and Post-paid Tata DoCoMo subscribers. Check out the plan tariffs below:

In addition, there is also a plan available only on Prepaid for Rs 350. This has 500 minutes (Local+STD) and 150 MB of 3G Data These minutes can be used for ALL local, STD and outgoing roaming calls-all calls are on a per-second pulse The options are designed at various price points to cater to different consumption levels. The above voice call minutes and 3G Data plans have a validity of 30 days Plans available in both Post paid and Pre-paid, so customers can choose their payment preference. Unlimited 3G Life:

High Speed 'Unlimited' 3G Data Card Plan for Rs 2,000 has been announced wherein subscribers would get 15 GB of data usage at a speed of 21.1 Mbps and beyond 15 GB would be free 3G with lower speed of 128 kbps. Tata DoCoMo certainly is bit costly as compared to the BSNL 3G Plans available today. Now we shall wait for other mobile operators including two telecom stalwarts - Airtel and Vodafone to roll out 3G services and reveal their 3G tariffs in the country.

BSNL 3G Tariff plan

Initial SIM Charges for both postpaid and prepaid service: Cost of SIM (Inclusive of Service Tax) in Rs: 300 Talk Value in Rs: NIL Initial Validity in days: 7 Migration from 2-G to 3G: Not feasible at present Applicable to: Voice & Data plan Voice Plans: Prepaid Voice Prepaid: Activation Vouchers (for choosing a particular plan) Talk value in: Rs 270 Validity in Days: 30

Call Charges in Rs./Min

Local On-net: 0.40 Local Off-net: 0.70 Local-Video calls: 2.00 STD On-net: 1.00 STD Off-net: 1.00 STD Video calls: 3.00

P2P SMS (Rs./SMS)

SMS Local: 0.50 SMS National: 1.00

SMS- International: 5.00 Data usage in Rs./MB: 3.00

BSNL 3G Data Plans Trial Pack

Trial Pack - 50 MB: Rs 60 (15 days Validity) Trial Pack - 100 MB: Rs 120 (15 days Validity)

Data Plans: Prepaid Plan Price in Rs 250

Free data usage in GB: 0.30 Validity (Days): 30 Data Charges in Rs/MB: 2.00

Plan Price in Rs 400

Free data usage in GB : 1 Validity (Days) : 30 Data Charges in Rs./MB : 2.00

Plan Price in Rs 650

Free data usage in GB: 2 Validity (Days): 30 Data Charges in Rs/MB: 2.00

Plan Price in Rs 1000

Free data usage in GB: 5 Validity (Days): 30 Data Charges in Rs./MB: 2.00

Plan Price in Rs 3001

Free data usage in GB: unlimited Validity (Days): 30

Press Release Its war time for operators, again! By: Yuthika Bhargava| afaqs! Telecom Yatra | New Delhi, November 15, 2010 The roll out of 3G services has begun in India with Tata DoCoMo taking the lead, and with this has commenced the tariff war, yet again. The tariff plans launched by Tata DoCoMo have being labeled affordable and hence we can expect other private operators rolling out comparably lucrative tariff plans to lure subscribers towards 3G. Before Tata DoCoMo launched 3G, a lot of ambiguity and speculation surrounded 3G tariffs, and some operators opined that 3G prices would be high mainly because operators need to recover the costs incurred in procuring spectrum. Sanjay Kapoor, chief executive officer, India and South Asia, Bharti Airtel had said that he expects 3G services to be priced higher because of the expensive bids. "The bid prices have taken away the possibility of providing these services at cheap prices. Data services on 3G will also not come at throwaway prices." In fact, most established players were counting on 3G services to rake in the moolah as the entry of new service providers, which resulted in fierce tariff wars, was eating into telcos' profitability. However, this had put a question mark on the success of 3G services as India has always been a price sensitive market and nothing attracts an Indian consumer more than a good value proposition. Tata DoCoMo has got the first mover advantage and to an extent will now decide the direction of progress. Experts feel that this step by DoCoMo towards keeping prices low is one in the right direction and other private operators will have to follow suit. "Tata DoCoMo has set the ball rolling and no one can go into offering services at higher prices now. If they had gone with high prices scenario would be different", says Sandeep Gupta, director, Protiviti Consulting. TTSL has announced tariffs as low as 0.66 paise per second and data plans starting at Rs 500 for postpaid users. Other private operators gearing up to launch 3G services also will have to keep prices low and perhaps opt for a per second billing model.

Telecom consultant Mahesh Uppal agrees. "Without a doubt this will put pressure on other service providers. India is a very competitive market and other operators will lose out on their share of subscribers if they launch 3G at higher tariffs." Low tariffs are expected to push the uptake of 3G services in India, and if operators act pricey it could get difficult for them to add 3G subscribers. Uppal says, "Customers won't try services if they are highly priced. Price is not determined by the service provider but by the market forces. Operators can either act pricey and wait for niche customers to use their service or do what it takes to hook the

customers on for a steady flow of revenues." Gupta clarifies that while we will see a tariff war coming into play, inane price cuts to add subscribers won't recur. He says, "The price war would come into play but the price won't go below 10-20 per cent of current prices. This is because, at the end of the day, telcos need to earn revenues to recover costs." With prices falling, what avenues can service providers look at to recover costs? Innovation in data plans as well as value added services are key according to industry experts. 3G data cards will also present a good opportunity to operators, and will initially bring in some volumes. Uppal adds, "Of course, operators cannot sell services below cost. Their challenge is to come up with a business plan that customers find affordable so that customers try out the new services. They need to have attractive services which customers would be willing to use for longer periods." Speaking on the same lines, Mrutyunjay Mishra, chief operating officer, JuxtConsult, said, "It will all be about how operators use bandwidth they have, to provide services. Consumer targeted apps and services will remain cheap but operators need to be creative and access apps which are beyond their reach. There will be a lot of B2B possibilities as enterprise apps have always required higher bandwidth." Gupta believes content related VAS will be the key. "VAS revenue streams from services riding on 3G will increase. This will help operators recover their costs faster. "

Market dynamics to decide our 3G tariff: BSNL Voice - 3G By: Sandeep Budki| afaqs! Telecom Yatra | New Delhi, November 10, 2010 State-owned Bharat Sanchar Nigam Ltd (BSNL) which is planning to expand its third generation (3G) services to 120 more cities across the country by December might change its 3G tariff. Gopal Das, BSNL chairman and managing director, said to Telecom Yatra, "Our 3G tariff is will change depending upon the market dynamics and volume." He added, " Initially we had come with a 3G tariff plan so that people start getting used to our 3G services and now when most of the private players will start offering the services we may have relook at it." BSNL, which got the first movers advantage as it bagged 3G airwaves ahead of the private players has only, 1.8 million of its subscribers who use 3G services as of now. BSNL charges its 3G customers 30 paise per minute for video calls. Apart from that,

BSNL also offers data usage at a rate of 1 paisa per 10 Kilobytes (Kb). The telco has also taken several steps such as improving 3G coverage and launching more value added services to enhance the 3G experience. Most of the private players, except Tata DoCoMo, who had bagged 3G spectrum in the recently held auction plans to launch the service by the end of the year. Tata DoCoMo has already launched 3G in the country from Diwali.

4.7 Future of 3G
The good news for mobile users is that now 3G has been uploaded in all the latest handsets from the leading manufacturers including Sony Ericsson, Samsung, LG, Nokia and Motorola. In addition, a new technology called HSDPA has been upgraded with the 3G system which works faster than 3G. The latest gadgets are well equipped with power packed features, enabling you to communicate and enjoy loads of fun. Today 2G is booming, one of the big reasons is the low-priced handsets. This, however, is not the case with 3G. Opportunities are big, but we will have to make it happen. The success of 3G will depend on innovative business models. Certainly, the most needed thing is favorable regulations in terms of spectrum fees. It is creation and competition that are the two mantras for the success of 3G in India. There is a need for creating an enthusiasm of technology among the consumers, and 3G portals need not be the only goal of the operators. The big challenge set before us is the affordability of the 3G devices. Educating the customer on 3G is another challenge. 3G is most certainly going to be exciting, but also challenging. There is a need of infrastructural support and the handset, that too at an affordable price. The stakeholders should come together in order to see some good development. There is an opportunity to transform the society, which is possible as long as all of us can work together. One of the advantages of 3G network is that it would give better voice clarity. It will shift the Internet largely to the mobile space and we can ensure a 3G success. It is equally challenging to attract consumers to 3G. The reason why ARPUs are on the decline is because the consumers are not able to see value for money. There is also a need to concentrate more on customers. A proper working strategy will lead to the success of 3G services.

Looking Ahead
BSNL and MTNL are very differently placed in comparison to other private players. It is not yet known when 3G auctions will happen and which companies will be in the spectrum run. With a huge amount of investment only to acquire license, a lot of other costs would be involved when it comes to network building and implementation. But the high costs will lead to new services making its way into the market, especially the urban areas. Unlike 2G, in 3G one has to come up with very innovative applications and tariff plans. The penetration level of 3G, however, is still uncertain. The new technology comes with costs attached, and while the upper-middle class business professionals might be able to utilize these services, a major part of our population is still far from the levels of affordability that these services ask for. With a per capita income (national average) of as low as $950 per annum (Rs 38,000 approximately), access to these technologies shall remain for the select few. Rs 8,000 the minimum amount required for purchasing a 3G handset, is a luxury that most can't afford. Also, other gadgets such as laptops, which can use 3G-run broadband access, are yet to make inroads among the large population. Even as most handset manufacturers see a tremendous growth opportunity in the realm of 3G enabled mobiles, it is certain that price will play a key role in deciding the fate of the new technology. To tackle this concern, mobile phone manufacturers are making efforts to come up with phones as cheap as Rs 3,500, against the currently available minimum price of over Rs 8,000. Mobile makers in India are also expecting prices to dip, and thus are contemplating aggressive plans to come up with affordable handsets in this category. Analysts say that 3G first needs to be popular with the middle class segment if it is to bring the much talked about broadband revolution. For such kind of change to take place, the price of the handset and the services will play a crucial role. About 15-20% mobile phones in India are already 3G enabled, but they have to be made affordable. The availability of reasonably priced phones has already mademany experts rework their estimates of the size of the 3G market to grow from the present 40-70 mn to 100-150 mn by 2012

3G is one of the most cost effective ways to deliver mobile broadband to the masses. Expectedly 3G can single handedly achieve far more in terms of bridging the digital divide than any other way of mobile internet connection introduced by the government. Because of its higher voice capacity, 3G could also facilitate the delivery of far more cost effective voice services. However, this will happen only if operators do not have to pay exorbitant prices for 3G spectrum. An auction of 3G spectrum could lead to irresponsible bidding resulting in high costs and tariffs, which would completely negate the tremendous capacity advantage that 3G has to offer. Auctions also have another downside by their very nature; they entail a selection amongst bidders, which would result in discrimination between existing cellular operators as it would deny some operators their legitimate expectation of evolving to 3G. Also, it would not be in the national interest if the 3G policy ended up being disruptive, creating uncertainties, leaving the survivors with the winners' curse and others with the prospect of gradual collapse of businesses. Therefore, the answer to the question raised is that, yes, 3G has a future in India and that it is relevant and important, but the key to the success of 3G will lie in its price, that is, if it has to become a mass service. 3G did not take off in the west because of the exorbitant prices attached to its spectrum, which made the service unaffordable and restricted to a niche market. The 3G service can also help to alleviate the severe spectrum crunch that is currently being experienced by various operators, especially those in the big cities and metros. There simply is not enough 2G spectrum that can fuel the aggressive growth in services. Also the 3G spectrum has a voice capacity that is four-five times higher than the 2G spectrum. This could actually play a crucial role in helping to overcome the limited availability of the 2G spectrum. It may be helpful in achieving a national telecom target of 250 million by 2009 and 500 million by 2010.

Getting subscribers on the 3G bandwagon

In urban regions, telecom carriers are facing declining service quality and decreasing margins per minute. With 9% of the subscribers contributing 45% of carriers margins and 29% of revenues, 3G will certainly enable the carriers to transfer high ARPU customers to the congestion-free 3G network. A combination of better services, innovative applications, and smart handset bundling coupled with right pricing can attract a large base of users to 3G. Besides, many Indian customers already have 3G-enabled devices. These people will be the first movers. In order for the customers to know and get the feel of 3G, MTNL is initially offering a trial pack for 15 days. The customer can get a first hand feel of exactly what 3G is all about. They can experience the service, and MTNL is sure that after getting the feel of the same the customers would not like to go back to 2/2.5G data services. To improve overall service experience, operators will need to allocate spectrum for 3G to provide improved voice services. However, this is unlikely to impact the ability to provide richer VAS services. The eventual cost of deploying 3G networks may deter operators from rolling out 3G networks to the entire existing customer base, meaning that some segments will not have immediate access to 3G. The cost of deploying the networks may impact the pricing strategies for service packages offered to the market, with operators adopting different strategies to attract new subscribers and cover their investment costs

Setting up 3G
Obtain a phone that allows 3G service. Smart 3G requires a phone that accepts the service. Before purchasing the phone, ask whether it allows smart 3G options. Put a smart 3G SIM card into the phone. The SIM card, which provides the phone service, is the connection between the phone and the 3G network. Without a smart 3G SIM card, the phone cannot connect. Set up the 3G service. The specific service and phone will determine the exact set up methods. Usually, it requires opening the settings on the phone and changing the network setting to duel or 3G, depending on the specific phone service. If unsure about the specific phone, have the representative set up the 3G service at the time the phone is purchased.

How to switch to 3G?

Firstly, you need to have a 3G enabled handset in the 3G enabled circle (location). Its speed will depend on the handset, coverage area, network traffic and number of users using it. No, SIM change is required; it can work on your present SIM, for activation of this service call your respective company's service center. Where there is no coverage of 3G network, in this situation you will go to use 2G/2.5G network coverage. For this one needs to get the GPRS settings in the mobile phone and set the mobile in dual mode. There is a difference between 2G and 3G, 3G provides high speed internet and data services. One can make video calls on it and also use many multimedia services. With 3G you can download and watch videos on your handsets. One can send recorded videos and can easily upload to the social networking sites. In markets, companies have already launched 3G enabled handsets which costs less than Rs 10,000.

Data Analysis and Tabulation

1. Price range of the mobile which you currently use?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, there are many people who use a cell phone ranging between Rs 5000-10000, followed by people using a cell phone which costs above Rs 10000 and people using cell phones ranging between Rs 1000-5000

2. What type of connection do you use?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, there are many prepaid connection users (more than half), but on the other hand, there are many postpaid subscribers as well. The selection of connection depends on the convenience and utility of the user.

3. Do you use Internet on your mobile phone?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, most people use internet on their cell phone. They find it easy to access internet through mobile phones as it is very convenient.

4. You use internet on your mobile phone for?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, many people use mobile internet for email (personal/business purposes), followed by social networking and browsing. Also, there are some youngsters who use the mobile internet for online gaming.

5. How often do you use internet on your mobile phone?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, many people use mobile internet at least once a day followed by people using it multiple times in a day and once a week. While there were some people who use the internet facility once in a while

6. Connectivity of Internet on Mobile handset is through?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, majority of people use internet services provided by their mobile network. The usage of Wifi is comparatively low; this is mainly because there are not many Wifi hot spots available

7. How much do you spend on your mobile internet per month?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, most of the people spend a minimum of Rs 50-100 on internet plans per month on their mobile internet. This shows that offered the present speed and plans people are ready to spend almost Rs 100 per month. Hence, we can say that if better speed and access is provided people would definitely be interested in switching to the new plans.

8. Are you happy with the current internet speed on your phone?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, many people are not happy with the current internet speed offered by the service provider. Hence we can say that, people are now expecting better speed and access. On the contrary, there are some people who are quite satisfied with the current mobile internet speed.

9. Are you aware of 3G technology?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, a majority of the people are aware of 3G services.

10. Are you aware of the features and benefits of 3G technology?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, many people are aware of the features and benefits of 3G. On the other hand, there are a lot of people who are aware of 3G technology but not about its features and benefits.

11. Is your handset 3G enabled?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, there are many people who use 3G enabled cell phones followed by people not using 3G enabled cell phones whereas some do not know whether their phone is 3G enabled or not.

12. Are you willing to subscribe to 3G service (for faster internet and other additional benefits offered by 3G technology)?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, many people are willing to subscribe 3G technology in the immediate future.
Yes 78% No 22%

13. Will a speedy and efficient internet service motivate you to spend more on mobile internet?

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, many people are willing to pay more if provided with better, faster and efficient internet facilities. This is mainly because of the increase in per capita income of the people and the increase in standard of living.

Conclusion

Conclusion
The Governments bidding expectation (for 3G Allocation Auction) of Rs 35,000 Crores surprisingly reached a mind boggling Rs 67,000 Crores. Hence, we can surely say that the Government is also benefiting along with the people. The growth of TeleCommnications is really astonishing as the number of mobile subscribers is increasing exponentially . On the basis of the conclusions drawn from this survey, almost all the people are aware of 3G services but the features and benefits of 3G are still not known to many. The per capita income of people is increasing along the years; hence people can afford high priced phones and value added services. There are many people who use 3G enabled cell phones whereas some dont know whether their phone is 3G enabled or not. Many people are willing to subscribe 3G technology in the immediate future. People use mobile internet quite frequently, they find it easy to access mobile internet through phones as it is very convenient. People use mobile internet mainly for email (personal/business purposes), followed by social networking and browsing. Also, there are some youngsters who use the mobile internet for online gaming. Majority of the people use internet services provided by their mobile network. The usage of Wifi is comparatively low. This is because there are not many Wifi hot spots available. On an average people spend a minimum of Rs 50-100 on internet plans per month on their mobile internet. Hence, we can say that if faster internet speed is provided people would definitely be interested in switching to the new plans. On the contrary, there are some people who are quite satisfied with the current mobile internet speed. Hence we can conclude that 3G is the NEXT BIG THING in the TeleCommunication Industry of India.

Hypothesis Testing

On the basis of the inference, an attempt is made to check if the hypotheses have been proved or not.

Hypothesis # 1
People are quite aware about 3G technology. According to the survey, almost everyone is aware about the emerging 3G technology, although a few are not very familiar with the features and benefits provided by 3G. 3G has achieved great importance in the Indian TeleCommunication Industry. Hence, the hypothesis turned out to be true.

Hypothesis # 2
Mobile internet is gaining importance in the contemporary world. As the standard of living is increasing along with the per capita income, people are spending a lot on value added services provided by network providers, the expectations of the people are increasing. Mobile internet is gaining importance as it is very convenient for people to access emails and social networking sites with the help of mobile internet. Hence, the hypothesis is true.

Hypothesis # 3
People are willing to subscribe to 3G services in the immediate future. According to the survey, there are many people who wish to subscribe to 3G services. This is mainly because people want a speedy and snappy internet connection. People are ready to pay more but they expect better services. Hence the hypothesis is true.

Hypothesis # 4
People are willing to spend more for speedy and efficient mobile internet. The hypothesis turned out to be true as people are willing to spend more for speedy and efficient mobile internet.

References

Appendix A
Suggestions for further Study
1. A complete study of 3G Technology. 2. To study the perception and thoughts of people belonging to other cities and states about 3G technology. 3. A detailed study of the Current Indian TeleCommunication Industry and its changing trends. 4. A case study of any of the 3G service provider in India. 5. Studying the scope and importance of 3G across the globe or in developed economies like the US and Japan.

Appendix B
Sample of Questionnaire

1. Price range of the mobile which you currently use

Rs 1000 to 5000

Rs 5000 to 10000

Above Rs 10000

2. What type of connection do you use? Prepaid Postpaid

3. Do you use Internet on your mobile phone? Yes No

4. You use internet on your mobile phone for?

Email

Browsing

Online Gaming

Social / N.ing

5. How often do you use internet on your mobile phone?

Multiple times in a day

Once in a day Once in a week

Once in a while (not too often)

6. Connectivity of Internet on Mobile handset is through? Mobile Network Provider Wifi Other

7. How much do you spend on your mobile internet per month?

Rs 50 - 100

Rs 100 - 200

Above Rs 200

8. Are you happy with the current internet speed on your phone? Yes No

9. Are you aware of 3G technology?

Yes

No

10. Are you aware of the features and benefits of 3G technology?

Yes

No

11. Is your handset 3G enabled? Dont Know

Yes

No

12. Are you willing to subscribe to 3G service (for faster internet and other additional benefits offered by 3G technology)?

Yes

No

13. Will a speedy and efficient internet service motivate you to spend more on mobile internet?

Yes

No

May be

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External links
Telecom Regulatory Authority of India Wireless Planning & Coordination Wing Bharat Sanchar Nigam Ltd Indian Telephone Industries Limited Telecommunications Consultants of India Limited Department of Telecommunications, Government of India Bharti Airtel India Vodafone Essar India Idea Cellular Reliance Communication

Abbreviations
International Telecommunication Union (ITU) 3G third generation Advanced Mobile Phone Service (AMPS) Frequency Division Multiplexing Access (FDMA) Code Division Multiple Access (CDMA) Global System for Mobile communication (GSM) Time Division Multiple Access (TDMA) 3rd Generation Partnership Project (3GPP) General Packet Radio Service (GPRS) Enhanced Data Rates for Global Evolution (EDGE) UMTS Wideband CDMA (WCDMA) High Speed Downlink Packet Access (HSDPA) LTE Evolved UMTS Terrestrial Radio Access (E-UTRA) Telecom Regulatory Authority of India (TRAI) Compound Annual Growth Rate (CAGR) Cellular Operators Association of India (COAI) National Telecom Policy (NTP)