The Times of India

Report: India to have 3G services by 2007

April 13, 2006 

India's cellular phone operators are expecting to offer 3G mobile services in the country by next year, a report from the Yankee Group said.

Sports, Bollywood, music and mobile gaming will offer Indian cellular operators a big opportunity to push content over 3G networks and increase revenues per user, the US-based Yankee Group also said.

"From commercial launch in early 2007, we expect 21 million 3G users in India out of a total mobile user base of 201 million," the report said.

By then mobile penetration in India would have reached 17%.

"The value of India's mobile industry will be more than double from $4.6 billion in operator service revenue in 2004 to $10.6 billion in 2010, with 3G users accounting for a disproportionate 23% of value," the report said.

It predicts that handset costs will fall to $150-200 range, with low-end sub-$100 3G handsets available within a couple of years. It adds, however, that operators will "need to assert more control over device sales and the interaction with customers."

The report, however, cautions that the government will have to put in place right policies and regulation, without which the benefits of 3G could be lost.

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