While auctioning of 3G licensing has been announced, there are still doubts on its successful launch
It is noteworthy that the current prices are Rs.15 billion steeper than the ceiling prices proposed by TRAI. So if a company wishes to offer 3G, it would have to shell out Rs.35 billion to just get spectrum and then a further amount to get the processes in place.
As Anil Sardana, MD, Tata Teleservices Ltd. told B&E, “If there had to be bidding, it would have been better if the market prices had to determine the price for 3G rather than have such a high ceiling price as it would impact the plans especially in the B and C circles.” It is well known that India is a price sensitive market and if 3G services have to be used, especially in the rural hinterlands, then it would have to price appropriately.
“With the way the prices stand today, all the telecom companies would have to go back to their drawing boards and see if 3G fits in their revenue models,” shares a telecom company official on conditions of anonymity. Also, as the government is now planning to offer only three-four 3G slots (depending upon the circle) as opposed to seven as earlier proposed, there would not be enough competition in this sphere that would drive down the prices and ring in affordability as brought about in the voice services. So one wonders whether India will see 3G at all!
It is noteworthy that the current prices are Rs.15 billion steeper than the ceiling prices proposed by TRAI. So if a company wishes to offer 3G, it would have to shell out Rs.35 billion to just get spectrum and then a further amount to get the processes in place.
As Anil Sardana, MD, Tata Teleservices Ltd. told B&E, “If there had to be bidding, it would have been better if the market prices had to determine the price for 3G rather than have such a high ceiling price as it would impact the plans especially in the B and C circles.” It is well known that India is a price sensitive market and if 3G services have to be used, especially in the rural hinterlands, then it would have to price appropriately.
“With the way the prices stand today, all the telecom companies would have to go back to their drawing boards and see if 3G fits in their revenue models,” shares a telecom company official on conditions of anonymity. Also, as the government is now planning to offer only three-four 3G slots (depending upon the circle) as opposed to seven as earlier proposed, there would not be enough competition in this sphere that would drive down the prices and ring in affordability as brought about in the voice services. So one wonders whether India will see 3G at all!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)
