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3G Opportunities and Challenges

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3G Opportunities and Challenges Powered By Docstoc
					                                           Mahesh Uppal
                                 Com First (India) Pvt Ltd
Presentation at Balaji Institute of Telecom Management
                                          9 October 2009
Mobile Phone is Versatile

 Cheap to use
 Easier to use than PCs
 Personal
 Deployment of networks is fast and
  cheap
 Convenient to carry {“form factor”)
 Now supports broadband
 Huge Economies of scale

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What does 3G offer?
     To Consumers
          A diverse mix of fun, business and social applications
          Productivity on the move: Access to mobile broadband
          Superior quality of service
          Rural consumers could benefit most
     To Operators
          Can build on existing 2G networks
          Expand services
          Improve Revenues
          Ability to integrate voice and data through single network
     To government and regulators
          Expand Braodband
          MItigate spectrum crunch
          Improve Quality of Service
          Grow rural economies



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Superior Mix and quality of
Services
                      From simple voice, SMS, Ringtones to
             Social Networking, Blogging, Rich multimedia, Mobile TV

         Broadband Access to Internet
         Entertainment
         Interactive Gaming
         Financial Services
         Location based Services
         Education
         Health
         Governance


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Handsets
 Over #% of Handsets in the market are
  3G enabled
 Price of 3G handsets falling, soon below
  $100




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20 September 2011   Uppal: 3G- Opportunities and Challenges   6
Why is regulation such an
important concern in the telecom
sector
 The sector is often believed to be lead by
  regulation since most aspects of its
  functioning are regulated to some extent
  even today. (e.g. what?, who?, where?,
  what price?, with which partner? etc.);
 Unique and critical telecom issues like
  Spectrum, interconnection are determined
  almost entirely by regulation;
 Regulation can determine the value a
  player or community can derive from a
  service.

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Legislative Framework
 Indian Telegraph Act, 1885;
 Indian Wireless Telegraphy Act, 1933;
 Telecom Regulatory Authority Act, 1997;
 Telecom Regulatory Authority
  (Amendment) Act, 2000;
 Communications Convergence Bill 2000
  (if/when passed by Parliament).



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Policymaking: National Telecom
Policy 1994 (NTP-94)
       Context: deregulation post 1991 crisis
       Need for growth, especially in rural services
           (“service on demand and all villages to be covered
           by 1997”
          Need for world class services of adequate quality
          Need for substantial investments to meet demand
           (private, not necessarily india)
          Companies registered in India allowed market entry
          Indirect reference to need for a regulator in a
           multiple player environment “suitable arrangements
           will have to be made to….Ensure fair competition”




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Policymaking: New Telecom
Policy 1999 (NTP-99)
       Context: significant controversy and industry
           pressure
          Move from licence fees to revenue sharing
          Technology neutrality; coherent definition of
           services
          Empowerment of regulator
          Restructuring of Dept of Telecommunications
          Limited attention to competition management
          Ends controversy over DoT/MTNL mobile
           service.
          Incumbent‟s Fees to be refunded to compensate
           for USO


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Broad Goals of Regulation
(All inextricably linked!)
 Delivering competitive market outcomes
  -such as choice, quality, lower prices- to
  consumers;
 Protection of Consumers;
 Creating incentives for investments
  especially those unlikely to be prioritized
  otherwise;
 preventing market abuse by dominant
  players

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How Can 3G Succeed in India?
 If consumers see value in 3G services
 If operators provider can deliver
  services of interest to consumers and at
  price that is affordable
 If service providers find 3G commercially
  attractive?
 If environment is conducive for providing
  commercially attractive services
 If 3G stakeholders can be innovative


20 September 2011   Uppal: 3G- Opportunities and Challenges   12
Spectrum Will determine the
timing and extent of 3G services
?
 Access to Spectrum
 Early auction of spectrum
 Early decisions on mobile TV roll out
 Price at which Spectrum is eventually
  auctioned




20 September 2011   Uppal: 3G- Opportunities and Challenges   13
All plugs must be pulled to
facilitate relevant technology
 Technology choice must be left to the
  market
 Barriers to potentially valuable
  technologies must go
       VOIP ban hurts rural telecom
     Spectrum for new technologies needs to
      be prioritized



20 September 2011     Uppal: 3G- Opportunities and Challenges   14
Access to 3G in Rural Areas is
Vital
 Need to deliberate carefully on Subsidy
  for Rural Broadband
 Need to take a holistic view instead of
  the current operator specific approach




20 September 2011   Uppal: 3G- Opportunities and Challenges   15
Content is Key
 Bare „pipes‟ help no one.
 Justification for investment in infrastructure
  market will increase if the „pipes‟ can carry
  much more.
 Governments must
       Deregulate their content
       Prioritize e-governance initiatives
       Expand localization efforts
       Remove bottlenecks in education and health
        delivery
       Recognize the importance of standards and
        interfaces

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E-Governance Success is strongly
linked to 3G
 Demand for bandwidth in Rural Areas
  will rise fast
 Need for Mobile Access to e-gov
 Need for sophisticated business models




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Thank You
 mahesh.uppal@gmail.com
 +91-98100-42969




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