India 2011 (12)

Theme:3G comes to India

India’s auctions of 3G spectrum licenses in 2010 marked the start of a new era for India’s approximately 600 million mobile users. The 3G spectrum will give them better Internet access and accelerate the growth of everything from eGovernment to eHealth, eCommerce, telemedicine and much more. Service providers and equipment vendors for businesses and consumers alike will all be hard pressed to keep up with the demand for everything from smartphones to consumer applications, and from infrastructure to billing and network management services. Despite the expected in 3G driven revenues, there are concerns that the prices paid for the spectrum will have the auction winners struggling for years to recuperate their investment. Some industry observers predict there will be a wave of consolidations in the sector as a result. Whatever happens, we can be sure that business users and consumers will both benefit greatly from the greatly enhanced services that 3G makes possible - and that competitive necessity and the need to generate a strong return on investment guarantees. One can expect that the focus on consumer needs will be redoubled as companies move to stake out their positions in this extremely dynamic market.