Affordable handsets for 3G services in India is top of the agenda for the GSM Association, the global telecom trade forum representing 700 GSM mobile phone operators across 213 countries.
Reliance unveils GSM plans.
NEW DELHI: Affordable handsets for 3G services in India is top of the agenda for the GSM Association, the global telecom trade forum representing 700 GSM mobile phone operators across 213 countries.
According to GSM Association chairman Craig Ehrlich, the price of 3G handsets will at least be halved from the current range by the time 3G is launched in India. “By the time India and China announce their 3G licensing policy, prices will be cut by at least half,” he said. Ehrlich refused to give any price point. However, Bharti group chairman Sunil Bharti Mittal pointed out that the entry-level 3G handsets should not cost over Rs 5,000.
While the Telecom Regulatory Authority of India (Trai) has begun the consultation process afresh for allocation and pricing of spectrum for 3G services, the government is likely to finalise the policy by the year-end. Keeping in mind that time framework, 3G services would begin rolling out early next year, it is felt.
At a press conference after his meeting with the representatives of GSM Association, communications minister Dayanidhi Maran said: “Rural connectivity should be the name of the game now”. He added that low-cost handsets will fuel growth in the rural telecom market.
According to Ehrlich, the GSM mobile customer base has just crossed 2 billion globally. “The second billion has been achieved in just two and a half years boosted by the phenomenal take-up of mobile in emerging markets such as China, India, Africa and Latin America, which accounted for 82% of the second billion subscribers,” he said.
Reliance Telecom, a subsidiary of Reliance Communications, has GSM operations in eight circles in the country-Kolkata, West Bengal, Orissa, Bihar, North-East, Assam, MP and Himachal Pradesh.
Reliance Communications has now sought spectrum for starting GSM services in the lucrative markets of Delhi and Mumbai.
According to sources, seven telecom vendors have approached Reliance for expansion of its GSM network. These include Ericsson, Motorola, Huawei, Nortel and Alcatel.
The group, it is learnt is not planning a switchover from CDMA, but is planning major investment for GSM. While the estimated cost of Delhi, Mumbai GSM foray is around Rs 2,000 crore, the group may spend another Rs 1,500 crore for expanding the GSM presence of Reliance Telecom.
Commenting on CDMA player, Anil Ambani’s Reliance Communications’ significant expansion plans in the GSM technology, Mittal said, “it’s good news”. GSM is a global technology and that should be recognised, he added. Reliance Communications took part in the global GSM Association meet here on Tuesday, it is learnt.
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