‘Data demand could be higher in India’

US-based wireless chipset technology provider, Qualcomm, is looking forward to the upcoming 3G (third generation) telecom auction in April. Qualcomm, which powers 3G devices across the world, may also participate in the broadband wireless access (BWA) auction, scheduled to be held alongside the 3G bidding.
William Davidson, senior vice-president, global marketing and investor relations, Qualcomm, spoke to DNA on Tuesday on several issues related to 3G and BWA auction. But he refused to comment on whether Qualcomm would participate in the auction. Excerpts from the interview:

Is Qualcomm planning to bid for BWA auction in April?
I wouldn’t have any comment about that.

If you participate in the auction, which consortium/partnership would you enter into?
Again, I cannot comment.

What’s your view on the general potential of the 3G market in India?
I think the key is that the 3G market globally is quite well established.

Do you think the target set by the Indian government of Rs 35,000 crore for 3G and BWA will be met?
I can’t speculate how much the operators or potential bidders feel the value of spectrum is. So, I don’t know. Everywhere else in the world, spectrum is viewed as very valuable and precious commodity. And it is only becoming rarer, which is driving prices up. But, I wouldn’t have any perspective on how much the auction can generate for the government.

Do you have a feeling that foreign players may not participate in the 3G auction, the way it was expected?
I think the global community of the equipment providers and manufacturers think differently. Wimax has its technological challenges for sure, but I think the bigger challenge is just the time that it takes to establish in the ecosystem.  I think LTE (long-term evolution) really is the logical next step.

Not just on 3G, Wimax and LTE, but otherwise also, what are the challenges for you in India?
When you are working for any new market, the assistance that we try to give to the operators is a challenge. Getting accustomed to the new technology is a challenge. So, we have a team within Qualcomm to give assistance to operators. We help them design their networks and also in troubleshooting. So, the biggest challenge is always after the launch is of new technology.

Besides technology, other things that have to be worked out are the right distribution model and how the consumer is going to buy the devices. But the good news is that we have a lot of experience from all over the world, from low-end to high-end, because of the launches.

Do you have any concern over the government policies?
In the past, I think there have been pros and cons and the positions that have been taken (by the government). But, I would say now that we feel good that all that is behind us and we are awaiting the 3G auction. Spectrum is a rare commodity all over the world and we understand it can be difficult for regulatory bodies in the government to get arms around the issue.

Do you see 3G auction happening on time now, or is there a scope for any delay?
(Laughs) We used to try and predict those things earlier, but we ended up being wrong more than we were right. So, we never really try to predict anymore. I just think that clearly there is interest on the part of the consumers in India to take advantage of 3G.  I would say I cannot say anything on that, only that time is right for it in India.

Many operators say that it’s not time yet for 3G in India, because teledensity in the country is not even 50% yet…
Mostly it is on the data side that 3G would provide a compelling experience. That is, interacting with networks from the data transmission perspective. 2G has served the market well for years for voice and I believe that fundamentally in a market like India, the demand for data could be higher than in other parts of the world.