Indian Mobile Infrastructure – To 3G or Not To 3G
To maximize remote places investors circa 1994, a first study of the Indian Telecommunication Policy appeared to mitigate worries. In our naiveté, we predicted this Policy to place India at a minimum on par with China, wherein an oppressive regime ruled telecommunications. A disastrous implementation ensured India languished behind its neighbor on teledensity, mobile usage, and broadband coverage.
Fortunately, later developments like the Unified Licensing Scheme, albeit a reactionary response to activities threatening to crush TRAI (the Regulator), pull Indian de-law ahead of even places like Hong Kong, where a unified state of affairs is being discussed. Merits of particular elements of de-law notwithstanding, the overseas investor expects to peer a clear roadmap ahead of the boom in permissible FDI to 74% has to hold any that means. The latest imbroglio at the future of the 1900MHz band is a fantastic possibility for TRAI to apply the debate to draw up precisely this kind of map.
An identical challenge to the overseas investor and on which operators on both sides of the GSM-CDMA divide concur is the demise of a high-margin call. According to User, the future holds a long slog uphill for every rupee growth to the ARPU (Average Revenue according to User). Making it extra attractive is the futility of erstwhile successful product and marketing techniques under ultra-modern margin situations.
Additionally, while one ultimately appeared, the government had its hand inside the until for an improbable 22-25% of sales inside the shape of license expenses, revenue percentage, and a second license fee through a disingenuous “spectrum usage rate”. Add the Access Deficit Charge (ADC) ransom to the Dominant service BSNL, and one can’t blame some investors for setting aside their calculators and heading for the door. With cellular collection fees at abysmal ranges thanks to the pseudo-WLL/CDMA rollouts, the mobile operators consider additional infrastructure investments with trepidation. However, modern price-introduced services are one of the few ways to elevate ARPUs out of the funk, and they ought to invest. How intelligently they achieve this makes a decision their fate.