“Only premium customers will be using 3G, says TRAI”
New Delhi, India, Jan.13 - On the eve of the long expected 3G auctions, telecom experts advised prospective operators to search for the high-end customers in their existing subscriber base and prepare to them to shift to high speed download that the third generation spectrum would facilitate. The experts view at a 3G India Mobile Operators Executive Summit was that the new service would enable cheaper download of several applications like mobile TV, video clips of films and sports like cricket, education network gaming and entertainment; for hi-end users voice would be cheaper on 3G. Even rural audience would have a margin of users for these services, the experts emphasised.
Telecom Regulatory Authority of India (TRAI) member R. N. Prabhakar advised the operators to use existing 2G networks to transmit 3G service also, to reduce costs enabling them with right software. HSPA enabled networks would be able to handle 3G transmission. He assured mobile customers that the regulator would keep a watch on the quality of service of 2G operation even as networks move on to provide 3G services. He also added that initially premium customers will be using 3G services and their experience will push the spreading of the services to the masses.
Mr. Avner Amran, Chief Operating Officer of leading 3G network provider TTI Telecom, a worldwide company with comprehensive 3G network operator service solutions experience in several continents likened the explosive growth of telecom in India as ‘more a kind of revolution than evolution”. “Any operator going into 3G needs to prepare for the switching by advance preparation of the potential customer and lining up adequate applications”, he told a select audience at the summit organised by Bharat Exhibitions. “3G about to become from a dream to reality” Bharat Exhibitions MD Mr. Shashi Dharan said emphasising the context of the event. The 3G auctions are expected to conclude by February.
The two public sector operators, BSNL and MTNL who have been providing 3G services for some months now, enlightened the operators assembled with their own experience in the much hyped 3G domain. MTNL chief general manager wireless services Shri A. K. Bhargava pointed out how the problem was not in technology itself but in ancillary services like billing and customer management. “The customer does not care whether it is 3G or 2G; we have to educate him on what benefits to expect from 3G.” MTNL had few customers to begin with but once the benefits were explained “we had one lakh customers in just a month”. The higher tariff at the beginning restricted usage but “when tariff came down, customer base multiplied”, he added. His view was that “it was too early to talk of 3G services becoming popular with bottom of the pyramid customers.” But for the service to be profitable, the customer search should include middle level users as well as hi-end ones. The potential customers could be preselected from the existing subscriber base and told about what 3G could mean to each one of them.
The MTNL executive suggested that operators must project 3G as a tool for enhancing efficiency, productivity and as promoting a changed life style and not as a mere upgrade on 2G.
According to BSNL Principal General Manager for value added services, Mr. S. S. Sirohi, 3G would be most popular with those who need to use internet while on the move. “Download is quick with 3G bandwidth” he pointed out taking a leaf out of his company’s offer of 3G services in the last few months. Live TV would be most popular and also network games with 3G availability. Mr. Sirohi advised the prospective operators to offer a bouquet of services on 3G different from the ones they were so far offering on the 2G networks. “Opportunity for network games is enormous on 3G networks. Thos bouquet of services would drive the quest for rising average revenue per user”. Among other services that 3G would make popular would be family services like multi-media. Operators should configure services before they begin to offer the higher bandwidth. Educate the customer to discover that for many of the hi-end services, 3G base would be much cheaper for him.
The experts also wanted the cost of handsets that can enable use of 3G, to be cheaper than what they are today. “A handset costing Rs 5,000 may not be cheap by our standards” Mr. Bhargava pointed out. “It should come down to Rs.3000 or even less.”
TTI Telecom GM for Asia, Mr. Tommy Quitt cautioned the operators that because of the richness of services on 3G, they should watch the functioning of the network carefully. The problems that customers would face could also be outside the network like application providers. So far as the customers were concerned they would always go for the network service provider when they confront the problems.
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