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Now, the 3G auction is over in India and results are out, it is clear that Indian consumers will soon be able to enjoy YouTube (News - Alert) on their mobile phones, video chat, Internet TV, streaming music and data transfers are nearly instant. All of this is now possible with the launch of third generation (3G) telecom services. The 3G auction was officially concluded on May 20 by Telecom Regulatory Authority of India.

The 3G spectrum race is over and the good news is that no one single operator managed to claim all 22 circles on offer in the auction. While 3G build-out is already underway by Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd - both state-run entities - the competition will only intensify as private players get into the race.

The state-run networks hope to have 3G in place within the next six months, although the arrival of the private sector could speed this implementation.

3G is certainly not new technology as the first commercial launch was by NTT DoCoMo (News - Alert) in Japan in October 2001. SK Telecom in South Korea was close behind with its implementation in January 2002. KT, also in South Korea, launched in May of the same year.

Singapore based, leading mobile VoIP solution Provider Company REVE Systems' CEO Md. Rezaul Hassan says, "India is a hot telecom market as more than 600 million phone subscribers and 20 million new users are added every month. For users in India, the launch of 3G will mean page views will be near instant and TV, online games, videos and music will be streamed so that the experience seems instant."

 

Hassan adds "Triggered with 3G, VoIP industry will touch new dimensions and will open new avenues of success to ITSPs and mobile operators as the VoIP usage grows."

 

The service won't be free, but with the number of competitors in the space, pricing is likely to be aggressive as they vie for market share.

While the new spectrum will be used for voice services, it is being projected that it will also help to spread data services throughout the country. As this spread continues, service cost will be driven down even more. 3G handsets are likely to bring a higher price at first, but again penetration of the market will drive down price.

Sanjit Chatterjee, director, Global Marketing and Strategy, REVE Systems, shares his point of view with CIOL's Deepa Damodaran on 3G, according to Sanjit, "A lot is being expected from 3G and 4G technologies, especially in the wireless broadband milieu. With better data availability on hand-helds, mobile VoIP usage is expected to increase significantly. Now, as the third generation technology is slated to be launched later this year."

 

One analyst shared his angle in a RCR Wireless piece. Shiv K. Bakhshi, Ph.D, believes the day the spectrum auction closed will be considered the day the telecom landscape in India changed forever. He believes the market will be dominated by a new set of leaders.

The success of 3G in India will affect the industry in various ways. One thing Bakhshi considers will be a definite is the fading of the Wi-Fi signal in the Indian telecom industry. While this landscape will change for sure, it will greatly depend on user habits and demands. Now that new players will be emerging, the true winners will be the users wanting data at their mobile fingertips.  

Sanjit Chatterjee says, 'While all 600 million Indian mobile subscribers don't own handsets that support data services, it is a matter of time when some cheaper 'copycats' will be within every mobile user's reach for one-tenth the average price of a smart phone.' So there will be an emerging demand of 3G enabled, cheap handsets followed emergence of companies to fulfill the demand.

As for the overall impact in India, the biggest change will be in the introduction of instant access to data. This will create new opportunities for alliances and partnerships that will determine market dominance. New solutions introduced will dictate the way users consume data, although trends will mostly be consumer driven.

 The final winners of 3G auction can be seen on here.