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iSuppli Corp: WiMAX, 3G and Number Portability to Drive Indian
Wireless Market in 2009
(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:17112008
El Segundo, Calif. -- Defying the global economic slowdown, India's
mobile-phone demand is expected to continue to rise at an accelerated
rate in 2009 due to the rollout of 3G and WiMAX networks and the
implementation of Mobile Number Portability (MNP), according to iSuppli
Corp.
India's mobile-phone demand is expected to rise to 136 million units in
2009, up 23.9 percent from 110 million in 2008. This compares to 16.8
percent growth in 2008.
Cellular subscribers in the nation will grow to 319.9 million by the
end of 2008, up 36.9 percent from 233.6 million at the conclusion of
2007.
iSuppli estimates India's total wireless subscriber base will grow at a
Compound Annual Growth Rate (CAGR) of 25.1 percent for the period 2007
to 2012 to reach 715 million by the end of 2012.
The attached file presents iSuppli's forecast of India's mobile-phone
demand.
"The continued expansion of India's mobile-handset market is partly due
to the declining costs of calls, the availability of inexpensive
handsets, increasing geographical coverage and operators' rising
portfolio of Value-Added Services (VAS)," said Abhimanyu Raina,
associate analyst at iSuppli. "In 2009, the rollout of 3G and WiMAX
networks and the implementation of MNP are expected to drive the growth
of the wireless sector."
3G, WiMAX and MNP drive demand
Indian telecommunications operators presently are focusing on 2G CDMA
and TDMA (GSM) technologies to deliver lower-cost mobile services.
However, the process of cost reducing 2G-derived handsets seems to have
reached its technical limits.
iSuppli forecasts 3G and WiMAX will garner subscriber bases of 250
million and 19 million respectively by 2012.
This growth can be attributed to spectrum availability, more affordable
price points and support from the government. Initially, the market for
these technologies is expected to be driven by corporate and enterprise
users and by tech-savvy young people.
MNP will be implemented by the end of 2008 in four metropolitan areas:
the National Capital Region, Mumbai, Chennai and Kolkata. These
rollouts will be followed by a launch in other areas by April 2009. As
shown in nations such as Australia, Japan and Hong Kong, the
implementation of MNP increases the churn rate, leading to rising
competitiveness in the market. iSuppli expects similar results in India.
India announces 3G and WiMAX policy
India's Ministry of Communication and Information Technology in August
released its 3G and WiMAX policy, which covers both GSM and CDMA
services. Key features of the policy include:
--
Foreign companies will be allowed to bid for 3G and WiMAX
licenses in India.
--
Up to five licenses will be issued to operators over 60MHz of
spectrum in each coverage area for telecom companies. Five additional
operators may be added in the future.
--
The 3G spectrum in the 2.1GHz band will be available for
auction, with spectrum allotment for 20 years.
--
WiMAX spectrum at the 2.3GHz and 2.5GHz bands will be available
for auction, with spectrum allotment for 15 years.
--
Spectrum is set to be auctioned in blocks of 2x5MHz at the
2.1GHz band and 20MHz at the 2.3GHZ and 2.5GHz bands.
--
Operators are exempted from paying an annual fee during the
first year of operation.
--
Operators will pay an annual spectrum charge of 1 percent of
adjusted gross revenue after one year.
--
Companies holding a Universal Access Service License (UASL),
and/or fulfilling the eligibility criteria of UASL and possessing
previous experience of running 3G services can bid for spectrum.
--
Rollout obligations include 90 percent of metros' areas within
five years from the date of spectrum allocation.
As a result of the announcement of the above policy, the Indian telecom
sector has seen a host of activities pertaining to 3G and WiMAX
technologies. These include:
--
State-owned telecom operators Bharat Sanchar Nigam Ltd. (BSNL)
and Mahanagar Telephone Nigam Ltd. (MTNL) each received single blocks
in each 2.1GHz (3G) and 2.5GHz (WiMAX) spectrum. These firms are
expected to roll out their 3G and WiMAX services by the end of 2008.
This has given them a head start compared to other private telecom
players.
--
Apple Inc. in August launched its iPhone 3G in collaboration
with Airtel and Vodafone.
--
Tata Communications, previously named Videsh Sanchar Nigam Ltd.
(VSNL), launched WiMAX in Bangalore. The company plans to invest $500
million to roll out the service in Chennai, Delhi and Hyderabad.
--
Sloka Telecom, a global player in wireless broadband solutions,
has initiated aggressive brand building activities in India. The
company is in the advanced stage of sample product testing and
negotiations with some telecom OEMs and service providers for offering
WiMAX solutions.
To learn more about this topic, see iSuppli's new report, entitled: CE
and Mobile Telecom Driving India's Electronics Industry, from iSuppli's
India practice. For further information on this report, please visit:
http://www.isuppli.com/catalog/detail.asp?id=9625
Journalists, please respond to this e-mail for a free press copy of
this report.
CONTACT: Jonathan Cassell, Editorial Director and Manager, Public
Relations, iSuppli Corporation
Tel: +1 408 654 1714
Tel: +1 408 921 3754
Debra Jaramilla, Manager, Marketing, iSuppli Corporation
Tel: +1 310 524 4047
WWW: http://www.isuppli.com
((M2 Communications Ltd disclaims all liability for information
provided within M2 PressWIRE. Data supplied by named party/parties.
Further information on M2 PressWIRE can be obtained at
http://www.presswire.net on the world wide web. Inquiries to
info@m2.com)).
Copyright ? 2008 M2 Communications Ltd.
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