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BL Research Bureau

The broad guidelines issued on release of 3G spectrum, and two other announcements by the Government are of interest to all telecom stakeholders. It is expected that three-six players may be given this spectrum in the 2.1GHz band.

As and when the auction modalities are finalised and spectrum released, this could help mobile operators to try and stem the fall in average revenues per userby providing superior data and entertainment services at faster speeds.

Of course, access to this spectrum will come at the cost of a significant cash outflow, and only to the winners of the auction.

For Wi-Max services (a technology for providing wireless broadband Internet access), spectrum in the 2.5GHz band is also going to be auctioned.

This comes as a surprise, considering that Internet penetration in the country is extremely low and broadband access through digital subscriber lines is even lower.

Wimax may be a easier way for providing Internet connectivity, especially rural areas. Further charges may be a negative for players interested to take the Wimax route. Even for top players such as VSNL, this may not be welcome news.

Number portability for mobile telecom within a service area is to be launched in the fourth quarter of next year. This service to be launched in the four metros initially, will allow subscribers to move away from one operator to another without having to change the mobile number.

Established GSM players, having bought down churn levels considerably over the years will face the challenge of trying to increase their quality of service levels.

Given that the number of CDMA operators in any circle is not more than two, the choice for a consumer seeking to switch operators is much lower.

But several challenges such as cost of upgrading network, maintaining databases, routing of calls etc. may be encountered before portability is operationalised.

As of now, Vodafone, Bharti Airtel and Reliance Communications will be the major players who may be tested, as they have operations in all the four metros.

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