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No 3G For iPhone In India!
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Without any 3G network in India, how much sense does the iPhone '3G' make?
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Friday, August 15, 2008:
Bharti Airtel and Vodafone, both are bringing the iPhone 3G to India and have started bookings for the phone as well. But what no one is talking about right now is that there is actually no 3G network in India yet. If we look at the promises the telecom department has been making for the past few years, there is no deadline for 3G roll-out in India. There was a dialogue in Matrix movie where Neo, when arrested by agents, asks for a phone call. Agent Smith says, "How good is a phone call, when you can't speak?" as he had sealed his lips. So, here one can say, "How good is the iPhone 3G when there is no 3G network in the country?" Should consumers fall for that and buy iPhone 3G, which will not be able to offer 3G services despite being a 3G device?
A Non 3G, iPhone 3G
Nathan Burley, an Australia-based analyst with the international research firm, Ovum, explains, "There is no other iPhone model to sell so that is the only model availabl
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e. Apple is pushing the 3G model very aggressively. I think there are a lot of un-locked or cracked iPhone available in India. But through this, Apple will get the Indian market. Well, the iPhone 3G will run on 2G network as well, so you will be able to do a lot of things like the Internet access and other stuff, but the experience will not be that good as compared to running these on a 3G network. Still since iPhone is more about a style statement and the rich interface so at least people will be able to use it and flaunt it."
When Will It Be 3G?
It is going to take quite a while for Indians to reap the benefits of 3G that the device offers? Looking back in history, there have been more promises made than met. The frequency that 3G networks use was assigned to defence forces in India, and it took quite a time to release that frequency as defence forces needed to build the infrastructure to migrate from that frequency. That was followed by the expulsion of the much adored minister Dayanidhi Maran due to some political issues. The change of minister further delayed the arrival of 3G in India.
A. Raja took over as the minister of communications and information technology in May last year and after taking his time to settle down has started the 3G drive. The government is trying to put things in place by announcing 3G guidelines and policies. There will soon be an auction of the 3G spectrum in India by the end of September.
Just few days ago, Indian government approved the release of one block of the 3G Spectrum each to BSNL and MTNL, the two public sector telephone service providers. The Spectrum blocks released for the two companies have the size of 2x5 MHz in 2.1 GHz Band. “Besides this special consideration for BSNL and MTNL, 3G/BWA Spectrum would be allocated through an auction
process to be conducted by a specialised agency. For the Spectrum blocks released to them, BSNL and MTNL will pay a price equal to the highest bid in the respective service areas,” a press statement says.
If Your Operator Doesn't Get 3G Spectrum
So, the PSUs already have the 3G spectrum, which leaves the two major GSM players Airtel and Vodafone who are bringing the iPhone 3G to India. There are CDMA players like Reliance and Tata, who will also be getting some share in the 3G pie from CDMA quota. It means a tight fight for getting the 3G spectrum. Though the experts believe that the two major GMS players will get the desired spectrum. But, what if one of the two players, who already announced plans for iPhone 3G, doesn't get the 3G spectrum. How would they meet the promises?
"3G will do a lot more than just offering services on the iPhone and other 3G phones available in the India market. So definitely there will be limited spectrum for the operators, and as you ask, if either of the operators doesn't get the 3G spectrum, they will either go for some deals or acquisitions to acquire the 3G spectrum," says Nathan.
But the guidelines and policy released by the government clearly discourages such deals or mergers. The press statement says, "Mergers will not be allowed during the initial five years. No trading/reselling of spectrum is allowed."
The government also wants to ensure no hoarding or under usage of the spectrum, "There will be roll out obligations to avoid spectrum hoarding. If licencee does not achieve its roll out obligations, it shall be given one year to do so on payment of 2.5 per cent of its successful auction bid (i.e. spectrum acquisition price) per quarter or part thereof. If licencee does not complete its roll out obligations even within this one-year, the spectrum assignment shall stand withdrawn. The roll out requirements, including rural roll-out, as well as stiff penalties for non compliance of the same has been stipulated," adds the press statement.
It is going to be a tough time for the players. We approached both Bharti Airtel and Vodafone, but they remained tight-lipped on the issue.
Too Early To Be Too Happy
But don't think that the moment they get the spectrum, you will start using 3G services. It is going to take a long time to roll out 3G services in India. The infrastructure for 3G has to be built. Ironically, the two PSUs who got 3G spectrum in advance have no prior experience of 3G services. On the other hand, Vodafone and Bharti Airtel have good experience of 3G services as they are already offering services in other countries, so that experience is going to help them to replicate the model in India.
Closer to home, and before India, Airtel will be rolling out 3G in Sri Lanka later this year. This will work as a testing bed for Airtel. Sri Lanka will be ahead of India in terms of reaping benefits of 3G services on the magnificent device which iPhone is.
According to some reports, iPhones in India are going to be costlier – anywhere between Rs 30,000 and Rs 36,000 -- than those available in the US or UK. In some of the countries, iPhones have been subsidised by operators which makes it cheaper. But Indian telecom players are not known for giving subsidies on high-end phones. Now, the question is while international operators cover that cost through services, in India the iPhone may not be subsidised so will the services be cheaper? An expert who refused to give out his name says that Indian operators will keep prices higher as compared to international counterparts, even if the phones are not sold at subsidised rates. That means expensive services.
Nathan feels, "But looking at the popularity of pre-paid services in India, I think there will be more pre-paid services and there can be subsidised iPhones as well in India."
It took India quite a while to match the international calling rates, which were expensive compared to the rest of the world. So there are chances that iPhone services will be a bit expensive in India at the initial stage, especially when the device is not being subsidised.
International Players Not Interested
The bad news for auction is that the government may not generate the expected revenue from the auction as the international players are not interested in bidding for the spectrum. "The worst thing is, currently no international player is interested in 3G auction of India, reason being the market structure. 2G is very strong in India, and it will take up a lot of resources to build up the 3G infrastructure. Also, the business model is not tested. So right now it will be interesting to see how current players take leverage of the infrastructure and presence and build the business. So, in the current situation it is easier for local players to build on top of that. Pricing and presence of many small players in various regions is another reason for that," says Nathan. To reach to those areas, you need to tie-up with those small players and that can be a tricky business for international players.
There are many hurdles on the road to 3G. When you line up to get your iPhone, don't expect much except the cool device and interface "Yes, that will be a disappointment for users as there is no 3G in India and they will not be able to get the best out of iPhone 3G. They will have to settle with the current network which is of course slower than 3G. However, the iPhone has been very very successful every where, owing to the interface and style so same is going to happen in India as well. Even if things will be slower on 2G, still people will be able to use some of the functionality of iPhone."
Can we say iPhone for India will not be 3G, actually? Nathan laughs at that, "Well until there is a 3G network in India, you won't be able to reap benefits of 3G, so in a way you are right."
The awesome 3G machinery sitting inside iPhone will remain in the state of hibernation like the Indian mythological character Kumbhkaran did unless awakened by some drumbeats and trumpets of the arrival of 3G services in India. But looking at the record, 3G in India seems to be on the track of making and breaking promises. Keeping up that promise is something everyone is waiting for.
-- Swapnil Bhartiya, assistant editor, EFYTimes.com
Swapnil Bhartiya, EFYTIMES News Network
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I have been using high end phone for quite a while now and I have seen my friends also buying high end model they buy it just for the style statement. Nokia n95 users have not even played a movie on it they just buy it because they have that narrow mentatlity i should have this too
that is the reason companies dont make much money in india through services this is not good even for the industry
people here needed to be educated to invest money in right device or if they are investing they must know what they are buying
i have been using an iPhone for a while now and I am now used to it those early days of excitement of checking its features are gone now i want to use full potential of the device which is possible only with faster connection
at home i have 512 kbps connection but that is too slow for me but 8mbps comes with data cap which is not good
things should change companies should offer full value for money
the article is controversial and thought provoking
good work
Suddep |
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| - Suddep Shetty, Chennai, 8/16/2008 7:05:24 AM |
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Hahaha. Joel you are funny. Just because people in US used to use black and white TV for almosts several decades does that mean there was no need of color or HD Tv?
People used to surf net even on 56 kbps dial up...so you don't need a 8Mbps connection right?
If you value your money you must use the most critical feature the company itself is talking about. Go to APple site, the highlight is 3G which makes it faster. And if you dont know what a device is for, then its aweful waste of that device.
YOu say"iPhone 3G isnt just about the 3G? If you want to complain about the iPhone, find more credible reasons... like the camera, or lack of FM, or the inability of setting MP3's as ringtones or the fact that u break it if you drop it."
Oh so funny again, you will break it if you drop it...oops no body knew before that things might break if you drop them. And I have been reading all that stuff that you mention for a year now complaining against iPhone...everyone is writing that only...I am sick of reading tha repeated stuff again and again...in this artile i found a new angle which does push the companies to not sell the feature which is not available and since in india people dont much know what id 3g they should not be folled by attracting them with that feature...go to airtel site..u will find iPhone 3G soon available...this is too much...IMHO i found news refreshing.. |
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| - Jerry , Amrts, 8/16/2008 6:51:01 AM |
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| Strange thing.... didnt people in US use the 2G Edge for almost a year on the first Gen iPhone before the iPhone 3G came out? Didnt they surf the net on the slower EDGE network before the iPhone 3G network?
Also, have u heard anybody say that they have used all the features a phone provides?? How many ppl do u know who use EDGE services in India???? do you know that iPhone 3G isnt just about the 3G?
If you want to complain about the iPhone, find more credible reasons... like the camera, or lack of FM, or the inability of setting MP3's as ringtones or the fact that u break it if you drop it. Don't write meaningless stuff. |
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| - Joel Pinto, Bangalore, 8/16/2008 12:50:03 AM |
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| awesome artcle i never thought on those lines. i will wait for 3g otherwise there is no use for buying iphone. i am happy with my ipod tocuh which do the smae things |
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| - prashant, Bangalore, 8/15/2008 1:47:46 PM |
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| So, you mean to say that Indian are inferior users? They just don't know how to use the latest technologies...that is the reason why we still get 256 kbps as broadband and people are happy with that...it is better to educate users about the stealing companies are doing by selling low end services and charging high...Nokia 77 failed in India as there are NO DVB in India..if you want to be happy with that then be happy....be ignorant....and the artilce did talk about "othe 3G" phones available in India...so ur case is baseless also...Indians don't know the value of device...they go for looks...and never use the full features...we should be smart users not stupid... |
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| - Rajat, Delhi, 8/15/2008 1:46:12 PM |
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