Note that the 3G auctions aren’t exactly “free and fair” - the government has already blocked spectrum and a license in each service area for public sector telcos- for MTNL in Delhi and Mumbai, and everywhere else for BSNL.

But it appears that BSNL has already been operating 3G services - CyberMedia reports that BSNL is offering EVDO services on a commercial basis, “as a pilot” in select cities. They’ve confirmed that they’re offering 2Mbps via EVDO at Rs. 750 per month, with the EVDO card priced at Rs. 6500. The service is also being offered in Kerala; BSNL is apparently even running a commercial in Bangalore cinema halls for the service. BSNL had earlier said they will roll out 3G in another six months.

Nripendra Mishra, Chairman of TRAI has passed the buck to the Department of Telecommunications (DoT), which is in the unique and not-very-impartial position: of defining government policy, and also as the owner of BSNL. The DoT has confirmed that EVDO falls under 3G, while Kuldeep Goyal, CMD of BSNL claims it is 2.5G. Meanwhile, MTNL has been testing its 3G service in and around Minto Road in Delhi on a non-commercial basis. MTNL is expected to launch 3G services in Delhi in another 4 months. More here and here.

Implications Of This Unfair Advantage

Apart from quality of service, 3G will have little or no impact on the price of voice services. The real difference will be in case of data access. Most other operators are expected to roll out 3G services next year; in fact, the auctions are expected to complete by December. Currently, there are two key players in wireless data access - Reliance Communications, which claims 60 percent of the market, and Tata Communications. BSNLs 3G data services are already operational, and as they roll out services in more Class A towns - particularly Bangalore, Pune, Hyderabad, which have a significant early-adopter user base, you might find RCom and Tata Comm losing ground, because they simply haven’t rolled out the services. BSNL already has quite a head start, but traditionally, their marketing has been lackluster - consumer outreach isn’t exactly their forte.

3G, BSNL, Policy, Technology, Telecom Operators
Tags: 3G, BSNL, Department of Telecom, India, Kuldeep Goyal, MTNL, Nripendra Mishra, Raja, TRAI

1. Its a bit too early to say that by next year players will launch their 3G services. Similarily a headstart of around 6months given to BSNL, MTNL wont effect the final competition among players.
   Sppedy Voice and Data access through 3G is all fine but in the end what matters is the type/kind of “Content”…being offered to the end users.
   Internet penetration is already abysmally low so is the broadband numbers, stakeholders have failed in bundling services around content already. 3G is no new rocket science basic are same only the stakes are high i guess…

   Posted by Vikram Bhardwaj | August 4, 2008, 8:58 pm

2. We had mobile telephony for the longest time and telephony in general for even longer. Guess what..it was the exclusive preserve of the same two players who are being given an advantage. Its not like they were able to do anything with it.

   I also believe that they deserve to get a handicap keeping in view the restrictions and internal problems they have to work with.

   The interesting thing is that the days of the teleco being king are over and done with once and for all. We will have 15 players to choose from and the largest will eventually not have more than 20% market share.

   Their current valuations built on AOL type analysis (Pre-Time Warner deal) will have to come down to more realistic levels.

   Kudos to the TRAI and DoT on protecting the common man….

   Posted by MobStir | August 5, 2008, 10:08 am

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