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Idea Cellular: GPRS Revenue May Double With 3G; No Need To Be First

Idea Cellular MD Sanjeev Aga sought to contain the hype around the 3G rollout in India, telling analysts on the company's Q2-11 earnings conference call that it looks like hyperbole, even though it will have an impact on market structure. "3G is going to co-exist with 2G and (it is not) as if there are two business models [...] there are some companies which have got successful business models and others which don't." Idea cellular is rolling out network in 11 service areas, and is expects advertisement and promotion to go up in the next quarter, "with 3G coming up soon." 3G Impact: GPRS Revenue Could Double Initially First Launch = Winner? Responding to a question on at least two of Idea Cellular's competitors (Tata Docomo & Bharti Airtel) launching services before Idea, and whether Idea should hurry up and execute, Aga said that he sees no advantage in being the first or second: "3G has been around in the world for 10 years, so any sensible subscriber will wait one or two months. And as in any network when you over lay 3G network on the 2G network, testing it out, fine-tuning it and testing all the surround systems is very important. Everyone will be there roughly in the same time, so I do not think this is one of those Commonwealth Games type things that you have got to be the first to brace the tape," he said. Expected usage pattern of 3G: Aga said that consumers with…

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Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

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