3G or third generation mobile communication systems policy was announced by the telecom ministry on Friday. Simultaneously, the Centre also unveiled policies on Wimax and number portability.
Apparently, it may seem that this announcement may be a step towards greater choice, dwindling prices and more fierce competition. But the 3G policy is perceived to have certain flaws: it is believed to lack consistency and discourage competition. Currently, a 3G handset can cost a minimum Rs 6,000-7000 while a 2G one is below Rs 1,000.
Just a few months ago, telecom minister A Raja and regulator TRAI had felt new entrants in 2G telephony deserve spectrum at a discounted price of Rs 1,651 crore. But this stand has been reversed in 3G, with new entrants facing massive difficulty. They can bid only after amassing $1 billion, twice the amount to be paid by existing operators.
There seems to be some kind of discrimination in the M&A arena. Guidelines permit a 2G licensee to acquire 3G spectrum but forbid 3G players from merging with 2G operators.
However, the consumer will be dished out world-class services. In this sense, it is welcome. Mobile bills may, in the medium to long term, say over 2-3 years, remain high. But that's something all countries faced while migrating to 3G.
The government is upbeat of raising Rs 30,000-40,000 crore from 3G spectrum auctions.
Wimax or broadband wireless access rollout may be perceived to be a threat to 3G.
3G made easy
Spectrum. What is it?
It is a range of radio frequencies. Another term used is bandwidth, that is, the difference between the upper and lower frequencies of a signal.
What does 3G spectrum do?
3G or third generation technology is the next generation system of mobile communication and with the aid of this you can plan your travel. It can help you decide your route and whether to take a bus or train. It keeps you abreast of traffic jams. It can also pay for your air or rail ticket by simply sending a text message to your bank. You can also download music and programmes.
What help is 3G services to us?
With 3G, you can broadcast video and use it for data-intensive services like stock transactions, e-learning and telemedicine via wireless communications.
How long do you have to wait for 3G services to roll out?
About a year.
3G, how different is it from from 1G, 2G as well as 4G?
2G (second-generation wireless telephone technology), is more advanced than 1G networks, which are analog. 2G networks are digital and 3G is an upgraded digital version.
4G technology is in a nascent stage and will also be used by wireless devices. This technology is currently being tested by NTT DoCoMo of Japan and Samsung.
3G technology – are there any bottlenecks?
Yes. High spectrum licensing fees for services. Moreover, massive capital is required to set up infrastructure for 3G services. Prices are also likely to be very high. There is also concerns over health impact of electromagnetic waves. |
