• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Vipin V. Nair

Goa , March 7

SWEDISH telecom equipment maker, Ericsson, believes that roll-out of 3G (third generation) telecom networks in India will help operators reduce costs, offer an array of services to users and connect millions in rural areas who have never used a phone.

"3G as a technology is more advanced and more efficient," said Mr Hakan Eriksson, Chief Technology Officer of Ericsson.

Mobile phone services on 3G networks provide higher bandwidth to facilitate faster Internet and video downloads. Service providers in Europe and Japan have launched 3G services. It is estimated that over 18 million subscribers are now using 3G phones.

Mr Eriksson said 3G networks would require only fewer base stations as compared with the existing 2G networks. "One base station in a 3G network can take 80 calls as against 17 calls per base station in 2G," he said, pointing out that a 3G base station can take much wider spectrum.

Also, in a 3G network, 175 calls can be taken in 10 MHz compared with 110 calls in 2G.

Mr Eriksson likens 3G to a car `that can achieve a top speed of 350 km per hour and return a fuel efficiency of 16-17 km per litre when running normally.'

As compared with this, a `2G' car will have a top speed of 150 km and will return only 12 km a litre. "So 3G is not only faster, it is also more efficient," he said.

Although India is the fastest growing mobile phone market in the world, adding some two million subscribers a month, only 200 million people in the country have some form of telephone connectivity today.

3G networks' ability to carry more data and voice and its possibility for faster rollouts will help India take phones to rural areas more effectively. For the operators, 3G brings in additional revenue streams by providing value-added services.

A study by Ericsson found that almost 50 per cent of users in metros are looking for services beyond voice and SMS. The study predicts that India will have 200 million mobile phone users by 2009.

A great deal of the success of 3G will depend, however, on volumes. 3G handsets are now more expensive than others, and for the prices to come down, their volumes need to go up.

Mr Eriksson said the 3G phones now available are feature-rich and this is the prime reason why they are priced higher. But, eventually, 3G phones with basic features will also be available at normal rates.

"Ultimately 3G will be cheaper than the (existing) 2G networks." Mr Eriksson said.

India is yet to spell out its policy towards 3G services. One of the major issues that needs to be tackled is spectrum allocation.

To invest $50 m for base station facility

MR Jan Campbell, Managing Director of Ericsson India Pvt Ltd, said the company is set to manufacture base stations at its factory in Kukas, Rajasthan. These new, rugged, base stations will help service providers save on operating and capital costs by consuming less power and covering more area.

Mr Campbell said the company would invest $50 million over the next 2-3 years in the manufacturing facility. To begin with, the facility will manufacture 30 base stations a day.

Ericsson would also look at exporting these base stations to geographies similar to that of India, Mr Campbell said.

As part of enhancing its offerings, Ericsson has set up a `nationwide prepaid system,' which is a common platform that enables operators to provide uniformity of services and respond to regional requirements.

The company has also invested in developing mobile Internet solutions by setting up the Ericsson Mobility World Centre at Gurgaon. This facility allows Ericsson to partner with mobile Internet application and solution providers and network operators to develop new applications.

The Systems Integration Competence Centre of the company, which focuses on developing local solutions for Indian operators, will grow to 100 telecom professionals shortly.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reliance Info pays penalty to DoT

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line