3G test launch Airtel

The Economic Times reports that Airtel has launched its 3G mobile services in the cities of Delhi, Mumbai and Bangalore on a test basis.

Sanjay Kapoor, Bharti Airtel President (Mobility) told PTI

“We have tested 3G applications at three places - Delhi, Mumbai and Bangalore - on a trial indoor spectrum given to us,”

Since the announcement by the Department of Telecommunication (DoT) to allocate the 3G spectrum by auctioning, all the major players have been gearing up for providing the 3G access to its subscribers in the city.

Airtel refused give details regarding the network vendors that Airtel is sourcing the 3G equipments from but said they are dealing with more than one network companies.

On question that whether Airtel has the technology to offer 3G services, Kapoor said,

“We as an operator have 3G services in Seychelles. Our license for Sri Lanka is for 3G services as well and by the time 3G services are launched in India we will have enough experience. Moreover, we have SingTel as our partner who has wide experience of offering 3G services,”

He further added that 3G is just an incremental service for someone who has operations in 2G already.

Seems like after a really long wait Indian subscribers will get to see the benefits of 3G services. However, as we speak, operators in some countries are already testing the 4G services. China has decided to move to 4G, bypassing the 3G completely. And there is a looming question that should India move to 4G networks ?

Vodafone set to conquer Indian mkt

It came, it bought out Hutch but will it conquer the Indian market? That’s what the world's largest telecom company Vodafone wants to do but its tough to be the numero uno here reports CNBC-TV18.

Number 3 is not his position of comfort! Vodafone Chief Arun Sarin has given the company 3 years to climb up to number one position. Sarin's strategy is focussed clearly on increasing rural subscriber base. But average revenues from these subscribers that are currently between Rs 75 to 125 rupees a month may not be enough to maintain profitability. Analysts say Vodafone will have to aggressively convert the high-end customer with revenues of over Rs 500 to maintain its margins. This may not be very easy

"Don't see a big shift in the market share. There is no reason for people to change the number and they should have a good enough reason to churn" says Prashant Singhal, Partner, E&Y.

Besides, unlike most other markets, Vodafone will have to compete with at least 4 telecom giants in India - Airtel, BSNL, Reliance and the Tatas. Most of these players are very well entrenched in the market. Airtel, Reliance and BSNL already have operations across India. Hutch-Essar, Now Vodafone is present only in 18 circles.

"Is present in all 23 circles to relocate that network and subscriber base, Vodafone will take time to catch up" adds Harit Shah, Research Analyst, Angel Broking

Airtel, Reliance, tata are all household brands in India with high recognition and brand equity. Vodafone will be a brand new name in India especially in the rural areas that is Vodafone's target market.

Analysts say that unless Vodafone can offer a very attractive proposition not only in terms of tariff plans but also in the form of better network quality, customer interface system and innovative value added services, displacing any of these big players could be a long call.