3G technology. Is it Feasable? Why not? Well, because pursuing 3G technology would make a hole in the pockets of public sector companies like Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL); well that’s what the analyst tracking the sector says as none of the two have the subscriber base that would opt for 3G nor the ability to churn high end users from well established competitions.
The Industry average revenue per user for Public sector companies reflects that the companies have attracted price-sensitive, low-minutes usage for its subscribers and hence, the subscriber base would find no use for 3G services as 3G pros being services which include wide-area wireless voice telephone, video calls, and wireless data, all in a mobile environment. 3G networks enable network operators to offer users a better service while achieving greater network capacity through improved spectral efficiency. And like the popular saying goes, good is always followed by bad which forces us to stumble across the pros as well as the cons.
And the Cons include-
• Differences in licensing terms between states
• Lack of state support for financially troubled operators
• Cost of 3G phones
• Lack of coverage in some areas
• High prices for 3G in some countries
• Battery life of 3G phones
Almost forgetting to mention the fact that there was a bidding involved for technology, when all the cash flows away in buying the technology, we wonder where would the public sector companies gather financial support from. In the six months of its 3G launch, BSNL has roped in just 10,733 subscribers and the figure for MTNL stands at a dismal 902, an average of just 150 per month across Mumbai and Delhi, considered the two most lucrative circles for 3G in India.
However both the public sector companies deny the fact that buying the technology has created any sort of financial issue for both, infact they are in a position to venture newer applications. Having private sector giants gauging on the limelight, will public sector companies be able to leave a mark? Well let’s leave them with some serious thinking.
