The Growth of Telecom Sector

  • SumoMe

Today the world of telecom has changed. Earlier there was just Reliance Communications providing mobile phones at cheap rates but, now we have many mobile phone operators providing mobile phone services at cheap prices. All this has indeed helped consumers. The entry of AIRCEL was not expected to be good due to the existing tough completion but now it has become one of the most successful operators in the country. Competition is on the rise and even foreign companies like UNINOR are trying their luck in India. The growth in the telecom sector has led to the coming of 3G communication technology. The present number of companies involved in Telecom industry will help the consumer gain to access the facilities like video phone, high speed internet and streaming TV and all this because of the existing competition.

What is 3G? Let’s see where it takes us. The 3G service is a generation of mobile phones akin to the generation X for human race. It’s like a generation of the mobile phones if mobile phones were species. The one we are using right now is the 2G communications and the coming ones are 3G and 4G respectively. Earlier we used to talk on phones now we can download songs and save videos. Moreover, it has features like video messaging and person to person video calls which means more visual interaction. It’s like evolution from early man to Homo sapiens and so from mobile phones to video mobile phones. It’s going to take the competition in the mobile world to a new level.

The 3G technology came into being in the year 2001. NTT Docomo launched 3G for the first time in Japan followed by South Korea in the year 2002. In India it was launched by BSNL in 2008 in Patna and today it has spread to 380 cities with 3G licenses. This was followed by MTNL.  The consumers got to know about it through the advertisement which aired on television by BSNL. It’s been ten years since 3G came into being. There were mixed responses from both the sides- the consumers and providers. From the consumers point of view it was beneficial but the providers were having some issues. The 3G transmission requires a specific frequency as it cannot be superimposed on the existing 2G frequency. This requires new operating towers and building new towers needs capital. USA was the first country that successfully adjusted both 2G and 3G on the same frequency. Due to the high cost of building new networks in European countries the introduction of 3G technology got delayed.

This year India saw a great turnout for the auction of licenses of 3G communications. The bidding amount was higher than what was expected. The huge participation took the revolution to a whole new level. The bidding process was online, conducted in various rounds. Overall it was fair and square as no one could guess the maximum and could know what the other person was bidding. Economically, it was good as the government would earn revenue which is 3 times of what was expected to be. More revenue will bring in more facilities for common people and the government can complete their pending projects. The consumers are benefited as they can have so many facilities in their phones and perhaps they might stop using laptops one day! Providers are expected to do well due the government support and existing competition to survive. They might face some adjustment problems in the short run but the long run is expected to make them better off. They can use the concept of specialisation to reap maximum benefits. The overall impact of 3G is going to be a boon to the human race.

Kriti Singh

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