Showing posts from February, 2010

Unexpected Benefits from 3 G Delay

Vasu Reddy from Chicago

The continued delay in auctioning 3 G spectrum has not slowed the mobile subscriber growth in India. The month to month growth rates are amazingly stable and remain robust. By observing the debates on policy, planning, finance, legal and general issues of 3 G licenses, and in an environment that finds ways to delay any policy decisions, it is quite likely there will be a further delay in the auctions. We have newer reason today than we had a few weeks ago, or for last several months and years.

Subscriber growth rates being constant simply shows that the existing operators with the already allocated spectrum have enough capacity to maintain the robust growth, and the delay in 3 G is not causing any reduction in loading new mobile subscribers. It’s quite a valid observation as to the value of the existing networks having the ability to continue with the growth in user base.

By assuming that at least 2 new entrants will come into the foray with 3…