How many of us would remember the
‘trunk call’ … very few. For present generation it would seem ancient but I am
talking of a period which in reality existed just about three decades back. It
was a time when the PCO was an innovation. Since then we have come a long way,
and the telecom industry has evolved as one of the most important sectors in
the country, all thanks to Sam Pitroda’s vision of shaping India’s
foreign and domestic telecommunication policies. He is one of the legends for ushering
in the telecommunication revolution in India; the founder and first chairman of
India’s Telecom Commission. He was instrumental in rolling out the yellow Public
Call Office (PCO) boxes that quickly brought cheaper and easy domestic and
international public telephones all over the country. While today we have
mobile telephony across length and breadth of the country but the technology
lifecycle of PCO’s is still thriving. It is not just in rural India but even in
metros and for a number of audiences at home that speaking through a PCO is
still a preferred medium.
Coming back to the era of big leap
in telecom industry and where it all was adopted. Early 90’s was a landmark
period for Indian businesses across sectors and a lot of what we see across
industries today is because of the economic crisis that forced the Government
to open up the economy. And I am of the opinion that any crisis is good for
businesses as it brings in innovation which otherwise might not have evolved.
Therefore as the economy opened up in 1991; like other sectors, the telecom
sector grew rapidly with emergence of private players in equipment
manufacturing, networking, VAS, paging and cellular services. The National
Telecom Policy was formed in 1994; which clearly was directed to attract FDI
and domestic investment in the sector. In August 1995, with the then Chief
Minister of West Bengal, Shri Jyoti Basu making the first call through mobile
telephone to Union Telecom Minister Sukhram what triggered was the cell phone
revolution in the country- beginning of an era of 2G network. Sixteen-seventeen
years down the line we now have moved beyond 2G to 3G and now onto the roll out
of 4G networks in Kolkata.
With the roll out of 2G wireless
digital networks which enabled voice and text messages way back in the late
1990’s, mobile telephony rapidly paced up. From Rs. 8/- for incoming calls in
GSM based networks to the emergence of handset manufacturers- Alcatel, Motorola
and Nokia, those early years of the mobile telephony aroused excitement and a created
new object of desire amongst the consumers- the mobile phone. With Reliance
Communications launching their CDMA network and reducing call charges
drastically in 2003, mobile telephony started penetrating the middle class.
Multiple operators reduced calling charges and mobile phones were all set to
become a mass product. It was no more just a statement of style and luxury but
a device of utility. For a decade 2G networks ruled with GSM and CDMA platforms
and multiple operators such as Airtel, BSNL, Hutch, Tata and Reliance. Since
then we have been introduced to multiple plans, multiple offers, reduction in
roaming charges, free charges for incoming call which together changed the
consumer lifestyle. Most telecom operators with leased network infrastructure
have expanded reach to 22 telecom circles and have invested in infrastructure
and in providing customer satisfaction. The robustness of the 2G platform
supported it all- voice and SMS data.
However with increasing demand of
internet accessibility and data services on mobile telephony and emergence of
smart phones, India telecom industry had to adopt global innovation of 3G
network connectivity which offered a broader pipeline for movement of data services.
Demand of consumers for 24*7 social media connectivity, email, mobile commerce,
live news, entertainment and video streaming created the need to open up
tenders for 3G networks. 3G technologies uses both circuit and packet switching
technologies that allows more voice clarity, ease of roaming and sending data
over networks. In addition to unmatched voice clarity and faster downloads such
as music, videos and games, there are more features that enhance convergence in
technologies- internet browsing, mobile TV, video conferencing, video calls,
Multi Media Messaging (MMS), Mobile Gaming etc. And as CRISIL Research
forecasts- the 3G mobile subscribers in India will reach 90 million.
However with Bharti rolling out 4G
services in 2012 and Tata, Reliance following suit and with the Govt opening
fresh bids for 2G licenses post the controversy, market is flooded with
multiple routes and packages- 2G, 3G & 4G offering voice and data at
multiple price points. Operators are strengthening their 2G base to reach out
to a larger audience, improving and innovating on 3G networks to rope in more
data based consumers and innovating on 4G platforms to offer greater services
to enterprise. The present scenario as I see is one wherein from point A to B
we have three different routes built in
a) a road, which has maximum
traffic, which is 2G in this case,
b) a highway with has toll plaza but
larger capacity and c) an expressway that has multiple toll plaza and innumerable opportunities to explore.
While co-existence of these multiple
networks is good for India and it can satiate the needs of consumers and
enterprise at multiple levels however consumer awareness needs to increase on
the choice of bandwidth- 2G, 3G and 4G. So what does a consumer do? Consumers
should opt for networks as per the choice of their device and requirement.
Therefore if basic calling is a priority, consumer should choose to be on 2G
network and opt for plans for operators in accordance. But if the consumer
wants the device to do a bit more- internet, entertainment, apps opt for 3G and
4G for the best of services and accordingly operator plans that optimizes the
requirement. However as the market is moving towards increasing technology
adoption and smart phone has become a way of life, the load will shift from 2G
to 3G and further to 4G networks which in a way would be a boon to the telecom
sector in India. Revenue model for operators over the last decade were focused
on voice and sms, moving ahead till 2015 it will be a balance of voice and data
services. Post 2015 it will be VAS and Data Services will be the bulk of their
profit pie. Reiterating, 2G-3G-4G are good for India and it provides a win-win
for consumers, operators, Government and people associated with the telecom
ecosystem.
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