Broadband on mobile will be a big hit in India, says Ericsson

Mobile Internet, The, March, 2005

India's wireless services industry is likely to push into 3G services this year as carriers roll out broadband access in big cities and move deeper into untapped rural areas, the head of Ericsson India said.

Swedish telecom equipment maker Ericsson is the largest supplier of telecom gear in India, the world's fastest-growing major mobile-phone market.

"The broad themes for the Indian market in 2005 would be that Indian carriers will take their first steps towards 3G services, broadband on mobile will be a big hit this year and there will be huge expansion in rural areas," Jan Campbell, managing director of Ericsson India said.

3G networks, which are winning customers across Europe and Japan, offer faster Internet speeds on mobiles, enable music and video downloads, and also improve voice quality. These value-added services help operators to improve profitability in the fiercely competitive market where voice services are commoditized.

"There is a demand for 3G services in India. We already see entertainment services picking up in the metros," Campbell said.

Carriers such as Hutchison Max Telecom Ltd. already offer TV channels, picture messaging, and video downloads. Hindi-movie song-based ringtones are a rage, and mobile gaming is also getting popular.

"Almost 50 percent of users in metro cities are looking for services beyond voice and texting," Campbell added.

Analysts expect India to auction licenses for 3G services in the third and fourth quarters of 2005.