Telcos Join Hands To Offer 3G Services

[Karthik R 246]

Mobile phone companies are firming up 3G alliances as many service providers are slated to launch these high-end services this quarter. So far, only two of the six private operators that won third generation frequencies, Reliance Communications and Tata Teleservices, have launched services on this high-end platform.

Aircel and Tata Teleservices are in talks for a pan-India alliance to use each other's 3G airwaves, an executive with direct knowledge of the development told ET. Both these companies jointly have 3G frequencies in all circles except the metros of Delhi and Mumbai and Himachal Pradesh. But, they are poised to get third-generation spectrum in the lucrative Delhi and Mumbai metros as they are the only bidders for MTNL's offer to share its 3G network with two firms that pay the highest price.

The three GSM biggies—Bharti Airtel, Vodafone Essar and Idea Cellular—are also in the last lap of finalising their strategic 3G alliance, an industry executive tracking the development said.

A Reliance Communications executive said the company was in talks with three operators for a 3G roaming alliance, and added an announcement is due soon, but refused to divulge additional details.

With no operator bagging pan-India 3G spectrum, which enable services such as video calling, interactive gaming and highspeed internet on phones, all mobile phone companies are sewing up roaming agreements with each other to retain high-end users. The country's top two mobile firms, Bharti Airtel and Reliance Communications (RCOM), each won 13 of the 22 telecom zones on offer while Vodafone Essar, Idea Cellular, Aircel and Tata won a total of 9, 11, 13 and 9 circles, respectively.

Bharti, Vodafone and Idea jointly have 3G spectrum in all circles except Orissa. They also jointly own the world's largest telecom infrastructure company, Indus Tower , enabling them to share mobile networks for 3G rollout.

Tata Teleservices is also learnt to be eyeing a 3G roaming deal with state-owned BSNL, which has third generation frequencies in all circles except the metros of Delhi and Mumbai. BSNL's acting CMD Gopal Das had recently told ET that the PSU will invite bids from private operators to share its 3G airwaves. It is also learnt that the state-owned telco believes it can raise anywhere between 2,500 crore and 5,000 crore over a five-year period if it were to enter into roaming arrangements with two players for its third generation airwaves. Tata Teleservices did not comment on its 3G roaming alliances. A top executive with Aircel, who declined to be quoted, said that the company was in talks with many service providers, including Tata Teleservices, and added that its 3G alliances would be in place before January-end .

"We had already stated that we are in discussions with other quality operators to offer 3G services to our entire customer base across the country," Bharti said in an email response when asked if talks with Vodafone and Idea were in the final lap.

An executive with Vodafone Essar confirmed that talks were on with both Idea and Bharti, but said that no 3G roaming deal had been finalised yet.

India's 3G rules allow mobile phone companies to enter into roaming agreements. So, in a zone where a company does not have 3G spectrum, it may strike a roaming pact to ensure that its customers have access to these services.

PACTS IN PLACE

• Aircel & Tata Tele are in talks for an alliance to use each other's 3G airwaves
  
• They may get to share MTNL’s 3G network in Delhi & Mumbai
  
• Airtel, Vodafone Essar and Idea Cellular also in last lap of finalising their alliance
  
• RCOM in talks with three operators for a 3G roaming alliance
  
• Tata Teles is also eyeing a 3G roaming deal with state-owned BSNL
  

Courtesy : Economic Times

[HetalDP 947]

BSNL + MTNL

Airtel + Vodafone + IDEA

TATA + Aircel

RGSM left in cold ???????

[kshah 452]

RGSM otherwise also in cold.

This means 3G is going to be cartel hence in most cases unaffordable. They will still continue to stall BSNL and MTNL development plans by creating hurdles in their bids and tenders. Subscribers are going to remain on 2G for another 2 years. Any ray of hope is on MDA - LTE venture. So now time to CHILL for another 3 years. Only excitement would be MNP.

[kkdeep 6]

I still have some hopes from Tata +Aircel to lower the prices. Only these guys can break the cartel of Big 3. BSNL with their PAN India network and 2 year lead could have done wonders, Only if it is managed better. Sigh!!

[KanagaDeepan 1,084]

I dont think Tata and Aircel will bring competition in 3G, especially wrt data.. Tata will keep 3G rates at same level of EV-DO... We can expect reduction in 3G data tariff from Tata only when EV-DO tariffs are reduced, which is NOT AT ALL going to happen anytime soon, imho...

[Karthik R 246]

It may sound unglamorous but I have pinned my 3G hopes on BSNL. Reason : they dont bundle "free" voice calls with 3G data packs and then lower the data usage to ungratifying levels. Also they are offering most economical 3G plans now - 1GB for 440 OR 1GB day + 5GB night usage for 606. It will be ages before Tata/Rel matches that.

[csmart 472]

wht reliance is upto? no moment in CDMA, 3G going alone... are they running charitable trust?

[KumaarShah 143]

They will wait and watch how others are doing and then they will take the plunge - maybe by then MDA will come and rescue ADA. Or it will merge with MDA. But till then all other players will make merry. Wrong priorities of RGSM.

Maybe we are wrong in our assumptions. Maybe they will tie up with BSNL for a pan India network. And since BSNL is giving reasonable (not economical) tariffs in 3G, RGSM also may be able to offer similar tariffs. Maybe RGSM will emerge as the winner in this round.

Lets wait and watch as things unfold in the next month or two.