Month: May 2010

11 Billion US dollars or 677 billion rupees for 3G in India

This was the amount Indian Government earned by selling 3G spectrum in India.12 Service providers bought the licenses.580 million mobile users in india at the moment.

20 million new subscribers were added in the month of march.

Since it will take at least four months for the companies to roll out 3G, it will be 660 million mobile users in India by then.

660 million users will have to pay 700 Rs each, for the mobile companies to just get the licencing fees back. We have not added the price of marketing, equipment and other expenses they need to start providing 3G.

As you know only few people take data packages on their mobiles, out of my 5 friends only two have activated the gprs service on their mobiles. I am expecting the same rate of up take in 3G service, only may be about 40% will take the data service.

Now its 264000000 mobile users even that number is extravagant. Even then it will take 2000 Rs each.

There is another problem too, there are people with more than one sim. In fact in the last two years i have changed 4 different carriers and 4 different sims. I will be taking up another sim in a few days time. This time it will be bsnl 3G sim. So that make it five connections out which only one i will be using. So that 40% i talked about could be even smaller.

So it will be long time before these companies start making profit. How many will perish and how many will succeed only time will tell…

Hope Indian government put this money to good use.

$11 Billion for Wireless Spectrum in India – NYTimes.com