Is Mobile Broadband the catalyst of Change in Wireless Business ?

High speed access will enable content developers and aggregators to generate additional revenue by offering diverse interactive content such as videos, interactive gaming etc. Open internet access allowing direct access to subscribers and increasing value proposition of content to customers, will reflect in the bargaining power of content developers and aggregators increasing.

Content will be the key differentiator which will see new alliances being forged between handsets vendors/ operators and application developers to attract new customers. Mobile operators will leverage proprietary content to create customer stickiness. Boundaries may blur, as handset vendors and operators may also enter the content space.

Revenue from 3G related data services for other VAS value chain players is likely to reach Rs.36 Bn in 2015. Equipment manufacturer revenue from 3G roll out is expected to be Rs. 165 Bn in 2015 growing at a CAGR of 72% over the next 5 year period.

The rate of decline in prices of 3G enabled handsets would be a key driver for uptake of mobile broadband. Availability of diverse vernacular content at affordable prices would enable proliferation of 3G services across the country especially rural India. Quality of service would be just as important as content for faster uptake of mobile broadband services, which again would be linked to network
congestion and hence spectrum.

Author: Webmaster