3G Launched in India – Should Pakistan Follow?

3g_mtnlMuch Hyped third generation services surfaced Indian Capital yesterday when government-run Mahanagar Telephone Nigam Ltd (MTNL) launched first Indian 3G network it presence of Mr. Manmohan Sing, Prime Minister of India. We are told that this is a soft launch with limited coverage even in New Delhi. MTNL’s statement said that commercial launch, tariffs and registrations will open in 2 months or so.

Featured Services MTNL will Offer includes

  • Video Telephony – Customers will watch and talk simultaneously through Video Call.
  • High speed internet for smart-phones and Laptop from 256 Kbps to 2 Mbps.
  • Mobile TV
  • Location surveillance
  • Streaming Video on Demand
  • Gaming and so on

So this was about India; now let’s get back to Pakistan, and discuss what prospects and challenges we have got when it comes to 3G network and its implementation in our country.

3G Network Prospects For Pakistan’s Market

Service with better value is always welcomed by the masses. In 3G services, customers can get data speed of up to 2Mbps, while the highest possible speed in GSM is only 50Kpbs and EDGE is 387Kbps (this max speed on GSM and EDGE can vary depending on network).

With emergence of 3G it will be something like transiting from Dial-up to Broadband; means no question, what’s so ever, for comparison, but the answer that “3G will rock”.

sms_in_pakistanCurrent data usage (SMS and GPRS) in Pakistan shows a notable upward trend. Babar Bhatti, while quoting PTA’s recent annual Report, points that during the year 2007-08, cellular mobile operators generated more than 25 billion SMS. He opines that this growth is resultant of young generation as they share majority of cellular market and prefer to communicate via SMS.

Same is the case with GPRS/EDGE, as a senior cellular official in a conversation told us that GPRS usage in Pakistan has  increased significantly in recent months. He was of the view that awareness amongst masses and the liberty of staying intact with internet while on the go is so vital and attractive, that users can pay extra if they are offered better services.

To some extent, we can use this data as benchmark, keeping in view the global drop in video call and data transfer tariffs over 3G network in recent months. For instance, in Yugoslavia Telenor offers Video calls at same rate as of voice calls.

Though it will be too early to comment on pricing, but we believe that third generation services will be inexpensive too; meaning that people will love consuming them.

Challenges

We have reported several times about current economic down fall in telecom sector, especially after July 2008 budget. We know that telecom companies are not in any mood to invest money for 3G license and then network roll out. Instead they are more interested in expanding GSM network to reach uncovered areas for more customer acquisitions. Also they may consider optimizing network instead of offering a new facility from scratch.

In such a situation, telecom companies may think multiple times before they decide anything on further investments – given that speculated bid for 3G license may hit 300 million US dollar mark.

A senior official from a cellular company (requesting anonymity) told us that he can foresee the potential return on investment in 3G network but this is maybe not the best time to auction 3G licenses. He was of the view that maybe 8 months ago was the best time or 6 months ahead could be another best possible time for 3G network rollout in the country. Lastly he revealed that all this 3G hype is created by the vendors, not the cellular companies or even PTA.

An official from (infrastructure) vendor communicated us that he is not sure if PTA will be able to auction 3G license in first quarter 2009.

It is learnt that PTA wants 2 existing operator (already operating in Pakistan) and 1 new operator to get this 3G licenses; while cellular companies want PTA to allow only existing operators to participate in bidding.

A Telecom analyst during a conversation with us depicted that Telenor is well placed to avail 3G license, while Ufone and Zong will compete for second license and third will go to a new operator.

Conclusion

As we see 3G services being launched in India, China will award 3G licenses in January 2009  and also there are reports for 3G license auction in Bangladesh by March 2009, Pakistan must react accordingly to meet the regional trends. But along with, PTA must create a better environment by forcing the government to minimize taxes on telecom services and equipment to reduce deployment cost.

Along with PTA should award 3G licences to existing operators.

Please share your thoughts in comments…!

Tech reporter with over 10 years of experience, founder of ProPakistani.PK


  • taimoor khan

    hi iam writing alot on telecom in pakistan in print and electronic media.for the last 6 months iam trying to encourage the government to issue 3g license.i think that there is no good or bad period for technology because when gsm service is startes i just hit the elite class but now its not a luxury but a part of life.we say that a person who is not educated using mobile services.so i think that government have to appreciate the local and foreign companies to take part in the bids.i think that telenor shows its interest to encourage the other operator.its good and bold syep by telenor.because in japan,usa,uk they are launching 4g.but we r still satisfied with 2.75g.india china is also started their 3g service while bangladesh is also issusing the license on march 2009.i know that when 3g will start in paklstan it will take huge amount of customers.vodafone and mtn is also interested to get the 3g license in pakistan.government issue 3 licenses two to local operator and one to new operator.my wish is that government have to issue the license as soon as possible.

  • P.T.A should Start 3G service in Pakistan because we are pakistani and we wants all all the latest technolgies in our country. so I request our Government to Provide us 3G service in Pakistan.

    Abdur Rehman Hijazi

    Karachi.

  • Anees

    I suggested PTA should announce 3G in Pakistan as soon as possible. Govt of Pakistan should reduce Texes on Telecom sector to encourge the both operators and venders.

    Islamabad

  • pyare_bhiya

    PTA should have a heart and come forward in rolling out the 3G services for pakistanies. I think it will definitely get a rousing response from people who are striving for good connectivity and premium services! Ufone has launced its USB EDGE internet now- can anybody tell me about the speed of the connection?

  • Musaddiq

    PTA must not issue license for 3G because they already issued several licenses of wimax to wateen, wi tribe, mobilink etc. wimax promises same thing (High bitrate,mobility) with little leaps so far. If they even issue a single license of 3G to telenor they will certainly capture the market and companies like wateen and wi-tribe will face huge losses as 3G is tested successfully on the other hand wimax is struggling to overcome its flaws. This could result in huge job cutting in wimax operators as well as for GSM operators. So i think this is not the time for 3G in our market.

  • It’s Vicky

    PTA announced last month that they are going to issue licenses . infect there are some companies(not sure about names) already testing 3g on some connections …

    I have read some news on 11th April that i want to share with you guys ..

    http://www.dailytimes.com.pk/default.asp?page=20094\11\story_11-4-2009_pg5_14

  • Ahmad Rizwan Chattha

    3G in Pakistan Unbeliveable. Due to the ground satiation in Pakistan

  • Yaser

    Why is it that only telenor amongst the Pakistani Telecom company is interested in 3G ?

  • Burhan

    yawr when will 3g launched in pakistan???????? pakistani r always behind whole world……plzzzz pta do aution for 3g licence…..i give gureente to telecom companies that it will great hit

  • ali

    pakistan ko 3g launch krna chaheye..wo b fawran…. yar km se km esliay nahe k, pakistan technology k lihaz sy develop ho jayega balke isliay k technology k es race may india ka kuch muqablaa to kr sake…

  • ali

    so PAKISTAN have to launch the 3G…not only for technology development but to compete INDIA in this race…

  • zubair sheikh

    P.T.A should Start 3G service in Pakistan because we are pakistani and we wants all all the latest technolgies in our country. so I request our Government to Provide us 3G service in Pakistan.

  • Wajid Solangi

    i think 3g launched in pakistan as soon as possible ……

  • InshaL

    Wajid its of all i am agreed with your statement. You Now these days Our Government looking Directly all 5 poerators & Had Direct access as well as to have check and balance.

    Do you want your Goverment Begg to anyone that give us access. Emotions Works only in Relations only not in practical lives. I hope you understand . let them do what they are doing right now.

  • Naeem

    Kick zardari our of pakistan if you want it going forwerd

  • muhammad ali

    agar pakistan me 3g sirvis enable ho jay to is sy banking. tijarat.besnes .hata k har kam me asane ho jaye ge.kam sy kam indea sy to moqabla ho jaye ga.jago hamare pk walo.

  • AQiL

    Hi guys,
    actually every thing is possible without any difficulties but just need to feed the big mouth and stomach of government officials as you Quaid-e-Azam wali tasweer k through government / pta ko razi kia ja sakta hai.
    don’t be shy, you people know our government’s policies very well.
    Khao or khany do