LETS TALK TELECOM..HOW DIFFERENT WILL THE 4G BE AND DOES IT COMMAND A PREMIUM OVER 3G?

The industry has experienced a massive shift from traditional mobile services such as voice and SMS to value-added services such as CRBT, WAP, m-gaming, m-utilities and infotainment, along with data-intensive services such as browsing, social networking, apps and video streaming. Today, what a consumer desires is a seamless, always-on, high-speed data service.

While 3G adoption is still picking up three years after its launch, the focus has now shifted to 4G technologies, especially LTE (Long-Term Evolution). 

But how different will the 4G be and does it command a premium over 3G? Well, 4G is expected to deliver speeds of 10-15 Mbps, 10 times faster than those of 3G, enabling users to download more content than 3G in the same amount of time. This makes data-intensive, on-the-go downloads such as music or HD video streaming a reality. Further, 4G promises faster connection times, assuring an always-on service experience. It offers less round-trip latency, making real-time applications such as VoIP, video calls, online gaming and multimedia content sharing quite practical. While 4G promises an improved user experience, the key question is will 4G be a game-changer and when can operators expect to break-even? And these concerns are amplified due to the various challenges that exist right now.

•      4G ecosystem: Currently there is a lack of affordable 4G-enabled phones in India. The availability of $100 handsets suitable for LTE band 2300 MHz in India—which can help users in voice, data and video—could result in faster adoption of the service.

•        Quality of service: 3G coverage in India is much below the levels needed to provide superior customer experience associated with high speed data technology, as cash-strapped operators face an investment dilemma. Here, 4G is a possible panacea if it delivers seamless and high-speed connectivity.

•        Pricing: In the recent past, competitive 3G tariffs have helped increase its adoption. A key question for operators is how to price 4G services to encourage demand for early adoption while ensuring returns on investment.

•       Product/service offering: Consumer interests and demands are shifting towards video calling, mobile gaming, HD content streaming, multi-tasking and seamless data connectivity.

Additionally, the Quality of Service models and Key Performance Indicators are different in the case of 4G. Operators need to be well prepared for delivering seamless experience backed with robust technology and network coverage of 4G services. Due to shift of consumers towards data-centric applications, 4G operators need to focus not only on Quality of Service but also on Quality of Experience as perceived by the user.

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Lets Hear The Buzz of Telecom - 4G Rollout Is a Tough One for Telecom Operators in India!

Telcos are taking a very cautious approach as fully monetizing network investments involves launching compelling new applications and services while India lacks the ecosystem that include insufficiency of 4G-capable devices.

Network deployment for 4G LTE is a complex and expensive task for telecom operators, especially in emerging economies such as India which have low average-revenue-per user (ARPU).

Deploying LTE networks in India and globally is a hugely complex and expensive task for mobile network operators. Enhanced capabilities and benefits like bandwidth-on-demand require complex go-to-market and customer management strategies.

Emerging competitive threats from Over-the-Top (OTT) applications and services threaten to further reduce already low ARPUs and continue to mount a sustained challenge to the long-term revenue generation potential of 4G services.

Speed advantages are not very useful as a differentiating factor. "Network speeds cannot be guaranteed, and are usually temporary, highly regionalized, and easy for the competition to replicate and outside the operator's control".

The prioritization of 4G-technology rollout would be towards the main metropolitan areas as it would be initially seen as a premium service.

Operators would be mindful of the significant role that pre-existing 2G and 3G technologies, particularly in areas where the limited return on investment opportunities make 4G rollout a less attractive proposition for the network operators.

"The availability of high-speed mobile data communication through 4G-LTE networks and capabilities will continue to be an essential enabler of India's ongoing economic development and growth.

Many of the well-established 4G device providers are targeting lower-cost products specifically towards the Indian market as they seek to consolidate and expand their position within the rapidly developing space.

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