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Research and Markets: Telecommunications to Be the Fastest-Growing Category of Household Spending In India over the Next T

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Posted April 16, 2010

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/c2b70a/3g_auctions_in_ind) has announced the addition of the "3G Auctions in India: Nationwide Coverage Could Cost $2bn or More" report to their offering.

Key Findings:

  • We expect to see active bidding for the licenses, to values that could exceed $2bn (and perhaps as high as our estimation of $2.3bn for nationwide coverage).
  • We do not expect to see new entrants into the Indian market as a result of the 3G auctions. We expect Bharti, Reliance and Vodafone to be among the winners. The fourth could go to a consortium of operators.

After months of postponements and delays, the Indian government is finally gearing up to auction 3G spectrum this month. Nationwide coverage could cost operators as much as US$2.3 billion, according to a new report.

3G Auctions in India: Nationwide Coverage Could Cost $2bn or More analyzes the opportunity around 3G in India. In this 10-page report, we take a closer look at the rules guiding the auction process, the companies that are most likely to participate in the auction, the bid prices we expect to see, and the likely auction winners. Download an excerpt of this report. Purchase this report online.

Nine companies have stepped forward expressing interest in bidding for the spectrum. Nationwide 3G coverage could cost operators as much as US$2.3 billion based on our rough estimates for 3G pricing in India, notes Elizabeth Bramson-Boudreau, Analyst at Large for Pyramid Research. "Given the list of bidders, it is certain there will be several disappointed companies when the auction ends," says Bramson-Boudreau. "Although it is possible that one of the second-tier competitors will move aggressively to secure its market position with 3G, Pyramid Research believes that the winners will be among the top tier and that the current list of interested bidders includes no newcomers to the Indian market."

Pyramid Research expects winning operators to make use of 3G to improve network efficiencies and to secure their position in urban centers and with the rising middle class. "Those who lose or opt not to participate will likely focus on 2G and 2.5G expansion on rural areas; India's highly stratified class structure and the sharp differences in connectivity needs in urban vs. rural areas mean that significant opportunity exists for 3G winners and losers alike," adds Bramson-Boudreau.

3G Auctions in India: Nationwide Coverage Could Cost $2bn or More is part of Pyramid Research's Asia/Pacific Telecom Insider report series. Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions.

Executive Summary:

India's mobile market is one of the most dynamic and competitive in the world. In fact, India's 410m net subscription additions over the 2009-2014 period put it above all other countries in the world, including China, in terms of subscription additions over the next five years. Telecommunications is considered one of the core sectors enabling and benefiting from the country's dramatic economic transformation, and the six operators that dominate the market are among the largest and most profitable companies in India. As economic growth continues unabated in India, telecommunications will remain central in importance. The McKinsey Global Institute predicts that telecommunications will be the fastest-growing category of household spending in India over the next two decades, rising to $93.8bn by 2025, or more than 10 times current spending levels.

It is difficult not to be excited about mobile in India, as it seems a clear-cut growth opportunity for all industry players. We agree. At the same time, we do not believe that 3G is essential for success; unlike in developed markets where demand for mobile is synonymous with demand for mobile data and Internet services, India's highly stratified class structure and the sharp differences in connectivity needs in urban vs. rural areas means that significant opportunity exists for 3G winners and losers alike. This report analyzes the opportunity around 3G in India. We take a closer look at the rules guiding the auction process, the companies that are most likely to participate in the auction, the bid prices we expect to see and the likely auction winners.

Key Topics Covered:

  • INTRODUCTION
  • THE INDIAN GROWTH STORY CONTINUES
  • DOT AND TRAI SQUABBLES OVER, THE AUCTION IS EXPECTED TO PROCEED ON SCHEDULE AND ACCORDING TO DOT TERMS
  • LIST OF INTERESTED BIDDERS CONTAINS FEW SURPRISES OR NEWCOMERS
  • TO THE WINNERS THE SPOILS? OPERATORS WILL COMPETE FOR URBAN CUSTOMERS, LEAVING RURAL AREAS TO 2G AND 2.5G PLAYERS
  • THE GOING RATE FOR 3G SPECTRUM IS
  • CONCLUSIONS
  • KEY FINDINGS
  • RECOMMENDATIONS
  • RELATED RESOURCES
  • Table of exhibits

Companies Mentioned:

  • Aircel
  • Bharti
  • BSNL
  • Etisalat
  • Idea
  • MTNL
  • Orange
  • Reliance Telecom
  • S Tel
  • SFR
  • Tata Teleservices
  • Telenor
  • Uninor
  • Unitech Bouygues Telecom
  • Videocon Telecom
  • Vodacom
  • Vodafone

For more information visit http://www.researchandmarkets.com/research/c2b70a/3g_auctions_in_ind

Source: Pyramid Research, Inc.



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INDUSTRY KEYWORDS:   Technology  Telecommunications

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