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3G in North East augurs well for small telcos

Wednesday, March 24, 2010

With BSNL introducing 3G services in the north eastern part of India, small telecom retailers in this region are expecting a boost in business on the back of prospective rise in sale of 3G-enabled mobile phones

Even as private players in the mobile telecom segment continue to battle for a successful bid of the 3G spectrum, state-owned telecom operator BSNL – the only 3G service provider at present – is looking to expand its 3G business before the market competition stiffens with the entry of other players. After reaching out with the service to several places down south, BSNL has now introduced 3G in a less-trodden territory – the North East. BSNL has made inroads into the north eastern part of India by deploying 3G services in Imphal, the capital of Manipur.

Telecom SMEs optimistic

With the introduction of 3G in the north eastern part of the country, small telecom players in states such as Assam and Manipur have become optimistic of their business prospects in the coming days. “3G is creating revolution in the telecom space in India. Mobile phone users who do not have the service now are curious to avail it. Therefore, introduction of 3G in the North East is expected to generate a huge demand for availing the service, which in turn will compel them to buy 3G-enabled handsets. With most of the leading handset makers coming up with such mobile phones, sale of the same is expected to shoot up in the near-term,” said D Barua, director of TelCon India, a mobile parts manufacturer in Guwahati.

According to P Vaidya, proprietor of Telecom Point, a small-sized fixed and mobile phone retailer in Guwahati, “Importantly, handset makers are launching 3G-enabled handsets at affordable prices also, such as Nokia 2730 classic, which will enable customers of all income group to buy such mobile phones. Therefore, we expect good sales of these handsets, which will provide a tremendous boost to the business of small players like us.”

With small telecom players in north eastern India getting the opportunity to generate healthy revenues, it augurs well for the growth of the telecom sector in these parts of the country.

Prasenjit Das

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