BG Mahesh | Mahesh |

Will 3G rescue mobile telcos in India?

Mobile companies in India are scratching their heads to figure out how to increase their ARPUs [average revenue per user].  The potential of increase revenues in urban India is saturating, which is the worrying point for all telcos.

According to an article on afaqs,

I have used 3G with two operators. Was not particularly impressed. Also friends tell me if the 3G coverage is not good the voice calls keep dropping, so manually you need to switch over to 2G for experiencing uninterrupted voice calls (what a pain!).

I have always said 3G will do well in India if the pricing is good. Currently a 2GB transfer will cost about $25 per month. Not sure how many Indians are ready to shelve that kind of money when the 3G coverage is still not available pan India.