Wireless to outbid 3G, Wimax as net penetration soars

By Eureka Bharali   |   Thursday, 22 January 2009, 17:49 IST   |    2 Comments
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Wireless to outbid 3G, Wimax as net penetration soars
Bangalore: Distressed bandwidth and lack of service quality will deter Wimax and 3G's penetration beyond 20 percent in India. "As the internet penetration will increase to 100 million, the maximum of users will opt for wireless instead of Wimax or 3G due to the complexities of bandwidth and service involved in them," said Suneet Singh Tuli, CEO Datawind. Currently, the penetration of internet is 81 million, and as per a research by Vodafone and the Indian Council for Research on International Economic Relations country's competitiveness is being damaged due to the lower penetration. The research also pinpoints that while 70 percent of the people accesses the internet through wireless, only 30 percent access it through fixed-line technology. However, companies steering the wireless wheels will face difficulties while driving into India. "It is really difficult to enter India within a short span of time as a deal with the operators in India always takes time," said Tuli. After the delayed entrance, it's the cost factor that creates the barrier to gain momentum in the market. But Singh pinpointed that the pricing is already at the lowest in India. "Low pricing do not stand a chance, as the average revenue per user in India is lower than other countries. So, it is only through improving the service quality of any new technology that we can grab the market," he said.