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3G Appears to be the Only Concern

  • September 5, 2011
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  • If the expectation is that 3G would bring radical improvement to the industry, then it is a wonderful vision. But certain factors undermine this vision. With a stated 65% penetration of mobile services, quality of 2/2.5G is abysmal in many areas. Furthermore, with only an estimated 5% of subscribers being mobile data users, the GPRS/EDGE provision maintained by the providers raises questions on their actual adherence to value addition. If this is the buffet currently on offer, will higher speed of service really change the taste?

  • Over time, consumers have asked for access to faster data services. And with the influx of a vast array of smartphones in the market, most want to make full use of the devices on par with consumers of many other nations. But there are huge differences in the consumer segment of other nations and Pakistan.
  • With a larger prepaid block, average revenue per subscriber is around US$3. This does not hold much promise for service providers to invest further within their network.
  • One needs to understand the costs and time involved. Apart from the millions and possibly, a billion that the government dreams of making through the licensing process there will be the need for investment in infrastructure and technology.
  • With a larger prepaid block, average revenue per subscriber is around US$3. This does not hold much promise for service providers to invest further within their network.
  • One needs to understand the costs and time involved. Apart from the millions and possibly, a billion that the government dreams of making through the licensing process there will be the need for investment in infrastructure and technology.
  • This is further cost of hundreds of millions of dollars. On a time scale, it is unlikely that 3G can be implemented before the end of 2012 and that too in the urban centers. For such heavy investment, can any provider expect return at complementary levels?
  • Moreover, how long will it be able to keep the consumer happy as the world moves to 4G and LTE? Will there be another cry after a few years for upgrade?
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