21 million 3G users in 2007

Category: 3G | No Comments | Posted on April 13, 2006

According to a report prepared by CII and Yankee Group, commercial launch of 3G will happen in 2007 and its user base would grow to 21 million by 2010.

The report predicts a total of 201 million mobile users by 2010 which is significantly lower than other industry estimates of 250-275 million users.

By then mobile penetration in India would have reached 17%, but there would be a big gap still in urban (37%) and rural (9%) areas. “The value of India’s mobile industry will be more than double from $4.6 billion in operator service revenue in 2004 to $10.6 billion in 2010, with 3G users accounting for a disproportionate 23% of value,” says the report.

It predicts that handset costs will fall to $150-200 range, with low-end sub-$100 3G handsets available within a couple of years. Nokia’s entry level 3G handset 6630 is available today at Rs 11,800 ($260).

It adds, however, that operators will “need to assert more control over device sales and the interaction with customers.”

Source: ToI

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