Thursday, June 09, 2005

3G rollout in India

In response to http://economictimes.indiatimes.com/articleshowindia/1132114.cms

Technology development does not go down well in a price sensitive
market like India. A new technology brings with itself promoters, who
are usually the visionaries and the early adopters. However, the
majority are the late adopters, who would rather stick to the good old
thing, rather than shell out money for the snazzy gadget.

Pricing, per se is high when the technology is new. When mobile phones
were introduced in India, they were very expensive (Rs 10000 + to
begin with), so was the air time. With penetration and increased use,
the rates fall. The majority always waits for the rates to fall. And
the first mover advantage always prevails. A resistance to change, the
tendency to stick to the good old thing, which is usually cheaper, is
something the mass cant get away with.

3G, and its ramifications taking the world by its charm, will not go
down well with the masses. The first reason is the uphill price, and a
lack of utility associated with it. 3G may boast of successes in Hong
Kong, but Indian market is different. GSM has got a first mover
advantage. CDMA could penetrate the market, only because of the low
prices it offered. So it all comes down to prices. The average Indian
has a tendency to stick to the basic necessities, rather than opt for
any swanky features that come along with new technology. What else
explains that over 60% of the households in India still have black and
white TV sets?

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