3G hype fails to woo customers in India

Will 2011 turn out to be a revolutionary new year for India's half a billion mobile subscribers? While telecom companies are already hyping the brave new world of 3G services, standards of basic telephony services continue to languish in the basement.

The nine leading telecom operators, including state-run BSNL and MTNL, who had burned their pockets to pay Rs 67,718.95 crore to acquire 3G spectrum, much to their dismay, are finding it difficult to sell-off these airwaves to those telecom operators or companies who had not bid for it.

The worries for these operators have compounded further as they have invested another whopping Rs 20,000 crore and more to develop the 3G infrastructure, which they expect to roll out by early next year.

"3G is not successful. The operators paid too much to buy the 3G airwaves to freeup congestion in voice calls. They also feared losing customers once the mobile number portability (MNP) is rolled-out. Most of the newcomers have ample spectrum and they don't anticipate 3G requirement," said an industry expert.

Despite the fact that state-run telecom operators BSNL and MTNL were given 3G airwaves two years back - private operators have got it in October this year - they have not been able to do much with their first-mover advantage in 3G. Both are now in the process of outsourcing their 3G networks. But both MTNL as well as BSNL are yet to find any potential client for selling-off 3G airwaves. Heads of both the state-run BSNL and MTNL had written to the telecom minister for refund of licence fee paid for 3G and BWA spectrum.

However, operators like Bharti Airtel, who already have 3G services in many circles are in talks with operators who have got 3G for roaming pacts for ensuring a pan-India footprint. There have been speculations that Bharti could enter into strategic alliance with Idea and Vodafone for pan India 3G rollout. But other operators who do not have 3G airwaves have largely ignored the need for it in the near future.

For instance, Sistema Shyam TeleServices Ltd (SSTL), a joint venture (JV) between Sistema of Russia and the Shyam Group of India, which operates CDMA mobile services under the brand name MTS has already clarified that it does not need 3G services and that it has enough bandwidth to support faster data services and jam-free voice network.

"We have adequate spectrum and we don't anticipate its need," said a top SSTL official. Then there are worries whether the bruising tariff war currently on in 2G will continue into 3G. When Tata DoCoMo launched 3G services at 0.66 paise per second Bharti Airtel said it had paid heavily for 3G spectrum and cannot afford a tariff war.

Tata DoCoMo is keen on subscribing to 3G network to stay afloat in the Indian market. It does not have even start-up spectrum in certain circles.

Moreover, the industry experts have a view that 3G services will hardly matter for large number of subscribers. "I don't think 3G will make much of difference to most of the subscribers. We hardly have less than 20 per cent of them who use services beyond voice calls. Over half of the subscribers are those who use nonvoice services," said Col SN Aggarwal, consumer activist and telecom expert.

"3G is hyped. We have already told Trai (Telecom Regulatory Authority of India) that consumers first need to get better services rather than 3G services. We continue to get spam calls. There is no check on operators and telemarketers. The Trai, as a regulator, has become toothless. We need better regulations to govern the sector effectively," points out Randhir Verma, a telecom expert.

Source: 3G hype fails to woo customers in India

China leadership 'orchestrated Google hacking'

Senior Chinese figures were behind the hacking of Google earlier this year which forced the search engine to quit the country, leaked US cables suggest.

One cable, released by whistle-blowing site Wikileaks, cites a "well-placed" contact as saying the action against Google was "100% political".

A politburo member is said to have been angered after Googling his name and finding critical comments online.

The cable says it is unclear whether China's top leaders were involved.

Other cables show Beijing has been "extremely concerned" about the use of high-resolution satellite imagery on Google's mapping software, Google Earth.

In January, Google said it had been subjected to a "sophisticated cyber attack originating from China" - it said the e-mail accounts of human rights activists were among those hacked.

In the ensuing row over internet censorship, Google abandoned mainland China and moved its Chinese-language operations to Hong Kong.

The company did not say who it thought was responsible but the cables, released by Wikileaks and published on the Guardian website, show the company had repeatedly raised concerns about the issue.
'Forbidden fruit'

The BBC's Nick Childs says the allegations contained in the cables will reinforce both the perception that the Chinese government is highly sensitive about the internet and suspicions that it was behind the hacking attacks on Google.

Read more China leadership 'orchestrated Google hacking'