Sunday, March 17, 2013

3G FAILED & NOW 4G

When an Industry finds stupendous growth in the short term then Indian government places Brakes on such growth story in the long term of the Industry. Online business has made tremendous business revolution for every segment of the industry across the countries. India is now the emerging economy in terms of online business opportunity.

We prefer every purchase over the online business portal. We visit less in the bank for any monetary transactions. We book our travelling tickets online. Companies maintain their outlook database in server or cloud computing. Every data base is maintained online. Smartphone has changed our perception of using mobile phone from being used only for calling to a virtual business platform and entertainment platform. Storage of virtual data has lead to huge download of data which consist of music, movies, data etc.

Our society has also got converted and linked with online business and data connectivity. A click of a mouse leads to collection of huge data as well as access. In 2000 when buying a computer was a dream in every home and laptop was an imagination, today in 2013 every household has more than one laptop.

Smartphone followed with tablets and the latest phablet has made a turnaround of the Indian society. All these technologies have changed the society in every term which brings prosperity for the society.

I find in my research that in the coming decade Indian economy has a long way to make another revolution in the technology segment. Around 250000 villages Panchayat system are going to be connected in India out of the 650000 village’s panchayat. Hence a huge data connectivity revolution is about to explode in the society. The ancillary industry is also poised for a stupendous demand in the coming days. Optical fibers, storage facility of data, server space and cloud computing has tremendous opportunities in coming days.

Already we are having core banking facilities across the country. Now with the implementation of Adhar card facility there is a huge opportunity for the online data segment. The Indian IT industry is currently under the phase of change where from BPO and KPO segment the industry finds it’s another matured phase of growth from online data storage and cloud computing.

But the industry cannot grow alone. The government made a prudent decision during the IT industry revolution by giving SEZ units to the society. Employment opportunities got a huge revolution through the implementation of SEZ for the IT industry. The next revolution came from 2G segment where data transfer got the first identity. But the 3G segment failed to find the growth like 2G. Still 75% of the population of India uses 2G facility in every segment. Hence we all know that 3G failed to enter into every household.

We are now waiting for the entry of 4G segment in the society. We now find that the government has pegged a high price for the 4G segment. The repetition of the same mistake is being worked by the government. In my first line I made the thought clear about this mistake.

The failure of the 3G was not due to companies which failed to implement the same but it was due to the high exorbitant valuation derived by the government and auctioned to the companies. High auction prices lead to high prices for the 3G segment followed with high cost for the consumer.

Finally we end up with low penetration of 3G segment. If the prices of the 3G were low then it would have created huge penetration which would have created more employment, more individual taxes and more government revenues from other ancillary industry from the revolution of 3G.

More taxes and revenues only goes at the back of corruption and less benefits p[asses on to the society and economy. The Fiscal deficit of India will be met from high auction prices from the 4G segment. Well again the revenue will put brakes on the economic growth of India.

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