When operators were willing to spend an arm and leg for 3G spectrum, the government was struggling to fix a base price and when government is ready, operators are thinking to give it a miss. An article in Business Line says that cellular operators are contemplating to skip 3G and instead go for 4G deployment expected in 2011. And if 4G or LTE (Long Term Evolution) arrives as expected, I think it makes more sense to skip 3G.
Operators’ rationale says that spectrum allocation will be done by August 2010 and services will be initiated in early 2011, which means 3G operators (there are 4 slots up for auction) won’t have enough time to recover their investment since LTE technology will be just around the corner.
The Indian government was expecting to rake in a healthy 250 billion rupees but if operators are not willing to adopt it, government’s projected cash reserves could go for a spin.
To give a gist, 3G and LTE technology offer high data speeds over-the-air. 3G is capable to give up to 14Mbit/s whereas LTE can give up to 100Mbit/s download speeds.