While the high bids for 3G spectrum will burden the operators’ balance sheets, the launch of 3G services is expected to change the fortunes of mobile handset vendors. Ever since the 3G auctions were announced in January 2010, there has been a significant surge in the demand for 3G handsets. While currently only about 20 million subscribers use 3G-enabled handsets, the market size is likely to more than double in less than a year once these services are launched.
Capitalising on this opportunity, vendors are lining up new launches and cutting handset prices.
Samsung has one of the largest 3G mobile phone line-ups with 13 models, and plans to launch up to seven more handsets in the next six months. LG and Samsung are also planning a slew of 3G handset launches at a starting price of Rs 4,000. LG, which has six 3G models, will launch another 10 this year, while Samsung, which currently has 14 models, will launch another half a dozen.
Nokia is offering 3G phones starting at Rs 4,119 (Nokia 2730), while Sony Ericsson’s starting price in the segment is Rs 6,000. Among high-end handsets, BlackBerry’s 3G models are priced upwards of Rs 17,000 while Apple’s iPhone 3G is priced at over Rs 30,000.
The Indian and Chinese brands offer slightly cheaper versions. Micromax’s 3G phones with HSPA are priced upwards of Rs 5,500 while Huawei’s U7510 costs Rs 6,500.
