Airtel is said to be in talks with major mobile handset manufacturers to roll out 3G-enabled handsets below the price of $100. The penetration of 3G-enabled handsets is currently very low in India.
The 3G spectrum was auctioned few months ago and after the auction many telecom operators have introduced their 3G services. But, the growth of 3G has been hindered because of high prices of 3G-enabled mobile handsets.
According to Mr Atul Mohan Bindal, President (Mobile Services), Airtel, they see that it (price) is a barrier to the spread of 3G. They believe that by bringing it down, they could give a boost to the spread of 3G. The company further foresee a breakthrough when it breaches the $50-mark. However, he refused to divulge the names of the companies it was talking to.
Airtel, which launched 3G last month, has 20 lakh subscribers in the 3G telecom network. In the 3G auction, Airtel has received spectrum in 13 circles out of the 22. It has launched services in Delhi and the NCR, Bengaluru, Chennai, Coimbatore, Mysore, Manipal, Udipi and Jaipur so far.
But, Bindal doubts if the lowering costs of handsets will really help in adoption of 3G. There are already quite a few handsets below $100 like Nokia C2-01 or Samsung Hero E3210.The main factor that keeps consumers away from 3G is not the handset prices, but the astronomical tariff rates of 3G services.
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