By Himanshu Guru: Future of 4G services in India seems to be gloomy analyzing its predecessor’s performance. 4G’s forerunner 3G had also lacked to receive a wide response in the county.

 

The basic reason behind this breakdown is its high cost and poor network availability. Recently launched 4G services of Bharti Airtel are also approximately coming at a price nearer to 3G.

 

During the launch of the 4G services in the Country by Bharti Airtel, Union telecom minister Kapil Sibal also hinted about the aforementioned point. His view regarding the performance of these spectrums was quiet clear.

 

Sibal advocates that until this advanced service will not be enjoyed by the common man i.e. ‘Aam Aadmi’ the service is hard to hold the market. He pointed out that even for 3G services, handsets are not so far affordable by a common man.

 

Bharti Airtel, the producer of 4G in India has already invested Rs 3,314 crore for acquiring the license for rolling out 4G services in Maharashtra, Karnataka, Kolkata and Punjab.

 

Investors go on investing with a hope that in near future the service will pick up. But till the service earns a big number of users, the company would have already spent a lot of capital on it.

 

Hence to get back its capital the company needs a huge number of subscribers. The company has an advantageous state of monopoly for around ten months. After that Relience Industries will roll out its 4G services.

 

With nearly Rs 10,000 crore deployed for acquiring license for 4G, the company will need big number of subscribers to generate a meaningful return on investment.

 

Reliance has acquired the right to launch the service throughout the country at a cost of Rs 13,000 crore.

 

If India is a big telecom market in the world then the basic reason behind this is the availability of products at a cheap price. Hence 4G will become succful only if the services will be provided at a lower cost.

Follow us on Twitter & Be our Fan on Facebook.