4G Stays A Data Only Service In The Indian Mkt; VoIP Is Yet To Come

4G Stays A Data Only Service In The Indian Mkt; VoIP Is Yet To Come4G, unlike 3G, does not provide Voice-based services via cellular networks but as Voice-over-Internet-Protocol (VoIP).

In the developed markets such as US and Sweden where 4G has been launched, it is offered as a data only package, incorporated with 3G packages for voice. In brief, a user who is logged on to a 4G network will be seamlessly shifted to a 3G network the moment he gets a voice call.

Voice-over-LTE (VoLTE) is a novel type of VoIP and is under trial stage in some of the nations. In India, not all the 4G service suppliers have the choice to offer seamless 4G and 2G/3G service offering both data and voice services on the same handset as only Bharti, Aircel, BSNL and MTNL among 4G licensees have 2G/3G licenses.

This could be possible in future if administration accepts TRAI’s suggestion to make the spectrum technology neutral permitting the operator to offer 2G, 3G or 4G services utilizing the same spectrum.

Addressable Market for 4G - Trinity of Internet, Video and Television India’s victory in wireless telephony has been predominantly confined to voice owing to various reasons like lower literacy levels (74% overall and 11% English), lower internet user-base (<10%), lower PC penetration (~4%), unavailability of local language data content, lower Average Revenue per User per month (ARPU <Rs. 100) for 2G telephony due to lower affordability.

As 4G promises speedy broadband, which too without voice, prima facie the prospective market for 4G appears limited to 100 million web users and another 15-20 million additional users from groups like gamers, tablet-users etc.

A decade back, no one expected that there would be any scope for one more technology like CDMA in India assuming that the market was saturated with a teledensity of 10-15%. But once the barrier of affordability was smashed, the same technology made inroads capturing more than 30% of subscriber base at its peak.