The launch of third generation services have helped Tata DOCOMO increase its revenue. The company claims its revenue per subscriber (RPS) has shown an average increase of 10-15 per cent ever since it launched its 3G services.
Tatas were the first private sector company to launch 3G services in India in November last year. One year of operations in 3G helped the company raise its data revenues.
"As against the Indian industry average of 10-12 per cent data revenues for most operators, TTL gets as much as 30 per cent of its revenues from data services-and we only expect this number to go up,” said Deepak Gulati, executive president of mobility business at Tata Teleservices.
However, it should be noted that Tatas are a major player in dongle business, wherein they provide broadband internet services. Though other operators also provide these, they are not as big.
Tatas have a 3G subscriber base of two million. That is barely 2.2 per cent of its total subscriber base (87.8 million). However, the total subscriber number includes CDMA subscribers as well, who are not a part of 3G services. According to TRAI data, 57.3 per cent of its subscriber base is active on the networks.
Gulati believes the growth of 3G services will happen gradually. "In India, we should not expect a sudden explosion in the usage of 3G services-that's because there are many dependencies on external factors such as availability of 3G-enabled devices, smartphones, seamless connectivity, relevant applications and so on," he said.
Possibilities in 3G is what the company is expecting. It says the 3G service ecosystem will mature by 2015. This means there is a lot of time to go before higher growth in the service area. "The growth curve is getting steeper," said Gulati.
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Tatas are also working on increasing the use of its 3G service.
It says 3G has started hitting the right notes in areas like entertainment, m-commerce and m-education. "We are working directly and partnering with various organisations to offer a host of relevant 3G services on mobile devices," said Gulati.
Tatas spent Rs 6,300 crore as 3G licence fees and operational costs, for its licences in nine circles.
The company is not involved in the roaming pacts controversy of 3G services, which has been halted by the Department of Telecommunications recently.
The company has launched services in all its nine circles, and has rolled out services in 150 towns.
"Once our rollout is complete, the Tata DOCOMO 3G network will cover 51 per cent of Indian towns with a population of a million, and 60 per cent of towns that have over half-a-million people," said Gulati.
Market expansion across higher income groups is also on the company's agenda. "Our footprint will cover 55 per cent of households with an annual income of over Rs 3 lacs, and 49 per cent of households in the SEC A+B category," said Gulati.