In a bid to make 3G handsets affordable, US-based chip giant Qualcomm is working with handset manufacturers and telecom operators (both CDMA and GSM) to launch 3G-enabled mobiles for as low as Rs 4,000 in India.

These handsets, which will offer Internet on mobile besides other features, will be available early next year. Also, 3G smartphones, on the lines of Apple iPhone and Nokia’s N96, will be rolled out in the second half of 2009 with an entry-level price tag of Rs 10,000.

“We are in talks with all operators to explore, along with our OEMs (original equipment manufacturers), how this space can be penetrated so as to increase the addressable market. We are working to make sure 3G entry-level phones start at Rs 4,000. Affordable 3G smartphones, beginning at Rs 10,000, will bring in a new dimension to enterprise connectivity,” Qualcomm India and South Asia president Kanwalinder Singh told ET.

Qualcomm will provide the chipsets for mobiles and other devices. These are used by low-cost manufacturers like Huawei and ZTE to make handsets while telecom operators bundle them with their services because it increases their revenues from new applications and value added services (VAS).

The San Diego-headquartered company is also bringing together its OEMs and GSM operators to offer data card connectivity solutions comparable to CDMA operators. “3G USB modems will bring ‘always on’ wireless broadband connectivity to laptops and desktops. These modems will enter the market in the Rs 3,500 price range,” he said.

Currently, the data card market in India is dominated by Tata Teleservices and Reliance Communications (RCOM). Till now, Qualcomm has only been associated with CDMA operators. However, as 3G comes to India, Qualcomm is also working with GSM service providers including Airtel, Vodafone Essar and Idea. This is because for evolution to 3G services, the GSM community has chosen wideband-CDMA radio interface, which increases data transmission rates in GSM systems.

Globally, GSM 2G is transitioning to 3G. “In India, we will drive a similar trend and bring in affordable tiered solutions to stimulate mass market adoptions. While the key application of all 3G handsets will be no-compromise-access to mobile Internet, various price points will provide experience of different kinds. We expect all devices to support downloading and uploading of videos,” Mr Singh said. According to technology research firm IDC, 3G feature phones and smartphones in the range of Rs 4,000 and above will account for 30% of the Indian handset market.

Source:economictimes