The findings of a report by GSMA, an association representing the interests of mobile operators worldwide, revealed that 3G and 4G adoption is projected to increase by 31 per cent between 2013 and 2017. The report is titled ‘The Mobile Economy India 2013’.

The report states that while a large majority of the mobile services available in India are based on 2G technology, the country has seen the adoption of 3G accelerate in recent months. The report attributes this increased adoption to improved spectrum pricing and management and growth of mobile broadband.

GSMA’s report also highlights the factors which are acting as hindrances in adoption of 3G technology in India. These factors include small amount of spectrum allocated to mobile services and the very high spectrum prices reached during the 2010 auction.

The report added that the final prices concluded were high due to limited availability of spectrum, the auction design process and particularly the reserve prices. This prevented any operator from acquiring a national footprint and forced companies to borrow heavily to pay for 3G spectrum, limiting their ability to invest in further roll.

It revealed that currently, on average, around 60 per cent of the spectrum that is of relevance and interest to mobile operators is yet to be allocated, while large blocks of spectrum, internationally identified for mobile, continue to be occupied by other sectors.

According to the report voice traffic growth has slowed while the use of data and value-added services is growing.

The report said that India lacks a regulatory environment that can allow the sector to surge ahead and deliver the full, transformative power of mobile to all. To do this, the government must design policies and regulations — working with the mobile industry — that maximise long-term private sector investment. In order to invest, the industry needs clarity on the direction and the overall economic and regulatory environment that will be put in place to support this path.

The report added that with nearly 900 million mobile connections across the country, India represents a quarter of all mobile connections in Asia Pacific and this figure is expected to rise to 1.16 billion by 2017.