3G auctions in China, India could have dramatic industry impact

Vendors everywhere should be feeling a bit giddy this week as regulators in both China and India--two countries considered to have the most wireless growth potential going forward--indicated they would move forward with licensing 3G networks. India is also looking to license WiMAX networks.

This is welcome news to wireless vendors, which are suffering from a bit of a slowdown as the network-upgrade business has been hard to come by. 3G is beginning to mature in many markets with occasional contracts for capacity upgrades. What has been missing is the massive rollout of new technology.

Vendors aren't the only ones poised to capitalize on the moves in China and India. The world's operators are looking for the next growth engine markets. In India, many customers are using CDMA 1x technology as their primary Internet connection via handsets used as modems. Imagine the impact that a faster 3G technology could have on the market.  

Of course, these announcements come from two governments notorious for delays when it comes to licensing. China has strung vendors along regarding 3G licenses for about six years now. The entire industry has to be crossing its fingers.--Lynnette