3G is known as an ITU (International Telecommunications Union) plan for third generation mobile communication technologies. Generally, UMTS (Universal Mobile Telecommunications System) is referred to as 3G, which is broadband, packet-based transmission of text, digitised voice, video and multimedia at data rates up to or higher than 2 Mbps. Mobile phone users can enjoy a consistent range of services irrespective of their location in the world through 3G.

MTS, based on the GSM communication standard and endorsed by major standard bodies and manufacturers, is accepted as the planned standard for mobile users around the world. When implemented fully, it facilitates uninterrupted internet connectivity for PDA and mobile phone users on the move. Access to the Internet while roaming, is made available through a combination of terrestrial wireless and satellite transmissions.

Besides, 3G services also allow high-speed data connectivity on mobile phones, which makes various activities such as watching a movie, playing interactive games, and downloading data from the World Wide Web possible on roaming. A host of value-added services and applications such as video-on-demand, unified messaging, mobile commerce, etc. are also provided through 3G networks.

3G is perceived as the natural extension of the evolution of mobile services. The world's first launch of 3G was in Japan, by NTT DoCoMo, in October 2001. Currently, the largest 3G subscriber base is in Japan, served by two 3G operators. Commercially, the 3G-technology choice, Wide Band Code Division Multiple Access (WCDMA) is available on number of networks worldwide. The widest WCDMA 3G deployment has taken place in Europe so far, and networks in Asia Pacific region have already started implementing 3G.

In India, cellular operators still use 2.75 G or 2.5 G with technologies such as GPRS (General Packet Radio Services) or EDGE (Enhanced Data rate for GSM Evolution), but most of them are gradually shifting to the third generation mobile communication technology to be able to provide 3G services. The commercial launches are likely to happen in 2009. The service promised by third generation networks requires considerable infrastructure investment. Cell density is one of the areas that need to be increased to provide additional bandwidth. New transaction-based billing methods will have to replace the current time-based billing system. However, the operator can benefit from the savings generated from a packet-network, which will more than negate the cost of the laying of the network.

The state-owned MTNL floated a Rs 1000 crore-draft tender to extend four million mobile lines on 3G technologies. GSM operators like Airtel, Hutch and IDEA, besides others, have already applied for the radio frequency required to launch 3G services.

If Ericsson, the Swedish telecom equipment maker is to be believed, then the rollout of 3G telecom networks in India will help operators reduce costs, offer an array of services to users, and connect millions in rural areas who have never used a phone. 3G technology is said to be more advanced and efficient as well. Other equipment vendors such as Nokia and Motorola are also gearing up to meet the demands of the Indian market. For instance, Nokia is developing a High Speed Downlink Packet Access (HSDPA), a natural evolution to 3G that will bring even higher data speeds with a simple software upgrade.

A study conducted by Ericsson has found that almost 50 per cent of users in metro cities are expecting services beyond voice and SMS. According to the study, India will have 200 million mobile phone users by 2009, and at least 10 per cent will subscribe to 3G services. Besides generating revenues, 3G will also introduce efficiency in spectrum usage.

CDMA operators enjoy an edge over their GSM counterparts when it comes to 3G deployment because most CDMA networks in India are already 3G-enabled. For instance, Reliance Infocomm is in a position to start offering 3G services with immediate effect as soon as the spectrum is allocated, whereas GSM operators need to set up a parallel network with their existing 2G networks to offer 3G services.

3G presents video on demand, high-speed multimedia and mobile Internet access as just a few of the possibilities for users. With 3G services, the possibilities of content rich information and communication become possible. However, the main benefit of 3G systems one can expect to enjoy over 2G is substantially enhanced capacity, quality and data rates.