Betting on demand for netbooks once third-generation, or 3G, services and wireless broadband are rolled out in India, computer makers Acer Inc., Hewlett-Packard Co. (HP) and Samsung Electronics Co. are looking at tie-ups with telecom operators to sell such devices that will be 3G-ready.
Netbook manufacturers say such tie-ups will bundle a netbook–a small laptop with a screen size of around 10 inches and priced at around Rs16,000–along with subscription to 3G services.
Taiwanese firm Acer, which sells the most netbooks in India, is close to such agreements with Reliance Communications Ltd, or RCom, and Tata Teleservices Ltd for selling netbooks with built in EVDO capability, chief marketing officer of Acer’s Indian arm S. Rajendran said.
EVDO, which stands for Evolution-Data Optimized, is a 3G standard based on code division multiple access technology used by telecom operators, including RCom and Tata Teleservices. Mobile broadband services such as Tata Photon and Reliance Netconnect, that use an external USB plug-in, are based on EVDO.
“These netbooks will be available through the telcos before the current quarter is out,” Rajendran said. “We are also exploring partnership opportunities with the top six telcos for similar tie-ups for netbooks with built-in 3G.”
Samsung currently has a co-marketing strategy in place with RCom and Tata for selling their high-end handsets with built in EVDO capability. “Netbook demand will explode,” said Ranjit Yadav, director, mobile and information technology, Samsung, adding that the firm, which sells 3G netbooks in other markets, is working on introducing those models in India and exploring tie-ups with telecom firms.
Details of the bundling of hardware and service subscription, which will be central to such partnerships, are still being worked out, said industry executives, who estimate that wider availability of mobile broadband will double or even triple the demand for such computers over the next two years.
“RCom is exploring a strategic alliance with a number of netbook manufacturers to offer bundled EVDO offerings,” said Mahesh Prasad, who oversees the marketing of wireless business at RCom.
According to industry estimates, around 300,000 netbooks are sold annually in the country. In January, technology market researcher IDC India forecast that the personal computing landscape in India will “witness a generational shift, notably to the mini notebook PC or netbook”.
HP, the market leader in personal computer sales in India, also said it is considering tie-up options, but was waiting for clarity on 3G services roll-out.
In April, telecom firms paid out a little over Rs1 trillion to the government for licences and spectrum to offer 3G and wireless broadband services. These firms are expected to get the spectrum by September, while service roll-out is expected by the end of the year.
According to Ketan Patel, country head of mobility business at HP, the nature of such tie-ups will evolve and mature closer to the 3G launch. “We are not sure if India would have the same model as in the US, where telcos purchase hardware, bundle it with mobile telephony or Internet service and then resell it to customers as a package offer.”
Such bundling, however, will not be the first in the country. Already, Olive Telecommunications, a domestic manufacturer of netbooks, has a tie up with Tata for bundling its netbook with the latter’s high-speed Internet services.
Source:http://www.tradingmarkets.com/news/stock-alert/aceiy_hpq_netbook-makers-bet-big-on-3g-demand-1064287.html
