Reliance NetConnect / Tata DoCoMo E-VDO Dongle Business Saturating

Reliance NetConnect Wireless BroadbandIdea Cellular Executives who discussed 3G Data Uptake in India are of the view that the Dongle or Data-card business (dominated by CDMA EV-DO operators: RCOM, Tata, MTS) may face growth-constraints over the medium-term due to the following factors,

  1. Slowdown in laptop and Desktop PC sales
  2. Growth in Tablets and Phablets [Mobile Smartphones with 5-to-6inch screen]
  3. Growing tendency to use 3G-activated smartphones as personal Wi-Fi hotspots and
  4. Narrowing of the price-performance and network coverage gap between 3G HSPA and EV-DO Rev A/B networks

Idea Cellular also offers 3G Data Dongles very similar to that of Reliance, MTS, Tata DoCoMo and thus the trend discussed by the executives may be true as they may have witnessed saturation or lower demand for Wireless Broadband Dongles. One must also note that the price difference between 3G Data on Diongle Vs EVDO Data usage on Dongle is huge but fall in sales of Devices that were using the form factor itself will restrict sales.