Only one in five of India’s urban, mobile subscribers will adopt 3G services in the short term, a new study by The Nielsen Company has found.

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Despite high awareness of 3G and its capabilities to deliver broadband content, it may be as long as 8-10 years before the majority of mobile users are on a 3G phone plan. Released at Nielsen’s flagship Consumer 360 conference in Delhi today, the study found that nearly 70 percent of urban mobile subscribers are aware of 3G services and 63 percent had familiarity with it as a concept.

The most eager group ready to adopt 3G was power users largely made up of working professionals and internet-savvy youth. They told Nielsen they were eager to embrace higher speeds to access the internet and download large attachments.

A third (36%) of these consumers indicated a strong disposition towards 3G adoption. Other, less tech reliant groups, were less enthusiastic about the next wave of mobile services.

To Drive Mass Adoption, Handset Bundling Will Need to Be Implemented. Even with an enhanced user experience on a 3G network, driving migration to 3G devices will be a challenge.The study found that bundling 3G services with new handsets will be the most effective course of action for telecom carriers.

Thirty five percent of subscribers said they would leave their current carrier if they failed to provide 3G services. In contrast, only six percent of those less inclined to purchase 3G services said they would change carrier if 3G was not made available.

The study also identified an area of particular attention for carriers: reducing pricing to drive 3G adoption may not necessarily grow their businesses. It will come down to the user experience and relevance of services.

“The demand for 3G will dictate the future of smart phones and the competitive landscape amongst service providers. Simply making 3G services affordable will not offer an easy answer to accelerating adoption as we move into an era of more unpredictable handset replacement cycles and the polarization of 3G users within the subscriber base towards operators who offer a better 3G experience” said Arjun Urs, Director – Client Solutions India, The Nielsen Company.