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Monday, June 15, 2009
Thursday, June 4, 2009
Amar Chitra Katha now on iPhone and iPod
From www.ciol.com on 04 June, 2009
MUMBAI, INDIA: ACK Media, India's leading entertainment and education company for young audiences in partnership with iRemedi Corp. has announced the launch of Amar Chitra Katha, acollection of illustrated classics that retell the enchanting stories aboutIndian Heroes, on iPhone and iPods for the International market.
The popular Amar Chitra Katha Comics are now available on iRemedi's ETHER MEDIA, an innovative media content deliverysolution for the iPhone platform. iRemedi is ACK Media's technology partner forthe iPhone platform. This launch will allowthe iPhone community to enjoyfull color high-resolution art and story in an award winning and intuitive userinterface from iRemedi. The offering will beavailable to the iPhone and iPods users through the Apple iTunes store.
Amar Chitra Katha (ACK), ever since its inceptionin 1967, has sold more than 90 million copies of 400+ titles across Indianmyth, epics, history and fables. ACK brings alive the Indian storytellingtradition through a unique blend of commentary,dialogue and illustration in comic format. The Indic art style and vibrantcompositions lends a sense of drama thus elevating the experience ofstorytelling. ACK comics have been an integral part of generations of readersinspiring them with deep rooted culture and values thus making it a 'one of itskind' cultural phenomenon.
iPhone users need to log on to the Apple iTunes store and search by Amar Chitra Katha or iRemedi or by the title names. Most titles are available for purchase at$1.99 along with free previews to some titles as well.
According to Samir Patil, CEO and Founder of ACK Media said, "We are very excited to launch Amar Chitra Katha on iPhone for the International audience.ACK has enthralled millions of people from diverse culture and generations overthe past four decades worldwide. With this launch of a wide range of Amar Chitra Katha comics we have taken an important step towards bringing the worldof Indian storytelling to the iPhone community. In addition to comics we arelooking at creating new applications and games for this platform".
SridharBhat, CEO and Founder of iRemedi said"This is a historic moment for both ACK and iRemedi. At iRemedi, we are verythrilled to have ACK as our first media partner for our high quality intuitivemedia app for iPhones and iPods. We always strive to deliver the bestexperience for the iPhone user community and we are confident ACK's fans willshare our excitement in enjoying ACK comics on the go. For ACK this is a keymilestone in bringing the classical Indian mythology and rich culture to theglobal community instantly in the amazing user experience with iPhones. TheiPhone's revolutionary platform brings limitless avenues for various dreams tobecome".
SSTL hopes to break even in 3 years: Dy CEO
4 Jun 2009, 0006 hrs IST, Rashmi Pratap, ET Bureau
MUMBAI: Telecom company Sistema Shyam Teleservices, which is launching CDMA-based mobile services across the country, hopes to be able to pay for all its operating expenses within three years despite intense competition from a dozen other players in the market.
The joint venture between Russia’s Sistema and India’s Shyam Group is expecting to start generating enough money to be left with cash in hand after servicing debt by FY 2013.
Sistema-Shyam’s guidance on profits is interesting because analysts tracking the sector believe new players may not be financially strong and could be prime targets for acquisition. Deputy CEO T Narasimhan said Sistema Shyam will be able to break even by FY12 as there was still a lot of potential left in the India growth story.
“India is a huge market and remains under-penetrated. The cellular growth story is still unfolding and we have already roped in one million users,” he said. Sistema Shyam operates in Rajasthan, Kerala, Tamil Nadu and Kolkata, with spectrum for a pan-India operation. Both telecom operators and investors are bullish on the Indian market that has 400 million users in a population of 1.15 billion. New entrants like Loop Telecom, Datacom Solutions and Unitech-Telenor are expected to soon roll out their services.
According to UBS analyst Suresh A Mahadevan, new operators face challenges of brand building, distribution, organisation building, negative free cash flow, and scale. “We conclude it will take four to five years for EBITDA to break even and seven to eight years for net profit to break even,” he stated in a recent report on the sector.
Sistema Shyam CFO Sergey Savchenko said it is too early for the company to give any revenue targets as it is still rolling out operations and building scale.
“However, we do not see any difficulty in terms of finances. We hope to turn free cash flow positive in four years from now,” he said. He said this was possible because the company could reach the market in a very short time by sharing passive infrastructure.
“It takes time to set up your own towers. We have instead tied up with various operators for sharing passive infrastructure across India,” Savchenko said.
The company’s overall investment of $5.5 billion includes operating expenses like rentals for towers also. “Not all of it is capex. It has our opex too,” he added.
“Our tower portfolio will have 20% of our own towers while the rest will be in tie-up with other operators. This increases operating expenditure but reduces the roll-out time, and it is a huge saving,” he said. He ruled out any changes in the company’s shareholding in the near future. Recently, the Russian government bought a stake from Sistema in the company. Currently, Sistema has 73.7% share, Shyam group 23.8% and the public 2.5% in the company.
BlackBerry: RIM warns of vulnerability
From www.ciol.com on 04 June, 2009
BOSTON/WASHINGTON, USA: BlackBerry maker Research in Motion Ltd has issued a security patch for the popular device, whose users include US President Barack Obama, warning that it is vulnerable to attacks by hackers.
Research in Motion issued the security warning last week in a bulletin on its web site, but officials could not be reached to comment on details of the patch.
If the patch is not applied, security experts said, there is a risk that hackers could exploit the vulnerability, though they have not done so yet.
Such problems are not unique to Research in Motion. Technology companies constantly battle to stay ahead of increasingly sophisticated hackers. Every time a vulnerability is identified, there is potential for hackers to exploit it.
"It is a serious problem. You need to read the advisory and implement a fix before the hackers try to take control," said Graham Cluley, a senior researcher with anti-virus software marker Sophos.
When companies publicize security flaws, criminals rush to to exploit them because it can take weeks or months for users learn of such problems and protect against them.
Businesses often hold off on installing patches so they can test them to make sure that the new software is compatible with other programs in their network. Sometimes a patch can cause other types of software to malfunction.
The newly disclosed vulnerability could allow hackers to take control of servers running BlackBerry systems by sending emails with tainted attachments in Adobe Systems Inc's PDF format, according to computer security researchers.
If the device's user opens one of those attachments, it would seek to install malicious software on the server at the data center that runs a company's BlackBerry network. Hackers could then covertly use that server to send spam or steal corporate data.
"All kinds of nastiness could occur," Cluley said.
A spokesman for Symantec Corp, the world's biggest maker of security software, said the cost of such an attack would be greater than the value of the BlackBerry since it would hit the far bigger corporate network itself.
Research in Motion issued patches to resolve similar problems in January.
The Canadian company pays close attention to such issues because it prides itself in security, counting intelligence agencies and top executives at the world's largest corporations among its customers.
Research in Motion suggests that businesses block their users from opening attachments until they install the patch. The advisory is posted at: blackberry.com/btsc/KB18327
India will get next 400 million mobile users five times faster
From The Hindu Business Line by Thomas K Thomas on 04 June 2009
Thomas K Thomas
New Delhi, June 3 It took 15 years for India to get 400 million mobile users, but under three years it will add the next 400 million.
According to the revised estimates by the Cellular Operators Association of India, the mobile subscriber base is expected to zoom to 893 million by 2012. That is 150 million more subscribers than what was projected earlier. The COAI’s earlier estimates had put the mobile user base at 743 million by 2012.
The reason for the new optimism is derived from the huge uptake of mobile services in rural areas.
Explains Mr T. V. Ramachandran, Director-General, COAI: “We have revised the projections because the rate at which infrastructure is growing is faster than what we had expected. Operators are moving into the hinterland and uncovered areas. Secondly, we are getting almost 50 per cent of our new additions from the rural areas. The third factor is that the level of competition has increased with new players in the sector which again leads to faster deployment of networks.”
According to Mr Atul Bindal, President, Mobility, Bharti Airtel, three out of five new subscribers are now coming from non-urban areas. “Indian growth story is here to stay. I will push back against any view that says to the contrary. There is still a huge untapped market in both rural and urban areas,” says Mr Bindal, who expects Airtel to get its next 100 million users in another two-three years.
India, with 400 million mobile users, is now the second largest market in the world after China which has over 650 million subscribers. According to COAI’s projection, there will be 1.24 billion mobile users in 2015 - which means one phone for every Indian.
GSM broadband users
Our Mumbai Bureau reports: India could have 100 million mobile broadband users on the GSM platform by 2014, if the 3G auctions happen during the current fiscal, according to the GSM Association. Overall broadband penetration in India is 4.7 per cent now.
3G investments would lead to economic benefit worth around $70 billion, Mr Jaikishan Rajaraman, senior director, GSMA, said at a press meet here on Wednesday.
The delay in the auction of 3G spectrum in the past two years has led to a huge loss of around $16 billion, according to a study by global consulting firm LECG Corp.
The losses include direct investments as well as those arising from missed opportunities.
“Cost of capital increases whenever you choose to defer investments,” said Mr Rajaraman.
BSNL readying WiMax tender for rural broadband project
From The Hindu Business Line by Thomas K Thomas on June 04, 2009
New Delhi, June 3 To boost its plans to roll out WiMax-enabled broadband services in the rural areas, state-owned Bharat Sanchar Nigam Ltd will shortly launch a Rs 1,500-crore project to buy 7,000 WiMax base stations to set up Common Service Centres (CSC) across the country.
The tender document for this project is being prepared and BSNL will invite Expression of Interest from equipment manufacturers to supply WiMax gear.
This comes even as BSNL scrapped another tender for appointing franchisees for rolling out WiMax-based broadband services across the country. This project had run into controversy after it came out that five of the six short-listed bidders had similar corporate details, including contact e-mail, address, lawyers and auditors. BSNL will float a new tender for appointing franchisees.
Three phasesThe PSU plans to roll out WiMax in three phases. Phase One will set up the broadband infrastructure in the rural areas. A part of this project has already been given to the Chinese vendor Huawei and a relatively unknown entity from Tamil Nadu, Gemini. The two vendors are to set up 1,000 base stations to connect an equal number of remote blocks. The new tender for another 7,000 base stations will be floated in a week.
In the second phase, BSNL plans to roll out broadband infrastructure in the urban areas. While Huawei has been selected for rolling out services in Punjab, Telsima has emerged the lowest bidder in Kerala. The PSU is expected to award the contracts to these vendors shortly. Tender for other circles will be floated later.
The third project was on a franchisee model which has now got scrapped.
Only Two operatorsBSNL and MTNL are the only two operators to have got the spectrum for rolling out WiMax broadband services.
However, neither has been able to get going on the WiMax project though each has launched third generation mobile services. Cancelling the franchisee tender will only delay further the broadband services roll out.
Patni eyeing next generation telecom tech
From The Hindu Business Line on Thursday, Jun 04, 2009
Hyderabad, June 3 Patni Computers is gearing up to take advantage of the potential demand for next generation telecom technologies such as fixed-mobile convergence and long-term evolution (LTE).
“From a user perspective, the next big things in telecom technology are integration of one’s mobile phone and fixed lines and LTEs,” Mr Siddhartha Kataki, Associate Vice-President told Business Line here.
In simpler terms, fixed-mobile convergence will ensure continuous access to a person through his phone. LTE is the latest standard in mobile technology aimed at enriching user experience in areas such as multi-media online gaming and streaming of content.
“Just imagine your mobile device with up to 50 MBPS speed. You can uplink any content very easily,” Mr Kataki said.
This is the speed akin to what is available in an ordinary personal computer.
When asked on the R&D progress at Patni in this regard, he said: “We know the underlying IT space and are pretty much gearing up to the market needs.”
MVNOThe Hyderabad facility of Patni with over 1,200 professionals is supporting global customers. “A major part of mobile virtual network operator (MVNO) framework is developed by us. We can ensure that MVNOs can launch their operations in just 60 days,” he said.
On the impact of recession on IT space in telecom, he said Patni had not yet seen any negative impact.
Sensing Opportunity“The customer in India is both data-hungry and voice-hungry. There is a huge demand for bandwidth augmentation. 3G, Wi-Max and other rich-media content delivery devices will be in great demand,” he added.
Vernacular versions of electronic communications would lead to social calibrations and thus drive growth in market, Mr Kataki observed.
“On every rupee spent in telecom, 30 per cent goes to IT sector. With 6-7 per cent gross domestic product growth, the opportunity in India will be huge notwithstanding global recession,” he added.
The company also plans to hire over 120 this year at the Hyderabad facility, he added.
HC asks BSNL to maintain status quo on GSM tender till June 10
From The Hindu Business Line, Thursday, Jun 04, 2009
New Delhi, June 3 The Andhra Pradesh High Court on Wednesday asked Bharat Sanchar Nigam Ltd to maintain status quo in the tendering process for awarding to Huawei a contract for rolling out GSM network in the South zone till June 10.
The court has asked the Department of Telecom to file a response to a petition filed by Nokia Siemens challenging the tendering process. The Chinese vendor Huawei will be a party to the case.
Nokia Siemens had challenged BSNL’s decision to disqualify its bids on technical grounds. The Finnish company said that it had supplied equipment to BSNL on previous occasions and, therefore, it was unfair to find technical problems with its bid. It alleged that BSNL had designed the tender to favour some vendors. According to Nokia Siemens, the technical deficiencies in its bid have not been explained.
In a letter written earlier to the Department of Telecom, NSN said that it had clarified all questions which BSNL had raised during the valuation of the technical bids
Similar pleaA similar petition was filed by Nokia Siemens in the Punjab and Haryana High Court which asked BSNL to submit its reasons for disqualifying the company. The Finnish company is examining BSNL’s reply given to the Punjab and Haryana High Court before taking the next step.
The Andhra Pradesh High Court’s order will delay BSNL’s plans to roll out 93-million lines across the country.
The project was divided into four zones. While Ericsson has been shortlisted for North and East zones, Huawei was chosen for South. Bids for the West zone were not opened by BSNL after the Intelligence Bureau (IB) raised questions about giving contracts to Chinese vendors in sensitive regions.
Though the IB had raised objections to giving contracts in the South to Chinese vendors, BSNL went ahead with Huawei.
Vodafone paid Sarin 500,000 pounds for relocating to US
Jun 03, 2009 at 2001 hrs IST on Finacial Express
London: British telecom major Vodafone's former chief executive Arun Sarin received 500,000 pounds (Rs 3.87 crore) to relocate to the US following his departure from the company.
According to the group's annual report, for the year ended March 2009, Sarin received a remuneration of 1.42 million pounds (Rs 10.99 crore), which includes basis salary, cash incentives and other benefits.
The company stated that the benefits and other category in the renumeration “includes 500,000 pounds in respect of relocation for Arun Sarin.” In the FY 2009, Sarin collected 436,000 pounds in basic salary, 434,000 pounds in incentive schemes, 553,000 pounds in other benefits and awards, including the relocation fee of 500,000 pounds in 2009, the data available in the company's annual report shows.
Overall, Sarin's pay package stood at 8.1 million pounds in the year to March 31. It included 6.1 million pounds in shares and dividend of 564,000 pounds.
The company stated that Sarin had an contractual entitlement to 500,000 pounds in connection with his relocation to the US.
In the previous financial year 2008, Sarin had received 3.59 million pounds as remuneration from Vodafone.
Wednesday, June 3, 2009
Bharti, MTN to see $6.9 bn additional debt after deal: Fitch
3 Jun 2009, 1628 hrs IST, PTI on www.economictimes.com
NEW DELHI: A potential merger being discussed by Indian telecom major Bharti Airtel and South Africa's MTN could increase the net debt of the two firms by about $6.9 bn, global rating agency Fitch said today.
NEW DELHI: A potential merger being discussed by Indian telecom major Bharti Airtel and South Africa's MTN could increase the net debt of the two firms by about $6.9 bn, global rating agency Fitch said today.
"Under the current terms as presented to the market, it could result in additional net debt of 4 bn dollars at Bharti and 2.9 bn dollars at MTN," Fitch said in its comments on the potential transaction, but noted that it would wait for finalisation of the transaction before taking any rating action on the two firms.
Fitch said that it would closely monitor developments and was taking "note of the strategic merits of a potential partnership between Bharti and MTN, as well as the positive impact on their respective business risk profiles in terms of diversification and enhanced scale."
"Nevertheless given the early stages of the discussions, potential regulatory hurdles and other associated uncertainties surrounding the transaction, Fitch will await finalisation of the transaction structure before taking any formal rating action," it added.
Opera leads mobile-browser market
On www.ciol.com
HELSINKI, FINLAND: Norway's Opera Software overtook Apple's iPhone browser in May as the most popular mobile browser in the world, Web analytics firm StatCounter said on Tuesday.
Of all Internet pages that were downloaded to mobile devices globally in May, 24.6 percent were downloaded through Opera's browser and 22.3 percent via iPhone, StatCounter said.
The top spot has see-sawed this year.
"Opera began the year in the number one slot but iPhone overtook it in February," Aodhan Cullen, chief executive of StatCounter, said in a statement. "It will be fascinating to watch how this battle plays out over the year."
Opera sells its browser to many cellphone makers and operators, and consumers can directly download it for free, while the Apple browser's ranking reflects only iPhone users surfing the Internet.
Nokia, the world's top cellphone maker, retained third place in mobile browsers with 17.9 percent of the market, StatCounter said.
StatCounter said its research data is based on four billion pages loaded per month.
Interview -- CDMA is better than GSM: Sistema Shyam
From www.ciol.com on 01 June 2009
CIOL: Do you see a possibility of M&A going forward to meet the increased challenge? What is your take on infrastructure sharing among service providers to combat frequent network disruptions owing to issues like natural disasters?
BANGALORE, INDIA: Indian telecom sphere is all set to witness a tug of war with six new international telecom players set to enter the scenario.
Sistema Shyam Teleservices, a joint venture between Russia's Sistema and India's Shyam group, the only CDMA (code division multiple access) player of the lot, recently launched its services in West Bengal.
During an interview given to CIOL, Vsevolod Rozanov, president and CEO, Sistema Shyam TeleServices, said that CDMA is a better technology than GSM because it enables better utilisation of the frequencies available, and thus helps in bringing down the costs. Excerpts:
CIOL: The Indian metros and urban areas have attained saturation in terms of telecom density. So where do you see the demand coming from and for what?
Vsevolod Rozanov: If we have to grow fast, apart from expanding our footprint in new circles and getting new customers (first-time users), we have to wean away customers from the incumbents.
We believe there is a huge market for us to grow. While there are players who have the first mover's advantage, there is still a vast chunk of existing individual users who will find higher value for money in our tariff and billing plans.
CIOL: What are your investment plans for India? What will be the focus?
VR: We plan to invest $5.5 billion in India over a period of five years. We will utilize most of this projected investment over the next two years for setting up infrastructure that will enable accessibility and better connectivity for mobile phone users.
We have already invested more than $1 billion in setting up our network. We have launched the brand in Rajasthan, Tamil Nadu, Chennai, Kerala and Kolkata. We are planning to launch services in Delhi by Q3 this year, and looking to foray into one circle every month.
We will eventually cover UP, Haryana and Maharashtra circles by the end of this calendar year. Thus, in the next nine months, the MTS brand will be seen in half of the 22 telecom circles across the country, achieving a pan-India footprint by mid-2010.
CIOL: Do you see a possibility of M&A going forward to meet the increased challenge? What is your take on infrastructure sharing among service providers to combat frequent network disruptions owing to issues like natural disasters?
VR: We are not aware of any significant player in the CDMA segment in India who is planning to hive off its telecom business.
We will have a combination of self-owned and shared infrastructure to ensure that we provide the best connectivity across the country. We already have tie-ups and agreements with various infrastructure companies across the country to ensure superior quality of service.
CIOL: How different will be your 'go-to-market' strategy?
VR: In Rajasthan, the key message of our campaign is to create a churn in the market through the slogan, "Badlo life ka plan" (change your life's plan).
Today over 50 per cent of our subscribers in Rajasthan are not new customers, but those who have switched over from other mobile service operators. They are doing so because they are frustrated with the quality of the old incumbent networks, and are willing to try our non-congested network.
We do not see much difference between GSM (global system for mobile communications) and CDMA. Customers using CDMA technology are approximately one quarter of all. Given the size of the Indian market, this is not small at all.
We have been looking at whether we should wait until we are fully ready with CDMA data offerings or we should start building our customer base and deliver our data offers a bit later. We decided to go in for the second option. We will be coming out with the data offering soon.
CIOL: With several service providers in the frame, will the cost of service be brought down further?
VR: India is a highly price sensitive market. Our pan-Indian strategy will focus on simplicity in all our marketing strategy. We will offer simple, very clear and understandable tariff plans for our customers. Our tariffs will be the lowest, with no hidden charges.
We have dropped the price of entry-level colour phones to Rs 999, and they come with six months of free calls and lifetime validity. The subsidy that we incur on every phone is going down as the price of phones is going down faster than the fall in new offers.
We will offer SMS at 50 paise unlike most other operators who charge one rupee. The tariffs can fall further, if the regulator makes the termination charge cost-based, which would be less than 10 paise a minute from the current 30 paise, the same can be passed on to customers.
CIOL: How do you see advanced mobile technologies - such as 3G, CDMA - gaining currency in rural areas as well, especially when India has very less wireless penetration?
VR: The advanced mobile technologies such as 3G have the potential to meet the digital divide between rural and urban India by penetrating into far-fetched areas, where fixed-line connectivity is sparse due to high deployment cost of infrastructure. 3G will not only alleviate the existing level of voice-based services, but also make Internet broadband access a reality for larger population.
3G will also fit well into the urban user's plan. It will enable quality voice and address the pent-up demand for high-bandwidth data exchange on mobile phones and support high-speed Internet access on other portable devices.
The government has recognized 3G as the cornerstone for growth of the telecom sector and is expected to allocate the third generation on priority.CIOL: What is being done to take the brand into the market?
VR: MTS is the eighth-largest telecom company in the world with over 100 million customers. In India, we are the sixth or seventh operator. We are using faces of models talking on the mobile phone to relate to the consumers and give our service the human touch. We have also decided to concentrate most of our advertising and marketing spend on local media, via regional language instead of English.
We have also recently rebranded our existing operations in Rajasthan, under the 'Rainbow' brand, to MTS. Rainbow was a regional brand limited to Rajasthan and what we needed was a pan-India brand name. Accordingly we painted the Pink City Jaipur to red - the colour of our brand.
The most important factor is the time-to-market - how quickly we could launch the brand across India in the next nine months. With MTS, the brand material, logo and specifications are all readymade and already available
CIOL: How do you look at the slowdown?
VR: Global economic slowdown is a business challenge for enterprises across the globe. However, Sistema is one of the largest public diversified corporations in Russia. We have sufficient funds to expand our operations, and launch our services on a pan-India basis.
India is one of the fastest growing markets for telecom, and has been relatively un-impacted by recession. As of now, the situation is under control, because the financial meltdown has not impacted Indian banks in a major way.
However, if the situation worsens, then we could be in a spot as we are not allowed to bring in foreign funds in the form of debt. We are allowed to bring money in the form of equity, but our promoters would like to have the flexibility to decide on what form they would like to pump in money into the company.
The Indian Government should consider relaxing the foreign investment norms, which will allow international players to bring in funds in the form of loan.
CIOL: What would be the newer trends in the Indian mobility sector?
VR: The year 2009 is expected to be an exciting year for the Indian mobile telephony market. With the Congress-led UPA (United Progressive Alliance) voted back to power, the sector can look forward to speedy auction of the long-awaited 3G spectrum.
A significant portion of the rural population will witness phased growth in first-time Internet access and welfare programs covering telemedicine, e-governance and distance learning - propelled by 3G mobile broadband and WiMax.
While the 3G network would infuse better services for subscribers and enhance revenues from VAS (value-added services) for operators, the introduction of MNP will offer users the convenience of retaining their mobile phone number even after switching between networks and operators.
Mobile payment and commerce for micro-transactions is also expected to attract greater user-orientation.
Interview -- Bharti Airtel hopeful of 200-m user mark in 3 years
On The Hindu Business Line dated 03 June 2009
Thomas K. Thomas
New Delhi, June 2 To keep its leadership position in the fastest growing mobile market, Bharti Airtel is embarking on a multi-pronged strategy, including a comprehensive customer retention programme, partnerships with companies that offer mobile entertainment and commerce services, domestic acquisitions and a thrust on driving growth in the rural areas.
In his first interview after taking over as the President of Bharti’s mobile business, Mr Atul Bindal, told Business Line, “I do not agree with those who say Indian mobile growth story is on the verge of getting over. We will reach the next hundred million subscribers by a combination of reaching out to the huge potential that exists in the rural areas, taking advantage of the untapped opportunity in large urban areas and possibly through the organic route which we will evaluate as when opportunities come by.”
Bharti crossed the 100-million mark in May and is hoping to reach the 200-million mark in another two-three years.
Number portabilityAsked on the impact on Bharti of new players and introduction of mobile number portability (MNP), Mr Bindal said the company has put in place a customer life-cycle management system which will enable it to take customer services to the next level.
“At present most operators are looking at a few broad consumer segments to create offering and services around them. We are going to take this to the next level wherein Bharti will target micro segments of subscribers to offer customised services. For example, a subscriber who travels a lot to a particular country would like to get a special international roaming tariff. The system will allow us to target products based on the user’s behaviour rather than launch broad mass offerings,” Mr Bindal said.
He added that MNP is an opportunity for Bharti to acquire customers from other operators.
Mr Bindal reckons that mobile commerce and mobile entertainment are going to be big applications.
“Value added service the way we know today is going to change drastically. We are giving a huge thrust to music, games, movies and sports under mobile entertainment wherein we plan to be an end-to-end service provider. We will also enable application providers to use Bharti’s network as a conduit to reach our subscribers. In m-commerce, we are looking at the unbanked segment and micro-finance in a big way,” he said.
Asked if Bharti was open to tie-ups with companies such as Nokia, which also is launching an entertainment platform, Mr Bindal said that such partnerships were possible.
Acquisition planHe also did not rule out the possibility of Bharti acquiring small companies offering value-added services or a technology that will add to its business model.
“Bharti has always been in favour of strategic partnerships and alliances as long as it offers a compelling value proposition to our customers,” Mr Bindal said.
BSNL set to invite fresh tenders to run WiMax ops
3 Jun 2009, 0223 hrs IST, Joji Thomas Philip, ET Bureau
NEW DELHI: India’s largest telecom firm BSNL will invite fresh tenders to run its WiMax operations, after the previous attempt was aborted in light of dubious operators making it to the final shortlist. The state-run firm will now seek fresh bids for franchisees across the country to roll out technology that allows users wireless access to high-speed internet and other data applications over a large area, according to two top executives of the company. BSNL expects WiMax to generate multi-billion dollar revenues over the next 10 years.
ET had reported on February 20 that a string of ‘shell’ companies that exist only on paper had made it to BSNL shortlist for WiMax.
The telco subsequently cancelled the tender after its own investigations revealed that five of the six shortlisted companies — WiExpert Communications, SV Telecom Systems, Digitelco Communications, Spectrus Communications and Technotial Infoways — were acting as ‘fronts’ for certain individuals.
It was found that these companies shared the same corporate details, notaries, auditors and dates of incorporation, and even their last annual general body meeting was shown to be held on the same day.
BSNL came under pressure from its labour unions to scrap the tender following reports of wide-scale corruption in the methodologies adopted to shortlist successful bidders. Doubts were also raised on the disqualification of several companies with proven track record of offering WiMax services including Soma Networks, Cisco-backed Terracom, Unwire India and Welcomm Communications — it had a tie-up Huawei and Aricent — in the earlier shortlist.
The Forum had also alleged that these newly floated front companies have approached global majors to buy them out quoting BSNL’s spectrum and network assets as valuation criteria. “This is a result of the lax eligibility conditions in the tender which these paper companies are exploiting,” the association had said.
ET had reported on February 20 that a string of ‘shell’ companies that exist only on paper had made it to BSNL shortlist for WiMax.
The telco subsequently cancelled the tender after its own investigations revealed that five of the six shortlisted companies — WiExpert Communications, SV Telecom Systems, Digitelco Communications, Spectrus Communications and Technotial Infoways — were acting as ‘fronts’ for certain individuals.
It was found that these companies shared the same corporate details, notaries, auditors and dates of incorporation, and even their last annual general body meeting was shown to be held on the same day.
BSNL came under pressure from its labour unions to scrap the tender following reports of wide-scale corruption in the methodologies adopted to shortlist successful bidders. Doubts were also raised on the disqualification of several companies with proven track record of offering WiMax services including Soma Networks, Cisco-backed Terracom, Unwire India and Welcomm Communications — it had a tie-up Huawei and Aricent — in the earlier shortlist.
This has strengthened the allegations of a possible scandal especially since BSNL had failed to provide valid reasons for the disqualification. During the recent election campaign, opposition BJP had alleged that five of the six shortlisted companies were promoted by telecom minister A Raja’s confidant Sanjay Kapoor and had sought a CBI probe into the issue.
“BJP demands that allotment of BSNL’s WiMax franchise should be suspended immediately and the telecom minister be sacked as reports suggest wholesale loot and corruption in the process,” party spokesperson Prakash Javadekar had said during a press conference in Delhi on May 6.
Earlier this year, the WiMAX Forum, an industry association that has more than 530 member companies globally and 50 members in India had warned BSNL that companies existing only on paper are exploiting lax eligibility criteria for bids invited by the telco for franchisee operators for its WiMax services.
The Forum had also alleged that these newly floated front companies have approached global majors to buy them out quoting BSNL’s spectrum and network assets as valuation criteria. “This is a result of the lax eligibility conditions in the tender which these paper companies are exploiting,” the association had said.
No criminal cases against telcos: DoT; Foreign telcos get clean chit in licence fee, service tax case
3 Jun 2009, 0143 hrs IST, Joji Thomas Philip, ET Bureau
NEW DELHI: Department of telecom (DoT) will not file any criminal case against Indian and international long-distance operators including AT&T, British Telecom, France Telecom, Verizon, Bharti Airtel, Reliance Communications and Tata Communications after investigations by both the CBI and an internal committee of the communications ministry proved that collaborations between these players did not result in revenue losses to the exchequer.
The DoT had earlier alleged that the international operators were providing long distance services to customers in India by tying up with Indian counterparts rather than taking separate licences leading to huge losses in levies to the exchequer.
The DoT had said that these foreign operators had not paid a one-time entry fee of Rs 25 crore (prior to January 1, 2006) plus 15% of their annual revenues as levies for offering long distance services in India. All these international long distance operators have now taken licences for their Indian operations.
The DoT had said that these foreign operators had not paid a one-time entry fee of Rs 25 crore (prior to January 1, 2006) plus 15% of their annual revenues as levies for offering long distance services in India. All these international long distance operators have now taken licences for their Indian operations.
After the CBI had completed preliminary investigation on behalf of DoT, the central agency had suggested that the government file a case against these companies for a thorough probe into probable financial loss.
But, following the CBI report, the DoT committee gave an opportunity to all these companies to explain their viewpoints on the alleged violations. On studying the presentation by these telcos, DoT committee concluded that there was no loss to the exchequer.
Story on The Hindu Business Line dated 03 June 2009
Foreign telcos get clean chit in licence fee, service tax case
But, following the CBI report, the DoT committee gave an opportunity to all these companies to explain their viewpoints on the alleged violations. On studying the presentation by these telcos, DoT committee concluded that there was no loss to the exchequer.
Story on The Hindu Business Line dated 03 June 2009
Foreign telcos get clean chit in licence fee, service tax case
Thomas K Thomasin
New Delhi, June 2 In a move that removes all hurdles to global telecom firms to bid for third generation mobile (3G) spectrum, an internal panel of the Department of Telecom has decided to close a six-year-old case against international majors including AT&T, BT (formerly British Telecom), Equant and MCI Worldcom for alleged evasion of licence fee and service tax.
While it is not clear on who will actually bid for 3G spectrum, a clean chit from the DoT panel on the issue has removed possibilities of any legal complications later on for these multinational majors.
The issue dates back to 2003 when it was alleged that the foreign telecom players including AT&T Communications Services India, Equant and MCI Worldcom India were selling managed data network services to corporates in India without taking any licence from DoT.
It was alleged that these companies had got into a partnership with Indian operators, including Videsh Sanchar Nigam Ltd (now Tata Communications), Reliance Communications and Bharti, to bypass paying local taxes and levies. The companies were hauled up by the Parliamentary Standing Committee on IT for allegedly violating foreign direct investment norms and also for depriving the national exchequer.
The matter was referred to the Central Bureau of Investigation which, in turn, put the ball back in DoT’s court on the ground that the telecom department should carry out its own assessment based on the licence conditions. The CBI had concluded that in case the DoT found irregularities then it could lodge an FIR for further investigation.
But now, in a relief to the multinational operators, a DoT committee has concluded that the alliance with Indian players was not illegal. For example, in the case of AT&T, the DoT panel stated, “there is no loss of revenue to the Government as the service tax have been properly accounted for and the licence fee has been paid by VSNL. Further, as per terms and conditions of the international long-distance licence, the licensee can always employ or appoint agents for provision of service.” The panel said that AT&T has produced invoices and tax details to prove that it had met with local laws in India.
“The committee feels that in the case of AT&T, being the service support organisation of VSNL and interfacing with customers in India on behalf of VSNL, there is no violation of Indian Telegraph Act 1885 and loss to exchequer. On the part of VSNL also there is no violation. Therefore, there is no merit in the complaint and the case can be closed,” it added.
In the case of BT, the DoT panel observed that the company had got into an arrangement with Bharti to service its global customers in India. BT, however, had also serviced clients directly through its subsidiary in Singapore.
The UK-based company claimed that the revenues earned by the Singapore unit relate to services provided by BT outside India and, therefore, it was not liable to pay service tax and licence fee to the DoT.
Similar story on www.ciol.com at http://www.ciol.com/technology/mobility/news-reports/dot-clears-3g-spectrum-hurdles/3609120497/0/MTS Hits 1 Million Subscriber Mark
On www.efytimes.com on 02 June, 2009
Tuesday, June 02, 2009: Sistema Shyam TeleServices Ltd (SSTL) has reached the subscriber base of one million for its service brand MTS. In the last three months, the company expanded its presence from Rajasthan to three more circles including Tamil Nadu, Kerala and Kolkata covering 13 per cent of the population in the country.
MTS as a pure play CDMA operator has achieved a share of net addition of subscribers in the range of 11-13 per cent per month, of the total mobility market of Rajasthan, since launch on the 1 October 2008. As of today, Rajasthan contributes 87 per cent to the subscriber-base of MTS, while the remaining 12.5 per cent is spread across Tamil Nadu and Kerala where services were launched two months ago. Kolkata is the latest circle to introduce the brand MTS.
MTS provides telephony connections to over 600 towns of Rajasthan, 513 towns of Tamil Nadu and 247 towns of Kerala, in addition to Kolkata where it made a foray in May this year.
Similar story in
Commenting on the performance, Vsevolod Rozanov, president and CEO, SSTL, said, “The first magical number of a million gives us the confidence that the MTS brand is gaining popularity and our customers acknowledge and believe in the brand promise of superior network quality, exceptional customer service and honest and simple tariff plans. As a new telecom operator, our performance in the last six months has surpassed our expectations. I am confident that we will continue to progressively expand our presence with attractive pricing and superior customer care delivery.”
MTS as a pure play CDMA operator has achieved a share of net addition of subscribers in the range of 11-13 per cent per month, of the total mobility market of Rajasthan, since launch on the 1 October 2008. As of today, Rajasthan contributes 87 per cent to the subscriber-base of MTS, while the remaining 12.5 per cent is spread across Tamil Nadu and Kerala where services were launched two months ago. Kolkata is the latest circle to introduce the brand MTS.
MTS provides telephony connections to over 600 towns of Rajasthan, 513 towns of Tamil Nadu and 247 towns of Kerala, in addition to Kolkata where it made a foray in May this year.
Similar story in
- The Hindu Business Line at http://www.thehindubusinessline.com/2009/06/02/stories/2009060251510400.htm
- www.ciol.com at http://www.ciol.com/technology/mobility/news-reports/mts-touches-one-million-subscriber-mark/2609120382/0/
Tuesday, June 2, 2009
MTNL unveils pre-paid 3G service for Rs 300
2 Jun 2009, 1650 hrs IST, PTI on www.economictimes.com
The company introduced 3G services in Delhi in December and in Mumbai last month.
NEW DELHI: State-run MTNL today brought 3G services to the masses by introducing a prepaid option for this high-end service at just Rs 300.
Announcing the launch of the pre-paid 3G service, company CMD R S P Sinha said, "MTNL is launching 3G Jadoo Prepaid Services so that customer should be able to avail the latest 3G/3.5G services at an affordable price".
Since pre-paid is the preferred by customers, the 3G service will be available for only Rs 300 with lifetime validity, whereby a customer can make local video calls at Rs 1.8/minute and data download at Rs 3/MB.
In addition, a subscriber can also choose any of the data coupons to avail free data downloads coupled with free video calling to suit ones individual requirement, Sinha said. Sinha expects the launch of pre-paid 3G services to increase it customer base.
He said the PSU has around 400 subscribers for its recently-launched 3G service and expects 2,00,000 to 3,00,000 users for in the first year of operations.
The company introduced 3G services in Delhi in December and in Mumbai last month.
The state-run telecom operator expects to add new capacity to accommodate 8,00,000 users, he said.
Same story in Financial Express at http://www.financialexpress.com/news/mtnl-unveils-prepaid-3g-service-for-rs-300/470071/
Story from The Hindu Business Line dated 03 Jun 2009
MTNL launches pre-paid card for 3G services
Same story in Financial Express at http://www.financialexpress.com/news/mtnl-unveils-prepaid-3g-service-for-rs-300/470071/
Story from The Hindu Business Line dated 03 Jun 2009
MTNL launches pre-paid card for 3G services
Our Bureau
New Delhi, June 2 To get more users for its third generation mobile services, state-run Mahanagar Telephone Nigam Ltd (MTNL) on Tuesday launched a pre-paid option that will enable customers in Delhi experience high-speed data connectivity at an upfront cost of Rs 300.
MTNL had launched its 3G services in January but has only 400 subscribers till now. The pre-paid option is expected to drive up the demand for the company. Mr R. S. P. Sinha, Chairman and Managing Director, MTNL, said he expected at least two lakh 3G users within the first year of operations.
Initially, the services were launched in NDMC area in New Delhi with 50 base stations.
Extended coverage Now, MTNL has extended 3G coverage to Trans Yamuna, Central Delhi, South Delhi and NCR of Gurgaon with 225 base stations. The company will soon cover Noida, Dwarka, Karolbagh, North-West and the remaining areas in and around the capital.
The 3G pre-paid services are available at Rs 300 with lifetime validity, and a customer can make local video calls at Rs 1.8 a minute and download data at Rs 3 for each MB.
In addition, a subscriber will have to buy data ranging between Rs 99 and Rs 2,500 coupons. MTNL has bundled free data download of 50 MB with a trial coupon for Rs 99. Heavy users can pay Rs 2,500 a month for unlimited data download.
The PSU will add new capacity to accommodate 8 lakh users. Since 95 per cent of existing mobile users are on pre-paid, MTNL expects more demand for the 3G service.
Mr Sinha said the service has given an advantage to the state-run company over private players.
MTNL and BSNL are the only operators to have got spectrum for offering 3G services.
IBM to build data centres for MTS
From The Hindu Business Line on 02 June, 2009
Bangalore, June 1
IBM said on Monday that it will design and build two green data centres – one each in Chennai and Gurgaon for MTS India, the mobile telephony services brand of Sistema Shyam TeleServices Ltd, a joint venture between Sistema of Russia and Shyam Group. The green data centres will help achieve 20 per cent energy savings for SSTL that is expanding operations across the country. IBM will also build a network operations centre (NOC) to help SSTL monitor and manage applicat ions and network. The Chennai site will serve as the main data centre for SSTL, while the data centre in Gurgaon will serve as the disaster recovery site.
Similar story in The Hindu Business Line at http://www.thehindubusinessline.com/2009/06/02/stories/2009060251450400.htm
3G-WIMAX : Simplifying the future
On www.ciol.com by Sunny Sen on 02 Jun 2009
INDIA: Amongst the innumerable potentials 3G has, network manageability is perhaps the most important one. In the coming years, with increasing Internet usage, a huge explosion of data will happen over networks. The other major area where 3G would make a difference is in the billing process.
For infrastructure providers 3G will be a value-add during slowdown, as they would get to put in a lot of new developments. Layout of next generation networks that are 3G compatible will help in better manageability of services over the networks. Even service providers believe that 3G would make the entire mobility space much more accessible. The government, though, has to look at 3G with a much broader perspective. The broadband connection, as they have not reached the set target, will also benefit with 3G coming to India.
Looking at the manageability front, 3G will not only help in managing new services, but also fall in line with 2G and 2.5G services. It will give a whole new experience of network management at the back end. "As a 3G network is downward compatible, SPs would prefer to upgrade their existing networks so that with increased bandwidth they can offer high-bandwidth applications and services to their 3G customers, as well as serve more 2G and 2.5G customers on the improved network," says Vish Iyer, vice president, service provider, Cisco India & SAARC.
3G Billing Process
In India there is a larger base for pre-paid customers compared to post-paid and so there is a greater need to simplify processes for the same. With 3G services there is a new advent in the next-generation voice, data and content services. And 3G billing services will give operators the opportunity to handle and retain the loyalty of pre-paid subscribers.
"Billing systems must cope with the dichotomy in business processes and the complexity in operations for accurately billing pre- and post-paid subscribers. This is a challenge that operators must address as it adds additional pressure to the bottom-line," says Paresh Shah, vice president, information management, Convergys India. For post-paid customers it would help the operators to offer innovative services on demand like real time balance tracking and notifications. This will actually become the handiest tool to operators as they are working to limit credit exposure from post-paid subscribers and provide the necessary cross subscription discounts and invoice generation that subscribers demand.
"In 3G, services priced differently will be posted in one bill. Apart from that a number of new parameters for calculating charges can be used like number of packets, uploading and downloading data, QoS, location and content. This will give rise to complex methods of billing," says Tamal Bardhan, marketing head, Usha Comm.
Easier Manageability
Not only on the billing side, but also on the network deployment side 3G is taking things forward. Solutions and services are getting simpler and handier. Enterprises and vendors have already started making futuristic deployments for the new business opportunities that 3G would bring in the network space. 3G's most important attribute will definitely be better infrastructure management.
"3G will help service providers manage their existing infrastructure better and remain competitive in a mobile number portability (MNP) regime. It will also generate a more addressable market to the GSM service providers. They can go back to their existing customer base and provide them with enhanced data services" says Animesh Sahay, head, telecom business, India and SAARC, Juniper Networks.
GSM and VAS are two other areas where 3G would be having a great impact. We are seeing a growth of around 5 to 6 mn users per month in these areas. The bandwidth provided right now is nowhere close to what we would have once 3G services are started. This would essentially lead to easy trafficking of data over the networks.
3G will not only make its presence felt in cities and towns but also bring in better and faster networks to rural India. "Looking at the country's broadband penetration through copper and coax; wireless technologies are becoming prominent. 3G and WiMax will ensure that remote and rural areas get networked. Thus 3G is a positive sign of the growth of the Indian telecom industry provided the government supports it equally," says Jayesh H Kotak, vice president, product management, D-Link India.
In the years to come 3G would make a lot of difference in making business models more innovative. 3G and WiMax will help solve the problem of low broadband penetration in India to a great extent. It is high time the government realizes the need and use of 3G. In a fast growing economy these technologies have the power to change the development roadmap of the country.
Data Matters
The current 2G network limits the download speed to nothing more than 30 to 40 Kbps, though the ISPs claim to provide much more. Even after the use of Edge technology one gets 384 Kbps of uplink and 171 Kbps of downlink. 3G is expected to sort out these problems. For enterprises 3G would bring in a lot of scalability and performance based application cutting short time constraints. 3G networks will be 2G and 2.5G compatible as well. Consolidation would bring down the costs for the company.
Apart from the bandwidth, 3G would also enable compressed data over the network. This would in turn maximize and increase WAN link by reducing the frame size, thereby allowing more data to be transmitted over the link. Though at this point we do not need much data compressibility as the transmission will be through fiber.
3G allows for transferring voice in networks much more efficiently than 2G and enables efficient VoIP in the future. This leads to decreased cost per bit and voice minute for the operator, and eventually for consumers. "Today's networks are many times more efficient than early 3G networks and will evolve to LTE which is again three times more efficient than current 3G networks," says Randep Raina, head, 3G India, Nokia Siemens Networks.
Looking Ahead
Will things stop only with the infrastructure developments of networks in Delhi? BSNL and MTNL are very differently placed in comparison to other private players. It is not yet known when 3G auctions will happen and which companies will be in the spectrum run. With a huge amount of investment only to acquire license, a lot of other costs would be involved when it comes to network building and implementation.
But the high costs will lead to new services making its way into the market, especially the urban areas. "Unlike 2G, in 3G one has to come up with very innovative applications and tariff plans. If operators are able to come up with new services there surely is a lot of money to be made," says Subhendu Mohanty, country head, home & networks, mobility business, Motorola.
It perhaps goes without saying that vendors are looking at 3G because it is one of the areas that would bring them enough revenues. For instance, in case of Motorola their deployments for MTNL in Delhi alone are close to Rs 300 crore.
Undoubtedly, 3G will definitely bring in manageability. With obsolete billing processes and difficult round ups it is an urgent need for the communications industry to head towards 3G. For quite some time, 3G has been a vision and a topic of discussion, but unfortunately, implementation is nowhere in sight.
SMS hot amidst slowdown
On www.ciol.com on 02 June 2009
INDIA: For mobile operators, text messaging has become one of the most successful data applications with the volumes increasing year on year. However, ongoing price erosion in messaging has caused increased pressure on margins and this has resulted in the mobile industry frantically searching for revenue growth opportunities in new services. Software consulting firm, Ovum, states that no other single service has been able to get even close to the text messaging revenues. Even in 2009, 80per cent of worldwide messaging revenues will be generated by SMS.
Besides exploring alternative options to add to their existing text messaging revenues, operators need to consider a more evolutionary approach. In this case, text messaging should be used as a starting point. Future revenue growth can be reached through differentiation and the creation of new business on existing text messaging channel. Mobile messaging has not reached its limits and the time is right to leverage the unique values of mobile messaging beyond person-to-person traffic. In fact, Acision believes that messaging revenues have the potential to double by 2011, reaching a market size of $165 bn.
Real Truth of Future Text
The success of text messaging is often attributed to its ease of use, reliability, and transparent pricing. Yet, some argue that rich Internet-based messaging services will take over dominant position in a few years. This outlook is inspired by a few notable trends such as how mobile broadband coverage has increased dramatically, with market share of Internet enabled mobile devices surpassing the 25per cent mark.
On the contrary, text messaging is not showing any signs of slowing down. In May 2008, Ovum predicted an increase of 60per cent in the volume of text messaging by 2011. The popularity of text messaging has turned it into a key operator tool for subscriber acquisition and retention, which has resulted in near flat-fee pricing. The truth is that it will not decrease in volume or usage, but is more related to the operator's margins. However, if the right solutions are put in place, operators can increase their text messaging prowess.
Differentiation Drives Margins
Over the past 15 years, most operators have adopted a similar strategy of positioning text messaging as a new service. In recent years, however, messaging has reached mass market adoption and is like a commodity. To address this challenge, operators need to do what every business does when faced with commoditization. Operators must differentiate their mobile messaging portfolio by further refining the service positioning to address the different messaging needs of various user segments.
At the same time, it is crucial to avoid disruption of SMS's key asset: simplicity.
Confronting subscribers with complex features easily results in poor adoption rates. By gradually differentiating mobile messaging, operators will ensure text messaging relevance across their entire subscriber base and increase overall revenues. To realize the required margin growth, it is crucial to minimize the costs associated with service differentiation.
Based on this vision, leading messaging company, Acision defined a text messaging strategy aimed at doubling the messaging revenues. This strategy consists of five key elements that will drive subscriber and channel revenue.
Personalize the messaging experience: By offering personalized messaging services, operators are able to charge for a number of new features that are already proving to be effective. Currently, a vast majority of subscribers are using multiple messaging services. Through email and instant messaging, users are increasingly getting familiarized with features such as automated replies, forwarding, signatures, threaded messaging and presence information, and these should be applied to text. Initial launches of personalized messaging services indicated a growth potential of up to 15per cent on text messaging revenue. An example of such a personalized service launched by SingTel and Maxis in 2008 is auto-copy. This service automatically forwards copies of received text messages to another phone number or email address.
Extend mobile messaging to fixed: Besides mobile phones, many subscribers use a range of fixed devices such as PCs and TV sets daily. When offering access to text messaging on these devices, the barrier to use text messaging would be even lower. A fixed extension to text messaging offers the operator a viable entry for service revenues in the fixed domain. The additional user interface may also produce additional text messaging usage chargeable by the operator. The enhanced user interface may improve advertizing effectiveness and the user's abilities to personalize the messaging experience. Finally, delivery of text messages could be done over 3rd-party bearers such as cable or DSL Internet connection. This could substantially reduce costs as it would relieve the operator's radio network.
Widgets as extension to SMS: PC and web-based widgets enable users and web developers to have full control over where to position certain third-party applications. This drastically limits the barrier to use such applications. It is therefore not a surprise that in June 2008 alone, over 600 mn people communicated through widgets. If operators were to allow access to text messaging through widgets, it would enable them to increase the value of text messaging and help realize the opportunities mentioned above.
Instant messaging as extension of SMS: When faced with the instant messaging concept, most people will have dominant brands like Windows Live Messenger and Yahoo! Messenger in mind. In recent years however, the IM landscape is getting ever more diverse. A long list of social networks, mail providers, niche communities and mobile operators have launched their own IM services. Operator IM may not be a new killer application but could well act as a logical extension of mobile messaging for mobile and fixed Internet users.
Use messaging to mobilize the web: Internet usage among teenagers has grown to a staggering 12.5 online hours per week. Yet, the average teenager is available at least 112 hours per week through his mobile phone. In other words, teens are almost ten times more likely to be available through their mobile phone. Clearly, the mobile channel is a crucial link in enabling people to interact. As a result, a value-added services market has taken shape since the 1990s. However, there is still a large number of (Internet-based) service providers that do not mobilize their service offering through mobile messaging.
Mobilize business applications: On an average, 5.5per cent of patients do not show up at a doctor's appointment. A simple text messaging reminder would substantially reduce this number of no-shows and the associated costs. Incentivated, a mobile marketing agency, proposed a simple SMS reminder service for UK-based optician and helped to generate $8 mn in savings.
Operators have addressed the mobile enterprise opportunity mainly through technological innovations such as the wireless application protocol (WAP) and push email. This has resulted in a plethora of device specific applications with low reliability and high integration costs. Consequently, enterprise mobility has brought little or no productivity improvements for the average business.
Combining the reach and reliability of text messaging with the relevance of data in enterprise applications promises a quantum leap in enterprise productivity.
Set up a mobile marketing business: Operators can play a pivotal role in mobile advertizing value chain. They own customer relationship and access channels, the advertizing inventory, location information, and customer profile. This profile includes phone number, usage behavior, demographics, and content preferences.
Furthermore, the operator controls the main vehicle for the digital dialog: mobile messaging. According to IAB, 95per cent of text messages are opened compared to 25per cent of emails. This puts mobile operators in a very strong position indeed when competing for advertizing budgets.
At the same time, operators are often anxious to protect existing service revenue streams, as it may well remain the most substantial part of their business. To date, mobile advertizing is making slow but steady progress towards the forecasts of becoming a $19 bn industry.
In summary, advertizing revenues will never be adequate to replace service revenues but are a welcome supplement for operators. Mobile operators are uniquely positioned to monetize the best advertizing inventory in the world. Combining customer location and profile enables the delivery of unprecedented levels of advertizing relevance and reach. By addressing the essential enablers mentioned above, the competitive position of operators in the advertizing market would be second to none.
The future of messaging continues to be a bright amid the negativity in the current economic markets. Mobile operators can effectively extend their revenues by leveraging their existing assets and exploit the potential still left in today's mobile services, allowing them to remain agile and profitable.
mKhoj intros mobile advertising in local languages
On www.ciol.com on 02 June 2009
BANGALORE, INDIA and PALO ALTO, USA: mKhoj, the leading mobile advertising marketplace for the rest of the world, today announced the ability to power relevant mobile advertising tailored to local languages in seventeen different countries. With this announcement, mobile advertisers can leverage mKhoj's ad network to display ads in hundreds of languages, including Afrikaans, Arabic, Bahasa, Hindi, Tamil, Turkic, and Zulu.
This new technology continues mKhoj's commitment to provide the fastest character mapping for more than 600 mobile publishers. With UTF-8 encoding, mKhoj allows advertisers to increase the power of their mobile marketing by more effectively targeting their audience, and increases the monetization as well as the value of the publishers' mobile properties through greater localization.
How it works:
When advertisers sign up, they now have the ability to upload their mobile advertising in any local language and in any alphabet. This gives advertisers new ways to target and communicate with consumers.
"Empowering advertisers to speak to consumers in their native language enables them to make more personal connections with their target audiences." Abhay Singhal, Head of Global Sales for mKhoj. "This provides multinational advertisers a more effective way to reach local audiences around the globe."
mKhoj has implemented its UTF-8 encoding technology to enable advertisers to easily upload local language advertising as-is, so publishers and their users are ensured a high quality experience.
Tata Indicom’s ILD offer
On The Hindu Business Line dated 02 June 2009
Madurai, June 2
Madurai, June 2
Tata Teleservices Ltd has launched ‘STV 76’, a special tariff voucher that offers attractive International Long Distance (ILD) calling rates for its prepaid subscribers, a press release said. Calls made to the US/Canada would be charged at Rs 2 a minute, calls to Gulf at Rs 7.50 and the rest of the world at Rs 12. The offer applies across Madhya Pradesh, Bihar, Orissa, Punjab, Himachal Pradesh, Gujarat, Karnataka, Tamil Nadu and UP East circles. The new re charge voucher is available at Rs 76 for 30 days. Prepaid subscribers can also make local calls using the special tariff voucher. All Tata-to-Tata local calls would be charged at 25 paise a minute whereas local calls to other network mobile would be at 75 paise a minute.
WiMAX Forum Global Congress
From The Hindu Business Line on 02 June 2009
New Delhi, June 1 Indian telecom players including Tata Communications, MTNL, BSNL and Sify will participate in the annual WiMAX Forum Global Congress 2009 in Amsterdam from June 2-3. This annual congress will be led by players that are active and involved in the growing momentum of WiMAX ecosystem globally. Thought leaders from 40 operator companies, 14 analysts, 7 regulators and 3 investors from 40 different countries ar expected to participate in this meet. - Our Bureau
Interview -- ‘Number portability will benefit Idea in new markets’
By Ashok Kumar in Financial Express on 02 June 2009
New Delhi: Speaking on the sidelines of a press conference to promote the upcoming IIFA awards, Pradeep Shrivastava, Chief Marketing Officer, Idea Cellular in a short conversation with IndianExpress.com tells, how Mobile number portability (MNP) on mobile phones will be both a challenge as well an opportunity for the service providers including Idea.
Talking about the impact of Number Portability on Idea Cellular, Shrivastava said, like any other company, the new regulatory provision of ‘number portability’ will be a challenge in the existing markets for all the service providers including Idea.
But, Shrivastava sounded positive about the impact of the measure on the new markets as he asserted, “In the new markets Idea will benefit from the number portability.”
Talking about the growth prospects for the company, in the already saturated telecom market, Shrivastava stated that the penetration in the rural markets is way behind the national penetration which stands in the range of 35 percent. “In the rural markets, the penetration of the mobile phones, industry wise, is still in single digits, which leaves us with enough scope for an impressive growth in future,” Shrivastava opined.
“Even in markets like Chennai where we (cellular operators) have a hundred percent penetration, the introduction of value added services spreads an impressive canvass for our company to grow,” Shrivastava clarifies.
Terming the Network and the pricing competitiveness as the hallmarks of Idea Cellular, Shrivastava feels it is the emotional connection of the brand with its millions of customers which separates it from the rest of the service providers.
Telephone tariff will drastically come down: Raja
From Financial Express; ANI dated Jun 02, 2009 at 1539 hrs IST
New Delhi: Union Minister of Communications and Information Technology, A Raja has said that the prospects of the further lowering of telephone tariff in India are imminent in the future.
He said this while assuming his charge of the ministry here on Monday.
He also said that as a result of a drastic tariff cut, the telecommunication facility will be available to people living in the lowest edge of the social strata.
“In the telecom side already we brought healthy competition. More operators were permitted as per the TRAI recommendations. I do believe once the new operators start their operations the tariff will drastically come down and the telecommunication facility will be available to persons living in the lowest edge of the social strata,” he added.
He also said that India would auction third-generation wireless radio (3G) spectrum by the end of this year.
Raja declined to say how much the government expected to mobilise through the sale. India was to auction the 3G telecommunications spectrum in January, but the sale was delayed.
The telecommunication ministry had earlier expected the auction to raise 300 to 400 billion rupees but the Ministry of Finance in February estimated the sale could bring just half of that.
Third-generation services allow voice, data and video to be transmitted at high speeds to wireless devices, and are seen as the next growth driver for telecom firms in India.
India's Mobile Market Is Growing Despite Economic Slowdown
From www.pcworld.com on 02 June 2009
By John Ribeiro, IDG News Service/Haarlem Bureau Tuesday, June 02, 2009 2:00 AM PDT
By John Ribeiro, IDG News Service/Haarlem Bureau Tuesday, June 02, 2009 2:00 AM PDT
India's mobile phone market continues to be unaffected by the economic slowdown, with 11.9 million new mobile subscribers in April. That's a 45 percent greater increase than in the same month last year, according to data released Monday by India's Telecom Regulatory Authority of India (TRAI).
The mobile market has not been affected so far by the economic slowdown, as Indian consumers see communications as a necessity, said Kapil Dev Singh, country manager at analyst IDC India.
The mobile subscriber additions in April were however lower than the 15.64 million new connections in March, something the telecom regulator regards as a seasonal drop. In India, the monthly data is closely watched for signs of an impact of the economic slowdown on India's booming mobile market.
The slowdown between March and April is seasonal, and does not reflect an overall slowdown in the mobile business in the country, a TRAI official said Tuesday.
As the Indian fiscal year ends in March, mobile service operators offer deep discounts and are more aggressive in their marketing in March, the official said.
"There have been drops from month-to-month previously, so the drop in April is more likely to be seasonal," IDC's Singh said.
The new additions in April this year helped take the total number of mobile subscribers in India to 404 million.
India's largest mobile operator Bharti Airtel added 2.8 million new mobile subscribers in April, taking its total subscribers to 96.74 million, while state-run Bharat Sanchar Nigam Limited (BSNL) added about 1 million new subscribers to have a subscriber base of 53.17 million at the end of the year.
Reliance Communications, India's second largest mobile operator, added 2 million new customers in April, compared to 3 million additions in March. The company saw high additions in the first quarter as it rolled out its new GSM (Global System for Mobile Communications) network in addition to its existing service using CDMA (Code Division Multiple Access).
The number of mobile subscribers in the country is expected to increase as mobile operators target rural towns and villages. The auction of 3G licenses, now rescheduled for the end of this year after a number of postponements, is also expected to give this market a fillip.
COAI Gets New Executive Council For 2009-10
From www.efytimes.com on June 02, 2009
Tuesday, June 02, 2009: The Cellular Operators Association of India (COAI), the main telecom industry lobby group of India, has announced a new executive council which has taken over the reins of the industry association. Suneeta Reddy, chairperson, Aircel Ltd and vice chairperson, COAI has been appointed as chairperson of COAI. Also Sanjay Kapoor, deputy CEO, Bharti Airtel has now become the vice chairperson of COAI for 2009-10.
During the COAI Annual General Meeting held on 29 May 2009 at New Delhi, outgoing chairman Asim Ghosh thanked the members for their unwavering support during his tenure as chairman. He reminisced fondly about his long association with the industry and the several challenges that the industry had faced and overcome in the last decade.
Ghosh noted that 2008 was a landmark year for the Indian industry as it had reached global scale. He pointed out that the job was never done and there would always be challenges ahead. He thanked Suneeta Ready for her support as vice chairperson, the executive council and the secretariat team for their efforts and contributions and wished them all the very best for the future.
Suneeta Ready, the chairperson elect, thanked the members for the trust and faith reposed in her. She emphasised that COAI had always stood for inclusive growth. She pointed out that the agenda for industry for the next 12 months included ensuring availability of adequate 2G spectrum, an early auction of 3G and BWA spectrum to facilitate the leap to the next generation of services, bridging of the digital divide, improving the financial viability of the industry and making it globally competitive.
Suneeta pointed out that with the imminent introduction of mobile number portability, the SIM card would become like a vote that could be exercised anytime by the consumers, and the industry should make all efforts to ensure that mobile is viewed as a service that adds value to the consumers lives.
The main members of COAI are: Aircel Ltd, Bharti Airtel Ltd, Datacom Solutions Pvt Ltd, Idea Cellular Ltd, Loop Mobile Ltd, Reliance Telecom Ltd, S Tel Pvt Ltd, Swan Telecom Pvt Ltd, Tata Teleservices Ltd, Unitech Wireless Pvt Ltd and Vodafone Essar Ltd.
Story at Financial Express on 30 May, 2009
During the COAI Annual General Meeting held on 29 May 2009 at New Delhi, outgoing chairman Asim Ghosh thanked the members for their unwavering support during his tenure as chairman. He reminisced fondly about his long association with the industry and the several challenges that the industry had faced and overcome in the last decade.
Ghosh noted that 2008 was a landmark year for the Indian industry as it had reached global scale. He pointed out that the job was never done and there would always be challenges ahead. He thanked Suneeta Ready for her support as vice chairperson, the executive council and the secretariat team for their efforts and contributions and wished them all the very best for the future.
Suneeta Ready, the chairperson elect, thanked the members for the trust and faith reposed in her. She emphasised that COAI had always stood for inclusive growth. She pointed out that the agenda for industry for the next 12 months included ensuring availability of adequate 2G spectrum, an early auction of 3G and BWA spectrum to facilitate the leap to the next generation of services, bridging of the digital divide, improving the financial viability of the industry and making it globally competitive.
Suneeta pointed out that with the imminent introduction of mobile number portability, the SIM card would become like a vote that could be exercised anytime by the consumers, and the industry should make all efforts to ensure that mobile is viewed as a service that adds value to the consumers lives.
The main members of COAI are: Aircel Ltd, Bharti Airtel Ltd, Datacom Solutions Pvt Ltd, Idea Cellular Ltd, Loop Mobile Ltd, Reliance Telecom Ltd, S Tel Pvt Ltd, Swan Telecom Pvt Ltd, Tata Teleservices Ltd, Unitech Wireless Pvt Ltd and Vodafone Essar Ltd.
Story at Financial Express on 30 May, 2009
New Delhi: The COAI Annual General Meeting held at New Delhi saw a smooth transition with the new Executive Council taking over the reins of the industry association.
The event saw the General Body ratify the nominations of Ms. Suneeta Reddy, Chairperson Aircel Ltd. and Vice Chairperson, COAI as Chairperson, COAI and Mr. Sanjay Kapoor, Deputy CEO, Bharti Airtel as Vice Chairperson of COAI for 2009-2010.
The nominations for the Executive Council were also ratified by the General Body.
Outgoing Chairman, Mr. Asim Ghosh thanked the members for their unwavering support during his tenure as Chairman. He reminisced fondly about his long association with the industry and the several challenges that the industry had faced and overcome in the last decade. He also noted how 2008 was a landmark year for the Indian industry as it had reached global scale. He pointed out that the job was never done and there would always be challenges ahead.
TTSL to launch services on GSM platform shortly
From www.topnews.in Submitted by Darpana Kutty on Tue, 06/02/2009 - 05:07
The telecommunication company of the Tata Group – Tata Teleservices Limited (TTSL) is all set to launch services on GSM platform shortly. The TTSL is compelled to provide services on the GSM platform, due to the lack of a “spectrum roadmap for code division multiple access (CDMA) operators and the limited allocation of airwaves”.
The Managing Director of TTSL, Anil Sardana says, "If one can't grow, one will have to find alternative means to exist. It is the entire policy around allocation of spectrum that caused us to look at other means.”
Sardana explains that spectrum means the airwaves through which the communication signals travel. Spectrum is very important for telecom operators. Sardana reveals, "In the Indian situation, we need to keep the aspect of spectrum availability in mind. The spectrum allocation for CDMA operators is only 800 MHz and no extra spectrum is available beyond what is already allocated to us. Since there is no roadmap, it is from that compulsion that one has to look at alternatives to grow.”
One of the CDMA giants, TTSL, along with Reliance Communications (RCOM), took the first step towards the GSM by applying for dual technology licences in late 2007. The TTSL is set to start its GSM operations shortly, while RCom has already commenced GSM services in India.
The TTSL operates under the brand name “Tata Indicom” in several circles of India. The telephony services of the company include mobile, fixed wireless phones (FWP), public telephone booths and wireline services. The company also provides broadband data network and application services including leased lines, DSL, Wi-Fi, ethernet, managed gateway services and web conferencing services. The company has two unified access (basic + cellular) services licences (UASL) – one for Mumbai Metro and the other for the entire Maharashtra and Goa.
Hughes Launches VPN Service Plans For Indian Enterprises
From www.efytimes.com on 02 June 2009
Tuesday, June 02, 2009: Hughes Communications India Ltd has introduced its new enterprise tariff plans for VPN Service under the HughesNet managed services portfolio. The newly introduced service plans are: VPN 32 (32 Kbps) at typical price per annum Rs 29,176; VPN 64 (64 Kbps) at Rs 45,959; VPN 128 (128 Kbps) at Rs 75,351; VPN 256 (256 Kbps) at Rs 138,308; VPN 512 (512 Kbps) at Rs 230,658; VPN 1Mbps (1024 Kbps) at Rs 359,227 and VPN 2Mbps (2028 Kbps) at Rs 694,803.
K. Krishna, AVP, marketing, Hughes Communications India Ltd, said, "Indian enterprises have started to look beyond the metros and big cities for growth especially in sectors like retail, logistics, banking and finance, amongst others. This requires them to get reliable and consistent connectivity across the country. We at Hughes believe in simplifying and demystifying the satellite as a medium. The recent advancements in our technology have made it possible to launch a VPN service that is of terrestrial quality and at near terrestrial pricing."
These newly launched VPN Service plans are built on new generation satellite modems geared to provide MPLS grade (QOS), very high uptime, with IPSEC implementation for security, SNMP Enabled, integrated with FCAPS software and are available to the customers on both the terrestrial as well as the satellite network with same performance metrics.
Related story on www.ciol.com at http://www.ciol.com/technology/networking/news-reports/hughes-unveils-new-tariff-plans/2609120404/0/
The new service plans look to provide a one-stop solution for all connectivity needs, better manageability and quality for the distributed enterprise.
K. Krishna, AVP, marketing, Hughes Communications India Ltd, said, "Indian enterprises have started to look beyond the metros and big cities for growth especially in sectors like retail, logistics, banking and finance, amongst others. This requires them to get reliable and consistent connectivity across the country. We at Hughes believe in simplifying and demystifying the satellite as a medium. The recent advancements in our technology have made it possible to launch a VPN service that is of terrestrial quality and at near terrestrial pricing."
These newly launched VPN Service plans are built on new generation satellite modems geared to provide MPLS grade (QOS), very high uptime, with IPSEC implementation for security, SNMP Enabled, integrated with FCAPS software and are available to the customers on both the terrestrial as well as the satellite network with same performance metrics.
Related story on www.ciol.com at http://www.ciol.com/technology/networking/news-reports/hughes-unveils-new-tariff-plans/2609120404/0/
Subex Launches CoE For Managed Services
On www.efytimes.com on 02 June 2009
Tuesday, June 02, 2009: Subex Limited has launched its Managed Services (MS) Center of Excellence (CoE). The CoE will be responsible for delivering a wide range of Managed Services offerings covering the entire spectrum of its OSS/BSS solutions portfolio. This service package offering will enable communication service providers (CSPs) to focus on their ‘core’ business functions while mission-critical operational functions are managed by Subex.
The CoE will offer customised packages across Subex’s MS portfolio catering to the varied operational needs of telcos, from specific applications/business processes to end-to-end business process outsourcing (BPO) and/or knowledge process outsourcing (KPO).
The Subex MS proposition consists of the entire range of services across Revenue, Billing and Network Asset Management, Application Management and Support, Infrastructure Management, Data Center Operations, Full Hosting, Operational Support (BPO/KPO) and Consulting.
The company’s 50 MS implementations across 24 customers around the world, process more than 20 billion CDRs (Call Data Records), with applications running on more than 100 servers, in a month. This is a clear indication of how Subex’s solutions provide telcos with services that respond to the changing marketplace.
The CoE will leverage Subex’s global spread in delivering best-shore and offshore services, and help consolidate the company’s existing experience and expertise across all its global locations.
“Many of our customers have reached out to us in recent times echoing these sentiments. This strong need for Managed Services coupled with our long standing expertise in MS prompted us to launch the Center of Excellence for Managed Services,” said Subash Menon, founder chairman, managing director and CEO, Subex Ltd. “The Subex Managed Services offering aims to add strategic and tactical value to a communication service provider’s operations and enable it to provide better customer experience, achieve competitive advantage while also enhancing their operational efficiency and profitability.”
The CoE will offer customised packages across Subex’s MS portfolio catering to the varied operational needs of telcos, from specific applications/business processes to end-to-end business process outsourcing (BPO) and/or knowledge process outsourcing (KPO).
The Subex MS proposition consists of the entire range of services across Revenue, Billing and Network Asset Management, Application Management and Support, Infrastructure Management, Data Center Operations, Full Hosting, Operational Support (BPO/KPO) and Consulting.
Airtel user base swells by 2.8 mn in April
2 Jun 2009, 0142 hrs IST, Durba Ghosh, ET Bureau
RCOM, the country’s largest telecom operator on CDMA technology platform, had launched GSM-based services in January with schemes providing free talk time up to Rs 900 and this resulted in its subscriber numbers surging between January-March. The free scheme was taken away by March-end, which resulted in subscriber additions falling in April.
NEW DELHI: Leading GSM operators Bharti Airtel and Vodafone Essar have added 2.8 million and 2.7 million subscribers in April, continuing their respective growth momentum. The second-largest mobile operator Reliance Communication added just over 2-million subscribers last month, according to data released by telecom regulator Trai on Monday.
GSM operator Aircel added about 1.1 million new subscribers in April taking its total subscriber base to 19.5 million. Tata Teleservices, a CDMA operator, added about 0.6 million new users in the given month taking its subscriber base to 35.7 million. Idea Cellular and Spice Communications together added a notch over 1-million subscribers in April. State-owned telco MTNL added 47,045 new subscribers in April.
RCOM, the country’s largest telecom operator on CDMA technology platform, had launched GSM-based services in January with schemes providing free talk time up to Rs 900 and this resulted in its subscriber numbers surging between January-March. The free scheme was taken away by March-end, which resulted in subscriber additions falling in April.
RCOM had outperformed the industry in these three months, it added 5-million new users in January and over 3-million new subscribers in February and March. In comparison, the largest mobile operator, Bharti, added 2.7 million new users each in January and February 2009 and 2.8 million in March.
RCOM now has a mobile subscriber base of 74.8 million and Vodafone Essar's total subscriber base stands at 71.5 million, while Bharti Airtel leads with 96.7 million total subscribers. Vodafone Essar also saw a drop of about 0.07 million users in its monthly additions in April and the telco added just over 2.7-million subscribers as against 2.84 million in March.
With this, Bharti Airtel regained the number one position in terms of subscriber additions by a few thousand users as it increased its customer base by 2.8-million users in April.
In March 2009, Vodafone Essar had beaten Bharti Airtel in monthly subscriber additions for the first time. Trai also said that India's mobile base had crossed the 400-million mark in April, inching close to the target of 500-million users by 2010, set by the Department of Telecom (DoT).
The total wireless subscriber base now stands at 403.66 million, while the total telecom base, which includes that of landline is 441.47 million, Trai added. But, the number of new mobile connections added in April saw a 23% drop compared with 15.64 million new additions in the previous month.
Tata Tele to now enter GSM space
2 Jun 2009, 0151 hrs IST, Rashmi Pratap, ET Bureau
MUMBAI: For the Tatas, offering mobile services on the global system for mobile (GSM) platform is a "compulsion" and not a choice. The absence of spectrum roadmap for code division multiple access (CDMA) operators and the limited allocation of airwaves has forced Tata Teleservices (TTSL), the group’s flagship telecom company, to offer services on the GSM platform as well.
"If one can't grow, one will have to find alternative means to exist. It is the entire policy around allocation of spectrum that caused us to look at other means," TTSL MD Anil Sardana told ET.
Spectrum refers to airwaves on which the communications signals travel and it is the raw material for operators. "In the Indian situation, we need to keep the aspect of spectrum availability in mind. The spectrum allocation for CDMA operators is only 800 MHz and no extra spectrum is available beyond what is already allocated to us. Since there is no roadmap, it is from that compulsion that one has to look at alternatives to grow," he added.
GSM and CDMA are rival technology platforms for offering voice and data services. CDMA heavyweights, Reliance Communications (RCOM) and TTSL, joined the GSM bandwagon by applying for dual technology licences in late 2007. While RCOM has already rolled out GSM services across India, Tatas are slated to start operations in a few weeks.
Incorporated in 1996, TTSL was the first to launch CDMA mobile services in India with a foray into the Andhra Pradesh circle.
"It was a conscious and deliberate decision and it was predicated largely on data capabilities of CDMA. We continue to be committed to CDMA," said Mukund Govind Rajan, MD, TTSL (Maharashtra), the listed arm of TTSL offering services in Mumbai and rest of Maharashtra.
In March, TTML rolled out 'Photon', its high-speed Internet service offering speeds of up to 18mbps. Due to efficient data services, CDMA players witness higher contribution to reveunes from data. For TTSL, data brought in 10% of the revenues in FY08 and it grew to 14% in FY09. For GSM operators, the figure is an average of around 9%.
Dr Rajan said, "I do believe that India is getting ready for many of those data services and the choice of CDMA platform was right, but the other issue of availability of essential raw material — spectrum — has been a question mark."
According to Mr Sardana, it is often argued that CDMA is more efficient and requires half the spectrum compared to GSM. "But seeing from a shareholders perspective, one has to build double the networks to sustain and that is a cost both in terms of capex and opex. Therefore, efficiency is no arguement; it's a perpetual pain that is experienced," he said.
"We spend twice in terms of rollout and its hurts shareholders' interest. We have discussed it with every government committee that was set up to look into spectrum," Mr Sardana added.
KT Corp may not have to pay tax here
2 Jun 2009, 0224 hrs IST, M Padmakshan, ET Bureau
MUMBAI: KT Corporation, a South Korean telecom major, has secured a favourable judgement from the Authority for Advance Ruling (AAR), a quasi judicial body on tax matters, that will have a bearing on the company’s tax liability in India. The AAR ruling can support its case for not paying tax in India.
AAR, in an order passed on May 29, held that KT Corporation's liaison office (LO) in India, which is a fixed establishment seemingly conducting business activities, cannot be construed as a Permanent Establishment (PE) in India.
PE, a fixed place for a non-resident entity to conduct business in India, is a parameter critical in deciding whether the Korean company needs to pay tax in India at all. According to the facts of the case, LO was set up in India prior to an agreement that KT Corporation signed with domestic telecom player, Vodafone Essar South (VESL), for purchasing and providing services.
KT Corporation told AAR that it opened its liaisoning office way back in 2004 only for the purpose of communicating between the head office in South Korea and its clients in India. No business activity was conducted through its LO.
It was agreed between KT Corporation and VESL that the former would bear the investment cost in addition to the connection and maintenance costs to link up the facilities between its network and VESL’s foreign Point-of-Presence (POP) at various locations. In return, VESL would bear the investment cost, provisioning and maintenance of connecting facilities in India among other expenses.
One party will send the other an invoice of all traffic terminated on its side every month. In line with the terms and conditions agreed between them, the invoiced party will make payments to the invoicing party. AAR examined in detail the functioning of LO and accepted the claim of the South Korean company that it did not carry out any business activity using LO.
3G auctions may be cleared by Cabinet
2 Jun 2009, 0232 hrs IST, Joji Thomas Philip, ET Bureau
NEW DELHI: The proposal for auctions of third generation (3G) spectrum, vital for high-end services such as video-conferencing and high speed Internet on the mobiles, , may directly be considered by the Union Cabinet for clearance rather than be routed through the Group of Ministers (GoM).
DoT, in its 3G policy and its submissions to the Cabinet in January 2009, had said that the base price for pan-India 3G spectrum would be Rs 2,020 crore while that for broadband access technologies such as WiMAX would be Rs 1,010 crore.
But, the finance ministry had objected to this proposal and demanded that the floor price be doubled. Differences between several ministries over the floor price for the auction of 3G airwaves and also over the number of players to be allowed to offer these high-end services in an area had forced the Cabinet to refer the matter to a Group of Ministers just prior to the general elections. The auctions could not be held prior to the polls as GoM failed to meet to find a solution to these issues.
The issue got further complicated as the planning commission, the department of industrial policy and promotion and the IT ministry opposed doubling of the base price.
Last week, DoT was asked by the cabinet secretariat to review the constitution of the GoM. DoT was also asked to submit a proposal on the current constitution of the GoM, the proposed time frame for the completion of its mandate and also suggestions for its reconstituting the same.
But, the communications ministry in its reply has told the Cabinet Secretariat that its earlier proposal which involved five players per circle and a base price of Rs 2,020 crore as the base price for pan-India 3G spectrums be retained. It has also added that the Union Cabinet under the new UPA regime must take a final call if the entire issue needs to referred to a GoM again.
The communications ministry has also decided to oppose the finance ministry’s demand of doubling the 3G auction base price to Rs 4,040 crore. The DoT has already told the prime minister’s office that the base price must not be higher than Rs 2,020 crore for pan-India 3G spectrum.
The Department of Telecom (DoT) has told the Cabinet Secretariat that since the auctions were a priority of the new government, the approval of the Union Cabinet be sought directly on this issue. The Cabinet can consider the earlier submission the communications ministry had made when re-examining the proposal for 3G auctions, DoT added.
DoT, in its 3G policy and its submissions to the Cabinet in January 2009, had said that the base price for pan-India 3G spectrum would be Rs 2,020 crore while that for broadband access technologies such as WiMAX would be Rs 1,010 crore.
But, the finance ministry had objected to this proposal and demanded that the floor price be doubled. Differences between several ministries over the floor price for the auction of 3G airwaves and also over the number of players to be allowed to offer these high-end services in an area had forced the Cabinet to refer the matter to a Group of Ministers just prior to the general elections. The auctions could not be held prior to the polls as GoM failed to meet to find a solution to these issues.
The issue got further complicated as the planning commission, the department of industrial policy and promotion and the IT ministry opposed doubling of the base price.
Last week, DoT was asked by the cabinet secretariat to review the constitution of the GoM. DoT was also asked to submit a proposal on the current constitution of the GoM, the proposed time frame for the completion of its mandate and also suggestions for its reconstituting the same.
But, the communications ministry in its reply has told the Cabinet Secretariat that its earlier proposal which involved five players per circle and a base price of Rs 2,020 crore as the base price for pan-India 3G spectrums be retained. It has also added that the Union Cabinet under the new UPA regime must take a final call if the entire issue needs to referred to a GoM again.
The communications ministry has also decided to oppose the finance ministry’s demand of doubling the 3G auction base price to Rs 4,040 crore. The DoT has already told the prime minister’s office that the base price must not be higher than Rs 2,020 crore for pan-India 3G spectrum.
(Possible Priorities) Taking a call on telecom that’s missing clear signal
2 Jun 2009, 0307 hrs IST, M V Ramsurya, ET Bureau
Even as the new government has said that it would seek telecom regulator Trai’s views on allocation of additional airwaves, delinking spectrum allocation from subscribers base is a vital route to develop the telecom sector and move operators away from the restricted focus of a volumes-alone thrust.
India is the only country that still follows the outdated practice of allocating spectrum based on subscriber base, instead of the internationally-accepted practice of auction system. Apart from raising revenue, the competitive bidding process helps assign licenses to firms smoothly and also works toward avoiding monopoly in the highly competitive market. The most important argument in favour of the auction process is that it would allow the government to know how licenses are valued by participating companies.
In fact, a recent report by the specially-constituted spectrum panel advocated the auction route for issuing additional airwaves to telcos. The panel, comprising government representatives and telecom technology experts, said only the start-up spectrum — the minimum amount of radio frequencies required to launch mobile services — be given for free to existing telcos, while a competitive bidding process be opted for all subsequent allocations.“Delinking of spectrum allocation from subscribers could lead to sanity in the market place and get the operators away from volume growth to value growth,” says AT Kearney senior principal Mohit Rana.
Among the other stalled initiatives that need to be taken up by the new government is the clearance for mobile virtual network operator (MVNO) that will allow companies with strong retail networks and brands of customer segment ownership to enter the telecom space. Such operators typically don’t own their spectrum and neither do they have their own network infrastructure. Having such a concept, which has so far been popular in Europe and the US, will lead to a significant impact on the business plans of new operators which need much longer time to market.Mobile number portability is yet another move that could likely to see some action soon. While globally it has received a mixed reaction, in India, it may help provide opportunities to late entrants to take away high value customers from established players. Also, in conjunction with 3G, mobile number portability offers an opportunity for players with 3G license to add customers. Work on infrastructure creation for 3G may be started once policy guidelines are clear.
The auction of 3G spectrum will be closely watched as though being one of the fastest growing telecom markets in the world, the auction has been delayed since 2007. Consensus on the base price for airwaves is needed here as it would not only clarify the situation for the sector and its players, but also project a unified approach from all ministries concerned, including the finance and communications.
In all, there is a long list of things to be done by the new government if the larger target of 700 million subscribers by 2012 is to be achieved.
Mobile subscriber base crosses 400 million
2 Jun 2009, 1419 hrs IST, AGENCIES on www.economictimes.com
But India remains the world's fastest-growing mobile market and analysts say the government's target of 500 million mobile phone users could be reached ahead of schedule.
Raja says he wants to cut the local rate to less than half a cent a minute and long-distance rates to about a cent a minute.
Story in Financial Express on 1 June 2009
New Delhi: The country's wireless subscriber base has crossed the 400-million mark in April this year with an addition of 11.9 million new users.
NEW DELHI: The number of mobile subscribers in India crossed the 400 million mark in April, official data showed Tuesday, putting the country on track to reach it's goal of 500 million customer by next year.
Some 11.90 million subscribers were added in April compared with 15.64 million during the previous month, figures posted on the Telecom Regulatory of India (TRAI) website said. The rise took India's total wireless subscriber base to 403.66 million, TRAI said.
The slowdown in subscriber growth came after cellular operators withdrew special deals on offer during the final months of the fiscal year to March when the firms sought to boost revenues to help their annual accounts.
But India remains the world's fastest-growing mobile market and analysts say the government's target of 500 million mobile phone users could be reached ahead of schedule.
The total telecom subscriber base made up of wireless and landline customers stood at 441.47 million at the end of April compared with 429.72 million in March, TRAI added.
Total penetration stands at close to 38 telephones for every 100 people, TRAI said. India has nearly 1.2 billion people.
India has said it will stage its much delayed auction of third-generation (3G) wireless spectrum by year end.
Third-generation wireless service allows voice, data and video to be sent at high speeds to mobile devices and is viewed as the next major booster driving growth in India's telecoms market.
The Congress-led government had forecast the auction could raise 400 billion rupees (8.5 billion dollars).
But since its re-election last month, it has backed off that forecast, saying the global financial crisis could reduce the windfall.
India's newly reappointed telecoms minister A. Raja has also said he will seek to push cheap local mobile call rates even lower to spur cellular growth. Local mobile calls now cost as little as one cent a minute while long-distance rates vary from two cents to four cents a minute.
Raja says he wants to cut the local rate to less than half a cent a minute and long-distance rates to about a cent a minute.
Story in Financial Express on 1 June 2009
New Delhi: The country's wireless subscriber base has crossed the 400-million mark in April this year with an addition of 11.9 million new users.
About 11.90 million wireless (GSM, CDMA and WLL(F)) subscribers were added in April 2009 as against an addition of 15.64 million during the previous month, taking the total subscriber base to 403.66 million, Telecom Regulatory Authority of India (TRAI) said in a statement on Monday.
The total telecom (wireless and wireline) subscriber base stood at 441.47 million at the end of April 2009 as against 429.72 million in March 2009, it added.
It now looks like the target of 500 million phones by 2010 (set by Department of Telecom) is very much achievable, even before the target period.
Total additions (wireless and wireline) in April stood at 11.75 million as compared to 15.87 million new connections in the previous month.
The wireline segment saw a slight decrease of 0.15 million in subscriber base to 37.81 million in April against 37.96 million wireline subscribers in March 2009, TRAI said.
TRAI added that the overall tele-density has reached 37.94 at the end of April as against 36.98 in March 2009.
Tele-density means the number of people having phones per a population of 100.
Aircel awards multi-million-dollar contract to Telcordia
2 Jun 2009, 1528 hrs IST, IANS on www.economictimes.com
NEW DELHI: Telecom operator Aircel has awarded a five-year multi-million-dollar contract to Telcordia, a global communication software service provider, or implementing its real-time charging solution, the company said on Tuesday.
Aircel is a joint venture between Malaysia's Maxis Communications and India's Apollo Hospitals Group.
"Aircel has awarded Telcordia a five-year, multi-million dollar contract for Telcordia Real-Time Charging, a flexible charging and policy control solution for their mobile prepaid subscribers," the company said in a statement.
Earlier Telcordia had deployed the solution in just five months on a trial basis, powering Aircel's pan-India network rollout and supporting the introduction of interactive real-time services and tariff plans.
"Telcordia implemented the entire solution in record time. The prepaid solution is flexible and vendor agnostic, which means that we are able to easily and quickly implement new service offers, which will attract more customers and build our market share," he added.
The real-time charging solution is emerging as a market leader for next generation prepaid services in high growth and highly competitive markets.
Aircel is a joint venture between Malaysia's Maxis Communications and India's Apollo Hospitals Group.
"Aircel has awarded Telcordia a five-year, multi-million dollar contract for Telcordia Real-Time Charging, a flexible charging and policy control solution for their mobile prepaid subscribers," the company said in a statement.
Earlier Telcordia had deployed the solution in just five months on a trial basis, powering Aircel's pan-India network rollout and supporting the introduction of interactive real-time services and tariff plans.
"We selected Telcordia's leading edge solution because it provides us with the reliability and scalability we need to support our business strategy of delivering service innovation to millions of subscribers," said Gurdeep Singh, chief operating officer Aircel Cellular.
"Telcordia implemented the entire solution in record time. The prepaid solution is flexible and vendor agnostic, which means that we are able to easily and quickly implement new service offers, which will attract more customers and build our market share," he added.
The real-time charging solution is emerging as a market leader for next generation prepaid services in high growth and highly competitive markets.
Monday, June 1, 2009
India's wireless user-base crosses 400-mn mark
On Hindustan Times on June 1, 2009
The country's wireless subscriber base has crossed the 400-million mark in April this year with an addition of 11.9 million new users.
About 11.90 million wireless (GSM, CDMA and WLL (F)) subscribers were added in April 2009 as against an addition of 15.64 million during the previous month, taking the total subscriber base to 403.66 million, Telecom Regulatory Authority of India (TRAI) said in a statement on Monday.
The total telecom (wireless and wireline) subscriber base stood at 441.47 million at the end of April 2009 as against 429.72 million in March 2009, it added.It now looks like the target of 500 million phones by 2010 (set by Department of Telecom) is very much achievable, even before the target period.
Total additions (wireless and wireline) in April stood at 11.75 million as compared to 15.87 million new connections in the previous month.
The wireline segment saw a slight decrease of 0.15 million in subscriber base to 37.81 million in April against 37.96 million wireline subscribers in March 2009, TRAI said.
TRAI added that the overall tele-density has reached 37.94 at the end of April as against 36.98 in March 2009. Tele-density means the number of people having phones per a population of 100.
The total broadband subscriber base has reached 6.28 million by the end of April 2009 as compared to 6.22 million by the end of March 2009.
India, where local call rates are going as low as 50 cents, has been adding huge mobile subscribers as telcos like Bharti and Vodafone Essar are offering innovative tariffs to attract more customers.
The country is already the fastest growing country in terms of wireless-user addition.
Bharti Airtel, the country's largest mobile company by users, alone has 100 million customers.
Related story on www.ciol.com at http://www.ciol.com/technology/mobility/news-reports/indias-wireless-user-base-crosses-400mn/1609120368/0/
Number of new telecom subscribers dips in April
1 Jun 2009, 1321 hrs IST, PTI on www.economictimes.com
The total wireless subscribers (GSM, CDMA and wireless local loop-fixed) base stood at 403.66 million with addition of 11.90 million subscribers in April, the statement said.
In the wireline segment, the subscriber base decreased 0.15 million to 37.81 million in April from 37.96 million.
However, the number of broadband subscribers grew from 6.22 million to 6.28 million.
Additional story in The Hindu Business Line on 02 June 2009
Telephone subscriber growth rate dips in April
NEW DELHI: The Indian telecom industry saw a dip in the number of new subscribers in April - 11.75 million telephone connections were added, compared to 15.87 million in March, an official statement said here Monday.
The number of telephone connections reached 441.47 million in April from 429.72 million a month before, Telecom Regulatory Authority of India (TRAI) said in a statement.
Overall tele-density reached 37.94 from 36.98.
The total wireless subscribers (GSM, CDMA and wireless local loop-fixed) base stood at 403.66 million with addition of 11.90 million subscribers in April, the statement said.
Additions to the number of wireless subscribers also dipped after reporting a record 15.64 million new connections in March.
In the wireline segment, the subscriber base decreased 0.15 million to 37.81 million in April from 37.96 million.
However, the number of broadband subscribers grew from 6.22 million to 6.28 million.
Additional story in The Hindu Business Line on 02 June 2009
Telephone subscriber growth rate dips in April
New Delhi, June 1 Telecom operators reported a dip in telephone subscriber growth rate with 11.75 million new users in April compared with 15.87 million in March.
According to the Telecom Regulatory Authority of India, the total number of telephone connections reached 441.47 million at the end of April compared with 429.72 million in March. With this growth, the overall tele-density has reached 37.94 per cent.
The dip in subscriber growth rate was primarily due to a slow down in the uptake of cellular usage. The total wireless subscribers — GSM, CDMA & WLL-F — base stood at 403.66 million. A total of 11.90 million wireless subscribers have been added during April against 15.64 million added during March.
In the wireline segment, the subscriber base has decreased to 37.81 million in April against 37.96 million in March, registering a slight decrease of 0.15 million.
According to market watchers, the dip in subscriber base may be because operators clean up their list of subscribers who may have given up their connection but they continue to show as a user. This usually happens in the months of March-April.
The total broadband subscriber base reached 6.28 million by April-end compared with 6.22 million in March.
Indian telecom industry grew 24% to top $24 bn: Survey
1 Jun 2009, 1534 hrs IST, IANS on www.economictimes.com
NEW DELHI: Despite the overall slowdown and driven by unprecedented demand for mobile phone connections, the Indian telecom equipment industry grew 20% last fiscal to top $24 billion in revenues, says a new survey.
Interestingly, though, the market for mobile and fixed-line handsets grew just 6 percent because of crashing prices and focus on rural market, said the annual survey by Voice and Data, a telecom industry journal of CyberMedia group.
"We've seen this before," said Prasanto K. Roy, chief editor of Voice&Data. "In a downturn, telecom gains, as businesses deploy cost-saving tech," Roy told IANS.
"In the last downturn, internet telephony got a boost. This time, it's video-conferencing, including high-spend areas such as tele-presence."
According to the survey, Finnish mobile and equipment maker Nokia retained the number one ranking among telecom equipment players. Sweden's Ericsson, Nokia-Siemens Networks, Alcatel-Lucent and Chinese vendor Huawei made up the other four in the list.
"Despite all the noise about the national security angle of Chinese vendors who are doing extremely well in most other global markets, they have been able to establish themselves as big and acceptable players in India," said the magazine.
The survey also revealed that the fixed phone market has actually fallen by a third, losing out to the mobile market segment in recent years, which expanded by 7.9 percent in 2008-09.
"Availability of affordable feature-rich mid-range handsets in the market is the secret behind the explosive number growth in the mobile industry," the survey said.
"With more mobile operators launching services, and established players turning their attention to low tele-density markets, mobile telephony is only likely to continue its growth run."
The survey says even though the overall telecom sector's story had been good during the last fiscal, the last few months had its share of challenges too, for which the industry blamed on the government and pressure from vested interest groups.
But the industry hopes that Prime Minister Manmohan Singh will intervene himself, as part of his stated plan to review the performance in key ministries, and ensure that all bottlenecks are removed and the telecom industry continues to log high grow.
StanChart may back up to $5 bn for Bharti-MTN deal
1 Jun 2009, 1545 hrs IST, REUTERS on www.economictimes.com
HONG KONG: Standard Chartered Bank could underwrite up to $5 billion to back Bharti Airtel Ltd's $23 billion tie-up with South African telecom operator MTN Group Ltd., bankinig sources said.
The sources said that StanChart was expecting to underwrite the full amount of the financing for the proposed deal, or as much as $5 billion. If it materialises, StanChart is expected to syndicate it, the sources said.
3G spectrum auction by 2009 end: Raja
1 Jun 2009, 1706 hrs IST, REUTERS on www.economictimes.com
NEW DELHI: India will auction third-generation wireless radio (3G) spectrum by the end of this year, Telecoms Minister Andimuthu Raja said on Monday.
"Definitely... in 2009 itself," Raja told reporters when asked about the time-frame for the long-awaited 3G auctions.
Raja declined to say how much the government expected to raise through the sale. India was to auction the 3G telecommunications spectrum in January, but the sale was delayed.
The telecoms ministry had earlier expected the auction to raise 300 to 400 billion rupees ($6.4 to $8.5 billion), but the finance ministry in February estimated the sale could bring just half of that.
Third-generation services allow voice, data and video to be transmitted at high speeds to wireless devices, and are seen as the next growth driver for telecoms firms in India, the world's fastest growing mobile market.
Additional material from
Additional material from
- Reuters at http://in.reuters.com/article/domesticNews/idINBOM47305220090602
- Financial Express at http://www.financialexpress.com/news/india-to-auction-3g-spectrum-by-2009-end-raja/469634/
Raja puts BSNL-MTNL merger on back-burner; BSNL may be listed
1 Jun 2009, 1939 hrs IST, PTI on www.economictimes.com
NEW DELHI: Telecom Minister A Raja on Monday virtually ruled out the BSNL-MTNL merger saying it is difficult due to lack of identical factor between them. "Identical factors are not there legally for BSNL-MTNL merger," Raja said.
MTNL provides telecom services in Delhi and Mumbai, while BSNL serves the rest of India.
The Minister, who assumed charge today, however, said the Department was keen on listing of BSNL and advised PSU management to start talks with the Employees Union for taking the company public. The union has been opposing the listing.
Late Communication Minister Pramod Mahajan had proposed the merger and was revived by Raja's predecessor Dayanidhi Maran for synergy purpose. Government holds 56.25 per cent in MTNL and it is listed in NYSE and in India. BSNL is 100 per cent owned by government.
MTNL provides telecom services in Delhi and Mumbai, while BSNL serves the rest of India.
On plans to list BSNL in the bourses, Raja said the management has been advised to initiate talks with the employees union.
"We want to list BSNL... We want to create a consensus for it. We have asked the BSNL management to talk to the union", said the Minister. Estimates suggest that BSNL is worth 100 billion dollars and dilution of 10 per cent stake would help the company raise 10 billion dollars (about Rs 48,000 crore).
Story in The Hindu Business Line on 02 June 2009
Decision on BSNL listing after talks with unions
New Delhi, June 1 The Communications and IT Minister, Mr A Raja, on Monday said that decision related to listing of Bharat Sanchar Nigam Ltd will be taken after discussing it with the company’s employee unions.
Story in The Hindu Business Line on 02 June 2009
Decision on BSNL listing after talks with unions
New Delhi, June 1 The Communications and IT Minister, Mr A Raja, on Monday said that decision related to listing of Bharat Sanchar Nigam Ltd will be taken after discussing it with the company’s employee unions.
While BSNL had approached the Government seeking permission to go for an initial public offering, the employee unions had objected to it. The PSU is planning to offload about 10 per cent stake to the public. “We have to build a consensus around it,” Mr Raja said.
Mr Raja also ruled out the possibility of merging the two PSUs – BSNL and MTNL.
On the issue of auctioning spectrum for 3G services, the Minister said that he will seek approval from the Cabinet Committee on Economic Affairs.
The previous Government had referred the matter to a Group of Ministers but since some members of this GoM is not in the new Cabinet, the policy for 3G could be reverted back to the CCEA.
“We need to be clear on whether to get the approval from the CCEA or for a new GoM,” Mr Raja said.
Sunday, May 31, 2009
DoT against lock-in for promoters equity; mergers on cards
31 May 2009, 1053 hrs IST, PTI on www.economictimes.com
At present, there are eight to nine mobile operators in each circle and with the teledensity especially in the urban areas crossing 30 per cent, the commercial viability of players is at stake.
NEW DELHI: The fast growing telecom sector is set to witness another round of mergers and acquisitions with the DoT recommending against lock-in of promoters' equity, saying this would only hamper growth and competition.
The committee for finalising the views of the Department of Telecom (DoT) on lock-in period for promoters' equity is understood to have submitted its report in this regard.
"Despite exponential growth and intense competition, the telecom industry even after 15 years of operation is cash flow negative. Capital efficiency of the sector is an important pre-requisite for achieving consumer interest in a sustainable manner.
"Further growth and coverage of the rural and remote areas would entail huge investments. Against the backdrop of economic downturn, it is a challenge to raise investible funds, and there is a need for valuable foreign investments," the committee said.
"The lock-in period will only hamper growth of telecom market and competition," it added.
The issue of lock-in period was raised as some of the new players inducted new partners to garner funds for rolling out network across the nation.
If accepted, this would lead to consolidation of telecom industry and according to analysts the business of mobile services may not be commercially viable in case there are more than four or five operators in a circle.
At present, there are eight to nine mobile operators in each circle and with the teledensity especially in the urban areas crossing 30 per cent, the commercial viability of players is at stake.
The committee also observed that the concept of fly-by-night operators has not been experienced in the telecom arena so far, the report of the committee said.
To call some licencees as fly-by-night operators for undertaking transactions, which are well within their licence terms, "is unfair and there is no need to impose any new condition on any of the access services providers," it added.
The paid-up capital and networth requirement are prescribed to avoid non-serious and fly-by-night operators.
The committee, thus, recommended that there should not be any new condition regarding Lock-in of promoters equity on any access services licensees for development of telecom sector in India.
Although some of the new players like Unitech and Swan telecom have raised funds by issuing fresh equity to foreign partners but with this recommendation, if accepted, would help others including Datacom and Loop telecom to achieve roll out obligations faster.
BSNL scouts for pvt partners for Internet Data Centres
The Hindu Business Line on 31 May 2009
Thomas K. Thomas
New Delhi, May 30 Bharat Sanchar Nigam Ltd has invited bids from private players to set up Internet Data Centres (IDCs) in various parts of the country on a revenue sharing basis.
The centres are expected to be set up over the next six months after which the PSU will go for outsourcing contracts for services such as Web hosting, co-location, data warehousing and Internet managed services.
A data centre is a facility where customer can outsource the management and day-to-day operations of their Web sites or other IP connected applications. Customers can purchase the server hardware, rack space, bandwidth and network equipment. In addition, customers get a secure place to physically house their equipment with regulated power, dedicated Internet connection, security, and fire detection equipment.
Although some companies have chosen to address their requirements in-house and to maintain complete control over their Internet Infrastructure, the pressures of provisioning IT Infrastructure are increasingly leading a lot of corporate houses to consider outsourcing their e-business infrastructure requirements.
Private telecom players such as Reliance Communications and Tata Communications are already offering such services. Then there are Internet Service Providers such as Sify which are also in this segment. These private players may bid for the BSNL project.
According to the expression of interest floated by BSNL, the private partner will have to invest the entire amount required to set up the IDCs. BSNL will provide its national communication infrastructure as the backbone for the proposed centres.
As part of the shared hosting services, BSNL plans to bundle in free email accounts, depending on the package customer subscribes to.
“Outsourcing the management and monitoring of mission-critical Internet operations is crucial for stability in an increasingly complex networking environment. Beyond the sheer complexity of infrastructure itself, the uncertainties of ever-changing relationships with telcos, Internet Service Providers (ISPs), and rapidly changing technologies often render it difficult for businesses to make the best choices. BSNL’s managed services will provide cutting-edge industry expertise to speed up the time-to-market, in the most cost-effective manner,” said a BSNL official.
The PSU is also planning to offer messaging solutions which will enable customers to outsource their entire e-mail operations.
BSNL has been increasingly adopting the public-private partnership model for its new services. It has, for example, partnered with Soma Networks for offering WiMax based broadband services in three States. Similarly, the PSU has roped in HFCL to roll out its IPTV services.
Analysts said that the franchisee model lowers the risk and cost for the PSU since the private partner invests all the money required for the project.
Saturday, May 30, 2009
Atom technologies Ties Up With Sahayata
From www.efytimes.com on 30 May 2009
Saturday, May 30, 2009: atom technologies has announced the formalisation of its association with Sahayata, a micro-finance institution (MFI) headquartered in Udaipur, Rajasthan recognised for working in the area of socio-economic development of women from weak economic backgrounds. atom’s m-collections solution model will provide Sahayata with a fully developed mobile solution for distributing loans and managing collections of loan repayments.
Sahayata provides micro loans to rural women, who women are self-employed and operate small businesses to support there livelihood. As these women are located in deep rural areas, it’s very difficult for Sahayata to reach them for disbursal tracking and loan repayment collection. atom’s mobile based m-Collections solution provides better reach to these geographical locations by using mobile connectivity.
Sahayata’s employees i.e. Sahayaks carry Java MIDP 2.0 mobile handsets with m-collection application loaded in it. This application helps them connect directly with the backend operations of Sahayata for real-time transaction recording to speedup the process.
“I am sure our m-collections application will help Sahayata reach out efficiently in those rural areas, who are really in need of micro-credit for their continuous livelihood,” said Dewang Neralla, director, atom technologies.
“We are happy to be associated with the dedicated and intellectually gifted team at atom technologies, and look forward to optimally utilising their customised mobile solutions for microfinance to the benefit of our customers by providing them with a best-in-class service experience,” explained Ajay Verma, managing director and CEO, Sahayata.
MVNOs get nod to start ops
30 May 2009, 0010 hrs IST, Joji Thomas Philip, ET Bureau
NEW DELHI: The Telecom Commission, the highest decision making body of the communications ministry, on Thursday cleared the proposal to allow Mobile Virtual Network Operators (MVNO) to launch operations in India.
MVNOs offer mobile services without owning cellular networks or airwaves (spectrum) on which telecom signals travel. Their business model involves buying airtime from existing operators that own telecom infrastructure and selling it to consumers under their own brand. Companies, such as the UK-based Virgin Mobile, British Telecom and Japan’s KDDI, have based their telecom strategy on MVNO model. Currently, there are over 300 MVNOs operating globally. The entry of MVNOs is set to further increase competition in the world’s fastest growing mobile market.
Following the commission’s approval, the government will soon issue a formal notification along with guidelines for MVNOs to operate in India. In August 2008, Trai asked the government to permit MVNOs and said that entry of such players would be a ‘natural progression towards enhancing free market principles and contributing to the efficient use of existing telecommunication infrastructure’.
So far, the communications ministry had been unable to release the guidelines for MNVOs, as the department of telecom (DoT) and regulator Trai had not found consensus on key issues. The commission, while clearing the proposal, has said MVNOs cannot go for multiple parenting in India. This means, an MVNO can tie-up with only an operator in an area for their services. On the other hand, an existing operator can tie-up with any number of MVNOs.
The commission also said that MVNOs would be given licences for a 20-year period.
DoT executives had earlier told ET that several MVNOs from across the world had shown interest in launching operations in India. The auctions of 3G spectrum and the launch of these high-end services is expected to serve as a catalyst and attract virtual operators to India, as many players that operate in this space globally specialise in high-end value-added services. Many of the new telecom companies, who were granted telecom licences last year, may partner with MVNOs, as it would bring them additional revenues and help contribute towards the creation of sizeable capital value especially in a sector where margins are razor-thin and further reduction of tariffs is not feasible.
So far, the communications ministry had been unable to release the guidelines for MNVOs, as the department of telecom (DoT) and regulator Trai had not found consensus on key issues. The commission, while clearing the proposal, has said MVNOs cannot go for multiple parenting in India. This means, an MVNO can tie-up with only an operator in an area for their services. On the other hand, an existing operator can tie-up with any number of MVNOs.
The commission also said that MVNOs would be given licences for a 20-year period.
DoT executives had earlier told ET that several MVNOs from across the world had shown interest in launching operations in India. The auctions of 3G spectrum and the launch of these high-end services is expected to serve as a catalyst and attract virtual operators to India, as many players that operate in this space globally specialise in high-end value-added services. Many of the new telecom companies, who were granted telecom licences last year, may partner with MVNOs, as it would bring them additional revenues and help contribute towards the creation of sizeable capital value especially in a sector where margins are razor-thin and further reduction of tariffs is not feasible.
Telecom policy awaits TRAI nod
30 May 2009, 0029 hrs IST, Joji Thomas Philip, ET Bureau
NEW DELHI: The communication ministry will seek telecom regulator TRAI’s endorsement before going ahead with the new policy, which will determine the allocation of additional airwaves to all existing telecom companies, a top government official said.
The spectrum panel, in its report submitted last month, had said that all telcos should be allowed to buy, sell and transfer airwaves for a fee, while adding that the country should adopt the internationally-accepted auction system for issuing additional airwaves to telcos. The panel comprised representatives of the government, telecom regulator TRAI, telecom technology experts and industry executives.
“We will send the panel’s report to TRAI. Since TRAI had earlier made recommendations on the issues addressed by the panel, we feel that their views should be sought on the report too,” telecom minister A Raja told ET. The panel had also suggested several changes in India’s telecom M&A norms to allow consolidation and had criticised the current policy stating that it had led to fragmentation of the sector by allowing about 15 players per circle.
Currently, India follows a controversial practice of allocating spectrum based on companies’ subscriber base, and is the only country in the world that follows this method. The panel had said that only the start-up spectrum, which is the minimum amount of radio frequencies that is required to launch mobile services, should be given for free to existing telcos.
All subsequent allocations should be only through auctions, it said. As per the current policy, all telcos share 2-6% of their annual revenues with the government as a fee for using the radio frequencies allotted to them. The committee had said this fee should be a flat 3% irrespective of the quantity of radio frequencies that is held by a telecom company.
In another development, the communications ministry has also decided to oppose the finance ministry’s demand of doubling the 3G auction base price to Rs 4,040 crore. DoT has told the Prime Minister’s Office that the base price must not be higher than Rs 2,020 crore for pan-India 3G spectrum.
Differences between several ministries over the floor price for the auction of 3G airwaves and also over the number of players to be allowed to offer these high-end services in an area had forced the cabinet to refer the matter to a Group of Ministers just prior to the general elections. The auctions could not be held prior to the polls as GoM failed to meet to find a solution to these issues.
While DoT in its 3G policy has said that the base price for pan-India 3G spectrum would be Rs 2,020 crore and that for broadband access technologies, such as WiMAX, would be Rs 1,010 crore, the finance ministry had demanded that this price be doubled. The issue got further complicated as the planning commission, the department of industrial policy and promotion and the IT ministry opposed doubling of the base price.
RCOM joins the QIP queue
30 May 2009, 0136 hrs IST, ET Bureau
MUMBAI: Reliance Communications (RCOM) has joined the list of companies planning to raise funds through the Qualified Institutional Placement (QIP) route.
The country’s second-largest mobile service provider said on Friday that it will seek shareholder approval to garner funds from qualified institutional investors.either through a share sale or an issue of a variety of instruments including fully convertible, partly convertible or non-convertible debentures with warrants or any other security, it said in a statement to the stock exchanges. Although the company did not say how much it planned to raise sources close to the development said it may be around $500 million.
RCOM said the funds will be raised in one or more tranches. The proposed exercise shall not result in increase in the company’s paid-up capital by more than 25%, it said. RCOM said the funds may be utilised to finance the company’s plans to participate in the upcoming auction of frequency spectrum for 3G and Wi-Max services. A banking source said Reliance Infrastructure, another firm which is part of the Anil Dhirubhai Ambani Group (ADAG), may also opt for a similar exercise. A spokesperson for the group, however, denied any QIPs by RCOM and R-Infra when ET had sent him a query on last Friday.
HC slams spectrum allocation policy
30 May 2009, 0233 hrs IST, TNN on www.economictimes.com
NEW DELHI: The Delhi High Court on Friday slammed the government's first-come, first-serve spectrum allocation policy in the telecom sector and equated it with selling "cinema tickets."
Days before telecom minister A Raja is to take charge for the second time in Sanchar Bhawan, a division bench comprising Justice Mukul Mudgal and Justice Valmiki Mehta expressed deep reservations with the telecom policy. While hearing a petition challenging the spectrum allotment policy of the government, the HC said, "prima facie we find that spectrum has been allocated in a worst manner and public exchequers have lost thousands of crores (rupees)."
Its observations came after the DoT counsel failed to give satisfactory reply to the question, as to how much spectrum the government has allotted and how much remained with it. "We find it very strange that public exchequer and valuable resources have been involved and misused in this way. ... We are completely astounded," the judges remarked, clearly unhappy with the manner in which the policy was framed.
The ministry has been in the eye of storm for allocating spectrum on first-com e, first-serve basis.
Telecom tower cos find it futile to go solo
30 May 2009, 0308 hrs IST, Joji Thomas Philip, ET Bureau
ATC is also in talks with Gurgaon-based tower company Independent Mobile Infrastructure that is present in 10 circles with 400 towers.
New entrants in the mobile phone business prefer to tie up with these larger established players rather than sign on standalone tower companies as it reduces risk as well capital investment.
NEW DELHI: The days of standing tall are virtually over. India’s standalone telecom tower companies are crumbling under the crushing weight of a credit crunch, few new orders, and competition from the gigantic tower networks owned by mobile phone companies themselves.
A spate of mergers and acquisitions will certainly help a few standalone tower companies survive to tell the tale. But market watchers say without a serious makeover of their business model, it may be hard to ring in sustained profits.
Just a year ago, standalone tower companies were enjoying exceptional good fortune in the world’s fastest-growing telecom market. Backed by foreign private equity funds in a two-year-old sector, these companies had enough cash in their war chest to start looking for acquisitions and even expanding overseas.
But the global economic recession, which began to make itself felt from the start of 2009, rudely brought this dream run to a halt. Capital is now hard to come by in this investment-intensive sector, forcing smaller players to look for mergers and sellouts.
The M&A list is getting longer by the day. Xcel Telecom, which was incubated by Dallas-based $4-billion multi-strategy fund Q Investments, is looking for the exit door. Xcel itself had acquired Tics Telecom, a Punjab-based telecom infrastructure firm, for an undisclosed sum before selling out to Nasdaq-listed American Towers (ATC) for Rs 700 crore.
ATC is also in talks with Gurgaon-based tower company Independent Mobile Infrastructure that is present in 10 circles with 400 towers.
Essar Telecom Infrastructure, the country’s second-largest independent mobile tower company, has also approached ATC for a possible merger or even a complete sellout. This is not the first time, though.
Earlier, ETI, which owns over 4,500 towers, was talking with Tata-Quippo for a merger, but could not make much headway. Last year, ETI was on the verge of sealing a merger deal with GTL Infrastructure, but the $2-billion deal fell through at the last minute.
Even Quippo Telecom Infrastructure, which till recently was vying with GTL Infrastructure to be the country’s largest independent tower company, had to merge with the tower arm of Tata Teleservices in December 2008 to take on larger players. The newly-created company could boast of over 18,000 towers and commanded an enterprise valuation of about Rs 13,000 crore ($2.6 billion).
Other standalone tower firms too are headed this way. Executives in the tower business say, South India-based firms such as Aster Teleservices & TVS Interconnect Systems are also reportedly on the block. But earlier this week, an executive with private equity firm New Silk Route, which owns majority stake in Aster, denied his company was exiting the tower company.
So what went so spectacularly wrong? Has this sale season been triggered by a mere cash crunch or is it the symptom of a deeper fault line in the business that has cracked open with the first tremors of a crisis?
BK Syngal, senior principal, Dua Consulting, and former chairman of VSNL, says the primary reason is that the business model of small players has failed.
“Over the past two years, all major telecom operators have hived off their towers and other related infrastructure into separate companies. Standalone players who have between 3,000 and 5,000 towers cannot compete with the hived off tower arms of the telcos in terms of scale,” he said.
“Scale is precisely the reason why Quippo and the Tatas merged their tower arms. From about 22,000 towers currently, we are looking at a portfolio of over 60,000 within the next two years. No player with less than 60,000 will be able to survive in the market,” said QTIL group president and MD Arun Kapur. “You need such numbers to cover about 70% of the country’s geographical area,” he said.
It may be a Herculean task. Indus Towers, a three-way joint venture between Bharti Airtel, Vodafone Essar and Idea Cellular, has over 100,000 towers, making it the largest tower firm in the world.
Bharti Infratel, which holds Airtel’s towers in circles where Indus is not present, has close to 30,000 towers. Reliance Communications has consolidated its 48,000-plus towers in a new entity called Reliance Telecom Infrastructure while the recently established Quippo-Tata combine has over 21,000 towers.
New entrants in the mobile phone business prefer to tie up with these larger established players rather than sign on standalone tower companies as it reduces risk as well capital investment.
According to industry estimates, this model can reduce capex by up to 60% and rollout can be much faster. For instance, Telenor, which picked up 60% stake in Unitech Wireless, entered into a tower sharing deal with the Quippo-Tata combine. The latter is also talking to other new players Sistema-Shyam and S Tel for similar deals.
QTIL’s Kapur says new entrants choose larger players because it brings down costs significantly. “We are perhaps the only completely independent tower company that is not linked to any operator. We already have committed business from the Tatas, Telenor and several other players. The higher the tenancy rate, the larger the savings for telcos as the overall costs come down. When costs are down, we can invest more in technology, R&D and increasing efficiency,” he said.
But this has been a huge blow for standalone tower companies. The new orders they were banking on, did not arrive after all.
An senior executive, who recently quit an independent tower company, says the slide started in the second half of last year. “We rolled out towers and then waited for telcos to sign on. But over the past six months, telcos have chosen to go with established larger players to minimise risk,” he said.
The scramble by small and medium tower companies to sell out or seek mergers will only intensify in the days ahead. Industry analysts say the market will soon shrink to four or five large players who are backed by service providers. For smaller players, the dream of cashing in on the Indian telecom success is turning out to be shortlived.
Interview with the new Telecom IT Minister
From The Hindu Business Line on 30 May 2009
New Delhi, May 29 The Communications and IT Minister, Mr Andimuthu Raja, expects telephone tariffs to come down to as low as 10 paise a minute for local calls and to 25 paise a minute for domestic long distance calls as a result of the decisions taken by him in the previous tenure.
Mr Raja, who has been appointed as the telecom minister for the second consecutive time, said that auction for third generation spectrum is on top of the agenda and should be completed in two months.
The Minister said that the decisions taken by him during the previous tenure to bring in more mobile operators should lead to lower tariffs. “Local calls at 10 paise a minute and inter-State calls at 20 paise a minute is my motto. I would work towards enabling world class telecom services to the masses at competitive and affordable rates,” Mr Raja said.
On the issue of auctioning 3G and broadband spectrum, Mr Raja said that he will soon take the policy to the Cabinet. He added that he expected higher revenue generation from 3G auction as a result of a revival in the markets.
For the IT sector, the Minister said that he will speak to the Prime Minister and the Finance Minister to extend tax incentives under Software Technology Park of India until 2012. Introduction of IT at the lowest level of governance will also be on the Minister’s agenda. “I want to make the functioning of the government offices paperless through the introduction of technology,” Mr Raja said. He said that his Ministry will promote manufacturing of electronic hardware in the country and encourage investments under the new semiconductor policy.
On the revival of postal services, the Minister said he will take measures to bring India Post at par with the global standards. Mr Raja will be assisted by two Ministers of State, Mr Sachin Pilot and Mr Gurdas Kamat.
Industry reacts positivelyThe industry reacted positively to Mr Raja’s appointment. Mr T.V. Ramachandran, Director-General, Cellular Operator’s Association of India, said, “There will be continuity in the positive measures which were being planned by the Communications Ministry. We are sure that Mr Raja will take effective measures to take Indian telecom sector to the next level of growth.”
Mr S.C. Khanna, Association of Unified Telecom Services Providers of India said, “We have always been supportive of Mr Raja’s policies. We hope that he will continue to enable new players to emerge in the market. He should allocate up to 6.2 Mhz of spectrum to the new players instead of 4.4 Mhz as is being suggested.”
The Internet Service Providers said that the Minister should re-look at opening up net telephony because it is in line with the stated objective of bringing affordable communication to the masses.
“It is good that Mr Raja has got another innings as the telecom minister. He understands the sector well and knows what needs to be done from day one. Any new person would have had taken time to study the various reform measures required for this sector,” said Mr Rajesh Chharia, President, Internet Service Providers Association of India.
Mr Raja is expected to take charge of the Ministry next week as he along with other Cabinet Ministers from the DMK party have gone to Chennai.
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