India makes it to the global 3G map

NEW DELHI: Prime Minister Manmohan Singh put the country on the global 3G map on Thursday when he launched the services on state-owned Mahanagar
Telephone Nigam’s (MTNL) networks in Delhi.

The 3G platform will enable telcos to offer high-end services such as high-speed internet, video conferencing on mobiles, interactive gaming, ultra fast downloads of video and music clips amongst other services. The PM also witnessed for sometime a live telecast of the India-England Test match on a mobile handset using 3G services.

MTNL also became the first teleco in India to launch these high-end services which it has christened ‘Jadoo’. But the commercial launch of 3G will happen in January ’09. MTNL executives present in the event said the PM had only kicked off the ‘soft launch’ and that some parts of central Delhi would have free access to these services during the test phase.

MTNL does not want to charge for these services during the soft launch phase as it wants customers to first experience 3G services. “We will also launch 3G in Mumbai by the end-of January,” MTNL CMD RSP Sinha told ET. MTNL offers mobile services
in Delhi and Mumbai. Mr Sinha said that MTNL was yet to take a call on the 3G tariffs. “It depends on the amount of data usage. Our 3G pricing cannot be different from existing prices across the world. The pricing will be affordable, sustainable and likeable to all,” he said. The company will invest Rs 400 crore to set up 3G networks across Delhi and Mumbai and hoping to add 200,000 subscribers on this platform.

State-owned BSNL will do a soft launch of its 3G services by the end of December, its CMD Kuldeep Goyal told ET. All other telecom companies will have to wait a lot longer for launching these high-end services. This is because, auction for the radio frequencies on which 3G services work is slated to take place in early 2009.

“After the auction, the government will have to give us spectrum. We will take six months from the date of allotment of spectrum to launch 3G services. Bharti hopes to launch commercial 3G services by 2009-end,” Manoj Kohli, CEO and Joint MD, Bharti Airtel said. The government had given 3G radio frequencies to both MTNL and BSNL ahead of the auctions.

Read More...

Idea Cellular ties up with HTC Corp to launch touch phones

MUMBAI: Idea Cellular, a leading mobile service operator has entered into a tie up with Taiwan's handset manufacturer HTC Corp to offer two touch
phone models in India targetted at the premium segment.

Pradeep Shrivastava , chief marketing officer of Idea Cellular said at a press conference on Tuesday the market for premium segment in the country is estimated to be about 15 per cent of the overall market size.

He also said the ongoing recessionary trend may not affect the demand for these types of phones though customers may tend to be a little cautious before shifting to the new products.

The two Taiwan made models called HTC Touch Pro and HTC Touch Viva based on Windows mobile platform offer elegant touch screen experience .

HTC Touch Pro is priced at Rs 34,900 while HTC Viva will sell at Rs 16,490 at all HTC resellers across the country.

"The tie up between the two companies is not exclusive and there is no financial arrangement between them," Shrivastava said. Customers of other mobile service operator also could opt to buy these models .

"The two models embody our commitment to build a family of touch phones that are powerful, stylish and offer something for everyone", Jack Tong, Vice President, HTC Asia said.

HTC ,one of the fastest growing companies in mobile sector globally , earlier used to make handset for others but started marketing under HTC brand since 2006.

It has many firsts to its credit like being the first to offer microsoft 3g phone, microsoft powered smartphone and last year the touch screen model which allows finger tip navigation.

Source : Economic Times

Read More...

Tatas mull mobile handset foray with DoCoMo

MUMBAI: The Tatas, who stopped making fixed telephone instruments under the Tata Fone brand some years ago, plan a re-entry into the business by
calling-time.jpg
developing mobile handsets. Tatas will consider the feasibility of the project in collaboration with its new Japanese partner NTT DoCoMo, which has strong expertise in handset development besides managing next generation technologies.

DoCoMo has an extensive lineup of lifestyle-focused handsets tailored for varying customer needs and preferences like waterproof models, kids' models with GPS tracking and handsets with wellness applications
to monitor health and fitness.

DoCoMo has struck a strategic alliance with Tata Teleservices, including buying a 26% stake in Tata Tele. The co-operation between the two wireless carriers is being extended across marketing, handset development and technical support services.

" We will leverage DoCo-Mo's handset designing capabilities and work closely to bring out both high- and lowend models for our customers,'' said a Tata Tele executive. NTT DoCoMo president and CEO Ryuji Yamada said, ‘‘ The company is establishing a task force comprising its directors and technology experts to work on different areas with our Indian partner.''

Another Tata Tele official said, ‘‘ Given that the alliance has just been formed the business model would evolve over a period of time.'' Currently Tata group company DriveIndia .com procures and sells CDMA handsets from manufacturers like Samsung, Nokia, Huawei and Haeir. Tata Tele focuses only on providing mobile services, while group firm Tata Business Support Services handles customer queries and interactions for Tata Indicom and Virgin mobile. ‘‘ With DoCo-Mo as partner, the branding architecture could change,'' said the Tata official.

Source : Economic Times

Read More...

Govt may bar mobiles without identity code

NEW DELHI: Mobile phones which do not have a unique identity number may soon go out of circulation. The Department of Telecom (DoT) is planning to block cellphones which do not bear the International Mobile Equipment Identity (IMEI) number.

Many handsets assembled locally or imported from China do not have IMEI numbers. The DoT has also proposed a bar on all mobile phones with IMEI numbers bearing all zeroes or no zeroes. IMEI numbers can be checked by dialing "*#06#" in any keypad.

Investigations into the recent serial blasts revealed that mobile phones used by terrorists did not bear valid IMEI numbers. If they had valid numbers, the phones could have been tracked from their origin to the point of purchase.

It is estimated that there about 1.6 crore handsets in India which do not have valid IMEI numbers, which is a unique 14-digit number used to identify valid devices. If the DoT move goes through, mobile operators will snap services to these phones.

Chinese handsets account for about 13.3%, or Rs 4,000 crore, of India’s total mobile market, which is about Rs 30,000 crore a year.

Every month, about 16.8 lakh Chinese and locally-assembled handsets are sold in India. A GPRS-enabled Chinese handset costs about Rs 3,500, against at least Rs 5,000 for a similar branded phone.


According to Indian Cellular Association (ICA) president Pankaj Mohindroo, at least one crore users will be affected if the calls are barred. Many local dealers circumvent the limitation by offering to change the IMEI number if it is all zeroes, or add a zero if it doesn’t have one. Change of IMEI is not legal in India, unlike in the US and the UK.

Enterprising customers can also change the IMEI number with free software available on the web. The DoT note does not address these issues.

Many sellers of stolen handsets too attempt to change the IMEI numbers. This is done to ensure that a telecom operator is unable to lock the phone and the SIM card once the original owner reports the theft.

Mobile operators usually store IMEI numbers of stolen mobiles in an Equipment Identity Register. Changing the number ensures that the stolen mobile can continue to be in circulation.

Branded mobile phone makers have welcomed the DoT move. Said Nokia’s director for corporate affairs Ambrish Bakaya, “It will definitely have a negative impact on the Chinese phone market. It will encourage people to shift to branded handsets. It’s a very positive step for us and I am sure DoT will take care of the loopholes.” ICA said it is working on a solution that can take care of the loophole and identify fake IMEI numbers.

“From the national security point of view, it is a crucial step and it will also discourage consumers from using handsets with illegal IMEI numbers,” said Samsung Mobile Businesses country head Sunil Dutt. All users would do well to check if they have a valid IMEI number.

Read More...

BSNL gears up for global 3G, prepaid and GPRS roaming

NEW DELHI: Ahead of its 3G services launch, state-run BSNL is getting ready to offer international roaming facility to its subscribers for prepaid
, GPRS and 3G services.

Presently, international roaming facility for BSNL subscribers consists of having a triple solution in SIM Cards for postpaid users.

One solution is for the home network, other for international roaming through 'Direct International Roaming Agreements' with foreign operators and the third by piggy- backing on an existing international roaming service provider hub.

A senior BSNL official said, as of now BSNL has signed GSM international roaming agreements for 339 networks in 170 countries, out of which 164 networks in 94 countries have been commercially launched for postpaid customers only.

Connectivity has been established with a leading global GRX service provider for GPRS international roaming services. Testing with each of the operators is required for launching the GPRS international roaming services.

Prepaid and 3G international roaming services are in the process of being launched in the BSNL network and accordingly the testing and launching of these services would also be involved, he said.

The direct agreements of BSNL involves only one set of testing for whole of BSNL with the foreign operators for postpaid services. For GPRS, Prepaid and 3G services testing would involve the four zones of BSNL. All the testing would be carried out from BSNL's Kolkata office.

BSNL has invited proposals from companies for carrying out testing in regard to international roaming service with the foreign GSM mobile operators and subsequent commercial launch of the service.


Source : Economic Times

Read More...

Ping launches mobile for Rs 499

CHANDIGARH: HFCL Infotel Limited on Monday announced the launch of colored handsets of its Ping brand of mobile at a rate of Rs 499 in the Punjab
market, aiming to penetrate urban, semi-urban and rural markets.

"Our aim is to make telephony available to people in all walks of life," said G. D. Singh, COO, HFCL Infotel Ltd in a statement issued here on Monday.

The Rs 499 handset comes bundled with a predefined activated mobile number which can be recharged with special tariff packs for Rs. 151, Rs. 201 or Rs. 251. The local call rate of one paisa per second and STD at Rs 1.50 per minute shall be available on these plans. The subscriber can also enjoy the validity of 30 days and STD call rate of rupee one per minute on the minimum recharge coupon of Rs. 33.

Ping, a CDMA mobile service, has achieved a total customer base of 2.5 lakh within a year of launch, he said.
Pings mobile services are available across 270 towns and 2050 villages in Punjab and Chandigarh through a distribution network of 8000 retail outlets.


Source : Economic Times

Read More...

BSNL dials BlackBerry, Apple for 3G rollout

NEW DELHI: The much sought-after 3G iPhone and BlackBerry may soon be available in the state-owned Bharat Sanchar Nigam Ltd (BSNL) network.

The country’s largest telecom service provider, BSNL, is in talks with Apple and BlackBerry to launch the services in India in its own network.

According to BSNL executives, talks with BlackBerry are at an advanced stage and this handset is likely to be available to BSNL’s customers by the year-end.

On the other hand, subscribers on the PSU’s networks may have to wait longer for access the 3G iPhone as talks with Apple are still lingering in preliminary stage, BSNL executives added.

If BSNL were to tie-up with Apple, the state owned telco would be the third player after Airtel and Vodafone to offer 3G iPhone in India.

However, BSNL will be the first player in the Indian market to offer 3G service on the iPhone. Airtel and Vodafone will only have 3G spectrum if they bag these radio frequencies in the upcoming auctions.
The government has already granted BSNL 3G radio frequencies and the telco is expected to launch high-end services on its 3G network early next year.

“We are in talks with Apple to launch 3G iPhone in our network since we will be the first ones to launch the 3G services here. We are also awaiting the launch of BlackBerry in our network by end of this year,”said BSNL CMD, Kuldeep Goyal.

Source : Economic Times

Read More...

Unitech gets start-up spectrum in Bihar circle

NEW DELHI: Realty major Unitech on Friday said its telecom arm has been alloted start-up radio waves or spectrum for rolling out its services in
Bihar circle.

"The Department of Telecommunications has issued the letter to the company's telecom subsidiary for allotment of 4.4 MHz of spectrum in 1800 MHz GSM band in respect of Bihar Service Area," Unitech said in a filing to the Bombay Stock Exchange.

With this, the company has been alloted initial spectrum in 13 service areas out of total 22 service areas, it said.

Source : Economic Times

Read More...

Sistema to invest over $1.5 bn to expand Shyam Telelink network

JAIPUR: Sistema, one of the largest public diversified corporation in Russia and the CIS, on Tuesday announced that it would invest over $1.5 bn i
n India next year to build a pan-India telecom network on the CDMA platform.

The Russian major, which holds a majority stake in Shyam Telelink, also announced the launch of CDMA services under the brand name Rainbow in Rajasthan.

“We have already invested $1 bn in Shyam and will further invest over $1.5 bn in the company next year.

This marks the beginning of the expansion of Shyam Telelink’s pan-Indian mobile network. The company intends to provide its services to more than 35 mn subscribers by 2012, which represents approximately 7% of the Indian market,” Sistema’s chairman Vladimir Evtushenkov said.

According to him, while Sistema has been focusing on launching pan-India services on the CDMA platform, it is keeping its options open with regard to offering mobile services on GSM.

“We have applied for GSM spectrum. We will take a call on GSM soon. In Russia, we offer mobile services under the MTS brand, and we will decide over the next one month whether to bring this brand to India,” he added.

Shyam Telelink-Sistema is the first among nine new companies that were given licences earlier this year to launch mobile services.

Shyam -Sistema’s entry is also set to see a new round of tariff wars between India’s telecom operators. The company has already announced that it will offer all local calls and SMS for just 50 paise a minute in addition to offering a bundled handset for Rs 999 with lifetime validity.

Read More...

You may soon use your mobile phone as credit, debit card

NEW DELHI: In a development that could completely liberalise mobile commerce, the department of telecommunication (DoT) will soon write to the Reserve Bank of India (RBI) seeking guidance on linking telephone networks with banking services.

While the RBI recently announced certain guidelines for mobile banking in India, it only provides for a few basic banking services which can be undertaken through mobile phones. The new DoT move will allow consumers to virtually use mobile phone as a debit or credit card.

Sources told SundayET that the ministry would seek RBI's consultation to provide full-fledged mobile banking services to the customers, in line with discussion held between the 13th Finance Commission team and DoT officials on September 18, 2008. According to a senior DoT official, the ministry has so far not taken any initiative on linking telephone networks with banking services, but is keen on it as it will generate revenues, in addition to giving more value to telephone customers. "These services can increase the share of value-added services from the existing 7-8% of total revenues from the sector to almost about 25% which is the case in the developed countries," DoT said to the Commission's team. SundayET has a copy of the discussion paper prepared by DoT.

Explaining how the new initiative would help Indian consumers, Romal Shetty, director at KPMG India, said it would change the entire face of banking in the country. "So far, consumers can make only a few basic transactions through the mobile, but this will mean using your mobile as your credit or debit card. All you have to do is to send a message to make a payment," he said.

Mobile commerce in India has been limited primarily to basic banking transactions, purchase of travel tickets and payment of some utility bills, checking your account balance and last few transactions. Sanjiv Mittal, vice-chairman, Bharti Telesoft, that provides mobile banking facility to the customers in collaboration with Barclays Bank feels that both, banking and telecom industry, will have to come together to make mobile commerce a success in India. "There are certain laws to be considered regarding money remittances. Considering the IT security condition, coming together of both is a good sign," he said.

Vodafone also offers services like querying bank balance, requesting for cheque book, making stop payment etc. These services are available in association with banks such as HDFC Bank, ABN AMRO and Kotak Mahindra Bank. "Mobile banking is necessary to create access to the remotest of areas. Any kind of convergence is good for promoting mobile commerce. There is nothing better than both the systems coming together to provide a framework," said a Vodafone official.

The DoT's interest in the matter is sending positive signals to industry. "If the ministry takes up the matter with the RBI, it will definitely speed up the process. It will not only help the mobile users but will boost banks and even mobile operators to grow further," added Mr Shetty.

The DoT has informed the Finance Commission's team that revenues from auction of spectrum for 3G and BWA services could go up to Rs 30,000 cr. The 13th Finance Commission asked the DoT to give the revenue projection from the telecom sector between 2010 and 2015.

Source : Economic Times

Read More...

MNP norms: Swap between CDMA, GSM & retain number

NEW DELHI: The department of telecom (DoT) has made significant changes in the mobile number portability (MNP) norms to allow customers move between GSM and CDMA services provided by the same operator.

As per the earlier norms, customers could move to a different operator and retain their number. But following the amendment, a customer will now be allowed to shift to different technology platform offered by his own operator and still retain his mobile number.

The move is set to benefit Reliance Communications (RCOM), Tata Teleservices, and state-owned players, BSNL and MTNL. RCOM and the Tatas now offer pan-India mobile services on the CDMA platform. They are now all set to launch GSM operations within the next couple of months. BSNL and MTNL, which currently offer GSM services, are rolling out full-fledged services on the CDMA platform.

ET has learnt that telecom minister A Raja had cleared this amendment on September 23. DoT has also inserted a clause mandating that revenues to the government must not be impacted, when a telco moves a customer from its CDMA to GSM network or vice-versa.

In another significant change, DoT has now said if an subscriber is shifting from GSM to CDMA or vice-versa within the same service provider, then the process need not be routed through a centralised agency.

“They can set up their own database and execute the process, bypassing the centralised operator,” said sources close to the development. But as per the MNP guidelines unveiled by Mr Raja in August, all porting must be routed only through two centralised operators who will be chosen by DoT.

The norms add these centralised operators will become mobile number portability clearing house administrators (MCHAs) and will set up the number portability database (NPDB), which will have the mobile numbers of all cellular users. All service providers will have to link their networks with MCHA and NPDB.

Industry sources said dual technology players, operators who offer services on both GSM and CDMA, would be the biggest beneficiaries.

“The DoT plans to allow this facility even before the actual MNP, including all operators, is implemented. This may help CDMA players, provided they rollout their GSM platform before MNP comes into effect. Under the actual MNP, the customer can move to any operator.

However, the dual tech operators can now give their customers the flexibility to move to another technology platform even before MNP kicks off across all operators. Thus, they get to retain their subscribers who want to move to a new technology platform,” said industry sources.

Market surveys have shown that 25-50% of the mobile users in India are unhappy with their operator, and are willing to switch to another service provider if allowed to retain their number.

Source : Economic Times

Read More...

Four firms bid for 3G e-auction agency

NEW DELHI: Four information technology firms Thursday submitted bids for selection of an e-auction agency that will conduct online auctions for third generation radio frequencies in India, an official said here.

"Only four companies - mjunction, Rothschild, MSTC Ltd and Sai Information System - have submitted their bids with us today," a Department of Telecom (DoT) official told reporters.

The interested firms were required to submit their bids by Sep 25.

According to DoT guidelines, all the firms bidding to be the agency to conduct the e-auction will have to declare their shareholding pattern - both Indian and foreign firms, if any.

Besides, the DoT has said potential bidders cannot have more than 10 per cent stake in any telecom or Internet service provider in India.

Under the guidelines, only those companies which have a paid-up capital of Rs.25 million, a net worth of at least Rs.100 million, and have conducted similar auctions before will be eligible to apply.

"All applicants that meet the eligibility criteria will have to make a presentation before the evaluation committee demonstrating their experience and capacity to conduct the auction Monday, September 29," DoT official said.

While the covering letter was opened Thursday, the government will declare the eligible bidders Friday. The eligible bidders will make presentations before the DoT evaluation committee Sep 29.

The finalisation and declaration of technical bids will be Oct 1, to be followed by the opening of financial bids Oct 3. The bids are to be finalised by Oct 6.

The DoT had earlier said the auctions of 3G radio frequencies for telecom operators will be held within three months of selecting the agency to conduct the same. This implies, if the agency in selected by October, the auctions must be conducted before January, 2009.

Souece : Economic Times

Read More...

Samsung unveils Omnia to compete iPhone

NEW DELHI: Now, iPhone will have yet another competitor in the market, Samsung’s Omnia (SGH-i900). The company announced the launch of its premium, all-in-one phone in the Indian market on Wednesday.

Powered by Windows Mobile 6.1 Professional, the phone, starting at Rs 37,999, comes with MS Office and is 100% touch screen. An optical mouse has also been included for easy navigation, putting it on a par with iPhone and HTC Touch.

“With all the features included in the mobile phone, one can easily make out the difference. It is our flagship model, aimed at users who desire a lot of functionality, style, usability and entertainment in one device. It will help users to be at the forefront of work and play at the same time and stay connected anytime, anywhere,” said Samsung Telecom country head Sunil Dutt. He, however, refused to comment on the competitors.

The handset offers a 3.2-inch WideQVGA display (240 x 400 pixels) and a five megapixel auto focus snapper with a face and smile detection plus auto-panorama shot.

The camera features include geo-tagging as i900 has a built-in GPS receiver. The mobile comes in two versions—with 24 GB memory (internal memory of 8 GB and an extendible memory of 16 GB) and with 32 GB memory (internal memory of 16 GB and an external memory of 16 GB). It is priced at Rs 39,999 for 32 GB and Rs 37,999 for 24 GB phone.

Source : Economic Times

Read More...

Google rolls out rival to iPhone

NEW YORK: T-Mobile has rolled out Google's answer to the iPhone as the Web search giant makes its biggest stab yet at leaping from consumers' computers into their pockets with a device cheaper than rival Apple offers.

The widely-anticipated G1 phone, introduced on Tuesday made by HTC Corp, has a touch-sensitive screen, a computer-like keyboard, Wi-Fi connections and uses Google's new Android operating system. Available in three colors, black, white and brown, it includes familiar Google services, such as Google Maps, Gmail and YouTube.

Like the iPhone and other "smartphones" the device is meant to broaden the appeal of Web surfing on the go. "If we see more mobile Web usage we'll be happy," Google co-founder Sergey Brin told media after arriving at the launch on roller-blades.

His company, a powerhouse in Web advertising, would benefit if Android led more cell users to spend time on the Web, no matter which phone they are using. Google is well ahead of rivals Yahoo Inc and Microsoft Corp in Web search on computers, but it wants to use Android to ensure this dominance carries over to the phone when mobile Web surfing becomes more popular.

But while no clear mobile Web winner has emerged so far, Google faces stiff competition from longer established phone players such as Nokia, Research In Motion Ltd's BlackBerry and Microsoft, as well as Apple.

Analysts saw the device as a "good first step" rather than an iPhone killer, but some expect as many as 400,000 to be sold in the United States by year-end. A T-Mobile executive said the estimate was "not incredible."

When it becomes available to US consumers on October 22, the G1 will sell for about $179, slightly cheaper than the entry-level price of $199 for Apple Inc's iPhone, with a two-year contract. The G1 will be launched by T-Mobile's UK unit in November and other European countries such as Germany, Netherlands and the Czech Republic in the first quarter of 2009.

"The G1 doesn't threaten Apple now, but Android has raised the bar for competing mobile platforms. The bigger concern here is for Microsoft and Nokia if Google can win over the hearts and minds of operators and developers," said Geoff Blaber, an analyst with British firm CCS Insight.

Next Google phone may change

Both Google and Apple are wooing developers to create applications for their devices, but unlike Apple, which keeps a tight grip on the iPhone's hardware and operating software, Google's Android is open to be changed by outside developers.

Asked if the user interface of future Google phones would look anything like the first one, Andy Rubin, who developed Android for Google, said: "Its completely replaceable." For example, Leslie Grandy, T-Mobile USA's product development vice president sees the carrier selling a range of Google-powered phones in future, including more basic ones without a touch-screen or full keyboards.

The new phone features Android Market, where customers can find and download free applications to expand and personalize their phones. T-Mobile's Grandy said the marketplace would eventually include applications that are sold for a fee.

"Because the platform is open, we think Android is somewhat future proof," Rubin, Google director of mobile platforms, told the audience at the launch. A similar strategy helped increase the buzz around Apple's second-generation iPhone, which can support more than 3,000 applications available online.

Amazon.com's digital music store will be loaded on the G1, allowing users to search, download, buy and play more than six million songs, pitting it against iPhone's music player. Android also competes with Microsoft's Windows Mobile operating system, which has been solidly gaining ground.

HTC Chief Executive Peter Chou told Reuters his company, which has concentrated on Windows phones so far, is already planning more Android and Windows devices. Between the United States and the United Kingdom, Chou said he expects to have sold more than 400,000 G1 by the year end.

Android's biggest competitor is Symbian software, which represents 60 percent of the smartphone market and which Nokia plans to buy out and open to other developers. Nokia, which has about 40 percent of the mobile phone market, has also branched into mobile Web services such as mapping that compete directly with Google.

Speaking at a conference in Chicago on Tuesday, Nokia CEO Olli-Pekka Kallasvuo said he was not worried by new competition. "The entry of Apple and Google, in fact today in a very concrete way, in mobile communications is the best possible illustration of the fact that there's a lot of possibility here," he said.


Source : Economics Times

Read More...

New spectrum charges to be announced by next month: Raja

NEW DELHI: Telecom Minister A Raja today said new spectrum charges, which will be a one-time charge for the radio wave beyond 6.2 MHz, would be announced by the end of October. He said that the telecom ministry is in discussions with finance ministry and GSM operators to work out new charges for additional spectrum beyond 6.2 MHz.

The minister also said his ministry is also talking to finance ministry on the issue of relaxing borrowing norms for aspiring 3G spectrum bidders. COAI and AUSPI have written to the finance ministry for easing ECB norms to enable prospective 3G bidders to access funds, cost effectively.

On the Blackberry issue, Raja said, "While a solution is still being worked out, the services cannot be denied to the customers."

Read More...

3G in India: No easy path for foreign telecoms

NEW DELHI: Foreign telecom firms could gain access to India's booming mobile market through a global auction of 3G licences this year, but low call rates and established players mean it could take years to turn a profit.

Foreign telecoms with 3G experience are allowed to bid at the auctions, opening the way for firms such as AT&T, Etisalat, NTT Docomo to gain a foothold in the world's fastest-growing mobile market. But India's 2G operators, including Bharti Airtel, Reliance Communications, Vodafone Essar and TM International-backed Idea Cellular, are not going to cede their territory easily.

"There will be a mad fight," said Madhusudan Gupta, a Singapore-based analyst with research firm Gartner, which sees Indian mobile users rising to 737 million by 2012 from nearly 300 million now, with 20 per cent of those using 3G.

"You have a long queue of foreigners. The potential is enormous in India." Five 3G licences will be available for most of India's 22 service zones, although limited spectrum means there will be a maximum of three in large cities such as New Delhi and Mumbai. Next-generation high-end 3G services give users a chance to enjoy fast Internet access, games and a host of multimedia content from maps to music on their cellphones, areas where 2G has been handicapped by a slower data transfer capability.

India's mobile user base increased by 25 times between 2002 and 2007, but a winning bid will not be a licence to print money, especially for a new entrant up against India's cheap call rate model. Local call rates are less than 1 U.S. cent a minute, and local operators want to implement the same style of model in 3G.


"In India tariffs have to be where Indian tariffs are," said Sunil Mittal, chairman of top mobile firm Bharti. "The idea in India is to provide telecom services at most affordable rates."

3G IS NOT EASY

The low-cost plans will be a challenge given 3G has been associated with high-tariff structure globally, as new operators have to put up billions of dollars for licences and networks. India has set a base price of 20.20 billion rupees ($435 million) for a national licence. Actual bids are expected to be higher, especially in lucrative centres such as Mumbai and New Delhi, as the government is looking to raise up to $9 billion.

Foreign telecom firms not already in the Indian market will also have to fork out 16.5 billion rupees ($355 million) for a telecoms licence, which the existing operators already have. "It is not going to be a cakewalk. It will be kind of a Catch-22 situation. You will have to spend so much, but you can not pass on in the same proportion," said Gartner's Gupta.


Source : Economic Times

Read More...

We will decide on spectrum sharing in 2 mths: Scindia

NEW DELHI: The government may allow telcos to share spectrum and a decision on this will be will be taken within two months, junior telecom minister Jyotiraditya Scindia said at an Assocham event here on Friday. Indian regulations allow telcos to share all infrastructure except radio frequencies. While spectrum sharing is not permitted in any country globally, this is seen as a feasible option to address the crunch and enable more players to enter the telecom space.

Countries such as the US, however, allow operators to trade spectrum.

Mr Scindia’s comments, however, contradicts the views expressed by telecom secretary Sidhharth Behura. Just a day ealier, Mr Behura had said that the DoT was not considering any such proposal: “I am not aware of any such development,” he had said. Even as Mr Behura denied any such development, ET has learnt that Mr Scindia has already held a round of discussion with the DoT on the issue of spectrum sharing last week. DoT in an internal communication last week had listed out the pros and cons of becoming the first country in the world to allow spectrum sharing.

Source : Economic Times

Read More...

Qualcomm plans Rs 4,000 3G mobile

MUMBAI: In a bid to make 3G handsets affordable, US-based chip giant Qualcomm is working with handset manufacturers and telecom operators (both CDMA and GSM) to launch 3G-enabled mobiles for as low as Rs 4,000 in India.

These handsets, which will offer Internet on mobile besides other features, will be available early next year. Also, 3G smartphones, on the lines of Apple iPhone and Nokia’s N96, will be rolled out in the second half of 2009 with an entry-level price tag of Rs 10,000.

“We are in talks with all operators to explore, along with our OEMs (original equipment manufacturers), how this space can be penetrated so as to increase the addressable market. We are working to make sure 3G entry-level phones start at Rs 4,000. Affordable 3G smartphones, beginning at Rs 10,000, will bring in a new dimension to enterprise connectivity,” Qualcomm India and South Asia president Kanwalinder Singh told ET.

Qualcomm will provide the chipsets for mobiles and other devices. These are used by low-cost manufacturers like Huawei and ZTE to make handsets while telecom operators bundle them with their services because it increases their revenues from new applications and value added services (VAS).

The San Diego-headquartered company is also bringing together its OEMs and GSM operators to offer data card connectivity solutions comparable to CDMA operators. “3G USB modems will bring ‘always on’ wireless broadband connectivity to laptops and desktops. These modems will enter the market in the Rs 3,500 price range,” he said.

Currently, the data card market in India is dominated by Tata Teleservices and Reliance Communications (RCOM). Till now, Qualcomm has only been associated with CDMA operators. However, as 3G comes to India, Qualcomm is also working with GSM service providers including Airtel, Vodafone Essar and Idea. This is because for evolution to 3G services, the GSM community has chosen wideband-CDMA radio interface, which increases data transmission rates in GSM systems.

Globally, GSM 2G is transitioning to 3G. “In India, we will drive a similar trend and bring in affordable tiered solutions to stimulate mass market adoptions. While the key application of all 3G handsets will be no-compromise-access to mobile Internet, various price points will provide experience of different kinds. We expect all devices to support downloading and uploading of videos,” Mr Singh said. According to technology research firm IDC, 3G feature phones and smartphones in the range of Rs 4,000 and above will account for 30% of the Indian handset market.

Source : Economic Times

Read More...

First Google Android phone to cost $199

NEW YORK: The first mobile phone to use Google Inc's Android mobile operating software will cost $199, the Wall Street Journal reported on its website on Wednesday.

The phone, which features a slide-out keypad, is being manufactured by Taiwan's HTC Corp and will be sold by Deutsche Telekom's, T-Mobile USA unit, which plans to unveil the device at an event in New York on Sept 23.

AT&T Inc, the only US operator selling Apple Inc's iPhone, set the price of the latest version at $199 in July, setting a benchmark for smartphones that can surf the Web, manage email and other multimedia features.

The Journal, citing people familiar with the matter, said T-Mobile USA plans to release new data service plans in conjunction with the Google phone that will be "aggressively priced."

Google, HTC and T-Mobile USA declined comment on the pricing for the phone.

Source : Economic Times

Read More...

Global cos may shun 3G auctions

NEW DELHI: The meltdown of Wall Street’s blue-blooded banks and the growing fear that the contagion will spread to some European banks could directly impact India’s upcoming 3G spectrum auctions by keeping away global bidders.

The absence of global players is expected to seriously restrict the value of the bids placed for 3G spectrum, which jeopardizes the government’s Rs 40,000 crore revenue target from this spectrum sale.

Typically, it is large global banks like Lehman Brothers and Merrill Lynch that are intimately involved in supporting the financial bids of both existing operators and new entrants. They also have a strategic role in the M&As that follow such bids.

With the weakening of the financial sector and a general nervousness around money supply, it is highly likely that even if global telcos do participate, the bidding will be far more conservative than it would have been under normal circumstances.

“The financial meltdown is at its peak. India’s 3G auctions could not have come at a worse time. The weakness in financial markets is bound to impact bidders confidence,” a leading global banker told TOI.

Apart from the fundamental weakness in financial markets, these international banks have very close relationships with global telecom service providers where long term debt, bridge loans and IPO’s are concerned. With the collapse of these banks, many global telcos have started tightening their belt and frozen future investments, M&As and even hiring.

“The entire sentiment is negative. Don’t expect global telecom service providers to swim against the tide and put out massive bids in a market like India which is already littered with regulatory uncertainties,” says a global telecom operator whose company has been in the Indian market for investments for nearly two years.

Source : Economic Times

Read More...

Google, T-mobile to unveil iPhone competitor next week

SAN FRANCISCO: Google will next week launch the first mobile phone running its Android software in a joint initiative with T-mobile, the companies have announced.

The open-source Android system is seen as Google's answer to Apple's successful iPhone and as a key initiative in the internet giant's quest to extend its dominance to the mobile web.

Google has worked closely with US carrier T-mobile and Taiwan electronics maker HTC to develop the new phone, which is to be called Dream.

According to The Wall Street Journal, the Dream will have a large touch screen, a swivel-out keypad and a trackball for navigation. The Dream will also feature a built-in 3 megapixel camera, a music player and purpose-built access to Google services like Gmail, Maps, and Search.

The launch announcement gave no pricing details or availability dates. But press reports said that the Dream would go on sale to existing T-mobile customers later this month for $149, with delivery expected in mid October.

Source : Economic Times

Read More...

Foreign telcos can’t launch 3G services with 5 MHz: DoT

NEW DELHI: Amidst tall claims from both communication minister A Raja and the government that India’s 3G policy was friendly towards all players, the department of telecom (DoT) has officially admitted that it would not be possible for foreign telcos to launch 3G services with a mere 5 MHz of spectrum. DoT secretary Siddarth Behura and the department’s wireless advisor R P Agarwal have communicated this to junior telecoms minister Jyotiraditya Scindia in a letter dated September 9.

The 3G policy announced by Mr Raja in August states that a telco can bid for a maximum of 5 MHz of 3G radio frequencies.

“It may be mentioned that 15 MHz in 2.1 GHz band is ideally required for 3G services. However, for proper growth, planning of 3G networks 10 MHz shall be for practical purposes needed. As only 5 MHz is presently available and in order to have adequate competition in a service area with 4-5 players, it has been decided to allot 5 MHz,” the DoT’s wireless advisor Mr Agarwal said in his reply to Mr Scindia. The minister had sought clarity from the DoT on how foreign players could launch 3G services under the existing policy.

New players, which include international communication majors, need at least 10 MHz to launch 3G services as they also require additional start-up spectrum while existing telcos need only 5 MHz to migrate to 3G.

DoT secretary Siddarth Behura, while acknowledging that 5 MHz would not be enough has, however, told Mr Scindia that foreign telcos have three options: First, wait in line for 2G spectrum after acquiring a UASL licence. Second, foreign telcos can acquire up to 74% in any of the existing 2G licence holders and third, they could merge with an existing player. Mr Behura also said that that the merger norms were recently amended to enable this to happen.

Last week, the DoT had amended its 3G policy and said that the existing merger norms will apply only to existing licence holders. This implies foreign telcos, which are successful in their 3G bids, can now buy an existing licence holder without having to wait for three years, the lock-in period specified earlier. The larger implication is that foreign telcos who bag 3G licences can now buy out existing operators who hold 2G radio frequencies. However, industry experts say that despite relaxing the merger norms, foreign telcos will still find the going tough — this is because, existing 2G licence holders such as Datacom, Swan and Unitech amongst others are demanding astronomical valuations.

Source : Economic Times

Read More...

Government norms likely to compulsorily secure WiFi links

NEW DELHI: In the wake of the terror emails being sent from unsecured wireless fidelity (WiFi) networks, the government is examining the possibility of issuing new norms that will make it illegal to leave such internet connections open. The new norms may also put the onus on telcos and internet service providers (ISPs) who sell WiFi connections to educate their customers of keeping them secure.

The department of telecom will work with the home ministry and intelligence agencies to put in place steps to secure WiFi internet connections, which are increasingly being used in homes and offices across the country. WiFi networking companies may also be asked to limit WiFi signal right down to a defined radius by installing access points around the signal.

However, internet service providers (ISPs) say that it is customer who is to blame. “Internet service providers are taking steps on their own to secure WiFi connections. All ISPs are installing AAA servers and firewalls. But, if you look at the terror mails, they were sent from hacked or open WiFi accounts – there is nothing we can do about this.

When people take a broadband connection, then take routers and make their homes and offices WiFi enabled, and then leave it open, there is nothing ISPs can do about it,” explained the president of the Internet Service Providers Association of India’s president Rajesh Chharia.

Industry experts say that regulations will not help much since most home and corporate users use minimal security to lock their WiFi networks making them an easy target to hack into.

Security experts suggest that WiFi users should never broadcast their SSIDs (service set identifiers) and change their access passwords. “Most routers which come in the market have a password 1234 and login id – as admin. One should immediately change it after installing. Also one should block the router’s SSIDs from broadcasting the WiFI networks and allow only particular machines to access it,” says Aujas Network Founder and COO Sameer Shelke.

Generally a WiFi router is configured to advertise its SSID to all neighbouring WiFi devices. One can block the SSID from advertising so that only by typing the name, the particular WiFi network appears.

The Wireless Fidelity (WiFi) connection of a Mumbai based power company was hacked into by suspects in Chembur, who sent the e-mail to news organisations while the serial blast continued in the capital which killed about 25 people and left about 100 injured on Saturday.

Experts say that digital forensics still holds the key to catch suspects who have even challenged security agencies to catch them.

Accessing the WiFi router or the wireless access point’s log files (present in Mumbai’s Kamran Power Company in this case), one can find out the MAC (Media Access Control) address of the WiFi card which accessed the WiFi point of that company.

Source: Economic Times

Read More...

BSNL allows roaming with private telcos

NEW DELHI: Mobile subscribers are likely to enjoy seamless connectivity throughout the country soon, as state-run BSNL has decided to share its network with private telcos for roaming agreements.

In a Management Committee meeting recently, the PSU approved a proposal in this regard.

"The MoU in this regard may be signed with the seeking operators initially for six months only on non-exclusive and experimental basis," a BSNL internal circular of the Management Committee meeting said.

BSNL will sign the first roaming agreement with new telecom operator Swan Telecom, the circular said.

The committee has decided to levy roaming charge of 52 paise a minute per outgoing call.

"The Management Committee, after detailed discussion, has decided that roaming charge of 52 paise per outgoing call may be offered for the intra-circle roaming service seeking operators," it said, adding BSNL would review the charge after initial six months and it could be revised up or downward based on prevailing conditions and volume of business.

The committee said only the idle capacity of the network will be used to earn extra revenue. The incremental additional cost of of the upgradation of equipment to provide roaming will be borne by the seeker operators.

With this, subscribers of private operators will finally be able to roam on BSNLs nation-wide network. While all private telcos have roaming agreements with each other, BSNL, till date, has not opened up its networks for roaming deals.

Source : Economic Times

Read More...

DoT unveils norms to select agency for 3G, WiMax bid

NEW DELHI: The department of telecom (DoT) on Friday issued a revised request for proposal (RFP) to select an e-auction agency that will conduct the online auctions for third generation radio frequencies in India.

All interested firms have been asked to submit their bids by September 25.

All firms bidding to be the agency to conduct the e-auction will also have to declare their shareholding pattern — both Indian and foreign (if any).

Besides, the DoT has said that potential bidders cannot have more than 10% stake in any telecom or internet service provider in India. The guidelines also add that only those companies who have a paid up capital of Rs 2.5 crore and a networth of at least Rs 10 crore and has conducted similar auctions before will be eligible to apply.

The DoT has said that the auctions of third generation radio frequencies for telcos will be held within three months of selecting the agency to conduct the same. This implies, if the agency in selected by October, the auctions must be conducted before January, 2009.

Following the first round of auctions, the agency will also have to conduct subsequent auctions as and when radio frequencies are available, the DoT added. All bidders must also quote their fee for conducting the entire auction process. The fee will be the per cent of the of the total revenues they raise from the auction.

“All applicants that meet the eligibility criteria will have to make a presentation before the evaluation committee demonstrating their experience and capacity to conduct the auction,” DoT said in a communication on its website.

The department of telecom (DoT) has started discussions on allowing telcos to share spectrum, the radio frequencies on which all mobile services operate.

In a meeting with the minister of state for communication and IT, Jyotiraditya Scindia, earlier this week, the DoT officials listed out the pros and cons of becoming the first country in the world to allow spectrum sharing.

In an internal note that was presented to Mr Scindia the DoT said that spectrum sharing would help telcos use radio frequencies in a ‘more economic and efficient manner’.

The note also adds that the sharing of radio frequencies between different operators would ‘boost transparency by revealing the true opportunity cost of the spectrum’ and would also make it ‘possible for companies to expand more quickly’ in addition to ‘making it easier for prospective new market entrants to acquire radio frequencies and launch operations’.

“Spectrum sharing can also be used to correct inefficiencies arising from the allocation of spectrum to different applicants, which can create artificial spectrum scarcity,” the note said.


Source : Economic Times

Read More...

DoT amends 3G, WiMax policies

NEW DELHI: The Department of Telecom (DoT) on Thursday amended the 3G policy to allow successful foreign bidders to acquire Indian operators without waiting for the mandatory three years.

Another key change in the policy is that CDMA operators will be allotted 3G spectrum through auction. DoT has also retained an earlier clause that besides the existing licence holders only those telcos with experience in providing 3G services can bid for the spectrum.

DoT also amended the broadband wireless access (which includes WiMax services) policy to double the base price for WiMax spectrum to Rs 1,010 crore and allow successful bidders to offer both data and voice services.

While announcing that the 3G spectrum for CDMA operators in the 450 MHz and 1,900 MHz bands would be allotted through auction, DoT said the reserve price for such frequencies would be notified separately. The department also shied away from specifying the licence renewal fee for existing telcos.

The licences of existing telcos would be extended “in a manner as the government deems fit”, it said. Again, while saying telcos must share 1% of their incremental revenues from 3G services as spectrum usage charges, DoT added that the method of calculating this fee would be spelt out later.

ET had first reported all these major changes across different stories over the last 30 days.

In the case of Wireless broadband (WiMax) spectrum, the DoT has doubled the base price for the auction of frequencies on this platform. This implies that any player that wants to bid for WiMax spectrum will now have to offer a minimum of Rs 1,010 crore for a pan-India licence compared to Rs 505 crore earlier.

Industry sources said that with the doubling of the WiMax spectrum base price, successful bidders, including internet service providers (ISPs), would now be permitted to offer mobile services on this platform. This could not be independently confirmed. But while the old policy said spectrum will be auctioned for “data services”, the amended policy has done away with it.

The new BWA policy also adds that radio frequencies in the 700 MHz and 3.3-3.6 GHz frequency bands would be auctioned for WiMax services as and when they become available. The earlier policy said that radio frequencies would be given only in the 2.5 GHz and 2.3 GHz bands for WiMax services.

DoT in its new 3G policy has said that the existing merger norms will apply only to existing licence holders. This implies that foreign telcos, which are successful in their 3G bids, can now buy an existing licence holder without having to wait for three years, the lock-in period specified earlier.

The larger implication is that foreign telcos who bag 3G licences can now buy out existing operators who hold 2G radio frequencies. They will, therefore, be able to offer both 3G and 2G services. Besides, if a foreign player were to bag 3G spectrum and also buy an existing Indian operator, the telco will not have to pay an additional Rs 1,651 crore for the UASL licence.

The government, in its earlier 3G policy announced in August, had decided to allot 3G spectrum in the 800 MHz to the CDMA player with the highest subscriber base, without taking resort to auction as mandated for GSM players.

This was on the condition that the CDMA player would have to pay the same price that the highest GSM operator was paying in a particular circle. This gave RCOM, which has the largest subscriber base in all circles, except Delhi and Maharashtra, the right of first refusal (RoFR) for offering 3G services in the 800 MHz band.

This band is the most efficient and cost-effective frequency for CDMA players to offer high-end services. The change in the policy implies that other CDMA players such as Tata Teleservices, Shyam, BSNL and MTNL as well as new players now stand a chance to get radio frequencies in the coveted 800 MHz band.

Source : Economics Times

Read More...

Bharti unveils Rs 200 cr fund to promote innovation in telecom

NEW DELHI: Telecom major Bharti Airtel on Thursday launched a Rs 200-crore innovation fund for promoting entrepreneurship in the telecom sector.

The objective of the fund is to provide opportunities to the entrepreneurs to undertake innovation in the field of telecom with regard to content, software and technologies, Bharti Airtel Joint MD and CEO Manoj Kohli told reporters here.

This is the first ever telecom innovation fund in the country, he said.

Bharti Airtel, market leader in the GSM base cellular telephony, has started the fund with an initial corpus of Rs 200 crore.

Source : Economic Times

Read More...

DoCoMo, France Tele in last lap for Tata Tele pie

MUMBAI: The race to induct a strategic partner in Tata Teleservices (TTSL) seems to have narrowed down to Japan’s NTT DoCoMo and European telecom giant France Telecom. The Tata Group is close to diluting its stake for around Rs 5,000 crore in the country’s sixth-largest telecom operator, industry sources told ET .

“Talks are in the final stage and a deal is expected to be announced in the next two months,” informed sources said. One industry source with knowledge of the matter said NTT DoCoMo might be the front-runner. This, however, could not be independently confirmed. Both companies have put in bids. It’s not clear when a formal announcement would be made.

It is also not clear as to the exact stake which the partner will pick up. The figure of Rs 5,000 crore assumes a stake sale in the region of 12%. However, a number of industry sources following the transaction said the bids were for a 26% holding, involving a pay-out (for the investor) of around Rs 10,000 crore. When contacted, a TTSL spokesperson said: “We are in discussions with several players for off-loading a minority stake in our company and cannot comment any further on speculative queries.”

Talks for a stake sale have been on for over six months now. Others who had been earlier eyeing a piece in the company with around 28 million subscribers included UAE’s Etisalat, Mexican billionaire Carlos Slim-controlled TelCel and Russian telecom major Altimo. While France Telecom is not new to the Indian telecom landscape, it will be the maiden entry for NTT DoCoMo if it manages to clinch the deal.

In December 2006, DoCoMo had inked an agreement with Hutchison Essar (now Vodafone Essar) for its I-mode services, which include online games, videos and access to content. However, this pact was subsequently cancelled due to regulatory changes.

On the other hand, France Telecom was a 26% partner in BPL Mobile before it sold off the stake to a consortium of investors in January 2005. Subsequently, to enter the world’s fastest-growing telecom market, it finalised a joint venture with Moser Baer to offer long-distance services last year. It also acquired the IT services division of GTL last year and a stake in TTSL, if that were to happen, is expected to complete its India telecom story.

It is possible that Chennai-based tycoon C Sivasankaran, who owns 8% in TTSL, may divest a part of his stake to the new investor. However, most of the fund infusion would take place by way of issue of new shares. An unrelated transaction, which is possibly the sale of a 49% stake in TTSL’s tower business, is also in the works. That deal, which may close in a few months, is likely to fetch around Rs 10,000 crore.

TTSL will use the money for expansion in the CDMA and the soon-to-be-launched GSM services. While TTSL is set to roll out CDMA services in Jammu & Kashmir, Assam and North-East circles, it has also received start-up GSM spectrum in Tamil Nadu, including Chennai, and Orissa. It requires funds to launch operations as well as for branding and marketing exercises. TTSL MD Anil Sardana has already announced a capex of $2 billion for the GSM rollout.

Singapore-headquartered Temasek and Mr Sivasankaran currently hold 9.9% and around 8% respectively in TTSL. Mr Sivasankaran bought his TTSL stake for Rs 1,200 crore from Tata Sons in March 2006 while Temasek paid around Rs 1,500 crore for its equity.


Source : Economic Times

Read More...

Nokia launches advanced multimedia handset N96

MUMBAI: Nokia, the world leader in mobile communications, on Tuesday launched its most advanced multimedia device-Nokia N96 in India.

The N96 will be available in the market from September 15 and its retail price is Rs 34,999.

The N96 will offer a memory size of 16GB that can be increased to 24GB with an optional microSD card, allowing consumers to store hours of media and entertainment on the go.

"In the Web 2.0 era, the new Nokia N96 places the power to shape in internet in your hands. Nokia N96 offers the most personalised mobile internet experience to date and it defines convergence by blending phone and multimedia options seamlessly," Nokia India Marketing Director Devinder Kishore told reporters here.

The dual-side N96 is a perfect of style and cutting edge technology and represents a whole new chapter in mobile technology and is best optimised for superb web and entertainment.

The N96 can be store upto 18,000 songs, up to 20,000 images at 5 mega pixel, upto 60 hours of video or full length movies. With multifunctional media keys and a 2.8" screen, music, movies and games and will be available at the touch of a button.

"Nokia NSeries has always been at the forefront of innovation and has time and again added new paradigms to mobility and introduced devices that cater to the consumer aspirations," Kishore said.

Source : Economic Times

Read More...

Unitech mops up Rs 1,200 crore for telecom venture

NEW DELHI : Unitech has raised Rs 1,200 crore for its telecom venture from a syndicate of public sector banks led by Punjab National Bank and Canara Bank. Meanwhile, Norway’s telecom firm Telenor is learnt to have emerged the frontrunner in the race to acquire stake in Unitech Wireless, group’s telecom arm. Unitech is likely to finalise a telecom partner in two weeks.

Unitech MD Sanjay Chandra confirmed that the group has raised debt worth Rs 1,200 crore, but declined a comment on telecom partner. SBI Capital Markets organised the loan from the syndicate, which included Bank of India, Oriental Bank of Commerce, Central Bank of India and Vijaya Bank. PNB and Canara Bank contributed the major chunk of the loan.

Unitech Wireless plans to use the funds to buy telecom equipment for the first phase of its rollout. Unitech Wireless has already initiated the process to procure equipment from global telecom equipment majors ZTE, Huawei, Alcatel-Lucent, Nokia and Ericsson. The company is also looking at sharing infrastructure of the existing telecom players in the country.

Unitech plans to raise a major chunk of initial funds through stake sale. The company is in the process of finalising a European telecom player as its partner. Norway’s Telenor is said to be ahead of its competitors, according to sources close to the development.

Unitech has held talks with a number of international telcos since it began its search for a partner earlier this year. The company shortlisted three players, including Telenor, Telecom Italia and an Asian telco two months ago, and is now veering towards Telenor.

Sources say talks with Telecom Italia fell through after the two parties failed to bridge the gap over valuation. Unitech is expecting a valuation of $3 billion for its start-up, while Telecom Italia was ready for just a billion dollar.

Sources say Unitech is yet to take a final call on Telenor as the two sides are still working on valuation. Another crucial issue, sources say, is the amount of stake being offered to the foreign player.

Unitech has all along insisted that it planned to sell no more than 26% stake in its telecom venture, but potential foreign partners have been asking for a majority stake. A source claimed that Unitech may look at selling even 51% stake, but Unitech denied it.

Unitech, which has pan-India GSM licence and received spectrum to operate in six service areas, had earlier said that it expected to invest Rs 20,000 crore, including debt and equity, in its telecom business over the next three years.

Source : Economic Times

Read More...

BSNL set to allow private telcos roam on its network

NEW DELHI: State-owned BSNL has opened talks with private telcos for roaming agreements. If the talks are successful, subscribers of private operators will finally be able to roam on BSNL’s nation-wide network. While all private telcos have roaming agreements with each other, BSNL, till date, has not opened up its networks for roaming deals.

At present, only subscribers of state-owned MTNL (whose services are restricted to Delhi and Mumbai) are allowed to roam on BSNL’s networks. Private telcos have been seeking commercial agreements with BSNL on roaming for years now as the state-owned telco has a superior network in smaller towns, villages, on highways and railways.

“We are evaluating the proposals from private operators. We are open to sharing our networks with them for commercial roaming agreements. If we can do it with one operator (MTNL), we can replicate such deals with other players too. Talks are on and we may conclude some agreements soon,” a top BSNL executive told ET.

As per industry estimates, BSNL will get upwards of Rs 750 crore annually by signing commercial roaming deals with private operators. It is also learnt that BSNL wants a higher revenue sharing between operators for roaming customers, over and above the fixed 30-paise-per-minute charge the regulator has granted the operator on whose network the roaming call is terminated. The logic: BSNL feels that since all operators treat their roaming customers differently by charging a much higher tariff that is not cost-based, there should be revenue share between roamer’s home network and the terminating network.

Another reason why BSNL is opening talks with private telcos was on account of the department of telecom’s (DoT’s) plans to make it mandatory for all telcos to open their networks for roaming after the introduction of 3G services. This is because, the DoT is of the view that there would only be a limited number of 3G service providers.

Besides, 3G services are likely to be restricted to the metros and key circles initially. Therefore customers of these telcos who offer 3G will have to depend on 2G networks and services of other telcos. Another option for customers is to switch on to the 3G networks of BSNL since the PSU will be the only operator to roll-out these high-end services across all circles.

Source : Economic Times

Read More...

Norwegian telco Telenor may ring India

NEW DELHI: Norwegian telecom group Telenor today said it is looking to enhance its presence in Asia which could include a possible entry into India's growing mobile market.

"We have been present in Asia for more than a decade. As a long-term and industrial player, we have all ambitions of developing and increasing our presence in this region," Telenor Asia (ROH) Ltd Communications Director Esben Tuman told PTI. "As part of this, we naturally discuss and consider different opportunities."

Asked if the company has started talks in this regard with any firm here, Tuman said, "We do not as a principle comment on rumours and speculations. In general, however, it is part of our strategy and the way we work to constantly keep our eyes and ears open."

A team from Telenor was recently in India to assess such possibilities, sources said. The company has mobile operations in Pakistan, Bangladesh, Thailand and Malaysia. Recent media reports have linked Telenor to BPL group company Loop Telecom which has a pan-India GSM license.

Analysts said India is the world's second largest and the fastest growing wireless market which could not be overlooked by any global player with an Asian presence. With revenues drying up from matured markets, India's 297 million wireless subscriber base offers tremendous scope for growth.

Telenor, the world's seventh largest telecom company, will be among the first European entrants to enter Indian telecom sector. The company added 30 million new subscribers last year and has a subscriber base of 143 million.

With a host of new telecom players looking for global tie-ups with companies like Telenor and others for funds as well as technical know-how, India offers an ideal investment destination, said an industry player.

Source : Economic Times

Read More...

Tata Teleservices emerges as least congested network : TRAI

NEW DELHI: Telecom service provider Tata Teleservices on Tuesday said its network has been judged as the least congested amongst the pan-India operators by telecom regulator TRAI.

"Tata Teleservices network has recorded the least congested point of interconnection (POI) of only five, compared to 56 POI of Airtel, 22 POI of Reliance and 19 POI of Vodafone," TRAI report on congestion for the month of April, May and June 2008 stated.

Earlier, in the TRAI report on congestion for January, February and March 2008, TTSL was ranked the best, with the least congested Point of Interconnection (POI) of only 10 as compared to 83 POI of Airtel, 41 POI of Reliance and 43 POI of Vodafone.

"Today mobile customers are very discerning and they look for quality of service rather than just cost advantage. From clear voice quality and minimal call drops our customers experience the advantages of being on Tata Indicoms network," Tata Teleservices Chief Technology Officer A G Rao said.

Mobile network is growing at a very rapid pace and more than nine million subscribers are added every month.

In order to ensure seamless interconnection, TRAI has been monitoring the level of congestion at the POI between various service providers on a monthly basis.

This parameter signifies the ease with which a customer of one network is able to communicate with a customer of another network. This parameter also reflects as to how effective is the interconnection between two networks.

The benchmark notified by TRAI is less than 0.5 per cent. This means out of 200 calls between two operators only one call should face congestion problem.

Tata Indicom has a customer base of over 27 million.

Source : Economic Times

Read More...

Apple 3G iPhone brightens up grey market

MUMBAI: The launch of Apple iPhone by Bharti Airtel and Vodafone Essar seems to have revived the dwindling sales of the gizmo in grey markets.

The reason: the price tag announced by the two GSM giants is too high and all those who had been waiting to buy it officially, are now rushing to the grey markets to get the 16GB iPhone for as low as Rs 20,000-Rs 22,000.

“Sales had dipped after it was announced in May that Airtel and Vodafone will bring iPhone to India. Many postponed buying the phone from us. However, since the prices announced are almost 50-60% more than at what we sell, we are getting back business,” said a dealer at Heera Panna, Mumbai’s best known grey market for all high-end phones.
The two companies are selling the 8GB version for Rs 31,000 and the 16 GB model for Rs 36,100. However, at Vodafone stores, the gadget is now available at Rs 29,640 for 8GB and Rs 34,580 for 16 GB version. This is because Vodafone is not keeping the Rs 1,500 margin in the sales made through its own stores.

According to another dealer, “We were selling the 16GB version for Rs 28,000 till July. But then sales dipped anticipating the operators would have similar price tags. So we reduced prices, which has improved offtake.”

Both these dealers have sold over around 40 units each since the iPhone was launched almost 10 days ago. Accendia Consulting principal analyst Alok Shende said, “Experience across product categories in India is that high prices create a grey market that eventually cannabalises legitimate sales of products.”

The same was true of laptops, computers and video games until prices were brought down to an extent that grey market sales became ineffective, he added.

Foreign travellers who come to India bring iPhones, which are locked to networks. They are then unlocked by the dealers. “It takes not more than 15 minutes now. Most people can unlock it on their own using softwares available in the market,” said one of the dealers, who began with charging Rs 3,000 for unlocking the iPhone last year and now takes only Rs 500.

Apart from this, those travelling from India to the US or other countries where iPhone is available, get the devices for their friends and relatives. “On my last trip to the US, I got six iPhones for my family. I unlocked them on my own and they are all working fine. I paid just $200 (around Rs 8,600) per handset,” said an analyst working with a research firm in Bangalore.

Source : Economic Times

Read More...

BSNL LAUNCHING 3G SERVICES - FIRST!

It seems, BSNL is going to be the first opeartor in India who would launch 3G services in India. With 3G spectrum auction scheduled to be completed by year end only, BSNL might be already be ready with 3G network in place as it does not have to participate in the bidding process. It will get automatically 3G spectrum in all circles.

Here is the news :-
CHENNAI: State-run telecom major BSNL on Saturday announced that it would launch 3G services across the country by the end of this year.

"We will be commencing the operations by the end of December starting from North and Eastern parts of the country and then South and West by March, 2009, so that within six months we will be able to roll out the 3G operations," BSNL Chairman and MD Kuldeep Goyal told reporters here.

"Mostly we will try to cover the state capitals in the first phase and then taking it to major cities and other towns," Goyal said.

On the demand for the services, he said, "The demand will pick up once 3G handsets are affordable. Applications suiting the people especially rural areas should be available in local language. Initially, we don't expect the demand to be very high," he said.

"Initially, we are talking to content providers for developing suitable applications, like video conferencing, video telephony, video streaming. A trial was carried out in Pune recently," Goyal said.

Talking about the company's business, he said BSNL was hoping to increase the revenue by more than 10 per cent as compared to last year.

"We are aiming to record 10 per cent growth next year", he said adding that last year the company recorded a turnover of Rs 38,000 crore.

He also hoped that the revenue would reach USD 45 billion by 2010.

Source : Economic Times

Read More...

Every second Indian will go mobile by 2012

NEW DELHI: With India now adding 8-10 million mobile subscribers every month, up to half the nation’s population-or one in every two citizens-will own a mobile phone in India by the middle of 2012.

According to Business Monitor International, a renowned London-based research firm, 612 million mobile subscribers by 2012 will help India clock a mobile teledensity of roughly 51% by 2012. This scorching pace of growth is unlikely to falter unless the sector faces unforeseen policy disasters or if India’s operators fail to roll out their networks.

International Telecom Union’s (ITU) projections are in the same range.India is already the world’s second largest mobile market, behind China’s 500 plus million mobile subscriber base.

Increasing incomes, changing lifestyles and lower cost of technology are allowing more and more Indians to ride the telecom wave. The new numbers overtake earlier estimates, including from UBS, Citigroup and Credit Suisse, predicting a mobile population of 400-450 million by March 2010. Merrill Lynch and Lehman Brothers have been more even conservative, betting on a base of just 400 million by 2010.

However, India will reach this milestone in 2009 itself. India’s mobile revolution has been a huge social leveler, with the growing number of users tying a diverse nation in a manner rarely seen before.

Its youth are expected to contribute significantly to these surging numbers. Sir Richard Branson, founder, Virgin Group, which tied up with Tata Teleservices to launch branded services in India recently said, “An exciting market, with over 215 million Indians aged 14-25 years. Over the next three years we expect to be adding 50 million new youth subscribers.’’

While companies like Virgin are currently focused on the urban market, it is clear that the next set of growth will come from B and C category cities as well as rural India. Mobile penetration of this magnitude has the ability to revolutionalize long distance learning and health care quickly reaching some of the most far flung and difficult terrains.

Where mobile content is concerned most analysts agree that, largely on the back of India’s popular film industry, music services will grow very quickly, even if other content related revenue lags behind.

Given that a reasonable part of the population by 2010 will be children below 14 and senior citizens, it seems mobile access among the youth and working classes will be more in the range of 70-80%. In policy terms, government needs to quickly turn its focus on redirecting funds for rural mobile access, manage spectrum efficiently and invite multi-billion dollar investments at a pan-India level to fuel this already scorching telecom growth.

Source : Economic Times

Read More...

Shyam Tele gets spectrum for all-India rollout

NEW DELHI: Mobile operator Shyam Telecom, in which Russian communications major Sistema holds a majority stake, has become the first of the new telecom players to get pan-India spectrum for launching mobile services. The company has been allotted radio frequencies on the CDMA technology platform. New GSM licensees such as Datacom, Unitech, Loop Telecom and Swan have been given start-up spectrum, but this has been largely restricted to the southern circles in the country.

ET has learnt that communications minister A Raja has already approved the allocation of spectrum to Shyam Telecom. Earlier this year, Shyam-Sistema had announced that the company would offer mobile services across India on the CDMA platform.

The company also bagged licences for 21 circles except Rajasthan, where it already offers services under the brand name Oasis. Shyam also becomes the third private pan-India player to offer services on the CDMA platform.

Sistema president Alexander Goncharuk recently told ET that the company would increase its stake in Shyam to 74 per cent over a period of time. Sistema has already invested about $500 million in India — it paid the Rs 1,651 crore licence fee for Shyam. Sistema also plans to finance its investments by utilising money under the Rupee-Rouble debt agreement between India and Russia.

Source : Economic Times

Read More...

3G auction to also include CDMA: Raja

NEW DELHI : The Govt has decided to auction CDMA licences for 3G services, a change in policy that means Reliance Communications and Tata Teleservices will have to bid for spectrum they were previously guaranteed of getting.

No. 2 mobile operator Reliance Communications and sixth-ranked Tata Teleservices are the only operators with major CDMA operations in India, where the GSM platform dominates.

At the start of August, the government announced plans for a global auction of 3G licences. At the time only two CDMA licences were thought to be available, so the plan was that Reliance and Tata would pay a pro-rata price based on the outcome of the GSM auction, telecom minister Andimuthu Raja said on Thursday.

"Now one more operator has been permitted. So again we consulted the TRAI (Telecom Regulatory Authority of India) and took a decision that it can also be auctioned." CDMA and GSM mobile services are provided on different bandwidths.

The government has said the global auction for GSM 3G spectrum would end by December. Current Indian telecoms operators and foreign firms with prior experience in 3G services are eligible to bid.

Reliance Communications has some GSM subscribers, and is expanding its network, but at present more than 80 percent of its customers are on the CDMA platform.

Chairman Anil Ambani has said Reliance would consider providing 3G both on GSM and CDMA. Tata Teleservices has acquired licences for second-generation GSM mobile, but is yet to start services.

Source : Economic Times

Read More...

'India could have 270 mn 3G subscribers by 2013'

NEW DELHI: India could be the largest 3G market among emerging countries as 270 million subscribers are expected to use these high-end value added mobile services in the next five years, says a research agency.

The guidelines have been already issued for 3G services and the Government hopes to roll out high-end mobile services by December.

"In terms of subscribers, India is going to be the largest market for 3G users among all emerging markets...India could have 270 million users subscribing to 3G services by 2013," research agency Strategy Analytics VP, Wireless Practice, David A Kerr said.

The research agency said 3G subscribers would constitute more that one third of the total wireless users in the next five years.

Initially, the subscribers would come from metro and 'A' category cities, and enterprises and business customers would make the largest chunk of it, it said. "India has 700 million untapped customers and it is very much possible to have 270 million 3G subscribers in next five years."

At present, the country's total mobile subscriber base is about 290 million.

"At the initial stage corporate and enterprise users as well as tech-savvy young generation would drive this market," Kerr said.

Source : Economic Times

Read More...

3G spectrum auction for CDMA players

NEW DELHI: The Telecom Commission has modified its policy on allocation of spectrum for third generation (3G) mobile communications using the CDMA technology platform. The Telecom Commission has decided to auction 3G radio frequencies for CDMA players in the 800 MHz band.

This would deny Reliance Communications (RCOM) automatic entry into CDMA 3G on the strength of its subscriber base, as envisaged in the policy earlier. The decision was taken during Telecom Commission’s meeting on August 21 and incorporates telecom regulator Telecom Regulatory Authority of India’s (TRAI) recommendation.

The government, in its 3G policy announced earlier this month, had decided to allot 3G spectrum in the 800 MHz to the CDMA player with the highest subscriber base, without taking resort to auction as mandated for GSM players, provided it was willing to pay the same price that the highest GSM operator was paying in that particular circle. This gave RCOM, which has the largest subscriber base in all circles, except Delhi and Maharashtra, the right of first refusal (RoFR) for offering 3G services in the 800 MHz band. This band is the most efficient and cost-effective frequency for CDMA players to offer high-end services.

However, Telecom Commission’s move to have an auction now implies that other CDMA players such as Tata Teleservices, Shyam, BSNL and MTNL as well as new players who want to enter India on the CDMA platform now stand a chance to get radio frequencies in the coveted 800 MHz band. Currently, only one operator can be accommodated in this band, as the rest of the band is occupied by the defence services, which will take at least one year to vacate it. As and when the defence forces vacate more spectrum in this band, more operators would be able to bid for and acquire spectrum to offer 3G services.

The Telecom Commission, which is the apex decision-making body of the Department of Telecom (DoT), has also said that the base price for 3G frequencies in the 800 MHz will be Rs 40 crore for metros and category A circles, Rs 20 crore for category B circles and Rs 7.5 crore for category C circles. The base price has been fixed at a fourth of what GSM operators will pay for 3G frequencies. This is because CDMA players can bid only for 1.25 MHz of radio frequencies in the 800 MHz band while GSM players will bid for 5 MHz of 3G spectrum in the 2.1 GHz band.

The DoT was forced to review the 3G policy after TRAI pointed out that the government’s decision to allot 3G spectrum to CDMA players without an auction is against the principles of equality.

TRAI chairman Nripendra Misra, in a communication to DoT secretary S Behura on August 8, 2008, had said: “Since various service providers have been given licences in different service areas at different time periods, TRAI believes that keeping the subscriber base as the criterion for deciding the priority of spectrum allotment will go against the level-playing field and the principle of equity.”

Mr Misra had also demanded that CDMA players too be subject to an auction. “Spectrum in the 800 MHz should be auctioned among applicants with the highest-bid price received for the auction of 2.1 GHz spectrum as the reserve price. The subscriber base of the CDMA network of a service provider in any service area is a result of different environments, and cannot muster the test of fairness if it was to become the basis of priority,” he had added.

Source : Economic Times

Read More...

Indian VAS cos betting big on iPhone applications

KOLKATA: Indian mobile phone application developers are trying to come up with unique applications for the iPhone 3G, which was launched in the country on August 22. The likes of Bharti Telesoft, CanvasM, OnMobile, Mauj Mobile and ADAG’s JumpGames have initiated work to develop business, entertainment and utility applications for Apple’s iconic device.

The VAS players plan to bundle and sell these applications through both the operators and Apple’s application platform. The move has been triggered by the fact that iPhone subscribers are usually heavy users of data applications due to the gadget’s features like the multi-touch interface, accelerometer, motion sensor and 3-D graphics.

“Since iPhone application development has started recently, there are scarcely any developers available worldwide. We are developing applications that are customised for Indian subscribers and newer ones for enabling financial transactions, mobile entertainment and games,” said Jagdish Mitra, CEO at CanvasM Technologies.

CanvasM is in talks with major financial institutions from France for replicating the mobile commerce application suite for the iPhone. Applications are also aimed at adding newer functions. “Since iPhone doesn’t support MMS, we are going to release a MMS client for the device by December. The operators too are planning to offer unique applications,” said Bharti Telesoft CEO Manoranjan Mohapatra.

Analysts feel applications tend to improve the operator’s margin and ARPU. “However, a lot of these are also available free. Indian developers will have to also create such an eco-system in India,” feels IDC Asia Pacific research manager Aloysius Choong.

The major focus seems to be on games, since iPhone’s technology supports them best. Gameloft has launched six iPhone games and plans to add eight more by December. “We will release 2-3 games for the iPhone. And once 3G arrives in India, the market for iPhone applications is expected to explode,” said Salil Bhargava, CEO, Jump Games, a Reliance ADAG venture.

Developers plan to monetise their iPhone applications by making them compatible with other phones. “An integral part of creating any mobile application is to render it compatible with most of the handsets,” said Mauj Mobile CEO Manoj Dawane. The companies also plan to sell such iPhone applications across the globe by developing them as per iPhone’s developer programme.

Source : Economic Times

Read More...

Telcos to mutually settle linking issues

NEW DELHI: Following the resolution of the interconnect issue between GSM operators and Reliance Communications (RCOM), all telcos have now signed an agreement to resolve all other pending issues related to linking their networks. The agreement was signed in the presence of telecom regulator TRAI over the weekend.

The agreement envisages that telcos mutually settle all other interconnect requests (outside the recent controversy) by October 15. It also envisages that telcos settle pending payments for existing interconnect agreements within the next seven days. Besides, all operators have also agreed to renew all interconnect agreements that have expired. More importantly, operators have also agreed that in case of similar disputes in their future they will adhere by Trai’s decisions on the issue.

Last week, the interconnection row between RCOM and GSM players was settled in closed door meetings in the presence of TRAI officials . Interconnection is the life line of telcos as without it the subscribers of one operator cannot make or receive calls from customers of another telco.

Traffic from one operator passes on to that of another at specific junctions called Points of Interconnect (PoI). The number of PoIs between operators depends on the volume of traffic flowing between their networks. The larger the number of PoIs, the lesser the congestion in the networks. Call drops, failure to connect on the first attempt and poor voice reception of calls happen when the traffic flowing between the networks of two operators is larger than what the PoIs can handle.

“When we resolved the interconnect row between GSM operators and RCOM, we came to know that there were several other outstanding issues related to interconnection. Several requests for interconnect have been pending for the last 18-24 months. We have got them to sign a comprehensive agreement where all pending requests will be completed before October 15,” a top Trai official told ET.

“As per this agreement, all operators have agreed to cooperate with each other on interconnection under the overall supervision and control of TRAI,” the official added. However, if operators fail to settle pending payments for interconnection within the next one week, or cannot settle issues bilaterally, Trai will step in again. In such a scenario, telcos will have to abide by TRAI’S settlement.

With telcos such as RCOM, the Tatas and others gearing up to offer mobile services on both platforms, TRAI has also a constituted a committee to determine the methodology to calculate the total revenues.

Source : Economics Times

Read More...

Global majors threaten to hang up on new telcos

MUMBAI: The government’s go-ahead for foreign telcos to bid for 3G spectrum has come as a blow for new Indian operators like Unitech Wirelss, Essar group’s Loop Telecom and Videocon’s Datacom Solutions. The valuations of these fresh 2G licensees may tumble as international operators find a new door to the world’s fastest-growing mobile phone market.

Players such as US-based AT&T, UAE’s Etisalat, Telecom Italia and Bahrain’s Batelco, who were in talks with new operators for buying stake, are now willing to pay much less than they were ready to shell out a month ago, according to industry insiders.

Foreign firms are now looking at bidding for 3G spectrum and roping in a minority Indian partner as against picking up a stake in the new telcos that are learnt to be seeking enterprise valuations in the range of $2-3 billion. “It’s better to bid for 3G spectrum and rope in a 26% Indian partner rather than pay a hefty price for being a minority partner in a new venture, which has no operations or brand name yet,” an official at an international telco told ET.

The base price for pan-India 3G spectrum is Rs 2,000 crore, or $500 million. Also, it is felt that with a wireless subscriber base of over 280 million, new operators may not be very successful in the 2G market where the cream of users has already been taken by existing players.

According to Ernst & Young India telecommunications leader Prashant Singhal, “There is a challenge for greenfield operators to demonstrate success. That is why, though many foreign players are interested in them, there could be valuation differences.”

Sources in the investment banking circles said Unitech had almost finalised a deal with Telecom Italia before differences over valuation surfaced. While Telecom Italia feels the enterprise value of Unitech Wireless is around $900 million, promoters feel it is much higher. UBS is advising Unitech on the divestment. Similarly, valuation of Datacom is said to be not more than $1 billion.

Meanwhile, it may not be difficult for the foreign operators to find minority partners for 3G operations. “The Indian partner we are seeking need not be a telecom player or with a business history in the technology sector. We may look at FMCG companies or infrastructure companies for tying up to gain entry in the lucrative Indian market,” the foreign telco official said. Besides, entities, which were denied license in the September-October 07 rush, may also be willing to become minority partners with foreign operators who are looking forward to bid for 3G spectrum, said the source.

Source : Economic Times

Read More...

High bidding for 3G licences may inflate consumers' bill

NEW DELHI: The next generation telecom services, or 3G, may not come cheap at all. Customers opting for 3G services may have to shell out double their current mobile bills if the forthcoming auction battle results into unreasonably high price for 3G licences.

According to international experience, customers should not pay more than 40% of their current bill if they opt for 3G services.

The department of telecom (DoT), which doubled the reserve price for 3G licences from what telecom regulator Trai had recommended earlier, fears that intense auctioning process for 3G may finally burden the customers, or even hinder the smooth roll-out of 3G services in India.

What’s more, if the finance ministry asks DoT to raise the reserve prices of spectrum, it may further put pressure on the final auction amount, and thereby on the billing of the end users.

Telecom secretary Siddharth Behura told SundayET that too much emphasis on revenue could spell doom for the roll-out itself. “I have no estimate of what could be the total revenue generated by this auction, but we should not be too revenue-centric either. Good, if we can raise a huge amount for the country, but if the 3G service providers are burdened with a heavy price for spectrum, they will pass that over to the consumers. There are some international examples where only technical capabilities of the service providers were weighed in for starting 3G. After all, rolling out the services is more important than anything else,” he argued.

Though the finance ministry has not asked DoT to raise the reserve prices so far, it may question the methodology to derive at the reserve price, SundayET has learnt. A senior finmin official said; “We are not happy with the content of the DoT’s reply after we had objected to the issuing of 3G guidelines without consulting us. Anyway, as spectrum is a scare commodity, we have every reason to know how they have derived at the reserve price. We are writing a letter to the telecom ministry asking the economic rationale behind fixing the reserve price for spectrums,” he said.

Significantly, the UK government in the 3G auction in 2000 gained a whopping £22.5 billion (Rs 182,500 cr), one of the highest amounts raised from such license sales globally. But it hurt the telecom companies and the roll-out was delayed by several years. Mr Behura said: “In the UK, the companies bought spectrum at such a high price that it became difficult for them to roll out the services. At times, companies bid for the sake of bidding and later find it impossible to execute the plans.”

KPMG director (telecom) Romal Shetty said India must learn a few lessons from UK. “India will have to make sure that it does not go the UK way where it took six years to launch the services. In India, I feel, the main market could be the metros, but the companies will have to struggle hard to get people interested in 3G. So far as the pricing is concerned, the customers have to be prepared to shell out at least 40% more of their current mobile bills after they opt for 3G services,” he said.

Source : Economic Times

Read More...