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Saturday, September 6, 2008

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

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Thursday, September 4, 2008

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

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Tuesday, September 2, 2008

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

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Monday, September 1, 2008

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

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Sunday, August 31, 2008

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

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