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Saturday, June 20, 2009
Friday, June 19, 2009
Govt maps out 3G availability; auctions may earn Rs 21,480 cr
The department of telecom (DoT) has finally mapped out the availability of third generation (3G) airwaves that can be put up for the upcoming
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auctions across the country. The plan shows that the government can earn over Rs 21,480 crore if the frequencies are auctioned according to the finance ministry’s formula.
The finance ministry wants all available radio frequencies to be auctioned and the base-price for the airwaves to be doubled. On the other hand, the communications ministry wants to limit the base-price at Rs 2,020 crore per player and restrict the number of players to a maximum of seven.
Spectrum or radio frequencies are airwaves on which telecom signals travel. The availability of 3G spectrum, vital for high-end services, such as video conferencing and high-speed internet on the mobile, varies across different regions of the country, according to an internal note of DoT.
The telecom ministry’s latest assessment reveals that only four private players can be given airwaves for offering these high-end services in Delhi, while in Mumbai, there is enough frequency for eight players. Key circles, such as Andhra Pradesh, Karnataka and Tamil Nadu, have space for 11 private players each. A minimum of six private operators can be given these airwaves in all circles except in Uttar Pradesh, Himachal Pradesh, North East, West Bengal and Rajasthan. (refer table).
ET_NOW.jpg
auctions across the country. The plan shows that the government can earn over Rs 21,480 crore if the frequencies are auctioned according to the finance ministry’s formula.
The finance ministry wants all available radio frequencies to be auctioned and the base-price for the airwaves to be doubled. On the other hand, the communications ministry wants to limit the base-price at Rs 2,020 crore per player and restrict the number of players to a maximum of seven.
Spectrum or radio frequencies are airwaves on which telecom signals travel. The availability of 3G spectrum, vital for high-end services, such as video conferencing and high-speed internet on the mobile, varies across different regions of the country, according to an internal note of DoT.
The telecom ministry’s latest assessment reveals that only four private players can be given airwaves for offering these high-end services in Delhi, while in Mumbai, there is enough frequency for eight players. Key circles, such as Andhra Pradesh, Karnataka and Tamil Nadu, have space for 11 private players each. A minimum of six private operators can be given these airwaves in all circles except in Uttar Pradesh, Himachal Pradesh, North East, West Bengal and Rajasthan. (refer table).
Sunday, June 14, 2009
BSNL drops plan to bid for Tunisia license
NEW DELHI: BSNL has dropped its plans to bid for telecom licence in Tunisia as the PSU finds the returns not enough to enter that market through bidding of licence.
"We did not bid for Tunisia... we did not find returns on our investment," a senior BSNL official said.
Earlier the PSU's CMD Kuldeep Goyal had said BSNL was planning to bid for telecom licence in Tunisia and get a footprint in the African market, which has immense potential.
But not bidding for Tunisia does not mean BSNL has lost sight of the potential of the African region, which it says has growing mobile usage.
BSNL official said the minimum bid price was understood to be $10 million but the Tunisian market is well- penetrated with 80 per cent of the population owing mobile phones leaving not much scope for more penetration.
BSNL has shortlisted eight consultants, including Ernst & Young, McKinsey, KPMG and PriceWaterHouseCoopers, for its plans of mergers and acquisitions, strategic partnerships and overseas forays.
The state-run firm, which so far concentrated only on the Indian market (except Delhi and Mumbai), has decided to expand overseas. Sources said BSNL has a cash surplus of over $10 billion and would use part of these resources for its overseas foray.
After being denied entry to Delhi and Mumbai, BSNL was finally granted permission by the government to venture outside the country through acquisitions, JVs and licence buys to expand.
BSNL has already set up a separate international business division to explore telecom opportunities abroad.
Last year, Bharti Airtel and Reliance Communications entered into negotiations with the South Africa-based telecom giant MTN to expand in the African continent, but the talks failed. Bharti again has revived talks with MTN for a cash- cum-stock acquisition.
Earlier this year, Tata Communications announced plans to expand its operations in Africa through acquisitions, joint ventures, and new projects, and in January increased its stake in South African fixed-line operator Neotel to 56 per cent.
BSNL's sister concern MTNL has already forayed into Nepal and Mauritius. Analysts said BSNL may be exploring the possibilities of bidding for mobile licences in Egypt, Rwanda, Malawi, Turkey and Iran. All these countries will open bids for licence auction within the next couple of months.
"We did not bid for Tunisia... we did not find returns on our investment," a senior BSNL official said.
Earlier the PSU's CMD Kuldeep Goyal had said BSNL was planning to bid for telecom licence in Tunisia and get a footprint in the African market, which has immense potential.
But not bidding for Tunisia does not mean BSNL has lost sight of the potential of the African region, which it says has growing mobile usage.
BSNL official said the minimum bid price was understood to be $10 million but the Tunisian market is well- penetrated with 80 per cent of the population owing mobile phones leaving not much scope for more penetration.
BSNL has shortlisted eight consultants, including Ernst & Young, McKinsey, KPMG and PriceWaterHouseCoopers, for its plans of mergers and acquisitions, strategic partnerships and overseas forays.
The state-run firm, which so far concentrated only on the Indian market (except Delhi and Mumbai), has decided to expand overseas. Sources said BSNL has a cash surplus of over $10 billion and would use part of these resources for its overseas foray.
After being denied entry to Delhi and Mumbai, BSNL was finally granted permission by the government to venture outside the country through acquisitions, JVs and licence buys to expand.
BSNL has already set up a separate international business division to explore telecom opportunities abroad.
Last year, Bharti Airtel and Reliance Communications entered into negotiations with the South Africa-based telecom giant MTN to expand in the African continent, but the talks failed. Bharti again has revived talks with MTN for a cash- cum-stock acquisition.
Earlier this year, Tata Communications announced plans to expand its operations in Africa through acquisitions, joint ventures, and new projects, and in January increased its stake in South African fixed-line operator Neotel to 56 per cent.
BSNL's sister concern MTNL has already forayed into Nepal and Mauritius. Analysts said BSNL may be exploring the possibilities of bidding for mobile licences in Egypt, Rwanda, Malawi, Turkey and Iran. All these countries will open bids for licence auction within the next couple of months.
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