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).

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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.

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Operators to stop services to phones sans IMEI no from Apr 15

NEW DELHI: About 250 lakh handsets are expected to be out of service from April 15, as GSM service providers, including Airtel and Vodafone, gear
up to deny connectivity to cell phones without International Mobile Equipment Identity (IMEI) number.

Concerned over the national security, the Department of Telecommunications
(DoT) has asked operators to disconnect services to handset that does not have an IMEI number. IMEI is a 15-digit code which appears on the operator's network whenever a call is made.

If all service providers adhere to the deadline given by DoT, nearly 250 lakh handsets, which are almost 10 per cent of the total GSM mobile phones in use in the country and mostly China-made, are likely to go out of service, industry sources said.

Analysts feels that the move is also likely to hit the revenue of telecom firms as phones which have no IMEI numbers are usually low-cost and unbranded and used by low-end subscribers.

To get these subscribers back on the network would be a challenge for the telcos as they have to provide these subscribers subsidised or free handsets.

In October 2008, DoT had set December 31, 2008, deadline to stop services to handsets without IMEI numbers. The deadline has been extended to April 15, 2009.

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BSNL to roll-out 3G in 700 cities by June

MUMBAI: Public sector telecom major, Bharat Sanchar Nigam Limited (BSNL), is all set to launch its 3G operations in 700 cities across north and
east India by June and in the south by July, a senior company official said.

"We plan to bring 3G to north and east India by June," BSNL Deputy Director General (VAS) S S Sirohi told reporters here today.

The services would be launched in east and west Uttar Pradesh, Uttarakhand, Himachal Pradesh, Punjab, Haryana, Bihar, Jharkhand and Assam. We plan to cover over 700 cities in the next three months (by June)," Sirohi said.

The company is also targeting its 3G launch in Kolkata next month.

The net outflow towards launching this service in the 700 cities is around Rs 2,700-crore, he said.

BSNL, with a huge presence in the northern and eastern parts of India, has 42-million mobile subscribers presently.

"By March 2010, the number of our 3G subscribers will go up to about 60-million in the country," Sirohi said.

The state-run telecom behemoth would focus on mobile broadband, mobile television, online gaming, video streaming, full track downloading and video telephony, he said.

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BSNL lowers mobile tariffs to 50 paise for local, STD, SMS

CHENNAI: Initiating another round of tariff war, state-run BSNL on Sunday announced a new plan offering local and STD call at just 50 paise a

minute across all the network, while the charges would be 20 and 30 paise for BSNL to BSNL.

BSNL's new tariff plan "India
Golden Fifty", offering local and STD call at just 50 paise would be available from March 1. and the scheme, along with BSNL's 3G mobile services in the state, was launched by Tamil Nadu Chief Minister M Karunanidhi.

BSNL Chairman Kuldeep Goyal told reporters that the Golden Fifty plan would be available to consumers for a monthly rent of Rs 375 inclusive of taxes.

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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.

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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

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