Convergence Plus Journal

POLICY

TRAI seeks industry perspective on lock-in period proposal
January 10, 2009

The Telecom Regulatory Authority of India (TRAI) has asked for the industry’s views on DoT’s proposal to impose a lock in period on investments by promoters of new telecom license holding companies.

The DoT had suggested imposing a lock-in period on the sale of promoter’s equity in start up companies who were given telecom licenses last year. The suggestion followed criticisms of telecom minister A Raja’s decision to offer pan-India licenses for ‘throw-away prices’ of Rs. 1,651 crore (US$ 330 million), which had allegedly resulted in the loss of Rs. 50,000 crores (US$ 10 billion) to the exchequer.

The move is intended to prevent operators from making windfall gains by acquiring licesenses cheaply and then divesting stakes for multiple the amounts paid for the license. Last year, the DoT had awarded licences to Swan Telecom and Unitech Wireless. Swan then sold a 45% stake to UAE's Etisalat for US $900 million while Unitech sold a 60% stake to Norway's Telenor for US $1.1 billion.

TRAI has sought the views of industry stakeholders on issues like the time frame for the proposed lock in, whether the equity sale should be linked to fulfilling rollout obligations, whether prior permission should be necessary for any change in the equity holding and if existing licensees should be exempt from the lock-in conditions on sale of equity and declaration of special dividend.

3G auctions: DoT may allow 8 bidders per circle
January 9, 2009

The Department of Telecom is contemplating increasing the number of slots available for bidding at the upcoming 3G auctions from 5 to 7-8 bidders per circle. The proposal is to be sent to the Cabinet Committee on Economic Affairs (CCEA) next week.

The proposal is expected to be welcomed by domestic telcos as well as to interest global players in the upcoming 3G auctions.

Pre-paid connections might be banned in North-East, J&K
January 9, 2009

The Indian government is considering banning pre-paid cellular services in security sensitive areas like the North-Eastern states and Jammu & Kashmir, from February 22 onwards.

Pre-paid services are currently being offered in these states but the deadline expires next month and there is no indication that the DoT will extend the deadline or not. However, the final decision on this rests with the home and defence ministries, not with the DoT alone.

The Cellular Operators Association of India (COAI) has requested the DoT for an extension, in the interest of all holders of pre-paid connections in these areas, which would be in danger of being disconnected.

Another restriction, which has been imposed in the state, is of disallowing citizens of other Indian states owning a pre-paid connection from using roaming facilities while in the J&K or in any of the seven North Eastern states.

Ban on mobile handsets without IMEI code postponed
January 7, 2009

The Department of Telecom’s (DoT) decision to ban mobile handsets that do not bear the International Mobile Equipment Identity (IMEI) code, has been deferred.

The DoT had asked telecom operators to disconnect handsets that do not have the unique 15-digit number by January 6. But now, no action shall be taken while the order is pending with the telecom ministry.

Ministry of IT, DIPP support DoT’s stand on 3G price
January 7, 2009

The Department of Industrial Policy and Promotion (DIPP) and the Ministry of Information Technology are in favor of keeping the reserve price for 3G spectrum at Rs. 2020 crore (US$ 400 million), as originally proposed by the Department of Telecom (DoT).

This is against the Finance Ministry’s demand to double the reserve price to Rs. 4040 crore (US$ 800 million). The DoT has placed the matter before the Cabinet Committee on Economic Affairs (CCEA) for a final decision.

MSOs seek hike in FDI limits in cable TV segment
January 6, 2009

Multi-sytem operators (MSOs) are seeking a hike in the foreign direct investment (FDI) limits in the cable TV sector from the existing 49%.

This is following the Information & Broadcasting (I&B) ministry’s decision to raise the FDI limit in the direct-to-home (DTH) sector to 74% from the existing 49%. Now the MSO’s are seeking a similar hike in the cable TV segment.

The ministry had earlier held the view that the ceiling for FDI can be raised in platforms like DTH, mobile TV, HITS and satellite radio, but had excluded the cable TV sector because they did not want management control in this predominant distribution platform to pass from Indian to foreign hands.

Now the ministry is considering raising the FDI limit in cable TV in order to bring it at par with the other segments.

DoT to issue clarification to prospective MNP bidders
January 6, 2009

The Department of Telecom (DoT) will issue clarifications on the mobile number portability (MNP) norms to prospective bidders on January 22.

The DoT had decided to issue clarifications to the queries of telecom operators in a pre-bid conference last month, but has delayed the date of issue by one month.

The government had chalked out a roadmap for MNP implementation by June 2009 in metros and category A circles. However, the delay in issuing clarifications is likely to cause a delay in implementing MNP.

DoT rejects FinMin’s proposal on 3G reserve price
January 5, 2009

The Department of Telecom (DoT) has rejected the Finance Ministry’s proposal to double the reserve price for 3G spectrum from Rs. 2020 crore (US$ 400 million) to Rs. 4040 crore (US$ 800 million).

The DoT is against an increase in the 3G reserve price as it fears that this would reduce interest from prospective bidders. Already the 3G auctions, slated to begin at the end of the month, have received a poor response from foreign players.

Doubling the reserve price would also drive up the cost of 3G services, which would be passed on to the end consumers.

UP police asks mobile cos. to freeze handsets without IMEI code
January 5, 2009

The Uttar Pradesh police have asked mobile companies in the state to freeze handsets not bearing the International Mobile Equipment Identity (IMEI) code. Mobile phones not bearing the IMEI number cannot be traced during surveillance and thus, pose a security threat.

The UP Director General of Police (DGP) has also directed officers to shortlist companies, which were not following the guidelines, for recommendation of action against them.

Top

TRAI report: Airtel, Vodafone networks most congested
January 8, 2009

According to a report by the Telecom Regulatory Authority of India (TRAI), telecom operators Bharti Airtel followed by Vodafone are the most congested networks, leading to loss of calls and lower quality of service.

Users of these networks have connectivity problems while trying to call users of other networks. Areas most impacted by congestion are Bihar, Maharashtra, Gujarat, Mumbai, Uttar Pradesh and Himachal Pradesh.

India to have 2,50,000 telecom towers by end fiscal 2008
January 7, 2009

By the end of March 2008, the numbers of telecom towers in India is expected to stand at 2,50,000. With aggressive rollout targets by operators, we may end up with a greater number of towers than actually required. The telecom industry requires 3,00,000 towers by financial year 2011.

The trend is expected to lead to consolidation in the sector. Tata Teleservices (TTSL) and Quippo Telecom Infrastructure Ltd. have already decided to merge their tower business. We may see other firms following suit in the near future.

XFX GeForce 9600: First graphics card with 1.5 GB memory
January 11, 2009

XFX has introduced a new graphics card in India with a massive memory of 1.5 GB. The XFX GeForce 9600 GSO 1.5 GB Far Cry 2 Edition graphics card supports up to 2560 X 1600 pixel resolution.

The card is available for Rs. 10,000 (US$ 200) in the Indian market inclusive of the game Far Cry 2.

Nokia launches touch-screen in phone in India
January 9, 2009

Nokia has launched its first touch-screen handset in India – the Nokia 5800 XpressMusic, available for a price of Rs. 19,999 (US$ 400).

The phone has a 3.2 inch screen with a 640 X 360 pixel resolution and a 3.2 megapixel camera. To enhance the music experience, the phone has built-in high performance ‘big sound’ stereo speakers, a 3.5 mm jack output, bass booster, stereo widening, full-function Media Player and a graphics equalizer.

Dell launches XPS Studio laptops
January 9, 2009

Dell has unveiled the Dell Studio XPSTM 16 and the Dell Studio XPS 13 laptops – the first Studio laptops to bear the XPS high-performance designation.

Studio XPS laptops combine high-power performance and state-of-the-art features including:

The Dell Studio XPS laptops are available in the range of Rs. 60,000 (US$ 1200) to Rs. 69,000 (US$ 1400) in the Indian market.

Panasonic to launch world’s first portable blu-ray player
January 8, 2009

Panasonic may win the race to launch the world’s first portable Blu-ray player. It’s DMP-15, is scheduled to go on sale in May 2009.

The DMP-15 has an 8.9-inch WSVGA (1024 X 600 pixel) LCD screen. Pricing details are yet to be announced.

Airtel to launch services in Sri Lanka by January 12
January 5, 2009

Bharti Airtel will launch telecom services in Sri Lanka on January 12, becoming the fifth cellular service provider on the island.

Airtel, will simultaneously launch 2G and 3G services in Sri Lanka, investing US$ 200 million in the operations.

TTSL sells stake in tower arm to Quippo
January 5, 2009

Tata Teleservices (TTSL) has agreed to sell a stake of 49% in its telecom tower business to Quippo Telecom Infrastructure Ltd. for a sum of Rs. 2400 crore (US$ 492 million).

Quippo will transfer 5000 towers to the merged entity. The new entity, called Wireless-TT Info-Services, will be managed by Quippo and will have 18,000 towers in total. The plan is to increase the number of towers to 50,000 by 2010-11.

Tata Teleservices to introduce GSM services
January 5, 2009

Tata Teleservices (TTSL) is to announce the launch of GSM services shortly. The CDMA operator has got spectrum in 13 circles and expects to add more by the end of the month.

With 31 million subscribers as of end-November 2008, TTSL is the sixth-largest service provider in India.