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TRAI moves SC on cable tariff ceiling rejection
February 12, 2009
The Telecom Regulatory Authority of India (TRAI) has moved the Supreme Court challenging a ruling by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that rejected its order to put a ceiling on cable service tariffs in the country.
This tariff order has been in existence for since 2007, and provides for ceilings on monthly cable TV charges paid by households across India. TDSAT rejected the order on the grounds that TRAI had violated principles of transparency.
A bench headed by Chief Justice KG Balakrishnan refused to stay the TDSAT order has directed both parties to maintain the status quo till the date of hearing i.e. February 27.
New FDI rules to bring greater investments in telecom
February 12, 2009
According to the Cellular Operators’ Association of India (COAI), the new norms for Foreign Direct Investment (FDI) would facilitate higher levels of foreign investment into the country.
The new rules allow foreign investors to adhere to the 74% cap norm on investments while increasing their investments through indirect holdings. Till now, both direct and indirect holdings were taken into account while calculating FDI. Hereon, what is held through a company controlled by Indians will be considered as domestic equity, increasing the margin for foreign equity to increase their holdings.
The second half of 2008 saw almost US$ 6 billion of FDI flow into India’s telecom sector. And the new FDI regime will only boost this figure with particular beneficiaries being telecom companies Bharti Airtel, Vodafone Essar and Idea Cellular.
TRAI wants new method for 2G spectrum allocation
February 11, 2009
The Telecom Regulatory Authority of India (TRAI) has asked the government to come up with a new method for allocating 2G spectrum to existing telecom operators after the 3G auctions take place.
India currently has been allocating 2G spectrum to telcos based on their subscriber numbers. However, after the 3G spectrum auctions take place, it will not be possible to divide the subscriber base of a telecom operator into 2G users and 3G users. Therefore, it will be difficult to use the subscriber base criterion for allocating 2G frequencies to a telecom operator providing both 2G and 3G services.
TRAI has recommended that this matter be referred to the Committee constituted by the Department of Telecom (DoT) for issues related to spectrum allocation criteria.
DoT-BSNL agreement for rural telephony
February 10, 2009
The Department of Telecom (DoT) and state owned telco Bharat Sanchar Nigam Limited (BSNL) have signed an agreement to provide 8.61 lakh connections to individual users and government institutions through rural and remote exchanges by 2014.
BSNL has already started rolling out wire-line connectivity to rural and remote areas of the country, with financial assistance from the Universal Service Obligation Fund (USOF).
The financial assistance is to ensure broadband connections at lower rates to the consumers.
Telcos to face Rs. 477 cr fine
February 10, 2009
The communications ministry is set to impose a fine of Rs. 477.15 crore (US$ 97 million) on telecom companies for failure to meet rollout obligations.
As per the conditions of the license, all operators are scheduled to launch telecom services in a phased manner within a stipulated timeframe. According to the norms, any player granted a license, must launch services in at least 10% of the districts in their pre-determined circle/area within the first year of getting the license, and 50% of the districts within three years.
All operators have apparently failed to fulfill the criteria particularly those in smaller towns and cities.
CDMA cos have to match highest GSM bid
February 10, 2009
Indian CDMA operators, Reliance Communications, Tata Teleservices and Sistema-Shyam, will have to match the highest price paid by GSM operators at the upcoming 3G spectrum auctions, as per recommendations of the Telecom Regulatory Authority of India (TRAI).
While they have to match the highest GSM bid, the price actually paid by a CDMA operator will be in proportion to the amount of frequency allotted. For e.g. if CDMA players are allotted one-fourth of the amount of airwaves given to GSM players, they would have to pay one-fourth of the highest GSM bid.
SC order prevents BSNL action against private telcos
February 9, 2009
The Supreme Court has issued a clarification order preventing state owned telco Bharat Sanchar Nigam Limited (BSNL) from taking action against private telcos for not paying access deficit charges (ADC) worth over Rs. 90 crore (US$ 18 million).
This would mean that the Association of Basic Telecom Operators, HFCL Infotel Ltd., Shyam Telelinks, Tata Teleservices Ltd. (TTSL) and others who had sought a stay on the demand notices issued by BSNL will not have to pay ADC.
Spectrum release might be delayed
February 9, 2009
The Indian army, which was to vacate airwaves for allocation to telecom players, has now said that spectrum cannot be released in the phased manner agreed upon earlier.
Instead, the Army has said spectrum should be released for commercial use only after government controlled Bharat Sanchar Nigam Ltd. (BSNL) finishes building alternate networks for all three wings of the defense forces – Army, Air Force and the Navy – which is scheduled to be completed by 2011.
According to the earlier agreement between the communications and defense ministries, the three wings were to vacate airwaves in a phased manner based on the progress of this alternative network. BSNL would complete the Air Force Network in June 2009, by which time the communications ministry wants the Air Force to vacate the airwaves it is using.
The panel of ministers looking into the issue of spectrum vacation is to meet to resolve the deadlock. Spectrum is crucial for telecom companies to launch telecom services, maintain the quality of their services and expand their customer base.
Service offerings vs. cheaper packages
February 12, 2009
Reliance Communications move to slash its GSM rates by 50% is most likely to trigger a round of price wars in the mobile services field. However, a recent study by Lirneasia shows that the subscriber base is more driven by service offerings, and would not necessarily switch their service provider for cheaper packages offered by another.
The level of competitiveness in the telecom segment is high in India. But the findings of the survey indicate that customer retention in this competitive scenario is still high.
Record 9.3 mn GSM subscribers added in Jan
February 10, 2009
GSM operators added a record number of 9.3 million subscribers in January 2009, taking its total base to 267.5 million.
Airtel added 2.73 million new customers while Vodafone Essar added 2.4 million. Additions for Idea Cellular and Bharat Sanchar Nigam Ltd. (BSNL) were 2 million and 1.31 million respectively.
PC sales in the first-half of 2008-09 cross 3.69 mn units: MAIT
February 10, 2009
The Manufacturers’ Association for Information Technology (MAIT) has announced the findings of its Industry Performance Review for the first-half of financial year 2008-09.
The total PC sales between April and September 2008, with desktop computers and notebooks taken together, were 3.69 million (36.9 lakh) units, registering a growth of 12 per cent over the same period last fiscal.
Commenting on the findings of the study, MAIT Executive Director, Mr Vinnie Mehta said: “Consumption in the large and medium enterprises has helped sustain the PC market in India, especially for the desktops, in the first half of 2008-09. The overall consumption in the PC market was led by telecom, banking, education, BPO/IT-enabled services, and the e-governance initiatives of the Union and the state governments.”
Bharti Airtel Launches World's First Windows-Based Online Desktop
February 15, 2009
Bharti Airtel has announced the launch of the world's first Windows based Online Desktop-powered by Microsoft and Nivio, giving access to a personal virtual desktop from any computer connected to the internet for Airtel broadband customers. This initiative will pave the way for easy and affordable access to computing and broadband in India for Airtel broadband customers across 95 cities.
Commenting on the announcement Mr. Rajan Anandan, Managing Director, Microsoft India said, "Microsoft is committed to deliver solutions that help make it easier and more accessible for customers. This partnership with Bharti Airtel and Nivio brings us closer to this vision. We believe that Bharti Airtel's strong reach will be able to deliver the power of computing to users in far-flung areas. For the small office segment and home professionals - this is a timely offer that will help them control costs and also increase productivity - so important in the prevailing environment."
World's Slimmest All-in-one PC Comes to India
February 14, 2009
MSI has officially announced the Wind NetOn AP1900 all-in-one desktop PC, which is claimed to be the world's slimmest all in one PC.
The Wind NetOn AP1900 is powered by an Intel Atom N270 processor, 2GB of RAM, a 160GB hard drive and integrated GMA950 video chipset. It is available at the price range of Rs 40,000.
CISCO-TCS strategic alliance to build next-gen data centres
February 10, 2009
Cisco and Tata Consultancy Services (TCS) today announced that they have entered into a strategic alliance to develop and deliver information technology (IT) service solutions to help customers build or evolve next-generation data centres by taking advantage of the network as a platform. Under the agreement, TCS will build a new technology practice focused on Cisco’s industry-leading data centre networking and security solutions.
The TCS and Cisco strategic alliance will initially focus on India as well as mutual enterprise customers in the United States and the United Kingdom in the key verticals of banking and finance services, telecom, and government as well as small and medium-sized business.
The companies also announced the formation of a Cisco® Technology Lab at the TCS campus in Chennai, India.
RCom Ditech tie up on voice enhancement solutions
February 13, 2009
Reliance Communications (RCom) has tied up with US based Ditech Networks to deploy its voice enhancement solutions on RCom’s GSM network. The deal is worth approximately Rs. 50 crore (US$ 10 million).
Ditech Networks is a global telecommunications equipment supplier for communications networks. The use of its solutions by RCom is expected to enhance voice clarity on Reliance Mobile by approximately 30 percent.
Tata Communications investing $430 mn in S’pore unit
February 13, 2009
Tata Communications is investing US$ 430 million to develop a data centre in Singapore and complete its intra-Asia cable system – Tata Global Network. The move is a part of the company’s US$ 2 billion capex for the financial year 2008-09.
The data centre – Tata Exchange – is expected to be operational by early 2010.
Wipro launches ‘Wipro RAPIDS’
February 13, 2009
Wipro Technologies, the global IT services arm of Wipro Limited, has announced the launch of Wipro RAPIDS (Rapid Application Integration & Deployment Solution) – a solution for communications providers to rollout services in a quick and cost-effective manner.
Wipro RAPIDS is an integrated solution comprising of best of breed application platforms and Wipro component frameworks. It is aimed to provide Innovative features and functionalities that are typically required for launch of next generation converged services. It consists of CRM, Order Management, Rating & Billing and Service Assurance components.
MVAS co. raises $6 mn from US firm
February 11, 2009
ValueFirst Messaging, a mobile value added services (MVAS) company has raised US$ 6 million from US-based venture capital firm New Enterprise Associates (NEA) for its expansion plans.
ValueFirst currently offers only SMS-based services, but is now planning to launch Internet and voice-based services for mobile platforms in India.
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