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New timeline for 3G auctions to be decided soon
January 17, 2009
Minister of State for Communications & Information Technology, Jyotiraditya Scindia has said that the new dates for the commencement of 3G auctions will be decided within the next 10 days.
The commencement of 3G auction, was delayed from January 16 to January 30, as the Department of Telecom (DoT) is yet to receive approval from the Cabinet Committee of Economic Affairs (CCEA) on the issue of reserve price for the 3G frequencies.
The Ministry of Finance had asked the DoT to double the reserve price from Rs. 2020 crore to Rs. 4040 crore, while the Ministry of Industry and the Ministry of IT had supported DoT’s price of Rs. 2020 crore (US$ 411 million).
The decision is now awaiting approval from the CCEA.
DoT asks MCA to probe Swan ownership issue
January 17, 2009
The Department of Telecom is seeking a probe into the issue of actual ownership of Swan Telecom. It has asked the Ministry of Corporate Affairs (MCA) to make inquiries into the issue.
The request for the probe came after some members of parliament wrote to the Prime Minister regarding the issue. The prime minister’s office then asked the DoT to look into the matter.
In addition to the ownership structure of the company, MCA will also investigate whether Reliance ADAG held more than a 10% stake in Swan Telecom, at the time when the latter had applied for a telecom license. According to regulations, a telecom company cannot hold greater than 10% in another operator that offers services or has the license to launch services in the same circle.
Reliance ADAG has maintained that it had only a 9.9% stake in Swan, through a subsidiary Reliance Telecom, and that it had exited Swan before it received a mobile license.
TDSAT rejects TRAI order proposing cable tariff ceiling
January 15, 2009
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has rejected an order by the Telecom Regulatory Authority of India (TRAI) that seeks to apply a ceiling on cable services charges in the country.
The rejection of the order was on the grounds that TRAI has violated the principles of transparency in passing the order.
TRAI had issued a circular proposing a price band of Rs. 132-260 for cable services based on the number of pay channels provided by the multi-system operator (MSO) and depending on the city.
VAS companies don’t require license, says TRAI
January 15, 2009
The Telecom Regulatory Authority of India (TRAI) has said that companies offering value-added services (VAS) do not need a license and can continue to operate without one.
All telecom services, excepting voice, are classified as VAS applications. These include SMS, music, m-commerce, video, GPRS, games etc. TRAI has proposed that VAS players register themselves with the Indian government under a separate category named ‘Other service provider (OSP) – Value Added Services’
Defence forces demand reservation of 3G frequencies
January 15, 2009
The Indian defence forces have put forward a demand for reservation of a portion of 3G spectrum to meet their future communications needs.
The communications ministry had decided to restrict the auction of 3G spectrum to five players per circle, in light of keeping some available spectrum in reserve for the defence forces.
Also, the communications ministry and the defence ministries are proposing a plan for a single defence spectrum band, after dividing all airwaves in the nation into two categories – civilian and military. This means that the defence forces would have to vacate spectrum they currently hold which will fall under the civilian band, and also buy technologies that work only in their band.
Non-IMEI handsets may mean penalties for GSM operators
January 14, 2009
The communications ministry may impose a penalty on all GSM operators for not barring mobile services on handsets that do not bear the International Mobile Equipment Identity (IMEI) number. The penalty would be levied on a per-day basis from January 6, 2009 and doubled every 15 days.
The operators would also not be able to add new subscribers from April 15, 2009 if they do implement systems to ban calls on non-IMEI handets. The Department of Telecom has directed operators to install an Equipment Identity Register (EIR) to store IMEI numbers, which are reflected in the operators network when a call is made or received, by April 15.
The industry had been seeking more time in order to educate their customers about IMEI and to let them use a newly developed software that would provide non-IMEI handsets with a unique number, since some subscribers who use cheap Chinese handsets (non-IMEI) cannot afford new phones.
However the Intelligence Bureau has objected to this software since it allows users to modify and rewrite genuine IMEI numbers.
DoT and TRAI disagree over number of 3G blocks to be auctioned
January 14, 2009
The Department of Telecom (DoT) and the Telecom Regulatory Authority of India (TRAI) cannot seem to come to a resolution on the number of blocks of 3G spectrum to be auctioned. TRAI recommends auctioning all the available spectrum, while the DoT wants to keep a portion of spectrum in reserve.
TRAI is concerned about keeping a fair and level playing field in the 3G segment and it feels that auctioning only a part of spectrum might encourage cartelization by the dominant players.
However, DoT is trying to address demands by the defence forces to keep some of 3G spectrum in reserve for their future needs.
DoT seeks Law Ministry’s view on 3G reserve price
January 13, 2009
The communications ministry has asked the law ministry for its views on the issue of whether the reserve price for 3G and broadband wireless access (BWA) should be doubled or not.
The finance ministry has proposed doubling the reserve price from Rs. 2020 crore (US$ 411 million) to Rs. 4040 crore (US$ 823 millioin) and to start bids for BWA technologies at Rs. 2020 crore. The DoT does not favor this increase in base prices for the upcoming auctions.
The DoT has now asked the law ministry whether the matter should be referred to the Telecom Regulatory Authority of India (TRAI) for its recommendations. If this happens, 3G auctions, which have already been deferred twice, would be further delayed till mid-February.
News channels oppose proposal to allow only authorized feed in emergency events
January 12, 2009
Private TV news channels are opposing a government proposal to allow them to air only authorized feed in a law and order situation like the recent Mumbai terror attacks.
The News Broadcaster’s Association (NBA) has conveyed its opposition to the Minister of State for Information and Broadcasting, Anand Sharma. NBA has already framed some guidelines for coverage of such events. According to NBA guidelines, there should be no live coverage of events, which facilitates publicity of terrorist outfits and allows them to air their views.
Handset makers tap into rural sector
January 16, 2009
The mobile phone market in rural areas is experiencing a growth in sales of over 30%. This is attracting the interest of leading handset makers like Nokia, Samsung and Motorola, who are even drawing up separate business plans for these markets.
These plans include introducing affordable handsets, customized for rural customers with features like Hindi SMS, mobile services like information SMS based on agriculture, education etc. Nokia and Samsung are even tying up with microfinance companies to enable payments for handsets in easy installments.
Smartphones to register 23% CAGR by 2011
January 15, 2009
The smartphone market in India, currently sized at 5 million units, is projected to grow at a CAGR of 23% by 2011, according to reports by research firm Ascendia.
This is a higher growth rate than the one of 10% being experienced by the regular handset market. Clearly the smartphone category has not been hit by the recession.
Smartphones, have a number of data and multimedia applications, are favored by professionals as it enables them to access their emails and work on the go. Nokia and RIM (makers of the Blackberry) have introduced popular smartphones in the country.
Telecom industry records Rs. 37,196 crore revenue in Q2
January 13, 2009
The telecom wireless market has earned revenues worth Rs. 37,196 crore (US$ 7.5 billion) during the second quarter (July-September 2008), growing at 9.91%.
The Telecom Regulatory Authority of India has stated that a total of 28.44 million subscribers were added in the second quarter, taking the total subscriber base of wireline and wireless services to 353.66 million by end September 2008, registering an increase of 8.55 percent over the previous quarter. Tele-density has reached 30.64 in the second quarter as compared to 28.33 for the first quarter.
Internet wireline subscribers grew at 4.97 percent over the previous quarter to reach a total of 12.24 million. The number of broadband subscribers grew at 11.87% during this quarter.
Q2 also saw a rise in the number of free-to-air (FTA) channels and pay channels being carried by cable networks for TV to 161 and 129 respectively.
8.12 mn GSM mobile users added in Dec
January 13, 2009
GSM players in India have added 8.12 million mobile users in December 08, taking the GSM subscriber base upto 258 million, at a growth of 3.25% over November 2008.
According to figures compiled by the Cellular Operators Association of India (COAI), Bharti Airtel led the growth with 2.7 million users added in December. Airtel now commands a market share of 33.22% in the GSM segment.
Vodafone Essar and Idea Cellular were at second and third place adding 2 million and 1 million subscribers respectively in December.
Seagate launches Pipeline HD disks for DVRs
January 18, 2009
Seagate has introduced new Pipeline HD hard disks for digital video recorders (DVRs).
The Pipeline HD Mini, available in 160 GB and 250 GB capacities, is the world’s first 2.5 inch hard drive for DVRs. The Pipeline HD.2 is available in 250 GB, 500 GB and 1 TB capacities.
Tata Sky recently launched India’s first DVR – the Tata Sky Plus. The Pipeline HD series is ideal for DVRs, media center PCs, IPTV etc. The new series of hard drive disks will be available in India in the second half of 2009.
Mobile-based Tax Payments not well received
January 15, 2009
The scheme to enable Mumbaikars to pay their taxes via mobile phones was introduced two weeks ago, but the awareness level is still very low as no promotions were done.
Only three people have utilized this facility so far. Most people are unaware about this provision.
Induction of robots in Mumbai Police?
January 13, 2009
The Mumbai Police has been seeking induction of advanced techniques to fight terror. They are planning to have robots working for them, performing activities like handling of improvised explosive devices, hazardous chemicals and radioactive materials, defusing of bombs etc.
However, this plan has been ongoing for years now and nothing has materialized. The reason primarily is the availability of funds only in phases, which has caused a lot of delay.
Airtel to launch IPTV
January 18, 2009
Bharti Airtel is set to launch Internet Protocol Television (IPTV) services in the nation, joining the ranks of MTNL, Reliance Communications and HFCL, which have already started IPTV services.
Airtel has tested the services through a soft launch in certain cities. IPTV delivers TV through broadband offering triple play services (voice, data and video).
RTIL, Swan considering infrastructure-sharing deal
January 17, 2009
Reliance Communications’ tower arm Reliance Telecom Infrastructure Ltd. (RTIL) and Swan Telecom are in the advanced stages of their discussions regarding an infrastructure sharing deal.
Swan Telecom, received its telecom license in 2008. If the deal goes through, Swan will be able to begin its mobile services riding on RTIL’s infrastructure.
MTNL to launch 3G services in Delhi this month
January 16, 2009
State owned telco Mahanagar Telephone Nigam Ltd. (MTNL) has stated its intention to commercially launch its 3G services in Delhi within 10 days. In Mumbai, MTNL will launch 3G services in the first week of February.
RIM’s Blackberry forays into consumer segment
January 15, 2009
Makers of the Blackberry handsets, Research in Motion (RIM), have decided to enter the consumer segment in India by selling unlocked handsets through retail stores.
Having already tapped the enterprise segment, now RIM is focusing on India’s consumer sector by rolling out consumer centric mobile applications.
As a part of its new strategy, RIM has tied up with Redington India to establish a retail distribution channel in the country. According to the terms of the agreement, BlackBerry smartphones will be available in retail outlets across the cities of Ahmedabad, Bangalore, Chennai, Delhi & NCR, Hyderabad, Kolkata, Mumbai and Pune.
Intel Capital invests US$ 23 mn in 3 India cos.
January 14, 2009
Intel Capital, Intel Corporation's global investment organization, has announced an investment of US$23 million in three Indian companies: One97 Communications (telecom-managed value added services provider), Global Talent Track (a vocational educational institute) and IndiaMART.com (online B2B marketplace connecting Indian suppliers with domestic and international buyers).
The funding will come from the $250 million Intel Capital India Technology Fund, established in December 2005. This fund invests in Indian technology companies to help stimulate local technological innovation and the continued growth of India's information technology industry.
“These investments demonstrate Intel Capital’s unwavering commitment to investing in technology innovation globally,” said Arvind Sodhani, president of Intel Capital and executive vice-president of Intel.
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