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MNP to be launched by August
February 22, 2009
According to Union Minister for Communications & IT, A Raja, mobile number portability (MNP) will be introduced in India by August 2009.
MNP will enable a mobile phone user to retain their number even if they change their operator. The move is expected to boost growth in the telecom wireless segment.
MNVO allowed to tie up with multiple operators
February 21, 2009
The Telecom Commission has allowed mobile virtual network operators (MNVO) to tie up with more than one existing operator in an area to launch their services.
MNVO’s are organizations that do not own any spectrum but buy/lease airtime from existing operators and use it under their own brand name. UK-based Virgin Mobile and BT Mobile are two companies operating in India under the MNVO model.
As per the Telecom Commission, if an MVNO ties up with more than one operator in an area, its spectrum usage fee will be calculated based on the individual subscriber base of the telco whose cellular infrastructure it uses.
Telcos get more time to set up IMEI equipment
February 20, 2009
Mobile phone service providers have been given time till March 31 to set up the necessary equipment to bar calls from phones not bearing the International Mobile Equipment Identity (IMEI) number.
IMEI – a unique 15 digit code – helps identify a handset used to make calls on a GSM network. The Department of Telecommunications (DoT) had directed telecom operators to install an Equipment Identity Register (EIR) and disconnect non-IMEI handsets.
Telcos oppose quality service norm
February 19, 2009
Telcos have opposed the plans of the Telecom Regulatory Authority of India (TRAI) to introduce ‘Quality of Service (QoS) norms’ for mobile services.
TRAI’s plan follows its recent warnings to telcos about the increasing incidence of call drops causing inconvenience and monetary losses to customers. The new norms would monitor a telcos’ performance based on parameters such as call drops, fault repair, refunds, billing complaints etc.
The telcos have opposed this regulatory intervention on the grounds that competitive market forces would urge telcos to address QoS issues.
Some telcos are of the view that certain external factors hampering service quality are not in the hands of the operator like spectrum shortage, availability of power etc.
TRAI demands new accounting systems
February 19, 2009
The Telecom Regulatory Authority of India (TRAI) has asked the communications ministry to implement new reporting and accounting systems where telcos would have to declare their consolidated as well as their stand-alone revenues from different business arms.
The move follows the allegations that Reliance Communications (RCom) diverted its revenues earned from mobile services to a subsidiary in an attempt to bring down the amount it owed to the government as license fees and spectrum charges. RCom has denied any allegations of wrongdoing.
Under India’s telecom policy, all telecom companies have to pay the government 6-10% of their annual revenues from mobile services as licence fee, and another 2-6% of their annual revenues as spectrum charge based on the area of operations.
TRAI has also asked the Department of Telecom (DoT) to carry out special audits on the books of all telcos at least once over a period of 3-5 years.
3G auctions by March: A Raja
February 18, 2009
Union Minister for Communications & IT, A Raja, said that it is possible that 3G spectrum auctions will be held by March 31. This is opposed to the Finance Ministry’ stand in the interim budget, that auctions will happen only in the next financial year.
The 3G spectrum auctions were originally scheduled to be held on January 16, which was postponed to January 30. But even this deadline was not met as there were differences between the DoT and Finance Ministry on the reserve price for 3G spectrum.
Govt. expects Rs. 20,000 cr revenue from 3G auction
February 16, 2009
The government has said that it expects revenues of Rs. 20,000 crore (US$ 4 billion) from the upcoming 3G spectrum auctions. This is lower than the earlier expected figure of Rs. 30,000 crore (US$ 6 billion).
The Finance Ministry has incorporated the conservative figure of Rs. 20,000 crore in the Budget, but the actual amount may be lower or higher depending on the market price brought out at the auctions.
ISPs oppose TRAI norms
February 16, 2009
Some Internet Service Providers (ISPs) and telcos have opposed TRAI’s plans to introduce regulations to ensure that ISPs provide Internet connections based only on the capacity of traffic they can carry.
The number of high-speed Internet connections that an ISP can support depends on the availability of bandwidth. TRAI had proposed to introduce norms that would specify the ratio between the number of customers per unit bandwidth which is known as contention ratio. According to TRAI, most ISPs compromise on quality by providing a higher number of internet connections than their bandwidth supports, which further causes network congestion and brings down broadband speeds.
The ISP Association of India (ISPAI) claims that fixing a contention ratio would bring up the cost of delivery of Internet bandwidth and ‘wipe off’ the competition in the market.
Defence forces to vacate spectrum
February 16, 2009
The Group of Ministers (GoM) headed by external affairs minister Pranab Mukherjee has asked the Indian defence forces to vacate 15 MHz of spectrum to be used for 3G and 2G services. 10 MHz will be used for 3G and 5 MHz will be used for 2G.
The spectrum will be released upon the signing of a Memorandum of Understanding (MoU) between the Ministry of Defense and the Department of Telecommunications (DoT).
CVC wants further clarification from DoT over 2G policies
February 16, 2009
The Chief Vigilance Commission (CVC), has asked the Department of Telecom (DoT) to provide further details on its first-come-first-served policy adopted for 2G spectrum allocation to new entrants.
The CVC has also asked the DoT why it treated September 25, 2008 as the cut-off date for receiving applications for new licenses instead of October 1, 2008 that was originally announced.
The CVC alleges that DoT has adopted a selective approach when it comes to adopting TRAI recommendations instead of taking them as a whole.
15 mn telecom subscribers added in Jan 09
February 21, 2009
A record number of 15 million customers were added by Indian telecom companies in January 2009, which is a global record for telecom markets worldwide.
The country now has a teledensity of 34.5%. With 362.3 million connections, mobile phone users constitute 91% of India’s telephone user base.
Reliance Communications (RCom) led this growth, adding 5 million new subscribers (GSM and CDMA) in January.
Indian media to cross Rs. 1 trillion by 2013
February 17, 2009
India’s media and entertainment industry is expected to reach the value of Rs. 1.05 trillion (US$ 20 billion) by 2013, growing at the rate of 12.5 percent per annum for the next five years.
Increased media penetration among the country’s 1 billion plus population is the main reason for this growth. The media and entertainment industry grew by 12.4 percent to reach Rs. 58,400 crore (US$ 11 billion) in 2008.
Rural population to drive Indian telecom growth
February 16, 2009
According to a study conducted by LIRNEasia, 27% of the total mobile phone owners in were added from the poorest socio-economic group, while urban areas added only 19% in 2008.
Affordability remains a key issue in the ability of the rural population to purchase mobile phones. India has a large second-hand mobile phone market.
IIT Kanpur Students working on Nanosatellite
February 22, 2009
Students at the Indian Institute of Technology (IIT) Kanpur are working with the Indian Space Research Organization (ISRO) to develop the first nanosatellite in space.
The nanosatellite, to be fitted with high-definition cameras to capture detailed images, will be used to collect information for flood, draught and disaster management. The IIT students estimate that another 7 months will be taken to complete work on the satellite at an amount of Rs. 2.5 crore (US$ 500,000).
Standard charging solutions for mobile phones
February 18, 2009
The GSM Association has announced its intention to introduce standardized chargers for mobile phones across different brands and manufacturers by 2012.
Major brands such as LG, Motorola, Nokia, Samsung and Sony Ericsson and telcos like Orange, Qualcomm, Telefonica and Vodafone have joined the Universal Charging Solution (UCS) consortium, which aims to implement a standard charging solution whereby the same charger can be used even if the mobile handset brand is changed.
By bringing down the total production of chargers, the move will result in significant reductions in emissions of greenhouse gases during manufacturing and transportation of chargers.
Qualcomm to invest in MapmyIndia
February 16, 2009
Qualcomm Ventures has led a round of strategic investments in MapmyIndia – an Indian digital maps and navigation services provider. The move is expected to mobilize GPS navigation and location based services.
With the advent of technologies like 3G, the market for location based services on mobile handsets, PCs, cars and digital TV is expected to go up.
Tanla Solutions – Zed Worlwide enter JV
February 20, 2009
Hyderabad- based Tanla Solutions is entering into a 50:50 joint venture (JV), at an investment of Rs. 63 crore (US$ 12 million) paid up capital, with Spanish mobile VAS provider Zed Worldwide to develop and sell mobile content.
The JV will also provide mobile advertising and related services to telecom operators in India.
RTIL, Swan Telecom to tie up for infrastructure-sharing
February 19, 2009
Reliance Communications’ tower arm Reliance Telecom Infrastructure Ltd. (RTIL) is expected to finalize a 15-year infrastructure sharing deal with Swan Telecom in a month’s time.
According to deal agreement, RCOM will lend 13,000 tenancy slots to Swan in the first year, which will go up to about 20,000 slots by the second year.
Airtel to add 17,000 rural outlets
February 19, 2009
Airtel has expressed its intention of setting up an Airtel Service Centre in every Indian village. In addition to 3,000 centers already set up in the last couple of months, Airtel is planning to set up 17,000 more by March.
This is indicative of the huge potential that rural India offers for telecom operators in the country.
BSNL to start 3G services by March end
February 17, 2009
State owned telco Bharat Sanchar Nigam Ltd. (BSNL) will start its 3G services by the end of March this year, according to A Raja, Union Minister for Communications & IT.
Both state-owned telecom companies BSNL and Mahanagar Telephone Nigam Ltd. (MTNL) had received 3G spectrum last year, ahead of the 3G auctions for private telcos, which is yet to take place.
MAIT-Microsoft partner for Digital Inclusion program
February 17, 2009
MAIT has launched a unique corporate social responsibility campaign titled “Digital Inclusion - IT Adoption for Growth & Employability” by tying up with its member companies to facilitate access to computers and software to the digitally deprived with an aim to enable them to develop skills in IT and become employable.
In a first-of-its-kind initiative, MAIT has partnered with Microsoft to donate computers and software to NGOs, who are engaged in taking IT education to the rural/poor masses. MAIT intends to encourage all its members to generously contribute hardware to the cause of bridging the digital divide in India.
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