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Disputes resolution solely in TDSAT jurisdiction
January 23, 2009
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has firmly stated that the Telecom Regulatory Authority of India (TRAI) has no jurisdiction on dispute settlement matters, by setting aside a TRAI order on regulating Domestic Leased Circuit (DLC).
According to the TRAI Act, every TRAI order can be appealed in the TDSAT. Additionally, in case of disputes between telecom operators, there is no provision in the Act for TRAI intervention.
TRAI’s direction on opening up DLC would imply that state owned telcos MTNL and BSNL would have to provide interconnection for the last mile link to private players. BSNL and MTNL had contended that this would lead to hoarding of last-mile connections by private players, which would in turn affect their own competitiveness.
SC dismisses Vodafone petition challenging IT show cause notice
January 23, 2009
The Supreme Court (SC) has dismissed a petition put forth by telecom operator Vodafone challenging a show cause notice of the Income Tax (IT) department demanding tax on its acquisition of Hutchison Essar.
In a US$ 11.2 billion deal, Vodafone had bought a 67% stake in Hutchison Essar in February 2007. The IT department had issued a show cause notice in September 2007 asking Vodafone to pay capital gains tax on its acquisition.
However, Vodafone alleges that the IT department has no jurisdiction over this deal which was between two parties which were both incorporated overseas. Vodafone had purchased the share capital of CGP Investments (a non-resident company) from Hutchison Telecom International (HTIL) – also a foreign company having no presence in India.
The Supreme Court has now asked Vodafone to respond to the show cause notice.
BPL Mobile appeals to HC against order prohibiting fresh share issue
January 23, 2009
BPL Mobile Communications moved the Bombay High Court in an appeal against an arbitration panel order that prohibits the company from issuing fresh shares. Vodafone Essar had requested the panel to stop BPL from issuing any new equity.
The arbitration order has prevented BPL from raising funds for expanding its operations and rolling out network for its 100% subsidiary Loop Telecom.
The appeal is expected to be up for hearing in the court within the next few weeks.
COAI-govt. in talks to legalize non-IMEI handsets
January 22, 2009
The Cellular Operators Association of India (COAI) is in talks with the Indian government and the security agencies to legalize a software to enable handsets to generate an International Mobile Equipment Identity (IMEI) number.
The industry has developed a software which would provide a device not bearing the IMEI number with the unique 15 digit number. The Intelligence Bureau had objected to the use of this software since it allows a user to alter the IMEI number on his handset.
The COAI is in talks with the security agencies to implement safeguards that prevent consumers from tampering with the original IMEI numbers on their genuine handsets.
DoT has asked all telecom operators to install an Equipment Identity Register (EIR) on their networks by April 15, and disconnect all non-IMEI numbers. This would mean that 25 million Chinese handsets in the country, which do not bear the IMEI number, would be disconnected. Telcos are concerned because they feel that the users of these cheap Chinese handsets would not be able to afford new phones.
The software would allow these users to equip their handsets with an IMEI number and continue to use them safely.
DTH players want changes in current norms
January 22, 2009
Direct to home (DTH) players have asked the Indian government to change the prevailing norms that prevent them from revising their tariffs and packages for six months from the date of enrollment of a subscriber.
Players like Bharti Airtel, Reliance ADAG and Dish TV are of the view that since free channels often get converted to pay channels, it is unprofitable for the DTH operator to continue to offer it free for six months.
Another view point is that broadcasters may pay DTH operators to air certain channels for a certain period, and that when such an agreement lapses, they should be allowed to charge the customer for these channels.
DTH players have also opposed certain other TRAI norms that mandate them to carry a channel for a minimum period of 6 months, and propose instead that broadcasters be permitted to withdraw channels whose ratings fall substantially over 12 weeks, after giving customers a six week notice. TRAI has proposed reducing subscription charges if a channel goes off air before the 6 month time frame, but DTH players have opposed this and propose replacing the channel with another from the same genre rather than reducing the subscription fee.
Last date for industry views on lock in period extended
January 21, 2009
The Telecom Regulatory Authority of India (TRAI) has extended the date for receiving the telecom industry’s views on the lock in period on equity sale from January 20 to January 27.
The proposed lock in period on equity sale by new license holding companies is aimed at preventing telcos from making windfall gains. The proposal followed criticism of the DoT regarding the decision to award pan-India licenses for Rs. 1,651 crore (US$ 338 million) – an amount fixed in 2001 – which allegedly led to a loss of Rs. 50,000 crore (US$ 10 billion) to the exchequer.
The lock in period would apply only to promoters’ equity sale. The Telecom Commission had approved DoT’s lock in proposal in November 2008, after which the matter was referred to the TRAI.
Centre formulating new spectrum allocation policy
January 20, 2009
The Ministry of Communications & IT has said that the Indian government is working out a new policy of spectrum allocation for mobile communications.
The Department of Telecom (DoT) feels that the current policy has led to fragmentation and is allocating very little spectrum to operators as compared to other countries. Globally operators have 15-20 MHz of spectrum while the maximum in India is 6.2 MHz.
India is the only country in the world that is currently following a spectrum allocation policy based on the number of subscribers. DoT may do away with this method. With a multitude of players in the field, the DoT feels that consolidation in the industry is inevitable.
Telecom industry adds 113.26 mn users in 2008
January 22, 2009
Indian telecom added 113.26 million new subscribers in 2008, registering close to 50% in its cellular base during the year. This is the highest growth achieved globally, with an average of 9.5 million customers added every month.
India had 346.89 mobile phone users by end 2008 as compared to 233 million in the previous year. The total number of telephone connections, including fixed and mobile, has gone up to 385 million. Telecom penetration in the country has reached 33%.
3G subscriber base to hit 90 mn by 2013
January 19, 2009
According to an industry report by Federation of Indian Chambers of Commerce and Industry (FICCI) and telecom consulting firm BDA , the number of subscribers to 3G services in India will reach 90 million by 2013, constituting12% of the overall wireless subscriber base.
The report claims that 3G revenues will reach US$ 15.8 billion by 2013 constituting 46% of total wireless service revenue. The report also projects that annual 3G device sales will reach 81.3 million by 2013, with device revenues reaching US$ 11.2 billion.
The share of non-voice services (SMS, data downloads etc.) is expected to increase from 9% to 23% in the average revenue per user (ARPU).
WiMAX Forum announces launch of Global Roaming Program
January 23, 2009
The WiMAX Forum has announced the launch of its Global Roaming Program that allows operators and vendors to easily obtain the information required to establish WiMAX roaming services.
The program includes several documents for WiMAX Forum member companies implementing roaming services, including technical specifications, a test plan, a roaming contract template and a guide to follow when implementing roaming.
“Member companies have yet another tool to facilitate the advancement of their WiMAX technology innovations and make 4G a seamless experience for customers,” said John Dubois, Global Roaming Director of WiMAX Forum.
Airtel DTH introduces iShop
January 23, 2009
Indiatimes Shopping has launched a shopping feature on Airtel’s DTH interactive services. ‘iShop’ will function as a 24 hour shopping channel, allowing subscribers to browse through and purchase electronic items, mobile phones, apparels and accessories, books and magazines, gifts and flowers, and health and beauty products.
Subscribers will be able to place orders through iShop’s call centre and pay through cash on delivery, cheque or credit card.
£9.2 mn for joint UK-India research into next-gen networks
January 19, 2009
A British Telecom (BT) backed team of UK and Indian scientists and engineers will head a £9.2m research project to develop ‘Next Generation Networks’, vital to pushing forward the digital economy.
This collaboration between the UK and Indian Governments, universities and ICT specialists in both countries will work to develop Next Generation telecom networks, ICT services and applications in the two countries, along with work on wireless sensor networks, which could aid healthcare and early warning weather systems in rural areas.
Funding will be used by the India-UK Advanced Technology Centre (IU-ATC) to drive collaborative research and the sharing of new communications technology between India and the UK, specifically for research into Next Generation network enabled applications and services, converged network protocols and systems and wireless communications and mobility. The research is designed to underpin the development of policies and initiatives for both rural and urban Digital Economy programmes in India and the UK.
Chairman, BT India, Arun Seth, said: “These next generation networks forms the cornerstone of the digital economy and research in this area is crucial. The IU-ATC will allow us to explore unique solutions and provide research, innovation and wealth creation opportunities between the UK and India that are of benefit to citizens, business, government and industry.”
Samsung Mobile revamps sales & distribution structure
January 23, 2009
Mobile handset manufacturer, Samsung Mobile, is restructuring its sales and distribution in India. The company is planning to set up sales offices in smaller markets, decentralize operations and expand its distribution network.
Samsung India is going to focus on mobile phones and IT products particularly notebooks during 2009.
France Tele gets approval for ISP license
January 23, 2009
France Telecom (FT) has received approval from the Indian government for an Internet Service Provider’s (ISP) license.
FT wants to consolidate its India operations under a single license. Currently, it holds licenses in India through wholly-owned subsidiary Orange Business Services, which in turn has a 74% stake in Global One Indian.
FT’s application for an ISP license has been made under EQuant Network Services and following approval by the Indian government, Global One will surrender its licenses.
Bharti Airtel plans $5 bn capex
January 22, 2009
Telecom major Bharti Airtel has planned around US$ 5 billion as capital expenditure (capex) for mobile services and infrastructure during financial year 2009-10.
Out of this US$ 5 billion, US$ 2.5 billion has been set aside for mobile services while the remaining is for passive infrastructure. US$ 3 billion will be invested in the company’s tower business.
Cable & wireless rolls out network
January 22, 2009
British phone services company Cable & Wireless are rolling out a multi services platform (MSP) in India, involving an investment of around US$ 30 million. The platform offers telecom and connectivity solutions.
Cable & Wireless received government approval to commence offering national and international long distance telephony services in India in February 2007. In this space, Cable and Wireless will compete with established multinationals British Telecom (BT) and AT&T apart from Indian firms such as Bharti Airtel and Reliance Communications.
TATA increases stake in Neotel
January 21, 2009
Tata has increased its shareholding in South African network operator Neotel from 26 to 56%. This purchase has led Tata Communications in association with Tata Africa Holdings to become a controlling shareholder in Neotel.
The move seems to affirm Tata’s commitment to expanding in emerging regions like Asia, Africa and the Middle East.
Vodafone rules out complete exit from Airtel
January 20, 2009
Vodafone has stated that it will continue to hold 4% indirect stake in Bharti Airtel, in the midst of speculation that it was keen to exit Airtel completely.
Vodafone had partly exited the Bharti Group where it had held a 10% stake. However its indirect stake in the mobile business, Bharti Airtel, remains.
UniverCell to retail low-cost handsets
January 19, 2009
Chennai based mobile retail chain, UniverCell is planning to market low cost mobile handsets of relatively lesser known brands. The company will start test marketing these handsets in February.
The handsets in the range of Rs. 2000 will be rich in features like color display, FM radio and camera – features usually available in higher priced known brands. UniverCell also plans to bring in dual SIM card handsets in the same price range.
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