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May 22, 2012News for the Telecom Industry
 
  Active Discussion 
MCommerce- The Next Big Hope

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  At a Glance 

NewsTrends & Insight
  News 
BSNL likely to get Rs 6,000 crore package for Naxal-area roll-out
Economic Times
The Telecom Commission, the highest decision making body of the communications ministry, will meet on Thursday to consider BSNL's demands for Rs 5,809.38-crore support over a five-year period for building and operating close to 2200 towers in naxalite hotbeds across nine states. The telecoms department has recommended that BSNL be awarded the project without having to participate in the bidding process, keeping in view the security requirements of the country. This move, though, will entail an amendment in the Indian Telegraph Act, especially since the proposed rollout in naxal zones will be subsidized by the Universal Services Obligation Fund. Facebook Twitter Linkedin Email

BSNL, MTNL sign joint pact with Indian Air Force
Economic Times
The Indian Air Force has signed an agreement with telecom PSUs BSNL and MTNL under which the two players would provide a host of services at concessional rates while IAF would give space for installation of towers and equipment. "The objective is to enable BSNL and MTNL to provide IAF full gamut of telecom services, including basic telephony, mobile telephony, broadband services, internet services and leased lines, MPLS-VPN and VSAT services, on concessional tariff," BSNL said in a statement. Telecom services will include CUG facility on mobile phones and value added services on mobile and landline phones, optic fiber connectivity as per IAF requirements, it added.

DoT to press for 17% increase in 2G base price above TRAI's proposed rate
Economic Times
The telecom department (DoT) will press for a 17% increase in the base price for 2G spectrum bids over the rate proposed by TRAI, further adding to the woes of mobile phone companies that were hoping the government would dilute the recommendations of the regulator. A DoT panel studying TRAI's proposals on spectrum auctions has concluded that reserve price for second-generation airwaves in the 1800 MHz band should be revised to Rs 4,245 crore per unit (on a pan-India basis); TRAI has proposed a base rate of Rs 3,622 crore per unit. A final decision on DoT's position vis-a-vis this issue and others regarding spectrum will be taken at a meeting of the Telecom Commission on Thursday. Facebook Twitter Linkedin Email

Nimbuzz to relocate global headquarters to India
Economic Times
The Netherlands-based free instant messaging and call application Nimbuzz is relocating its global headquarters to India, which accounts for a fifth of its 90 million customers. Nimbuzz has also announced a restructuring of its top deck, appointing Indians in key positions earlier held by Dutch nationals. These include the appointment of Vikas Saxena, a former top executive at Aircel, as the CEO of its India operations. Saxena replaces Co-founder Evert Jaap Lugt, who has been named chairman of the company. Facebook Twitter Linkedin Email

Vodafone case an instance of misusing corporate structure: Government
Economic Times
Amid ongoing tax battle with Vodafone over its acquisition of Hutchison stake in telecom joint venture Hutchison-Essar, the government said the case was an instance of misusing corporate structure to avoid taxes. The Hutchison Group, which sold its business operation in India in February 2007 to the Vodafone Group for a total consideration of $ 11.2 billion, had made investments in India from 1992 to 2006 through a number of subsidiaries having 'separate corporate personality' but which were essentially post box companies based in the Cayman Islands, British Virgin Islands, and Mauritius, Finance Minister Pranab Mukherjee said. While corporate structuring is a legitimate means of bringing together factors of production in a way that would facilitate business and enterprise and help the economy, an artificial personality can also be created of a corporate entity to conceal the real beneficiaries, he added. Facebook Twitter Linkedin Email

ARPU data shows spectrum price in India costlier than other nations
Economic Times
The reserve price for spectrum bids suggested by the telecom regulator TRAI is exorbitant compared with what carriers in the West paid in recent auctions, according to an analysis based on the average revenue per user (ARPU). Calculations suggest that India's 2G spectrum in the 1,800 MHz band is 44 times costlier than the price discovered in Singapore last year; and the proposed price for the 800 MHz spectrum is over five times higher than Germany, nearly 15 times more than Sweden and almost 13 times higher than France. Other data too, shows the huge differences in TRAI's pricing as compared with that of other countries. Facebook Twitter Linkedin Email

Maxis CEO stares at arrest, Interpol Red Corner Notice
Daily Pioneer
In a new twist to the controversial Aircel-Maxis deal, the Indonesian Police has issued arrest warrant against Ralph Marshall, the CEO of Maxis Group and Astro All Asia Network. Ralph Marshall's name figured as accused in the CBI's FIR along with former Telecom Minister Dayanidhi Maran. Marshall is considered No 2 in the vast business empire floated by the Malaysian tycoon T Ananda Krishnan. Both figured in the CBI's FIR along with Maran brothers in the Aircel-Maxis deal. According to CBI, for facilitating the acquisition of Aircel by Maxis, Maran brothers received quid-pro-quo through Maxis subsidiary Astro. This company later invested around Rs 600 crore in Maran brothers-controlled Sun Networks. Facebook Twitter Linkedin Email

BSNL to erect 30 new mobile towers in Indore
Economic Times
Indore Divisional BSNL will set up 30 mobile towers in Indore city for better connectivity. A latest survey by BSNL found that there was a very poor connectivity due to private operators' towers erected at many places in the city which proved unsuitable, its spokesman Shyam Yadav said in a statement. 30 locations have been identified to erect new towers and the work would start soon, he said. Facebook Twitter Linkedin Email

  Trends 
Birla joins Reliance in content search
Wall Street Journal (blog)
Indian conglomerate Aditya Birla Group's announcement of an entry into the nation's fast-growing media industry mirrors a similar move by Mukesh Ambani's Reliance Industries Ltd., conglomerate in January. Both deals show how Aditya Birla and Reliance are keen to get access to media content to support their telecoms businesses. As revenues from traditional voice calls plateau, both companies are looking to develop businesses delivering content over high-speed mobile internet. The Aditya Birla Group owns a 45.96% stake in Idea Cellular Ltd., India's fourth biggest mobile telephone company by subscribers. Facebook Twitter Linkedin Email

Desi boys of telecom manufacturing
Hindu Business Line
When it comes to buying telecom equipment, mobile companies have never thought beyond Ericsson, Nokia Siemens, Huawei and a few other foreign vendors. Indian equipment manufacturers such as Tejas, Kaveri, Vihaan were never in the reckoning.Thanks to the advent of 4G technology-based services, which offers Indian players an opportunity to put their foot into the multi-billion dollar equipment market, this is about to change. Bangalore based PointRed Telecom, for instance, is planning to set up a Rs 200 crore facility to produce 4G gear. In addition to the core equipment, Indian gear makers are also looking at supplying backhaul network gear. Tejas Networks and Kaveri Telecom are entering this space too. Facebook Twitter Linkedin Email

Indian smartphone users are smart shoppers too: eBay
Business Standard
Digital commerce is gaining traction with Indian smartphone users with almost 68% of them having made an online purchase using their smartphone, said a survey by eBay. An eBay India Mobile Commerce Survey conducted with over 4,500 eBay India users in May 2012, showed that shopping is the third most popular category of search after emails and social networking. Facebook Twitter Linkedin Email

Researchers improve fast-moving mobile networks
Cellular News
Mobile ad hoc networks (MANETs) allow people in multiple, rapidly-moving vehicles to communicate with each other - such as in military or emergency-response situations. Researchers from North Carolina State University have devised a method to improve the quality and efficiency of data transmission in these networks. "Our goal was to get the highest data rate possible, without compromising the fidelity of the signal," says Dr. Alexandra Duel-Hallen, a professor of electrical and computer engineering at NC State. Facebook Twitter Linkedin Email

  Insight 

Market Pulse

As in the consumer space, mobile is a major trend in business. And its significance in the business environment will increase substantially over the next several years. Mobile is a forceful and compelling change in business computing. It's a radical shift in terms of end user devices, modes of communication, opportunities and in how people access enterprise information. It's important that technology executives understand the trends, requirements and imperatives related to enterprise mobility and how organizations can use this for tangible business benefit. That's why SAP and CIO magazine conducted a survey of business technology executives to gauge current developments, opinions and expectations related to enterprise mobility

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Tata Communications- Betting Big (Premium) - View Free Sample
After putting a ring around the globe with its undersea cable network, Tata Communications is now riding high on cloud services to drive growth. Tata Communications, the true 'MNC originated from India', as its CEO Vinod Kumar puts, is all set to redefine its business model betting high on cloud services. In order to target the emerging markets around the world, as well as address the ongoing convergence of data traffic on Internet Protocol (IP) systems and the growing need for managed services, the Tata Group-Indian Government joint venture is putting all its thrust on cloud computing, enterprise video, and mobile broadband offerings. Speaking at the company's third annual global media and analyst summit, Kumar said that all future communication business would depend on how the services and desired content is delivered to the users seamlessly and anytime, anywhere. "Our focus on cloud computing, enterprise video, and mobile broadband were aligned with how the world expected services and content to be delivered and consumed anywhere, anytime," Kumar reasons.

Optimizing LTE Deployment (Premium) - View Free Sample
With the number of subscribers increasing everyday, the Indian telecom sector can reap benefits from LTE solutions if deployed successfully. In the past few years, India has witnessed unprecedented growth in the telecom sector. It seems likely that India will once again jump the curve and leapfrog to the next-generation 4G Long Term Evolution (LTE) technology. Some of the biggest operators in the country have acquired the Broadband Wireless Access (BWA) spectrum and many of them have already carried out trials with the leading OEMs, and are currently planning their deployment strategies. LTE is based on the Evolved Packet System (EPS) which consists of a flat all-IP based architecture that supports an all-packet core known as the Evolved Packet Core (EPC). LTE has also incorporated significant advancements in the Radio Access Network (RAN), employing Orthogonal Frequency-Division Multiple Access (OFDMA) through Multi-Input Multi-Output (MIMO) antenna technology.

Networking Market poised for huge growth (Premium) - View Free Sample
With the advent of next-generation technologies, the networking market is poised for huge growth in india. With growing demand comes growing opportunities to fill this vacuum of need. The chicken and egg situation works no different in an enterprise market in India as well. The need of enterprise equipment and solutions are scaling high with huge demand by enterprises and SMEs in India. Based on its research during the Q3 of 2011, IDC forecasts 8.7% growth in enterprise network equipment spending in 2012, a substantial increase from the 3.8% growth the firm saw in the market last year. VOICE&DATA estimated the total enterprise equipment market to be Rs.24,023 crores in FY11, with growth of around 0.87%. Last fiscal, it was a flat year for the Indian enterprise equipment market. But things are warming up this year. Networking market in India has seen a good growth rate recently owing to infrastructure development in the country. According to IDC, enterprise networking market in India is rapidly evolving and it is stated to reach $3 bn by 2015 in India alone.

MCommerce- The Next Big Hope (Premium) - View Free Sample
M-commerce needs a much-required fillip to boost its services. At a time when the Indian telcos are leaving no stone unturned to cut each other's throat in the race of acquiring and retaining more and more customers by using cheap tariff and lucrative VAS apps as weapons, they have perhaps, so far overlooked other lucrative avenues to increase their bottomline. One of these is m-commerce. The country and the industry has so far been gung ho about its telecom success story and s ll chants numbers like 900 mn mobile customers, 10-15 mn new user additions on monthly basis, and a growth rate of 10-15% y-o-y, the same operators have somehow missed another huge number--around 700 mn.

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