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May 23, 2012News for the Telecom Industry
 
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Networking Market poised for huge growth

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  At a Glance 

NewsTrends & Insight
  News 
After Airtel, Idea slashes 3G tariffs by 70%
Times of India
After the country's largest mobile phone operator Bharti Airtel slashed mobile broadband rates on its 3G networks by as much as 70%, Aditya Birla group company Idea Cellular has followed suit. The telco said in a statement on Tuesday that Idea's pre-paid and post-paid customers will pay three paise for 10 KB of data, instead of the earlier rate of 10 paise - a reduction of 70%. "The new tariff plan aims to bring internet usage within the reach of rural, mid-town customers at home and will help first-time users to experience the benefits of 3G. Our objective is to drive mobile internet usage for the mass market," the company said. The price changes are applicable for mobile phones and data card users. Facebook Twitter Linkedin Email

Tariffs to rise by 90 paise in metros if TRAI proposals accepted
Economic Times
Mobile phone companies and the telecom department have come up with sharply contradicting figures of the impact on consumers if sector regulator TRAI's recommendations on spectrum pricing are accepted. A study, which PwC produced for the Cellular Operator Association of India, showed that tariffs would go up by as much 90 paise per minute in metros, and between 29 and 34 paise in the rest of the country, if the government were to accept TRAI's proposal to raise 2G spectrum prices by as much as 13 times. It also added that the debt burden of India's beleaguered mobile phone companies would increase by an additional $50 billion over the next five years. The PwC-COAI study has stated that the regulator's calculations had many flaws. Facebook Twitter Linkedin Email

Vodafone India reports highest incremental revenue market share
Economic Times
Robust growth in service revenues, higher customer base, stable tariff rates and increase in the minutes on the network aided Vodafone India in reporting healthy set of numbers for FY12. The company is confident of sustained operating performance going ahead, with any unfavourable proposal by the government on payable tax acting as the only headwind. For FY12, the company posted 19.5% increase in the service revenues at Rs 32184 crore. This is in-line with its closest industry peers, Bharti Airtel and Idea Cellular which posted a revenue growth of 20% and 26% respectively. However, on the operating profit margin front, it lagged behind Idea. Facebook Twitter Linkedin Email

BSNL plans to extend mobile coverage up to territorial waters off Kerala coast
TechTree
BSNL is considering extending mobile network coverage into the Arabian Sea. The telecom major has expressed plans to increase its reach up to 20 nautical miles into the sea along the entire Kerala coastline, from the current 5 km reach which is in place. As of now though, the coastal mobile towers were restricted to the current prescribed limit, due to radiation-related stipulations. BSNL plans to work around to this issue by directing signals into the sea, away from the thickly populated hamlets surrounding the towers. Facebook Twitter Linkedin Email

Department of Telecom to seek rejection of TRAI's proposal
Economic Times
The Department of Telecom (DoT) will seek a rejection of sector regulator TRAI's proposal to reduce the reserve price of airwaves for CDMA operators. The DoT panel studying TRAI's recommendations has approved the regulator's suggestion that spectrum held by incumbent GSM operators in the 900 MHz band be re-farmed-re-distributed among all operators through auctions, when mobile permits of these companies come up for renewal beginning 2014. The DoT panel has also rejected TRAI's plans to impose rollout obligations (of setting up a minimum number of towers in each district) on telcos that bag airwaves through an auction process. A final decision on DoT's position will be taken at a meeting of the Telecom Commission on Thursday. Facebook Twitter Linkedin Email

Investment pacts can't apply to 2G licence cancellations: DoT
Business Standard
The Department of Telecommunications (DoT) feels the bilateral pacts invoked by three foreign telecom investors on the recent cancellation of their licences cannot apply as the cancellation was not due to an act of the government; it came by a Supreme Court (SC) order. As a consequence of SC cancelling all 122 licences issued in the sector after 2008, three companies - Sistema JSFC, Telenor Asia through its Singapore arm, and KAIF Investments of Mauritius which is a foreign investor in Loop Telecom - had sent notices to the government for conciliation and arbitration under the Bilateral Investment Promotion and Protection Agreement (BIPA), or the Comprehensive Economic Cooperation Agreement (CECA). India has a Bipa with the Russian Federation and Mauritius, and a Ceca with Singapore, ratified by the respective governments. Facebook Twitter Linkedin Email

IPO highly unlikely this year: Vodafone India
IBNLive.com
Telecom major Vodafone India on Tuesday said its initial public offer this year is highly unlikely due to uncertainty over regulatory issues and pricing scenario in the sector. "It is highly unlikely that we are able to do an IPO in the middle of so many spectrum auctions. It depends on what the final decision on auction of spectrum will be," Vodafone India Managing Director and Chief Executive Marten Pieters said. A final call on this can be taken only by our board and shareholders, he added. Facebook Twitter Linkedin Email

RIL 4G rollout may be delayed to April '13
Daily News & Analysis
Reliance Industries (RIL) may not launch its fourth generation, or 4G, telecom services this year, contrary to earlier expectations of a December rollout. The 4G trials in Jamnagar, which were expected to be conducted in April, have now been postponed to August. In fact, with no network partner agreements in sight and not a single tower being set up, it is unlikely the company will launch pan-India 4G services before April next year, said a company official. According to Rohit Chordia, senior analyst, Kotak Securities, "they may be looking at a combination of a voice and data network, unlike Airtel's 'data-only' network, which will take more time to develop. The data ecosystem itself will take 1-2 years to be fully functional." Facebook Twitter Linkedin Email

ATC Telecom Tower Corp approaches TDSAT to recover dues from Etisalat DB
Economic Times
Telecom infra firm ATC Telecom Tower Corporation has approached the sectoral tribunal TDSAT to recover its dues from mobile operator Etisalat DB, which has closed operations after cancellation of its license. In its petition, the Kerala-based firm has requested the Telecom Disputes Settlement and Appellate Tribunal to direct Etisalat to pay Rs 70 lakh in dues. The TDSAT has listed the matter for hearing on Friday. ATC Telecom Tower was providing telecommunications infrastructure services to Etisalat DB, a joint venture between UAE-based telecom giant Etisalat and Dyanmix Balwa group.
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  Trends 
Now, instant mobile remittances transfer from UAE to India
Business Standard
National Bank of Abu Dhabi's (NBAD) Arrow service, the mobile-based SMS payment service powered by Luup mobile payment technology, has added a new feature to its mobile-based payment service, making it possible for Indian expatriates to transfer remittances to their families within seconds. The new feature enables NBAD and non-NBAD customers to pay 12 dirhams for their remittances to bank accounts in India through a partnership with India's Federal Bank. Ahmed Al Naqbi, Head of Direct Banking & E Development at NBAD, said, "We are proud to be the first UAE bank to offer this real-time special bank-to-bank mobile service and allow customers to transfer funds using the bank's competitive exchange rates and remittances fees." Facebook Twitter Linkedin Email

RCom goes all out to show off Google partnership
Business Standard (blog)
In one of the most high-profile marketing campaigns this summer, Reliance Communications (RCom) has promoted its alliance with Google for pushing its Android operating system and mobile services. The telecom operator, which has the second-largest subscriber base in India after Airtel, has just unleashed the country's first facebook-based augmented reality (AR) game, which is part of the larger Be Blue campaign. Reliance in April became only the fourth telecom operator after Verizon in the U.S., KDDI in Japan, and Telstra in Australia to be the exclusive partner of Google. Reliance will help push Android by giving added benefits to its 3G subscribers that have devices that use the operating system. Mobile services will include Google trademark products. Facebook Twitter Linkedin Email

Quikr raises $32 million from Warburg Pincus, others
Livemint
Internet and mobile-based classifieds company Quikr Mauritius Holding Pvt. Ltd., the parent company of Quikr India Pvt. Ltd., has raised $32 million in its fifth and largest round of fund raising. Global private equity firm Warburg Pincus Llc., led the round, with existing investors Matrix Partners India, Norwest Venture Partners and eBay Inc., pooling in. Other existing investors in the company include Nokia Growth Partners and Omidyar Network. Quikr has raised $50 million from investors till date. "The current round, which is our largest to date, will enable us to diversify our offerings across both online and mobile platforms," said Pranay Chulet, Co-founder and Chief Executive, Quikr. Facebook Twitter Linkedin Email

Google completes Motorola takeover; replaces the CEO
Cellular News
Google has announced the completion of the delayed purchase of Motorola Mobility, and replaced the CEO. Sanjay Jha has stepped down from his role as CEO and has been replaced by long-time Google employee, Dennis Woodside with immediate effect. Facebook Twitter Linkedin Email

  Insight 

Swift

Mobile payments are a hot topic in the financial industry and a top priority for banks. This competitive and fast evolving landscape creates doubt. Many banks wonder what to do: just stand by and watch or respond more pro-actively? This paper suggests some recommendations in this regard.

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TRAI Tariff Order aligns but at what cost (Premium) - View Free Sample
In the run-up to the first cable TV digitization deadline of June 30, 2012 for metros, the Telecom Regulatory Authority of India's (TRAI) latest order specifying tariffs and setting other norms for smooth implementation of the process has stirred up a hornet's nest. While the TRAI order is certainly a good move to streamline matters in the direction of digitization, most industry stakeholders have been busy trying to dissect each clause to see how it impacts their business. Even as the broadcast industry is shocked by the diktat of a uniform, legalized carriage fee structure, Multi System Operators (MSOs) find they have a lot of responsibility on their hands. The consumer, meanwhile, is empowered to pick and pay for channels of his choice.

Will TRAI heavyhandedness derail Indian Telecom (Premium) - View Free Sample
Everything was going well for Indian telecom, but then came 2012. First, the Supreme Court judgement on cancellation of 122 2G licenses slapped the smiles off the operators' faces. And then came Trai's 'Recommendations on Auction of Spectrum'. It will not just further decelerate the industry, but all the hard work done by the policy makers, regulators, and operators in the last 18 years will also go for a toss! The telecom industry is still seeking answers, but hardly any are coming forth. There is a big silence on the whole spectrum auction salvo launched by Trai. It is time for the policy makers and the government machinery to wake up and take corrective measures, and quickly, before it snowballs into a major disaster for the government. Correct measures taken now will go a long way in helping the industry recover and move forward, and regain its lost glory. It will also help build back the government's image, reeling under a "policy paralysis", with the world watching us so closely.

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.

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