Posts Tagged India
MTNL launches Mumbai 3G network, reveals network deal with Alcatel-Lucent (India)
State-owned Indian telco Mahanagar Telephone Nigam Ltd (MTNL) has announced a deal with French-US hardware vendor Alcatel-Lucent that will see that latter provide its mobile next generation (NGN) solution. The deployment is a part of a multi-year agreement under which Alcatel-Lucent is providing an end-to-end GSM/EDGE solution to MTNL. Alcatel claims that its NGN product, which is based on a secure, distributed architecture, will allow MTNL to optimize and simplify its mobile network, flexibly address traffic growth, reduce operation costs and simplify network maintenance.
As part of the announcement MTNL announced that its 3G network had been launched in Mumbai, and said it was ready to offer service to both residential and enterprise customers. MTNL was the first operator to launch commercial 3G services in India in February 2009; the telco offers the service under the ‘Jadoo’ brand and it was initially available only in central areas of Delhi.
Add comment May 15, 2009
SSTL and ZTE sign seven-year infrastructure deal (India)
Indian cellco Sistema Shyam TeleServices (SSTL) has announced that it has inked a seven-year deal with China’s ZTE for the provision of network equipment and infrastructure. Under the agreement ZTE will provide wireless and core network equipment for SSTL as the cellco looks to complete its pan-India rollout by 3Q 2010. Additionally, the two companies will ‘explore other collaborative possibilities going forward’. No financial details of the deal have been disclosed. SSTL has launched commercial CDMA-based services in the Rajasthan, Tamil Nadu and Kerala circles.
1 comment May 15, 2009
Bharti Airtel reaches 100 mln mobile customers mark (India)
Add comment May 15, 2009
Vodafone prepares USUSD2B loan in India
Vodafone Essar, the UK-based group’s Indian subsidiary, is in the process of a raising a INR100 billion (USD2 billion) bridge loan to finance its participation in India’s forthcoming 3G spectrum auctions. According to banking sources, Vodafone has appointed SBI Capital Markets to arrange the loan from a range of banks. “Canara Bank has approved INR7.5 billion for Vodafone, and the rest of the money will come from other banks,” a source said. An unnamed Vodafone source added that the financing would also be used for network expansion. However, Vodafone Essar declined to offcially comment on the story.
According to the report, there is still no official date for the start of India’s long-awaited 3G auctions, which are now thought unlikely to happen prior to India’s general elections, which need to take place before May. A Mumbai-based telecom analyst added that Vodafone would have little trouble raising the INR100 billion, suggesting that the operator should be able to secure an interest rate of around 8.5 percent. India is a key market for Vodafone, accounting for around 65 percent of the 9.7 million net new customers it added in its most recent.
Add comment February 10, 2009
RCOM completes nationwide GSM rollout (India)
Following a string of recent GSM-based service launch announcements, Indian mobile operator Reliance Communications (RCOM) has said it has now completed its nationwide GSM footprint, the Business Standard reports. As RCOM announced its most recently launched GSM infrastructure, adding coverage of more than 50 towns and 5,000 villages in the Jammu & Kashmir (J&K) circle, RCOM President SP Shukla, said, ‘The launch of Reliance Mobile’s GSM services in J&K marks the completion of the company’s nationwide footprint, which already covers over one billion Indians in other states of the country.’ January 2009 saw the cellco announce GSM launches in Mumbai, Rajasthan and Punjab, while earlier this month Delhi was added to the list of regions in which RCOM offered its GSM-based services.
Add comment February 9, 2009
Armed forces 3G spectrum release faces delay (India)
In another blow to the much-delayed 3G auction process in India, the Economic Times is reporting that the Indian army is now claiming that it cannot release spectrum needed for commercial 3G services in a phased manner as had previously been agreed. The armed forces are in possession of spectrum which is expected to be vacated and then reallocated to successful 3G licencees. However, the defence forces now say that they will only release the frequencies after Bharat Sanchar Nigam Ltd (BSNL) completes the rollout of all three alternative networks for them. BSNL is due to complete new infrastructure for the Army, Air Force and Navy in 2011. The original agreement between the communications and defence ministries called for a phased vacation of the spectrum by the armed forces; with BSNL expecting to complete the Air Force Network (AFNET) by June this year the communications ministry called for the Air Force spectrum to be vacated by that date. It is understood that a group of ministers (GoM) will now consider the fate of the spectrum, ruling on whether the original phased release will be enforced. Additionally, the GoM will examine the case for funding the INR146 billion (USD3.02 billion) alternative networks, with the Cabinet Committee on Economic Affairs (CCEA) expected to clear the project’s funding only after it is endorsed by the ministers.
Add comment February 9, 2009
MTNL set for India’s first commercial 3G launch
Despite ongoing delays in the auction process for 3G spectrum in India, Mahanagar Nigam Telecom Ltd (MTNL) looks set to become the first operator to launch UMTS services commercially, the Economic Times reports. The state-owned telco has announced that it will launch its next generation services, offered under the Jadoo brand, on 5 February in central Delhi, including the Connaught Place, India Gate, Pragati Madan, Delhi Gate and Minto Road areas. US-based Motorola has been contracted to roll out the new core network. The launch comes after MTNL was allocated 3G spectrum at the end of 2008, giving it a head start over other operators, which are still waiting for the government to finalise 3G policy. Fellow state-run operator Bharat Sanchar Nigam Ltd is the only other company that has been given frequencies for 3G services, and is expected to launch commercially in the near future.
Add comment February 5, 2009
Vodafone reports fiscal 3Q results, revises full year guidance (UK)
Vodafone, the UK-based mobile group, has revealed a year-on-year increase in revenue to GBP10.47 billion (USD14.97 billion) for its third fiscal quarter ended 31 December 2008, citing a boost in exchange rates as a key factor in the rise. However it reported that quarterly revenue had fallen 1% on an organic basis. Organic revenue from the group’s European subsidiaries fell 1.4%, and while results had stabilised in the UK, and had been solid in Germany and Italy, the company’s Spanish arm saw a decline of 5.8% in organic revenue, faster than the previous quarter. Group-wide, revenue from data services increased 25.3% year-on-year to GBP786 million, and accounted for 8.13% of total revenue, up from 6.44% a year earlier.
Additionally, having announced a cost-saving programme in November 2008, Vodafone claimed it had made good progress with the plans and revealed that it expected to have saved approximately GBP500 million by the end of the 2010 financial year, rising to GBP1 billion by 2011. As a result of foreign exchange movement the group has revised its full year guidance, increasing its revenue target to GBP40.6-41.5 billion, whilst adjusted operating profit is expected to be between GBP11.5 billion and GBP12 billion.
The group reported a rise of 9.5 million in its total mobile customer base to 289 million at the end of December 2008. It recorded record customer growth at its Indian subsidiary, Vodafone Essar, adding 6.3 million subscribers over the quarter, bringing its total to just over 60 million.
Add comment February 3, 2009
RCOM launches GSM network in New Delhi (India)
India’s Economic Times is reporting that Reliance Communications (RCOM) has launched GSM-based mobile services in the capital Delhi, following a string of GSM rollouts across the country. The operator has installed approximately 950 new cellular towers in the region for the launch, and is expected to share the existing infrastructure of its CDMA-based operations in the circle; it has around 850 existing towers in Delhi. Initially only pre-paid GSM services are available, although RCOM has indicated that post-paid options will be offered in approximately three weeks.
Add comment February 3, 2009
Shyam Telelink becomes Sistema Shyam TeleServices; considering CDMA acquisitions (India)
Indian CDMA operator Shyam Telelink has announced that it has formally changed its name to Sistema Shyam TeleServices (SSTS). SSTS is a joint venture between Russian conglomerate Sistema and the Shyam Group of India. Commenting on the name change SSTS CEO, Vsevolod Rozanov, said, ‘Sistema is the majority shareholder in this venture with Shyam Group being the other partner. As our name suggests, we envisage optimizing this synergy of two players from different countries with a clear-cut focus on becoming a strong telecom player in India.’
In separate but related news SSTS has said it is considering acquisitions of other CDMA businesses in a bid to increase the speed of its pan-India rollout. Having announced a target date of mid-2010 for the completion of its country-wide rollout, Mr Rozanov said the operator will look at any opportunities to acquire other CDMA-based operators. SSTS launched services in the Rajasthan circle in October 2008, and has said it will begin commercial operations in Tamil Nadu and Kerala by March 2009. It hopes to complete rollouts in at least ten circles by the end of the year.
Add comment February 2, 2009
MTNL 3Q 2008 results reveals drop in net profit, revenue (India)
State-owned Indian telco Mahanagar Telecom Nigam ltd (MTNL) has reported financial results for the three months ended 31 December 2008, revealing a drop in net profit to INR583 million (USD11.9 million) from INR942 million in 2007. The fall has been attributed to the merger of 50% of dearness allowance (DA) with basic pay, leading to staffing costs increasing from INR4.33 billion to INR5.89 billion. Revenue for the operator meanwhile fell by 4.5% to INR11.3 billion. During the quarter MTNL increased its wireless subscribers by 222,079, bringing its total to 3.89 million, while customers taking broadband services from the telco rose by 42,379 to 645,784.
Add comment February 2, 2009
GoM next to tackle 3G auction proposals (India)
In news that will surprise nobody the auction process for 3G spectrum in India looks set to meet with further delays. The delays are likely following the revelation that the Cabinet Committee tasked with making a decision on policies formulated by the Department of Telecommunications (DoT) has referred the proposals to the Group of Ministers (GoM). India’s Economic Times reports that the latest move in the policy merry-go-round could see the auction process delayed indefinitely. It has been argued that one of the additional benefits for passing the matter to the GoM, which is headed by AK Antony, is that they can open discussions with the defence forces regarding the vacating of 3G frequencies. The auctions had originally been due to take place on 16 January, but were subsequently pushed back to 30 January.
Add comment January 29, 2009
Tata Communications posts solid 3Q results; net profit, EBITDA, revenue all increase
Indian fixed line and broadband provider Tata Communications has released its financial results for the three months ended 31 December 2008, revealing a 17% increase in revenue against the same period last year. Tata’s revenue for its third fiscal quarter stood at INR9.9 billion (USD202 million), while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 43% year-on-year to INR2.3 billion. Net profit for the three-month period meanwhile was INR810 million, soaring 203% compared with the 3Q 2007. The large increase has been attributed to a one-off charge incurred by the operator in the same period last year following a revision of the its pricing arrangements. Tata has claimed however that its key operating sectors, business voice and data, have both continued to demonstrate strong growth in both revenue and operational parameters. Wholesale voice revenues for the nine months to end-December 2008 increased 73% to INR2.29 billion, while enterprise and carrier data revenue was up 23%.
Add comment January 29, 2009
TRAI proposes more players in CDMA 3G (India)
TRAI want DoT to bring in atleast two operators for 3G services in the CDMA space in opposition to the current situation which has only one 3G operator being offered a 3G spectrum. The DoT present policy guidelines which only offers a single 3G block for CDMA operators.
“The authority understands that it is perhaps possible to identify more than one carrier in the 800-MHz band. It is all the more imperative as there are more than two access service providers in this category of technology for competition. Therefore, the authority recommends DoT may explore more than one block in the 800-MHz band for CDMA 3G services,” said Trai in a communication to DoT.
Trai also proposed that the base price for CDMA operators should be 25% of that of the GSM players.
Add comment January 29, 2009
BPL Mobile signs mobile internet agreement with InfoGin (India)
Indian cellco BPL Mobile has inked a deal with Israeli solutions provider InfoGin which will see the latter assist in the launch of a mobile internet service. InfoGin will provide its Intelligent Mobile Platform (IMP), which will allow BPL to offer internet browsing on any mobile device for pre- and post-paid subscribers. The new service will be offered through BPL’s WAP portal, which operates under the ‘@Cafe’ banner. Commenting on the agreement Sunzay Passari, vice president of VAS & Devices at BPL Mobile, said, ‘With this partnership we have reached our goal of launching the first ever mobile internet service in India. The new service is in line with our strategy to provide the most enjoyable, exciting and innovative services.’ No financial details of the deal have been revealed.
Add comment January 28, 2009
BRIC Economies to Experience Strong Mobile User Growth, Reaching 1.64bn by 2013
The increasing availability of broadband-enabled mobile networks, aided by falling prices of sophisticated handsets and data charges, will underpin continued strong growth in mobile phone usage in Brazil, Russia, India and China (collectively referred to as the BRIC markets), from 1.21 billion in 2008 to 1.64 billion by 2013, according to a report published by Juniper Research.
Aided by the existing strong mutual interdependence and trading partnerships between these four countries – which are tapped to become the largest economies in the world by 2050 – this growth in mobile services uptake will be able to defy the general economic slowdown and recession that is already affecting other markets and regions arguably more exposed to fluctuating capital market conditions.
Add comment January 28, 2009
Telenor withdraws proposed rights issue (India, Norway)
Reuters is reporting that Norwegian telecoms group Telenor has withdrawn plans to carry out a share issue to fund investment in Indian cellco Unitech Wireless. Telenor has announced it will instead raise funds for the mobile operator through cash flow and net debt, also revealing that it has signed a USD1.2 billion three-year loan agreement. The company has also proposed that there will be no dividend payout in 2008 or 2009. Commenting on the development a statement from the operator noted, ‘Closing of the Indian transaction is subject to certain conditions being fulfilled…(and) Telenor anticipates that this will take place during the first quarter of 2009.’
In separate but related news, Unitech Wireless is reportedly in talks regarding a tower sharing arrangement with Reliance Communications (RCOM) and Tata Teleservices (TTSL). A tower sharing agreement is one of the preconditions of the Telenor acquisition of a 60% stake in Delhi-based Unitech Wireless.
Add comment January 27, 2009
RCOM Q3 consolidated net up 3% (India)
Indian cellco Reliance Communications (RCOM) has revealed a 2.7% rise year-on-year in consolidated net profit for the three months ended 31 December 2008. Net profit for the quarter stood at INR14.1 billion (USD286.7 million), up from INR1.37 million a year earlier. Revenues for the operator also rose against the same period last year, climbing 20% to INR58.5 billion, whilst earnings before interest, tax, depreciation and amortisation (EBITDA) rose 11% y-o-y to INR23.5 billion. RCOM attributed the growth to the increased subscriber numbers, boosted by the launch of GSM and DTH services. RCOM chairman and managing director has announced that the cellco will reduce CAPEX for the next financial year to INR150 billion, down from the INR250 billion it has planned for the existing year; the operator claims to have spent INR160 billion so far this financial year ending March.
RCOM’s subscriber base climbed to 61.35 million at the end of December 2008, up from 56.05 million a year earlier, with the operator reporting that it had signed up ten million customers to its GSM-based services since launch in December 2008. RCOM has announced that its GSM network coverage will expand to approximately 24,000 towns from the current 14,000 it covers in the near future.
In separate but related news RCOM has also announced that it has integrated its GSM and CDMA services in the Orissa circle, and will now offer both under the united banner of ‘Reliance Mobile’. The cellco has claimed that merger will allow it to better utilise its resources and improve growth prospects.
Add comment January 27, 2009
DoT opens bids for MNP implementation (India)
The Department of Telecommunications (DoT) has begun the process to introduce mobile number portability (MNP), inviting bids from interested companies. The DoT has stated that it is looking for companies with previous experience in implementing MNP systems, and the submission deadline has been set as 6 February 2009. A list of pre-qualified bidders will be released on 16 February, with selected companies then asked to present their plans for rollout on 23 and 24 February. The winner will be announced on 5 March. The regulator has reiterated that the charge for the service will be decided by the Telecoms Regulatory Authority of India (TRAI). The TRAI had set a charge of between INR200 (USD4.07) and INR300 (USD6.10) in 2006, but it is understood that a new fee will be decided before the service is launched. The government had initially expected MNP to be introduced in Delhi, Mumbai, Calcutta and Chennai by the end of 2008. If the new deadlines are met as planned it is expected that the service may be introduced within the first half of 2009.
Add comment January 27, 2009
Idea Cellular revenue up 13.9 pct (India)
Idea Cellular Limited (Idea) announced its unaudited results (limited review) for the 3rd quarter (Q3) and nine months ended December 31, 2008.
Revenues for Idea’s 13 operating service areas for Q3 at Rs. 26,209 mn, grew by 13.9% on a QoQ basis and by 53.2% on a YoY basis.
The EBITDA for the 11 Idea service areas in Q3 enhanced to Rs 7,570 mn compared to Rs 6,446 mn in Q2, representing a margin improvement from 28.1% to 29.4%. However, Q3 captures the impact of Mumbai and Bihar launches for the entire quarter, whereas Q2 had the impact only of Mumbai for 5 weeks. Consequently, Total EBITDA margin declined marginally from 26.4% to 26.0%, even though Total EBITDA increased by 11.9% from Rs 6081 mn in Q2 to Rs 6,805 mn in Q3.
On a consolidated basis, Revenues for Q3 at Rs. 27,311 mn, grew by 18.5% on a QoQ basis. The EBITDA at Rs 6,974 mn showed a growth of 14.9% on a QoQ basis. Consolidated PAT for Q3 was Rs 2,195 mn as against Rs 2,562 mn on a standalone basis. The consolidated PAT is depressed by Rs 367 mn on account of the consolidation of Idea’s 41.09% shareholding in Spice Communications from 16th Oct 08 and on account of Idea group’s 16% shareholding in Indus Towers.
On 5th Dec 08, an affiliate of Providence Equity Partners has invested Rs. 21 bn in Aditya Birla Telecom Limited (ABTL) by way of subscription to 1.925 mn Compulsorily Convertible Preference Shares to be converted into 16.14% of equity share capital of ABTL post conversion.
Idea, including service areas of Punjab, Karnataka and Bihar, added 4.03 mn subscribers during Q3 taking its subscriber tally to 38.01 mn, reflecting a national market share of 11.0%.
Idea, along with Spice and ABTL, now holds GSM spectrum for every service area in India.
Add comment January 23, 2009
Airtel to spend $3.5 bn in FY’10 (India)
India’s largest mobile operator Bharti Airtel said on Thursday that it would invest about USD 3.5 billion in the next fiscal in telecom operations and in rolling out passive infrastructure. Bharti also said that it is on track to spend the same amount in the current fiscal.
“On mobile telecom operations-side the investment would be about USD 2-2.5 billion and the tower business-side between Bharti Infratel and Indus we should be spending between 2.5 and USD 3 billion in FY10. But in Indus (which is a tower tripartite venture of Vodafone Essar, Idea and Bharti) we have 42 per cent share so the exact investment in the tower business will come down to USD one billion making it the same as last year’s capex of USD 3.5 billion,” Bharti Enterprises MD Akhil Gupta said in New Delhi.
Overall capital expenditure will be USD 3.5 billion ballpark, but we will know the exact amount by the end of the next quarter, he said.
He said the company need not raise any funding for mobile operations but in the tower companies — Bharti Infratel and Indus — there will be a need to raise debt to fund the expansion.
While Indus has 93,000 towers, Bharti Infratel, which is a wholly-owned business of Bharti Enterprises, has 30,000 towers. Overall, Bharti’s share comes to 61,000 towers on a proportionate basis as it holds 42 per cent in Indus towers.
“Both will require debt funding,” he said but did not share the amount saying it is competitive information. Whatever required would be raised on need basis. Our net debt is very low — net debt to equity is just 0.19.”
Gupta ruled out any further stake sale for the moment in Infratel, which already has global investors like KKR, Singapore government’s investment arm, Temasek Holdings and other leading global investors hold about 10 per cent stake in Bharti Infratel.
New York-based private equity (PE) firm Kohlberg Kravis Roberts and Co (KKR) has invested USD 250 million (Rs990 crore) in Bharti Infratel Ltd. The arm attracts an enterprise valuation of the company of USD 12.5 billion.
“We raised some money last year from selling Bharti Infratel stakes… there is immediate plan to monetise its assets further,” He said.
He said Bharti did bid for the Iran license and it lost which ultimately went to Etisalat. “Either they were too aggressive or we were too mild,” he said. Bharti Airtel shares were trading at 4.87 per cent higher at Rs 612.
Add comment January 23, 2009
BSNL planning Kerala WiMAX launch for April 2009 (India)
Sstate-owned telco Bharat Sanchar Nigam Ltd (BSNL) is planning to launch WiMAX-based services in the Kerala circle in April this year. Citing comments by Amit Mishra, general manager of marketing for BSNL-Kerala, the report says that the operator will install 450 WiMAX base stations in the first phase of deployment, as it aims to cover all major cities and highways in the region.
BSNL has also reportedly placed orders for 3G equipment in preparation for launching 3G services in the circle. It currently has 2,400 active cellular towers, and will add a further 200 in March 2009 and 1,800 more by December.
2 comments January 23, 2009
NTT DoCoMo to complete TTSL investment by March 2009 (Japan, India)
According to Bloomberg, Japan’s NTT DoCoMo has said its USD2.7 billion investment in Indian wireline and mobile operator Tata Teleservices (TTSL) will be completed by March 2009. NTT has said that the acquisition of a 26% stake in TTSL has been held up as it awaits approval from local authorities. This is the second delay to the purchase, after it was initially deferred to 8 January by the Japanese cellco, due to the Securities and Exchange Board of India having not approved the transaction.
Add comment January 22, 2009
Bharti Airtel Q3 net up 38.34 per cent (India)
Sunil Mittal-led Bharti Airtel on Thursday said its net profit for the third quarter ended December 31 rose by 38.34 per cent to Rs 1,976.41 crore.
The company had a net profit of Rs 1,428.56 crore for the same quarter in the last fiscal, Bharti Airtel said in a filing to the Bombay Stock Exchange.
Total income of the company rose to Rs 9,667.37 crore, up 39.90 per cent against Rs 6,950.14 crore for the corresponding period a year ago.
“Bharti Airtel continues to lead the telecom growth story adding customer and revenue market share despite intense competition. Bharti’s strategy of extensive roll out ahead of competition, especially in new villages, has yielded rich dividends,” Bharti Airtel Limited Chairman and Managing Director Sunil Bharti Mittal said.
For the nine month ended December 31, the company has posted a net profit of Rs 5,811.22 crore, up 29.23 per cent against Rs 4,496.53 crore for the same period last year.
Source- http://in.yahoo.com
Add comment January 22, 2009
Tata ups stake in Neotel; Vodacom may join fibre project (South Africa)
India’s Tata Communications has increased its stake in South Africa’s second national operator (SNO) Neotel by 30%, acquiring shares from government-backed entities Eskom and Transnet. Tata Communications and its local operating arm Tata Africa Holdings now have a majority shareholding in the SNO. ‘We will support Neotel’s efforts to provide global quality telecom services in South Africa,’ said N. Srinath, the managing director and CEO of Tata Communications. Ajay Pandey, MD and CEO of Neotel, commented: ‘This transaction further allows Neotel to leverage on Tata Communications’ proven and vast global network of tried and tested technologies in countries such as India with similar telecoms landscape to South Africa.’
Separately, South African cellular operator Vodacom is reportedly lining up to participate in a ZAR2 billion (USD197 million) 5,000km national fibre-optic cable project involving Neotel and rival mobile firm MTN which was announced last week. Vodacom is thought likely to join the partnership once fixed line operator Telkom has divested its 50% stake. One source close to the deal told local newspaper Business Day: ‘Vodacom will join in the collaboration. It can’t at the moment because it has Telkom as a shareholder, but they are going through the divorce.’ Vodacom had been planning to deploy its own national fibre network, but joining with Neotel and MTN will offer significant savings on rollout costs.
Add comment January 21, 2009
BSNL to begin WiMAX services in Ahmedabad (India)
Online news portal DNA Money is reporting that state-owned telco Bharat Sanchar Nigam Ltd (BSNL) is planning to roll out WiMAX services in the city of Ahmedabad by the end of January. BSNL ran trial WiMAX networks in eight cities during 2007, but the operator has indicated it will focus initial deployment of the technology in rural regions. BSNL has said it will spend INR16 billion (USD329.9 million) on the new infrastructure and aims to cover 25,000 villages within a year. Despite the auction process for WiMAX spectrum having not been completed, BSNL has already received spectrum in three circles; Gujarat, Andhra Pradesh and Maharashtra.
Add comment January 19, 2009
Etisalat and RCOM in tower-share talks (India)
Reliance Communications (RCOM) and Etisalat are in discussions that could see the latter gain access to RCOM’s wireless tower infrastructure. Etisalat holds a 45% stake in new mobile licencee Swan Telecom, and it is believed that, subject to an agreement, the new player would use RCOM’s infrastructure, which is managed by RCOM subsidiary Reliance Infratel, to launch operations. It is believed that a revenue sharing model has been mooted as part of the agreement, with revenues from the deal expected to be around INR16 billion (USD329.9 million) annually. Etisalat paid USD900 million for its stake in the cellco in September 2008. Swan is expected to launch commercial services in the first quarter of 2009.
Add comment January 19, 2009
Airtel, mCheck claim 1 Million user base for mCommerce services (India)
Bharti Airtel and mChek announced the tie-up clocked one million user registrations for its mCommerce services since launch of the services in June 2008.
We strongly believe that mCommerce will be one of the top 3 services offered over mobile in the future and going forward it has the power to facilitate a paradigm shift in the way consumers do commercial transactions and business,” said Sanjay Gupta, Chief Marketing Officer, Mobile Services, Airtel.
“Consumer adoption and repeat usage of the service has been extremely encouraging”, said Sanjay Swamy, CEO of mChek. “With the Reserve Bank of India’s mobile payments guidelines now in place, banks and merchants are fast adopting our open-platform to build a thriving eco-system, and a compelling suite of services for consumers.”
The tie-up also announced the launch of mChekMall which will be available on WAP and Java environments enabling Airtel subscribers to conveniently book flight, movie and other services through their mobile phones. All new Airtel SIM cards will come preinstalled with mobile payment capability.
2 comments January 19, 2009
Batelco To Buy 49% Of India’s S Tel For $225M
The Indian telecom story is gaining muscle. The latest to join the world’s second largest telecom market is Bahrain’s Batelco which has signed a deal to buy 49% in Chennai-based S-Tel, a GSM service provider, for $225 million.
The Indian telecom company has licences to operate in six circles in Bihar, Orissa, Jammu & Kashmir, Himachal Pradesh, North East and Assam.
Santosh Robert, director, S-Tel, said the deal would enable his company to partner with an experienced operator for the GSM roll-out which is slated for the middle of this year.
Batelco has partnered with Millennium Private Equity (MPE), a Dubai Financial Services Authority (DFSA)-regulated entity to form Batelco Millennium India Company Ltd (BMICL) a special purpose vehicle to purchase the shares in S Tel. The transaction would go in for formal approvals and it is expected to become operational upon receiving regulatory approval by the end of April this year.
S-Tel was established to gain entry into the rapidly growing mobile markets of north east and north-west India. The population in these areas is approximately 230 million and mobile penetration rate is less than 20%. “We will focus on delivering innovation and value, and aspires to grow rapidly to respond to the needs of these largely untapped areas,” Robert said.
Besides, Batelco being a mid-sized operator has a medium appetite for investment found S-Tel very attractive. “They were clear that they did not want to invest in a pan-India operator, instead were looking at a smaller company to invest, which is where we fit in very well,” Robert said.
S-Tel is a Chennai-based company promoted by Skycity Foundations (P) Ltd and Telecom Investments, Mauritius. The company received unified access services licenses (UASL) and start-up spectrum in six category C circles, besides a category A all India internet service provider (ISP) licence.
Other major telecom deals include NTT DoCoMo’s 26% stake buy in Tata Tele for $2.70 billion, Etilasat’s 45% equity purchase in Swan Telecom for $900 million and Telenor’s buy of 60% in Unitech Wireless for $1.23 billion.
Add comment January 19, 2009
Indian Mobile Operators Expect $1 Billion In VAS Revenues by 2012
Despite a flailing worldwide economy, the Indian technology market has moved steadily ahead and as we edge further toward the end of the decade the country’s telecommunications market is expected to get even hotter, according to a new study.With 1.2 billion people, it’s hard to imagine India’s demand for mobile services will wane anytime soon, especially as the country continues to grow through educational and technology efforts.In fact, the Emerging Markets Communications (News – Alert) Strategies’ (EMCS) report, “Mobile Value Added Services (MVAS) in India,” says India will see $1 billion in value-added service revenues by 2012.
However, concentrating on only acquiring new costumers without responding to the requirements of the MVAS market could slow growth in the long term.So far, mobile operators seem more focused on the race to gain new voice subscribers than they are on building a solid MVAS ecosystem. This may prove short-sighted, said Rahul Gupta, senior analyst in EMCS and principal author of the report.
Add comment January 16, 2009
MTNL to launch Delhi 3G services within ten days (India)
India’s Economic Times is reporting that state-owned telco Mahanagar Telephone Nigam Ltd (MTNL) is preparing to launch 3G services in Delhi in the next ten days. Citing comments made by an MTNL executive the report also indicates that 3G services for Mumbai are likely to begin in the first week of February. MTNL chairman and managing director, R S P Sinha, also noted that the operator had yet to sign any agreements with content providers for 3G products. It is understood that its existing IPTV content providers will offer 3G content initially however.
Add comment January 16, 2009
India adds 8.12 mln GSM users in December
India has added a record 8.12 million GSM mobile users in December, according to data from the Cellular Operators’ Association of India. Total GSM mobile users at the end of December numbered 258 million, up 3.25 percent from 249.7 million in November. Bharti Airtel led the growth by adding 2.7 million new users, taking its total base to about 87 million. Vodafone Essar ranked second with an addition of 2 million users, taking its total base to about 60 million. Idea Cellular added close to 1 million subscribers, to take its total base to 38 million. BPL mobile has added close to 65,000 subscribers in December, a decline of about 9,000 users compared to about 74,000 in November. BPL mobile’s total subscriber base reached 1.9 million. Bharat Sanchar Nigam has added 800,000 users, taking its total base to 41 million.
Add comment January 15, 2009
3G auction date slips again; auction base price increase to be considered by law ministry (India)
The long-running saga regarding the auction process for 3G spectrum in India looks set to continue following the revelation that the auction date will be further postponed from 30 January. The announcement comes after the process was initially delayed from 16 January following requests from operators for more time to prepare for the process. The latest delay is understood to come as a result of the failure of the Cabinet to approve some of the key parameters of the auction process. No new date has been announced.
In related news the communications ministry is set to seek the law ministry’s judgement on whether the auctions base price should be doubled. The finance ministry earlier this month demanded that the base prices for both 3G and WiMAX spectrum be doubled, but the Department of Telecommunication (DoT) rejected the proposals.
Add comment January 13, 2009
Airtel launch goes to plan; Tigo notches up 2m users (Sri Lanka)
India’s Bharti Airtel launched 2G and 3G mobile services in Sri Lanka under the Airtel brand yesterday as planned, after investing half of a USD200 million network rollout budget taking it up to 2012. Airtel is the fifth cellular player on the island, competing with Malaysian-owned TM International’s Dialog Telekom, Tigo Sri Lanka, owned by Millicom International Cellular, Hutchison Telecom International’s local unit Hutch Lanka and Mobitel, a subsidiary of incumbent telco Sri Lanka Telecom. The Indian-backed cellco is expected to compete mainly on price. Commenting on the development, Bharti Group Chairman Sunil Mittal said: ‘It will be Airtel’s endeavour to drive affordability in the Sri Lankan market…We are confident that with our experience of 88 million customers, we will make a positive impact on the telecom land space of Sri Lanka.’ The company is offering simple tariff plans which do away with peak and off-peak call rates by offering standard tariffs throughout the day and night. Bharti has previously launched overseas mobile services on three other islands: the Seychelles, Jersey and Guernsey (both in the UK Channel Islands).
In other news, the country’s third largest cellco by user base, Tigo Sri Lanka reached two million subscribers by the end of 2008, reports Lanka Business Online. A statement from the company, formerly known as Celltel Lanka, attributed the growth to ‘network expansion, the strength of the brand and excellent customer service…The year 2008 saw heavy investment by the company to expand the network adding an average of 40 towers a month.’ Rapid growth in the island’s mobile market has slowed in recent years and increased competition saw all operators lowering prices and advertising aggressively to retain customers or win new ones. Tigo, like its rivals, offers free incoming calls and per second billing.
Add comment January 13, 2009
Airtel Launches Sri Lanka Ops; VAS & 3G Services, Free Sim Cards
Bharti Airtel has announced the launch of its Sri Lanka operations: via its subsidiary Bharti Airtel Lanka Pvt Ltd, Airtel is offering 2.5G and 3.5G services (HSPA). The services that have been launched are, predictably, GSM. The company will be investing around $200 million in its Sri Lanka operations.
Tariff Plans
What is interesting about the launch are the changes they claim to have made to standard tariff offerings in Sri Lanka – things that we here in India tend to take for granted:
– Same tariffs for peak and off-peak hours (i.e. doing away with the concept altogether)
– Unconditional free incoming calls
– Uniform call charges to any network
The company is also leveraging its network in India by offering 50% lower rates while roaming in India. Airtels network has been rolled out in Lanka over a period of a year – they have a three-year managed network deal with Huawei, partnered with IBM to manage its comprehensive IT infrastructure and application requirements, and selected iSmart Timex as its customer care partner.
Free Sim Card
Airtel took out ads in Sri Lanka offering Free Sim Cards between January 12 and 25; the connection gets activated on a recharge of Rs. 100. There have, apparently, been long queues outside Airtel’s office at Narahenpita, Colombo. So a price war is beginning in Sri Lanka now.
VAS Services
Airtel’s Sri Lanka site appears to be a work in progress, but we gleaned the following from the site:
– I-Moved is a service which allows users that have signed up for Airtel services to inform others.
– RingBack Tones: while no specific VAS company has been mentioned on the site, a statement on their site “BTSL will provide the backend pages for this and we need “Airtel Ring back Tune Search” as a button to click.” indicates that Bharti Telesoft may be powering CRBT for Airtel Lanka
– SMS services – the usual: News, Jokes, Astrology, Lottery Results, Sports, Health and Stock Markets.
– Voice SMS
– Voice Mail
3G Services
– Video Media Portal: dial 7561 as a Video call for the video portal
– 3G Broadband (mobile phone access)
– Phone Backup Service
– 3G Data Services (USB/Router based)
Why Enter Sri Lanka?
The Teledensity in Sri Lanka appears to be quite high at 61.3%, with 45.7 mobile phones per 100 people and 9,253,067 subscribers. There are already4 other mobile operators in Sri Lanka, and the country has 3G:
– Dialog
– Mobitel (Sri Lanka Telecom)
– Hutch
– Tigo
Some market stats (Q2 2008):
Total Telecom subscribers (Fixed+Mobile): 12,399,024
Total Teledensity (Fixed & Cellular): 61.3%
Fixed Line Phones: 3,145,957
Fixed Line Teledensity: 15.5%, 36.4% in Colombo District
Cellular Mobile Subscribers: 9,253,067
Mobile Phones per 100 people: 45.7
Internet & Email Subscribers: 215,000
Add comment January 12, 2009
Tata Communications aims to raise INR30 billion for acquisitions, spectrum bids
Indian fixed line and broadband operator Tata Communications (formerly VSNL) is planning to raise up to INR30 billion (USD605 million) through a combination of debt financing and a rights issue. According to local news sources the operator has approached the Indian government, which holds a 26% stake in the company, regarding the rights issue, which is expected to raise up to INR10 billion. The operator has been attempting to raise equity since early 2008, although the state has not approved any of the company’s previous proposals. It is understood that Tata Communications will use the funds raised to pursue acquisitions in both the US and the UK as part of its submarine cable projects. Additionally, Tata is expected to bid for Indian WiMAX spectrum when it is finally auctioned in the first half of 2009.
Add comment January 12, 2009
DoT mulls increase in number of 3G licences (India)
India’s Economic Times is reporting that, in the latest of a long line of mooted changes, the Department of Telecommunications (DoT) is considering increasing the number of available winning lots in the upcoming 3G spectrum auctions. It had previously been agreed that each telecoms circle would allow five winning bidders, but now the regulator has announced it may increase that number to eight. If it is approved the change will not affect all calling circles due to a shortage of spectrum in some regions; only circles with more than 25MHz of spectrum available will allow more winning bidders. The move is believed to be under consideration as a means of generating increased revenues from the auction process, which the government had initially hoped would raise INR400 billion (USD8.05 billion). It is being considered as an alternative to another recent suggested change, which proposed the doubling of the auction’s base price. The proposal is expected to be sent to the Cabinet Committee on Economic Affairs (CCEA) within the next few days, and will likely be considered sometime next week.
Add comment January 12, 2009
Motorola India axes sales force as handset business ebbs
The economic slowdown in India is hurting deeper. It has taken a heavy toll of Motorola India’s aggressive plans to expand mobile handsets business, where Nokia is the undisputed leader.
More than 200 people Motorola India had hired just a few months ago to drive hard its mobile handsets sales have all been laid off. The company has decided to carry on with its current model of doing business through its distributors.
As for the rationale behind this decision, Motorola India, through an email response sent via its public relations agency, said “while Motorola has a strong global brand as well as a solid balance sheet and cash position, the company is not immune to the currently weak global economy.”
On the lay-offs, the company further said “Motorola continuously reviews its business and the market to ensure that our resources are aligned with market conditions.”
Industry sources said Motorola paid all the laid-off sales personnel two months salary in lieu of notice period. Motorola would have made an announcement if it were laying-off employees in its home market, the US, as a matter of routine, but preferred to give the pink slips to such a large number of employees without making any noise.
Motorola, which was third in terms of market share, has fallen behind Samsung. Nokia is the leader far ahead of other mobile handsets makers with around 60 per cent market share. All others have their market share in single digits. Sony Ericsson has about 8 per cent market share, Samsung 7 per cent and Motorola 6 per cent.
Motorola India said “we are working diligently to improve the profitability of our business and are committed to delivering a strong portfolio of exciting new products in 2009 and beyond.”
Source: http://in.biz.yahoo.com
Add comment January 9, 2009
TRAI analysis shows Airtel and Vodafone have most crammed networks (India)
The Telecommunications Regulatory Authority of India (TRAI) disclosed that GSM operators Bharti Airtel and Vodafone Essar have the busiest telecom networks in the country, after conducting an analysis.
This aspect was being recorded by TRAI on a monthly basis across the country. The regulator stated the congestion levels were way above the permissible limit during the quarter ended September 08 in as many as 129 places. Nevertheless, the overall congestion levels which was as high as 526 in 2006 came down to 134 places in the quarter ended June 2008.
The congestion besides causing call drops and deterioration of voice quality, also forces consumers to make repeated attempts to get through to another subscriber.
The regulator has a set a benchmark of less than 0.5% for the congestion levels indicating that out of 200 calls between two operators only one call should face congestion problem. This level is tracked by TRAI by evaluating the congestion levels at the Points of Interconnection (PoI), which are the places where mobile traffic is exchanged between the networks of different operators.
Bharti Airtel has the largest number of PoI’s having a congestion of 41 followed by Vodafone with 22. Reliance Communications and Idea has 19 each. The circles most affected due to network congestion are Bihar, Maharashtra, Gujarat, Mumbai, Uttar Pradesh (West) and Himachal Pradesh.
Add comment January 8, 2009
RCOM adds Rajasthan to GSM list; seeks TDSAT involvement in GSM spectrum allotment issue (India)
Completing a trio of launch announcements this week, Indian cellco Reliance Communications (RCOM) has reportedly begun offering services on its GSM-based network in the circle of Rajasthan, LiveMint is reporting. Having launched its GSM operations in both Punjab and Mumbai earlier this week, the new infrastructure in Rajasthan is expected to be available to over 1,450 cities and 10,000 villages in the state.
In separate but related news, The Economic Times reports that RCOM will approach India’s telecoms tribunal, the Telecoms Disputes Settlement and Appellate Tribunal (TDSAT) in a bid to resolve an issue with the Department of Telecommunications (DoT) regarding GSM spectrum allocation. RCOM received in-principle approval for GSM spectrum in six circles – Bihar, Himachal Pradesh, Madhya Pradesh, Orissa, Kolkata and West Bengal – in October 2007. The DoT however withdrew its approval in December 2008, claiming that RCOM was already in possession of spectrum through its subsidiary Reliance Telecom. RCOM contends the DoT was aware of the subsidiary at the time of giving in-principal approval for the new spectrum.
Add comment January 8, 2009
