Look we weren’t really surprised to read this but now the MNP that we expected to arrive in August will come in September. The government will reveal the successful bidders on March 5 by awarding them a letter of intent. The implementation plans are still the same – Major cities will get MNP within six months while the rest of the areas within a year.
Telecom
A Raja: MNP to come by August
CIT minister A Raja has confirmed that the mobile number portability (MNP) that was slated to come in December last year, will finally be launched in August. The first phase will cover major cities while the second phase, will take over the remaining cities by the end of the year.
It’s better late than never but somehow I have a feeling that it’s going to be delayed further. What do you think? Will you change your service operator if MNP comes into effect? And if yes, what price are you willing to pay? The previous we heard was Rs. 300.
50M BPL families might get free phones
If the recent proposal from the Indian Cellular Association (ICA) to Telecom Regulatory Authority of India (TRAI) is approved, 50M below the poverty line (BPL) families could receive a free phone along with a cellular connection.
The initiative put forth by the ICA which includes members like Nokia, Motorola, Sony Ericsson is pretty interesting with an aim to further penetrate rural areas as well as disseminate local information like weather, news etc. with the help of call centres in the regional languages. ICA plans to provide a basic phone with AM Radio functionality and a free calling package of up to 100 calls per month/family for a period of 2 years. The total estimated cost of this initiative is expected to be around Rs. 4000-5000 crores.
However, all this totally depends on TRAI’s approval and looking at their way of working this seems to be a tough ask.
3G on TG: 90 million 3G subscibers by 2013 while Govt still unclear about auction dates
Isn’t that great!! On one side the Government is finding it difficult to arrive at a concensus and on the other, reports of 90 million subscribers by 2013 making the rounds. This data was a part of Federation of Indian Chambers of Commerce and Industry’s (FICCI) report. Also, projected sales of 3G enabled handsets stand at 8.13 million units, which would bring in $11.2 billion as revenue.
As for the timelines for the auction process, things do not look too good. The process is already running late by a month and there are some more expected. However, reterating our views, this is a good time for operators to make sure they have saved enough to help them emerge as winners in the bidding process.
3G on TG: 3G Auction delayed again!
With the 3G spectrum allocation being talked about in every business newspaper and the dates being changed every fortnight, we give you this update on what’s going on.
Dates: We brought you the official dates for the auction some weeks back. Till then the 16th of January was the day when the process was planned to begin. However, with the Cabinet and the Telecom authorities not coming to common terms, this date was shifted to the 30th of Jan. Things got worse, when the dates were further delayed, as the Cabinet was to view the suggestions put forth by the Dot not before mid-Jan. Also, the auction would not take place till all the ministries, the Cabinet and the telecom authorities come to a consensus. At present, the process is set to begin in mid-February. This too, seems to be a very optimistic date.
8.12 million GSM users added in December 08
The economic slowdown hasn’t affected the Indian telecom industry much, quite evident by the above mentioned numbers. Against 7.62 million users being added in November, December witnessed a healthy growth in these numbers – with 8.12 million users being added. This converts into a growth rate of 3.25%, which is marginally lower than the same clocked in the previous month – 3.32%. Here are the specifics of how each operator contributed to this growth:
- Airtel: 2.7 million
- Vodafone: 2 million
- Idea: 1 million
- BPL Mobile: 65 thousand
- BSNL:8 lakh
At the end of December, the strength of the total user base (GSM) stands at 258 million, with Bharti Airtel leading the market with its 33.22% market share. The operator is followed by Vodafone at 23.63% share of the GSM market. The month saw all operators clocking positive growth, with the exception of BPL which saw its additions go into the red.
SMS and Call rates to reduce further
It’s been about a year since TRAI, the telecom regulator, has asked operators to reduce SMS charges. However, with the Telcos not doing much about it, the regulator is all set to take some action, if the operators turn a deaf ear this time around. Apart from this, TRAI is of the view that the Indian user is being exploited on the ‘calling’ front. Users have been complaining of calls getting cut due to network problems and thus having to pay for a whole minute even if the call lasted for 10 seconds.
The regulator is all set to put pressure on the Telcos, which eventually lead to SMS charges witnessing a decrease and operators taking necessary steps to strengthen their connectivity. If this is not possible we might see some operators reducing pulse rate, which currently stands at 60 seconds. This has been done by players like BPL, who had a one second pulse rate i.e. you are only charged for the number of seconds you spoke. On the whole, the future looks bright and cheap for the Indian users.
IIFCL funds to the rescue of cash strapped Telcos
In these turbulent times, where biggies like Vodafone are crying foul over delaying the bidding process, given the liquidity crunch, funding assistance is a much welcomed move. This comes at a stage where operators are in urgent need of funds to get themselves an edge over competitors in their bid for 3G spectrum. The Finance ministry has permitted IIFCL – India Infrastructure Finance Company to lend funds to the telcos who are all set to enter the 3G auction, due soon.
This move will help fund the process of bidding for the much awaited 3G spectrum. However, it is much appreciated, given the timing of the move, where companies didn’t have much access to funds to such a large extent. The funding is to the tune of Rs.10,000 crore, which the Company would raise through tax-free bonds from the public and local financial institutions.
GSM subscriber base touches 242 million in October
While all other industry sectors are facing the effects of the global financial turmoil, India’s telecom sector is green as ever. The total GSM mobile users at the end of October was at around 242 million with October alone having a record subscriber addition of 8 million. It broke the previous best of 7.7 million that was witnessed in September. The Cellular Operators Association of India (COAI) has anticipated that the GSM base would cross the 250 million mark by December.
The biggest gainer as usual was Bharti Airtel with 2.7 million new subscribers taking its total user base to past 80 million. Vodafone Essar added more than 2 million new users and accounted a total of 56 million subscribers. State owned BSNL managed to get 6.7 lakh new users, taking its total count to 39.8 million.
Operators will share revenue with Govt. for 3G airwaves
With the date for the 3G bids set, it’s time to get some clarity on the revenue aspect. Apart from spending big money to bid for the 3G spectrum, Indian telcos will have to shell out more if they secure the spectrum.
DoT has made it clear that a certain percentage will be charged to operators using 3G airwaves. They have also added that a current player in the market will have share 1% percent more as compared to 3% for the newest entrants.
However, this move has not been conceived well by most of the existing telcos. A two percent discount for old telcos comes because they already share around 2-6% of their revenues for offering 2G services and with an extra percent means now they’ll have to share anything in between 3-7%. Companies want an incremental share of revenues for using 3G services because 3G would be used by a niche crowd and a direct percent sharing means more money to the government even if the operator hasn’t used much of the 3G airwaves.
Source: ET