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| Monday, March 31, 2008 |
| Tata+Virgin Deal + DTH Fees + 3G Slots |
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Putting to rest all controversy over the Tata Teleservices-Virgin alliance, the department of telecom (DoT) on Friday gave it a clean chit after receiving answers to its queries on whether the tie-up was above board. The DoT said Virgin Mobile India, the company formed under the tie-up, was not operating as a Mobile Virtual Network Operator (MVNO) in India.
In a move that will bring some respite to direct-to-home (DTH) broadcasters and marginally lower charges for users, the Ministry of Information and Broadcasting (I&B) has asked the Telecom Regulatory Authority of India (Trai) to take a second opinion on how to determine the DTH firms annual revenue share that is charged as license fee.
Mobile operators are likely to fiercely oppose the government's move to allow only two private operators apart from BSNL/MTNL in the 3G space. |
Published on Monday, March 31, 2008 at 10:25 AM  |
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| Monday, March 10, 2008 |
| New Entrants + Infrastructure Sharing |
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Potential New Entrants:
In our assessment we found that new licensees are indeed serious about network roll-out, but a few may turn out to be spectrum traders. New entrants estimate that they could need ~US$4bn for a nation-wide GSM rollout even after allowing for tower-sharing. Companies are yet to buildup their management teams for large scale rollout, & funding plans are still being worked upon. Also, pending resolution of ongoing litigation in the sector, equipment vendors may be uncomfortable about committing resources to new entrants.
Tower Sharing:
For the time being, bargaining power on tower-sharing appears to rest with tenants & rental rates continue to fall. Despite deeper coverage, operator-led tower companies like Indus [airtel, Vodafone and Idea's venture] will likely find it challenging to improve overall tenancy due to perception issues on neutrality, and execution bottlenecks in terms of siteavailability & site-suitability. |
| Published on Monday, March 10, 2008 at 10:57 PM |
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