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| Friday, August 29, 2008 |
| Operators seeking automatic ECB to fund 3G bid |
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The telecom players across the country have expressed their plans to raise external commercial borrowing (ECB) route for funding the 3G bid to the finance ministry.The fund raising through domestic financial institutions at this time would mean a higher interest to be paid, which would eventually affect the financial and economic viability of the project.
The current guidelines on ECBs issued by the Reserve Bank of India permit raising only $100 million for capital expenditure in foreign currency, which cannot be raised to fund the cost of 3G spectrum that comes for auction by the end of this year. The telecom companies have also raised their voice to further relax the rules so that the companies can repay ECBs raised for funding the 3G auction. |
Published on Friday, August 29, 2008 at 1:17 PM  |
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| Tuesday, August 26, 2008 |
| Subscriber Numbers + Airtel - RCom Networks Congested |
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Indian mobile telecoms firms added 9.2 million users in July-08, taking subscribers in the world's fastest growing wireless market to nearly 300 million, the Telecom Regulatory Authority of India said on Monday. Leading mobile firm Bharti Airtel signed up 2.7 million customers, enough for it to overtake state-run Bharat Sanchar Nigam Ltd as India's largest telecom firm by total subscribers, including fixedline subscribers.
Telcos also added 190,000 broadband Subscribers in India taking the total number of subscribers to 4.57 million.
Leading telecom service provider Bharti Airtel tops the list of most congested network followed by Reliance Communications, data from the TRAI revealed. TRAI today released the PoI (Point of Interconnection) report for April-June quarter, which said amongst the private service providers Bharti Airtel has the largest number of PoIs having congestion (56 PoIs as of June) followed by Reliance Communications (22 PoIs). |
| Published on Tuesday, August 26, 2008 at 12:05 PM |
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| Friday, August 22, 2008 |
| Idea Mumbai - No Value Creation |
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 Idea Cellular launched GSM wireless services in Mumbai yesterday. We are impressed by the initial scale of network and promotional tariff plans, but we do think the Mumbai project will not add incremental value, even in optimistic scenarios.
Idea is starting with 1,000 cell sites and plans to have 1,500 sites (1.5 MM sub capacity) by Mar-09, of which we expect 40-45% to be leased from Indus Towers. Management is aiming for 20% market share of new subs, which is possible in the short run, in our view, but would not be sustainable once RCOM/Aircel make an entry into Mumbai later this year. Idea's presence in Mumbai enhances profile and serve as a platform for a 3G launch in future, but is unlikely to result in any value creation.
From shareholders point of view, buying the stock because Idea established in Mumbai is poor idea sir ji ;-) |
| Published on Friday, August 22, 2008 at 2:30 PM |
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| Thursday, August 21, 2008 |
| TRAI meeting GSM Cos over RCom connectivity row |
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The Indian telecom regulator TRAI will be holding a meeting with GSM Telecom companies to discuss the issue of connectivity with Reliance Communications (RCom). All GSM players as well as Reliance will be present at the meeting.
GSM companies have been saying no to connect to RCom's GSM network protesting that since the later has not paid license fee like GSM players, RComshould not be allowed to start GSM operations. The company, on the other hand, has been contending that since it has not took a separate license for GSM, and wants to offer services under the dual use technology license granted to it last year, it is eligible to start its operations without the need of any fee.
TRAI had earlier asked the GSM players to ensure connectivity with RCom’s GSM network or face a legal action. GSM players however have been refusing TRAI and contemplating going to court. Now the regulator has decided to hold another meeting with companies today to finds a solution to the issue. |
| Published on Thursday, August 21, 2008 at 10:24 AM |
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| Monday, August 18, 2008 |
| TRAI whips GSM Lobby for not connecting to Reliance |
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GSM operators led by Bharti Airtel, Vodafone and Idea Cellular have been demanding that Reliance Communications should enter into separate interconnectivity agreement for its GSM services.
Telecom regulator TRAI has issued two directives to GSM players asking them to sort out connectivity issues with Reliance Communication’s GSM network by August 21. The regulator will write to the Department of Communication to take strict actions against such companies if the fail to comply by its directive in the given time. GSM operators have been saying that Reliance can not use the CDMA interconnect agreement for GSM services. These companies want the company to enter in to a separate GSM connectivity agreement for its services.
Reliance Communications is expected to launch its GSM services in 14 circles this year. However, it cannot do so until its connectivity issues are resolved. The company contends that since its license for GSM is not separate but dual technology use license, which permits it to use both GSM and CDMA platforms, there is no need to enter into a separate connectivity agreement. |
| Published on Monday, August 18, 2008 at 12:52 PM |
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| Wednesday, August 13, 2008 |
| TRAI unhappy with 3G policy |
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It has been just few days since the government announced 3G policy and its weaknesses are already coming out. Telecom regulator TRAI has expressed its displeasure over the 3G spectrum allocation plans to CDMA players. TRAI wants that CDMA players should also compete for the spectrum through auction rather than being allocated by subscriber base criteria.
As per the new policy, the CDMA players will be allotted spectrum according to the subscriber base of companies in each circle. Given the fact that the Department of Telecommunications (DoT) has just enough spectrum in the 800 MHz band to accommodate one player for now, the largest player in each circle will get the spectrum automatically.
This means that Reliance Communications, which is market leader in all the circles except New Delhi and Maharashtra, will be able to roll out its service before anyone else. Also, the fact that it may take a year before the defense sector will vacate spectrum and the same may be allotted to other players; Reliance will get a good head start of rest of the players like Tata Teleservices, BSNL, MTNL etc.
TRAI feels that since the 2G CDMA spectrum and licences were given to operators at different times, it will not be fair to make subscriber base a criteria for 3G spectrum allocation. Rather, the regulator feels that, CDMA players should also compete through an auction like their GSM counterparts.
Tags: Telecom India, 3G India, Mobile India, Wireless |
| Published on Wednesday, August 13, 2008 at 11:31 AM |
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| Wednesday, August 06, 2008 |
| MVNO Recommendations for 2G + 3G + BWA |
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 TRAI has released set of recommendations for starting MVNO services in the World's second fastest growing telecom market. Here are the key highlights,
- MVNOs will not have their own spectrum in any given circle in India
- MVNOs will be dependent on operators for spectrum in 2G + 3G + BWA
- MVNOs to be governed under the Telegraph Act of India and get a license for period of 20 years
- MVSNos have no rollout obligations
- MVNO can operate on three distinct business models in India - Full, Intermediate or Thin, as shown below. [Courtesy TRAI]
 - A telecom service provider can have any number of MVNOs operating under it
- Entry fees upward cap - Rs 5 crore / category A, Rs 3 Crore for Category B and Rs 1 crore cor Category C circle respectively
- Annual license fees payable to the government is the same as that of service provider.
- Number allocation and portability to be guided by the service provider
- 74% FDI allowed
Remember, these are just the fist set of recommendations, DoT under the IT Ministry will have the final say and structure, if you are intending to be a MVNO in India, get your folks start lobbying in Delhi right away. |
| Published on Wednesday, August 06, 2008 at 11:34 AM |
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