Idea Cellular cuts 3G tariffs by 70 percent (India)
Indian telecom operator Idea Cellular seems to be following Bharti Airtel’s footsteps by announcing a reduction of 70 percent in its 3G tariff plans. As per a company statement, Idea decided to cut 3G tariffs to widen the new-age offering by making it accessible to one and all.
The company said that under the new plan, Idea’s pre-paid and post-paid customers will pay $0.0005 for 10 kb of data, a reduction of 70 per cent from the earlier levels of $0.0018. Further, Idea said that 3G services are offered in 3,207 towns across the country and it has 2.7 million active users with an average usage of 330 MB per month.
Idea also said that it has introduced various packs such as sachet packs, regular packs and unlimited packs, priced in a way to accommodate users from different segments. The lowest of the sachets will be sold for $0.18 and offer 30 minutes of high speed internet surfing on 3G enabled handsets.
Augere Wireless plans to end business operations in India (India)
Augere Wireless, a company backed by France Telecom and private equity funds, is set to sell its 4G spectrum in two states and quit India, as regulatory uncertainty has forced its investors to hang up on the country, according to a report by ET.
As per the report, two company executives said Augere was shutting down its India operations and had asked its employees in the country to resign. Augere is the second 4G spectrum holder that is close to exiting the wireless broadband space.
As reported earlier, Qualcomm is said to be in advanced talks with leading operator Bharti Airtel to sell its 4G licences. Airtel is the only operator in India to have launched 4G services.
Augere Wireless CEO Lars Henrick Stork said the company had stopped all operational activities in India and had asked employees to go on leave as it was reassessing its plans here. He blamed the regulatory uncertainties surrounding India’s telecoms sector and said it had resulted in the company being unable to raise funds from both national and international investors.
In a conversation with ET, Stork said that there is a lot of uncertainty hanging over the telecoms sector in India. The cancellation of licences by the Supreme Court, Trai’s rules for re-auction and the exorbitantly high reserve price, as well as lack of clarity on the new telecoms policy, which was supposed to be unveiled by mid-last year and has not happened yet; all these factors have resulted in their investors stopping funding for their activities here.
Augere’s investors include former Orange CEO Sanjiv Ahuja, Harbinger Capital, France Telecom, New Silk Route and Vedanta Opportunity Fund. The company also offers its services in Asia and Africa under the Qubee brand.
Sistema to exit India if government accepts TRAI’s proposals (Russia)
Telecom operator Sistema Shyam has threatened to pull out of India if the government accepts the telecom regulator’s latest proposals to auction CDMA airwaves at a significantly higher price, a 14-fold increase over what it paid in 2008, according to a report by ET.
As per the report, a senior board member from the oil-to-telecom conglomerate Sistema JSFC said it will have to bow down to pressure from its investors and not bid in the upcoming auctions in India, where it has invested more than $3 billion after buying a controlling stake in Shyam Telelink, now called Sistema Shyam, in 2008.
Andrey Terebenin said that if the government rubber stamps these Trai recommendations, they will pull out, implying that his company will not bid in the upcoming auctions. Terebenin is in India to meet Indian government officials. He went on to add that Trai’s recommendations were being perceived as a coded message to create a situation where no new entrants can come in the telecom sector. He said he was absolutely sure that no new entrant would be able to make a viable business case with the prices suggested by Trai.
The report reveals that Terebenin added that Sistema was under extreme pressure from investors in the US and UK to exit India since they had initially cautioned against investing here because of the difficult business climate.
Airtel cuts 3G data prices by 70 percent (India)
In a revolutionary move in mobile data price plans, leading telecom operator Bharti Airtel has reduced the price for 3G data plans by 70 percent. As per a company statement, volume based browsing rate on 3G is down from $0.0018 per 10kb to $0.0005 per 10kb. This will be applicable for 3G non-pack users with effect from May 17, 2012.
The company revealed that the new data plan for pre-paid customers would start at $0.18 for 30 minutes of usage over a one-day validity, $0.82 for 150 MB data valid for 7 days and will go till $27.3 for 10 GB data valid for 30 days. On the other hand, for post-paid customers, the plans start at $1.8 with a 300 MB data and 30 days validity, and goes till $27.3 for 10 GB data valid for 30 days.
Airtel also said that with Airtel 3G Smartbytes, post-paid mobile customers will have uninterrupted access to high speed browsing on their mobile devices even after exhausting their monthly data limits. The Smartbytes additional data usage packs will be available in a range of pre-determined price options that allow Airtel 3G customers to choose a plan that suits their needs.
Vodafone India plans IPO roll-out (India, UK)
British telecom major Vodafone Group plans to list its Indian venture on local exchanges but hasn’t set any date yet, as said by unit Chief Executive Marten Pieters, as reported by WSJ.
In April 2011, parent Vodafone Group’s chief executive, Vittorio Colao, told a television station that it may consider an initial public offering for the India unit.
Vodafone has been battling Indian tax authorities since it bought Hutchison Whampoa Ltd.’s 67 percent stake in its India venture for $11.2 billion in 2007.
India plans to demand about $3.75 billion in taxes from Vodafone, a senior government official said on May 10. The British company says it isn’t liable to pay taxes on the deal as it was conducted overseas.
Mobily announces award of MVNE solution and services contract to XIUS (Saudi Arabia, India)
Mobily, the fastest growing mobile communications and technology provider in the Kingdom of Saudi Arabia announced the award of its MVNE solution and services contract to XIUS, an Operating Brand of Megasoft Limited Hyderabad, India.
XIUS is providing MVNE/MVNO network infrastructure and operations managed services as well as MVNE back-office services required for the qualification and launching of MVNO on the Mobily network and MVNE platform and ultimate offering to potential MVNO subscribers in the Kingdom of Saudi Arabia. XIUS is employing its Mobile Services Platform infrastructure and framework, currently deployed in multiple global locations, which will provide MVNO with its own separate network components and flexible capabilities for service offerings to its targeted subscribers.
GV Kumar, Managing Director and CEO of XIUS, said that they are very proud and excited to be working with Mobily on their foray into the MVNO market in the Kingdom of Saudi Arabia. As well, their Mobile Services Platform provides Mobily, and the MVNO it serves, with a flexible suite of network components, OSS/BSS, and VAS solutions that will be leveraged by the MVNO to offer distinct, separate, and compellingly different subscriber offerings.
Dr. Eyas Al-Hajery, Mobily’s Senior Executive Vice President for Wholesale and Carrier Services, said that they have chosen XIUS Mobile Services Platform after an exhaustive selection process that includes an extensive list of vendors. The platform will enable Mobily to provide carrier class comprehensive MNO/MVNE services to potential MVNOs.
The MVNO will be able to focus on its identified market target segment, develop unique plans and service offerings, and bring new and different value added solutions without dependence on the mobile network operator, utilizing the XIUS Mobile Services Platform being installed solely for the use and utilization of the MVNO.
Airtel in talks with Qualcomm to buy out Indian unit (India)
Leading telecom operator in India, Bharti Airtel, is said to be moving forward in its talks to buy out the Indian partners of Qualcomm in a fourth-generation (4G) broadband venture in the country, according to a report by Reuters.
Qualcomm purchased 4G radio airwaves in a 2010 Indian state auction for $1 billion, and had sold a total 26 percent stake to Indian companies Global Holding Corp and Tulip Telecom for about $58 million to comply with the sector’s foreign holding rules.
As per the report, both sides are still negotiating valuations, but Bharti will likely pay some premium over what Global Holding and Tulip paid in 2010. Further, it is expected that Bharti will make further investments in the company in future and new shares will be issued to them. That automatically dilutes the Qualcomm holding.
The deal will give Bharti access to four telecoms zones, including the lucrative Delhi and Mumbai cities, where it does not have its own 4G airwaves. Bharti, which won 4G airwaves in just four of India’s 22 telecoms zones, has said it would like to have a nationwide 4G broadband network. The company recently launched commercial 4G networks in Kolkata and Bangalore cities.
Qualcomm, which was embroiled in a dispute with the Indian telecoms ministry, was granted the 4G airwaves this month, nearly two years after it won them in the auction. The ministry cut the usage period of the airwaves by 18 months.
Qualcomm, which is pushing for the deployment of LTE (long-term evolution) broadband technology in India, has previously said it is looking at one or more operator partners in the India broadband venture.
Airtel partners with Axis Bank for mobile banking services (India)
India’s leading telecom operator, Bharti Airtel, has entered into a partnership with Axis Bank, enabling customers to carry out basic transactions such as transfer money as well as deposit and withdraw cash via Airtel Money.
As per reports, Bharti Airtel chief executive, India and South Asia, Sanjay Kapoor said that following the recent pan-India launch of Airtel money, they are today excited to collaborate with Axis Bank to further strengthen their m-commerce proposition for customers.
He added that the services will first be offered in Delhi and Mumbai on the sending side, and Bihar and East Uttar Pradesh on the receiving side. Thereafter, these services may be extended to other remittance corridors in the country.
Kapoor also said that according to estimates, nearly 43 per cent of the country’s population does not have bank accounts-the ‘Airtel money Super Account powered by Axis Bank’ acts as a no-frills bank account that comes with remittance capabilities.
Axis Bank MD and CEO Shikha Sharma said that their alliance with Airtel will help the bank to reach out to excluded segments of their population, both in rural and urban centres, with reasonably priced banking and financial services.
