Infotel bags pan-India license in Indian BWA auctions
www.WirelessFederation.com/news: Auction for wireless broadband spectrum has come to an end and India’s Department of Telecommunications (DoT) has announced that unlike the recently completed 3G auction one company has walked away with a pan-India concession.
Licenses for 22 of India’s telecoms circles has been won by Infotel Broadband Services which won Broadband Wireless Access (BWA) after making the payment of INR128.48 billion (USD2.74 billion). Aircel bagged the next largest number of BWA licenses, eight, for a total of INR34.38 billion. Tikona Digital Networks paid INR10.58 billion for five licenses.
US-based chipmaker Qualcomm and India’s largest cellco by subscribers Bharti Airtel won four licenses each. Among those that lost out were Indian players Reliance Communications, Vodafone Essar, Idea Cellular and Tata Communications.
Excess of INR1 trillion has been raised by the government after completing both of the 3G and BWA auctions. The amount is more than the due to be paid by state-owned operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL).
India set to become No.1 with maximum subscribers by 2013
www.WirelessFederation.com/news: India is set to become the world’s largest mobile market by gaining the top slot by 2013 with the current growth rate being 3.38% and total telecommunication density standing proudly at 52.74. According to a press release by TRAI on April 26, 2010, number of subscribers grew from 600.98 million in February to 621.28 million in March.
It has also been predicted that the subscriber base in the country will rise to 1.159 billion by the end of 2013 beating China which will have 1.106 billion around the same time. When it comes to global competition in the mobile subscriber base, India is facing challenge only from China.
But with just three national mobile operators, China mobile growth is slated to slack and while India continues to see increased competition among operators. India is not only expected to leave China behind in number of subscribers but also in subscription penetration rate.
It still remains to be seen how the recent 3G auctions and upcoming MNP regulations affect the growth of the market.
Indian & German spectrum auctions- Where is the value for money?
www.WirelessFederation.com/news: May was the month of auctions and bidding. With two of the biggest spectrum auctions in Germany and India been concluded this month, hundreds of questions have been raised regarding the outcome.
In the second highest revenue-generating spectrum auction for almost a decade, on May 19, the Indian 3G auction concluded, raising EUR 11.7 billion (USD14.6 billion). This was quickly followed by the German auction concluding on Thursday last week, raising EUR4.4 billion (USD5.5 billion). Significant drop in process of the spectrum has been noticed since the 3G auctions in 200001.
Less than expected revenue was generated in the German auction as EUR5.8 billion to EUR8 billion has been expected by the analysts but it only raised EUR4.4 billion (USD5.5 billion). A total of 360MHz (of which 2´145MHz was FDD spectrum) ranging across the 800MHz, 1800MHz, 2.1GHz and 2.6GHz bands had been auctioned by BNetzA. EUR1.3 billion to EUR1.4 billion had been spent by T-Mobile, Vodafone and O2 while E-Plus spent just EUR284 million for 70MHz of spectrum, but it failed to gain any 800MHz spectrum.
The spectrum sold in the Indian 3G auction on the other hand has been viewed as expensive. Three or four 2´5MHz lots in the 2.1GHz band in each of the 22 telecoms circles†across India had been auctioned by the Indian Department of Telecommunications and double the revenue had been generated than what was predicted. This was despite India having a GDP per capita 40 times less than that of Germany.
Vodafone which participated in both the German and Indian auctions spent EUR3.4 billion (USD4.2 billion) while in the UK and German auctions in 2001, it spent EUR18.3 billion. At the end, Indian auction might seem to be expensive but when it comes to value for money, German auction surly scores points, especially in the high frequency bands.
India 3G bandwidth auction-Pan India price hits $2.33 billion
www.WirelessFederation.com/news: As expected, the bidding amount for bandwidth for 3G mobile services nearly tripled to 103.48 billion rupees ($2.33 billion), at the end of day 20 of the country’s 3G Auction. The starting price was touted to be INR35 billion.
As per the department of telecommunications, the bidding will again start on Tuesday for each pan-India slot starting at about INR104.43 billion.
While Mumbai kept its place as the most-sought-after service area with four bids each at INR17.06 billion for the three slots available. Delhi followed with three bids for the three available slots at about INR16.54 billion each, data from the department showed.
The third highest bid was received by the western Indian province of Maharashtra at INR10.41 billion, with two bids for three slots. The forth position was bagged by the South Indian province of Andhra Pradesh while Tamil Nadu stood on the fifth position.
While Andhra Pradesh received four bids at INR9.13 billion each for the three available slots, Tamil Nadu got two bids at about INR9.02 billion each for three slots.
3G bid price in India touches Rs 9,330 crore on 17th day
www.WirelessFederation.com/news: The 3G auction in India is making news for all good reasons as the bid touched Rs 9,330 crore on the 17th day of auction. The focus will now shift on small circles. Revenue of Rs 37,688 crore has been assured by the government at this price against the budget estimate of Rs 35,000 crore.
According to DoT, the activity requirement will be set to 90% from the current 80 which implies that focus of bids would now shift to ‘B’ and ‘C’ category circles.
After the completion of 100 rounds of auction, Mumbai crossed the Rs 1,500 crore and the last bid was quoted at Rs 1,506.41 crore followed by Delhi with Rs 1,431.20 crore against the reserve price of Rs 320 crore for both circles.
India’s 3G auction enters final phase
www.WirelessFederation.com/news: The final phase of the 3G auction in India seems to be nearing a conclusion with most of the circles, including Delhi and Mumbai, seeing either no or negative demand. Revenue of Rs 35,000 crore from the sale of spectrum for both 3G as well as Broadband Wireless Access (BWA) has been expected by the Indian government.
Bharti Airtel, Vodafone, Idea, RCom and Tatas along with five other telcos are in the fray to bag the spectrum but it has still not been disclosed who all are in the final round of bids being conducted online.
As per the rule, any operator who has quit at some stage during the process can come back and bid. Mumbai’s last bid stood at Rs 1,397.13 crore, while that of Delhi was Rs 1,363 crore against the reserve price of Rs 320 crore for both service areas. According to Telecom Minister A Raja, government’s revenues may touch Rs 50,000-55,000 crore from auction of spectrum for both 3G and BWA.
Bharti to build 3G network with Nokia & Ericsson (India)
www.WirelessFederation.com/news: With the kick off of the long delayed 3G auction in India, Bharti Airtel has announced that it will build its 3G mobile network along with its existing equipment suppliers. Sweden’s Ericsson and Nokia Siemens Networks have been named as two of Bharti Airtel’s partners by the managing director of the telecom operator’s parent, Bharti Enterprises, Rajan Bharti Mittal.
Nokia Siemens in February won a $700 million deal from Bharti and Ericsson won a $1.3 billion network expansion contract in March to upgrade Bharti Airtel’s GSM network.
Besides, the company also made it clear that there were no obstacles in the pending $9 billion purchase of the African assets of Kuwait’s Zain. The deal would make Bharti one of world’s top five mobile companies by subscribers.
MTS India to focus on data services
www.WirelessFederation.com/news: Sistema Shyam TeleServices Ltd. selling its services using the MTS India brand has decided to focus its attentions on data services growth in 2010 because of a crowded voice services market and plummeting average revenues per user (ARPUs). According to MTS India’s CIO, Rajeev Batra, voice ARPUs are dipping very significantly, so it makes sense to focus on data and the company’s ARPU for data services is between 500 and 600 Rupees [US$11.10 and $13.31].
The service of the CDMA operator was launched in November 2009, and by the end of January this year about 10,000 of its 3.2 million customers was using mobile data applications. The telco operates in 11 of India’s circles (service areas). The company has decided not to participate in the 3G auction but has decided to conduct an IPO later this year.
Instead of focusing on 3G, the company is working on 2G investments and making best use of its existing spectrum. The data services strategy of the operator includes targeting enterprise customers and the youth market with a special focus on the youngsters.
Doors opened for foreign players in India’s 3G auction
www.WirelessFederation.com/news: Doors will be opened for foreign players in the upcoming 3G auction to be held in India, allowing them to make an entry into fast growing Indian telecom market. No cap has been decided on the number of service providers in each circle for the government is planning to allow three to four private players in each circle depending upon the spectrum availability.
According to the Economic Survey 2009-10 tabled in Parliament, the launch of 3G technology will provide existing operators a good opportunity as also foreign players to make an entry into the Indian market and bring in new technology and innovation.
The auction of 3G and Broadband Wireless Access (BWA) spectrum scheduled to be held on April 9.
Regulator endorsement paves way for Thai 3G auction
www.WirelessFederation.com/news: The way for the auction of four 3G licenses this year has been paved with the endorsement of the new board of Thailand’s regulator. National Telecom Commission (NTC) was advised by Thailand’s Cabinet Secretariat that the Royal Household has approved the appointment of four new NTC directors.
The Prime Minister’s Office was asked to double check†the proposed NTC directors backgrounds by the Royal Household last month after it emerged that one of the nominees Col. Natee Sukolrat is under investigation by the National Anti-Corruption Commission (NACC).
2100MHz spectrum would be allocated for 3G. The government had intended generating 350 billion rupee for its budget coffers by March 31.
