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.
Overseas borrowing rules relaxed by India ahead of 3G auction
www.WirelessFederation.com/news: The Indian government has relaxed overseas borrowing rules in order to help telecom operators arrange short-term funds for the next months 3G auction. The prospective bidders can now raise money from the domestic market to pay for the spectrum and later refinance those amounts within 12 months through cheaper overseas borrowings.
According to the finance ministry, the amount involved will be huge and has to be raised within a limited period of time and payable directly to the government, hence, it has been decided that the fee for spectrum allocation may be met out of rupee resources by successful bidders, to be refinanced with a long-term ECB [external commercial borrowings].
Successful bidders for 3G have to pay 25% of the bid amount within five days of the close of the auction and the balance amount within 15 days of the auction closure.
Overseas borrowing rules relaxed by India ahead of 3G auction
www.WirelessFederation.com/news: The Indian government has relaxed overseas borrowing rules in order to help telecom operators arrange short-term funds for the next months 3G auction. The prospective bidders can now raise money from the domestic market to pay for the spectrum and later refinance those amounts within 12 months through cheaper overseas borrowings.
According to the finance ministry, the amount involved will be huge and has to be raised within a limited period of time and payable directly to the government, hence, it has been decided that the fee for spectrum allocation may be met out of rupee resources by successful bidders, to be refinanced with a long-term ECB [external commercial borrowings].
Successful bidders for 3G have to pay 25% of the bid amount within five days of the close of the auction and the balance amount within 15 days of the auction closure.
BSNL asked to expedite alternative network rollout for defence forces by DOT
www.WirelessFederation.com/news: Bharat Sanchar Nigam Ltd (BSNL) has been called by India’s Department of Telecommunications (DoT) to speed up the construction of the alternative network for the country’s armed forces.
The delay in the deployment of the new infrastructure has raised alarm and the department has requested that the telco set up a monitoring mechanism with immediate effect.
A team comprising representatives from the DoT and the Defence Ministry with BSNL’s chairman and managing director as the head was due to be formed, under the terms of the approved proposal. The proposal was for the alternative network, which is being constructed to allow the armed forces to vacate spectrum that is needed for the impending 3G auctions.
Concerns are also raised by BSNL over the rising costs of the project as more states ask for right of way compensation.
Aircel keenly interested in Indian 3G auction
www.WirelessFederation.com/news: The stiffening of the competition in the fast growing Indian telecom market has made the telecom operator Aircel highly interested in the upcoming 3G auction. This will help the company to offer premium-priced multimedia capabilities such as email and video on their mobile phones and the high-speed services that the bandwidth allows is expected to attract users willing to pay a premium.
74% of the company is owned by Malaysia’s Maxis Communications Bhd and the balance 26% stake in Aircel is owned by India’s Apollo Hospitals group. The company operates in 18 of India’s 22 telecom service areas.
Aircel’s talks are on with three companies to sell its tower operations; however, the names of the companies are not disclosed. The deal may be finalized in six to eight weeks. Bharti Infratel, which is the tower arm of Bharti Airtel Ltd., American Tower Corp., and Wireless TT Infoservices Ltd are some of the companies reported by the media to be interested in buying Aircel’s towers.
Norwegian firm Telenor enters India with 29p per minute plan
www.WirelessFederation.com/news: Moving one step ahead of the pay per second system, Norway-based firm Telenor, entered Indian market with 29 paise per minute plan under the brand name Uninor. The company has tied up with India’s Unitech Group and will be launched in seven circles — UP (East), Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, UP (West) and Bihar.
According to the CEO and President of Telenor group, Jon Fredrik Baksaas, the new plan offers more value for money to the users as the consumers want something more than the usual features. The pay per second billing was first launched by TATA DoCoMo, followed by other operators.
According to Unitech Wireless Managing Director Stein-Erik Vellan, the company’s target is to occupy 8% of the market share by 2018 and operate cash-flow break-even in five years.
Besides, the company also expects that the average revenue per user (ARPU) becomes lower than the industry level in the near term. However, Unitech is susceptible about bidding in the 3G auction but at the same time it has made it clear that it will surely not bid for an all India license.
Qualcomm predicts 1H07 for Brazil’s auction of 3G spectrum
US-based mobile technology developer Qualcomm predicts that the Brazilian regulator Anatel will auction licences for 3G mobile services in the first half of 2007. Qualcomm Brazil president Marco Aur©lio Rodrigues told BNamericas: ‘Anatel set aside the spectrum in 2000…. There is no reason why the auction should be later than the first half of next year’. For its part, Anatel is remaining tight-lipped, although a spokesman for the watchdog pointed out that, ‘Anatel does not have an official deadline to hold a 3G auction’. The regulator is expecting to study the issue in 2007 and launched a consultation on the award of up to five licences for UMTS in July this year.
Qualcomm, however, is confident that the regulator will go ahead with the auction, and says that the five concessions on offer will each generate around USD200 million for the state. ‘Once the licences are issued, the main operators will be able to start offering services in the second half of 2007,’ Rodrigues said.
