Idea Cellular to empower the rural segment of Maharashtra, Goa, Gujarat, UP West & AP
Idea, the pan-India telecom operator and handygo, India’s leading provider of VAS solutions, have announced the launch of ‘Behtar Zindagi ‘, latest bouquet of VAS offerings for customers in rural areas of Maharashtra, Goa, Gujarat, UP West and Andhra Pradesh. This innovative product is specially designed to provide day-to-day information to Idea’s rural subscribers. The subscribers can get exhaustive and up to the mark information regarding health, education, finance, weather updates, mandi rates, livestocks, agriculture and fisheries.
To use this service Idea subscribers need to dial 556780 (tollfree) and avail the subscription pack at a minimal charge of Rs 30, 15, 7 and 2 for 30, 15, 7 and 1 day, respectively. The service is available in all the respective states regional languages along with Hindi and English.
This unique IVR based rural solution by handygo provides credible and authentic information to the rural subscribers. For latest and reliable updates handygo has partnered with various organizations such as Care India, Aviva Life Insurance, Indian Metrological Department, INCOIS, Hariyali Kisan Bazaar, Network for Fish Quality Management and Sustainable Fishing, Transparency International India, Sonalika, EKO India Financial Services and plethora of other organizations.
On this tie-up, Mr. Praveen Rajpal, CEO, handygo said, “We are contented to partner with one of India’s leading mobile operator -Idea Cellular. We envisage great potential in the untapped rural market and are bullish about the stupendous feedback from the end consumers. We have partnered with various large associations for ensuring the latest and authentic information to the mobile subscribers using the service. Our IVR based rural product is available in all the regional languages along with Hindi and English.”
Announcing the launch of these services, Mr. Rajendra Chourasia, Chief Operating Officer – Maharashtra & Goa, Idea Cellular said, “With over 1.2 crore subscribers, Idea is the largest mobile network and has the highest penetration in rural parts of Maharashtra & Goa. We are happy to partner with handygo to offer relevant and affordable services to our rural subscribers in the circle.”
3G connections to reach 400 mn mark in four years (India)
A new study has revealed that the number of 3G subscriber connections in India are predicted to reach 400 million mark within four years, representing almost 30% of the country’s total mobile connections.
According to the study, 3G connections are set to grow three-fold between 2011 and 2015 as operators ramp-up launch of new 3G networks.
It added that Indian operators spent a combined $15 billion in acquiring Wideband Code Division Multiple Access (WCDMA) 3G spectrum at an auction last year and are forecast to jointly invest a further $2.5 billion in building the new networks and launching 3G services in 2011. More than 80% of 3G connections would be based on WCDMA in five years, with the remaining 20% on CDMA-based 3G networks. Competition in the Indian 3G space is likely to be intense as most operators have set ambitious targets.
The study notes that India’s Circle A and Circle B service areas would account for 75% of the country’s 3G connections by 2015. Even though initial 3G launches are concentrated in the so-called metro areas (Mumbai, Delhi, Chennai, Kolkata), they will soon be outstripped by fast-growing demand for 3G in more populous regions such as Punjab, Bihar, Andhra Pradesh and Haryana.
According to the study, by 2015, 3G market shares will more closely resemble the overall national picture: Bharti — India’s largest operator — is forecast to command the largest 3G share (18 per cent), followed by Reliance (15 per cent) and BSNL (13 per cent).
Reduction in licence fee would lower levies (India)
An internal report by DoT calls for rationalization of levies to be among the top priorities for the communications ministry. The department is also set to approach the finance ministry for a reduction or even an exception on the 10.3% service tax that consumers are charged on their mobile and landline bills.
According to both government and industry estimates, Indian telcos pay about 31% of their total revenues towards different forms of taxes, which is among the highest in the world, against the global average of 17%. Any reduction in levies will be a boost for the ultra competitive 14-player telecoms market that has been fighting stagnant revenues and plunging profits over the last 18 months due to the savage price war. According to DoT officials, the first step towards lower levies will be a reduction in the licence fee, which could be implemented from January 2012.
Sector regulator TRAI in May 2010 had suggested that the licence fee be reduced gradually over the next four years to 6%. The regulator stated that the move would allow the industry to save about US$1.43 billion, while adding that Bharti Airtel would see savings to the tune of US$444.14 million, while for Vodafone, the reduced licence fee would give it a benefit of US$308.63 million.
At present, mobile phone companies share between 6-10% of their revenues with the government – the licence fee is highest at 10% for the metros and category A regions, which include lucrative states such as Tamil Nadu, Andhra Pradesh and Maharashtra among others.
TRAI’s proposal involved reduction of licence fee in metros from 10% currently to 9% in 2011-12, 8% in the year after, then 7% and finally at 6% in 2013-14.
In category ‘A’ circles, where operators are currently paid 10%, TRAI had suggested that this be reduced by 1% every year to be at 6% by 2014.
Idea Cellular faces $66 mn fine for M&A violation (India)
Idea Cellular has been threatened with the loss of 3G spectrum and several of its GSM licenses after the Additional Solicitor General of India stated that the company had broken M&A rules when it brought a stake in Spice Telecom in 2008.
The Additional Solicitor General (ASG) also proposed a fine of US$66 million against the company.
Idea Cellular has strongly denied the allegations.
The ASG has sent his report to the Department of Telecom writing that the two companies violated a lock-in period clause which says that telecoms companies cannot enter in mergers within three years from the effective date of their licenses being granted. In total, four new licences were issued to Spice and two to Idea Cellular on January 25, 2008. Hence,mergers of their operations should not have started until January 2011.
In 2008, Idea brought a 41.1% stake in Spice – which resulted in the companies holding overlapping licenses in six of the country’s telecoms circles (or licensed zones). The ASG has suggested cancelling the new licences in these six circles of Delhi, Maharashtra, Andhra Pradesh, Haryana, Punjab and Karnataka.
According to the company’s statement, the Idea and Spice merger, since approved by the courts, happened to involve six overlapping licenses. Despite being issued spectrum for five of these, it is Idea which advised the DoT that it was not using such spectrum; in effect, placing overlapping licenses in a de facto escrow pending receipt of the DoT’s formal letter of merger, including surrender, if at all that was attracted.
In addition, Idea has won 3G spectrum in four out of the six circles and DoT has been advised to withdraw the 3G spectrum or the licence would be cancelled.
Idea reduces roaming rates in UAE (India)
India’s Idea Cellular is lowering its international roaming rates by 30% for postpaid subscribers in Andhra Pradesh, Mumbai, and Gujarat for the Dubai Shopping Festival.
Idea is offering a 30% discount on international roaming services (including incoming calls) in UAE for calls made to India and local calls within UAE.
HDFC Bank seeking 3G services to improve mobile banking (India)
A senior HDFC Bank official has claimed that the bank is planning to increase the number of clients using its mobile banking services in Andhra Pradesh to 10% of its customer base once 3G services are fully launched in the state from below 5% at present.
The leading private lender is also set to open 34 new branches in the state before the end of this financial year, taking the total number to 137.
According to HDFC Bank Senior Vice President, Mr C S Gopinath, mobile banking is still in the budding stage. It has to go a long way. After facilities like 3G services are launched, it is expected to reach 10%. Currently, mobile banking is around 3 to 5%. The aim is to encourage customers to go for more technology based services like ATM, mobile and Internet banking.
According to Mr Gopinath, only 26% of HDFC Bank’s customers visit branches and the rest depend on ATMs, the Internet and mobiles for their banking needs. The bank has 450 to 500 ATMs in AP and up to 20% of customers use Internet banking. HDFC Bank is planning to open 34 new branches in the state by the end of this fiscal.
He informed that they have 103 branches in AP presently. They are planning to open another 34 by the end of this financial year, taking the number of branches to 137. In Karnataka, they have close to 100 branches and in Kerala — 150. In Tamil Nadu, the bank has 135 branches.
Tata DoCoMo launches T24 mobile service in Gujarat (India)
Tata DoCoMo has launches its new ‘T24′ mobile service in Gujarat, a brand launched in alliance with the retail chain giant Future group.
According to Tata DoCoMo COO Gujarat Nipun Sharma, it is a unique marketing alliance between a retailer group and telecom operator that offers customers free talk time on purchases or recharges made at any of the Future group outlets.
Future group that operates store chains like Big Bazaar, Food Bazaar and Pantaloons will be offering this new service from 23 of its big stores spread across seven towns in Gujarat including Anand, Vapi, Surat and Bharuch.
According to Future Group CEO Telecom Mayur Toshniwal, this new service, which is on a franchise model, will be offered from all of their 23 large outlets spread across seven towns in Gujarat. They shall open two more retail stores in Bhavnagar and Mehsana in Gujarat over next 6-8 months period.
According to Toshniwal, the new service has received encouraging response from its launch in Andhra Pradesh, Jharkhand, Orissa, Uttar Pradesh and West Bengal.
Tata Teleservices Limited (TTSL) has forged alliances with Virgin mobile, Quippo for passive infrastructure(towers), Japan’s NTT DOCOMO for GSM services and Future group for T24.
Sistema Shyam (MTS) to invest USD 55 Mn
Sistema Shyam TeleServices Limited (SSTL), a joint venture company between Russia’s Sistema and Shyam Group of India, will be investing USD 55 Mn to expand its code division multiple access (CDMA) network in one of the southern states in India (Andhra Pradesh) by the end of this year.
MTS India has successfully launched in 12 circles now and MTS India CEO, Vsevolod Rozanov, said the plan for this year was to complete all the 22 circles with an investment of over USD 1.1 Bn.
Currently, MTS India has 4.5 million subscribers, including 72,000 for high-speed data services. Data is the future of our company and is clearly a differential business model than other aggregators. We expect data services to account for one-third of our revenues and achieve break-even by 2013,†Rozanov told Business Standard in India.
Replying to a query, Rozanov said the company would switch to another vendor if China-based Huawei Technologies’ products were not allowed into India.
It may be recalled that the Indian government has blocked Huawei Technologies and ZTE Corporation from selling telecom network equipment to domestic phone carriers due to security reasons.
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.
Virgin Mobile India unveils special pack for GSM users
www.WirelessFederation.com/news: A pocket friendly local calling pack has been launched by Virgin Mobile India for all its GSM subscribers. The pack is worth Rs. 45 with a validity of 30 days allowing the customers to call any local number at just 1paise/2seconds.
The offer is available across Karnataka, Andhra Pradesh, Chennai, Tamil Nadu, Kerala, Orissa, Mumbai and Maharashtra circles.
The company has made it clear that the pack is profitable on both minute and second billing profiles. Consumers are also provided an option to choose per minute tariff or a per second one. A differentiated tariff proposition of 20p/min for STD and local calls to any Virgin Mobile number will be offered on per minute tariff.
40p/min for local and 50p/min for STD calls will have to be paid for calling any other network.
