The Bangladesh Telecommunications Regulatory Commission (BTRC) has reportedly announced a national 3G UMTS mobile licence auction to be held in June 2012. According to reports, Zia Ahmed, Head of BTRC has said that they have shortlisted the Indian wing of UK-based PricewaterhouseCoopers International Limited (PwCIL) and US-based Nera Economic Consulting, as consultants for conducting the auction. He added that 3G licence bids would be accepted from both domestic as well as overseas bidders. Further, in the event that that a new entrant would win a 3G concession, the BTRC would also consider its application for a 2G licence.

As per sources, the state-owned mobile operator Teletalk will be allowed to launch its 3G services based on the W-CDMA/HSPA network technology on 26 March 2012 for an exclusive period of six months ending in September 2012. However, reports reveal that while Teletalk will not be required to compete in the June auction, it will need to pay a cost for the commercial spectrum which would be equal to the highest bid. The mobile operators expected to bid in the auction include GrameenPhone, Robi, Banglalink and Airtel.

Further, reports suggest that Teletalk has said that it will have an initial capacity for 1.7 million users which it aims to increase significantly to around three million users by March 2012. Mujibur Rahman, Managing Director, Teletalk, is hopeful that that the six-month 3G exclusivity period will help generate interest amongst the users, increasing their subscriber base, as the operators participating in the 3G auction in June will not be permitted to launch their services before September.

 

Singapore Telecommunications Ltd. (SingTel) may be planning to raise its stake in Thailand’s Advanced Info Service (AIS) to 23.32 percent from 21.27 percent for about US$ 260 million. According to reports, SingTel has said that that Shin Corp PCL will sell 61 million shares in AIS.  As per sources, Shin Corp owns a 42.6% stake in Advanced Info Services.

Further, reports suggest telecom giant SingTel has said it continues to look out for investment opportunities in Asia and other emerging markets, and that it will focus on strengthening the operating and financial performance of its associates. SingTel also has a stake in other foreign mobile operators such as Bhart Airtel (India), Telkomsel (Indonesia), Pacific Bangladesh telecom, Globe Telecom (Philippines) and Warid Telecom (Pakistan).

As per industry reports, SingTel has over 400 million mobile customers across 25 countries.

 

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Teletalk Bangladesh Limited, a public limited company, will reportedly launch its 3G services on 26 March 2012 according to telecommunications minister, Mr. Rajiuddin Ahmed Raju. He says that the 3G spectrum will be auctioned after six months of test-run by the operator.

According to reports, the minister has said that the third generation technology, popularly known as 3G, will make mobile telephony much more efficient with high-speed data transfer facilitating users to watch mobile TV, make video calls, use navigation equipment and access many other services.

As per sources, the minister hopes the company will be able to complete installation of necessary infrastructure by January to launch the 3G operations. He further notes that both foreign and local companies will be allowed to compete for 3G spectrum after the planned test-run in September next year. He added that the guidelines for wireless telecom spectrum auction would be finalised by 2012.

 

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Southeast Asia’s largest phone company, Singapore Telecommunications Ltd. posted a decline in profits for the first quarter, attributed to lower earnings from regional businesses such as Bharti Airtel in India. The reports of drop in profits were rather unexpected.

The company’s net income slump 2.9 percent to $750 million from $776.42 million in the three months ended June; whereas market observers had predicted a rise in profits to $815.77 million.

In the wake of Bharti Airtel’s lower earnings for six consecutive quarters, in addition to the appreciation in the Singapore dollar against eight major Asian currencies this year, SingTel’s revenues from international markets have greatly slowed down. On the other hand, the Optus unit in Australia has positive news for the company. The Australian unit’s earnings saw an increase buoyed by currency gains and customers won from rivals.

The combined earnings from the company’s international partners that include Bharti in India and Africa, Telkomsel in Indonesia, Advanced Info Service Pcl in Thailand and Globe in the Philippines are worth $388.54, down by 10 percent as compared to last year.

While Earnings before interest, tax, depreciation and amortization from Singapore operations slumped by 4 percent to $466.74 million, in the wake of costs for the company’s mioTV service despite revenues increasing by 2 percent.

In contrast, Sydney-based Optus saw 1 percent increase in earnings to reach $568 million; attributed to new mobile customers joining the network.

Apparently, Vodafone Hutchison’s loss is Optus and Telstra Corp’s gain. The former had reported losing 375,000 customers in the six months ended June.

While Telstra, the biggest telephone company in Australia posted earnings for the second half that market observers’ forecasts on the back of new customer net additions in the mobile segment and also, cost cutting.

According to a statement released by SingTel, the company owns minority stakes in six operators with businesses across 25 countries, and has 416 million mobile phone customers

The company does own whole units in Australia and Singapore while minority stakes in operators across India, Pakistan, Bangladesh, Thailand, the Philippines, and Indonesia.

India’ Bharti Airtel, of which SingTel owns a stake, posted a drop in quarterly profit by 27 percent; attributed to higher borrowing costs and the start of new services.

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Teletalk, the state-owned mobile network has been allowed a six-month headstart over the private networks, which could pave the way for the 3G license auction taking place next year even though, the procedure has been apparently, long delayed.

According to the telecoms minister Raziuddin Ahmed Razu, the state-owned telco would be issued a 3G license by the end of this year, at least six months ahead of other networks so that the telco is allowed exclusivity for the same period before the other networks can launch their services.

In hindsight, the regulator has made several promises over the past few years that the 3G licenses would be sold off “shortly” but failing to deliver on the promises.

Meanwhile, Abu Saeed Khan, secretary general of Association of Mobile Telephone Operators in Bangladesh (AMTOB) stated that with 3G services being made available in the older GSM spectrum bands, it makes no sense to keep to a specific frequency block for 3G services in Bangladesh.

On the other hand, the prime minister’s press secretary Abul Kalam Azad revealed that VoIP licenses could also be issued, in addition to setting social obligation fees of one percent for mobile operators based on their annual revenue.

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­Bharti Airtel’s operations in India and South Asia are to get an overhaul in terms of organizational structure. The operator has announced the institution of two unique Customer Business Units (CBU) in a bid to boost B2C (Business to Customer) and B2B Business to Business divisions.

Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel believes that their transformational business models have always been the operator’s highlight, in addition to setting industry benchmarks in this regard. He also stated that the organizational restructure is a step forward for Bharti Airtel towards building an organization of the future.

Bharti Airtel is looking to service the retail consumers as well as the homes and small offices by way of its B2C business unit. This move will augment the coming together of mobile, telemedia, digital TV business units, in addition to upcoming businesses like M-commerce, M-health, M-advertising and so on. In essence, Consumer Business and Market Operations will constitute the B2C segment.

K Srinivas has been appointed President, Consumer Business who would be heading this particular vertical. The Consumer Business group will be responsible for devising the operator’s B2C strategy with the aim to further customer experience; product and service innovation that takes data, VAS, new products and services into account, in addition to building an ecosystem based on the B2C services.

Three regions have been defined as divisions with regard to the market operations in India and South Asia, each of which will be led by an operations director. Ajai Puri is set to head the North, East & Bangladesh operations while Vineet Taneja, South & Sri Lanka operations, in addition to Raghunath Mandava who will head operations in the West and the National Distribution portfolio.

On the other hand, Drew Kelton is to continue leading the B2B segment that will concentrate on looking after large corporate and carriers by employing the operator’s wide portfolio of telecommunication solutions.

Sanjay Kapoor, CEO – India & South Asia will be the reporting manager for K Srinivas, Ajai Puri, Raghunath Mandava and Vineet Taneja, in addition to Drew Kelton, all of whom would be donning a new cap.

Atul Bindal, the head of the mobility business for more than two years will also be taking up new responsibilities within the Group.

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­WiMAX networks are managed by Augere Holdings under the umbrella of the Qubee brand. Former Vodafone Ghana CEO, David Venn has been named its new chief executive officer. Previously, Sanjiv Ahuja was the CEO of the operator.

Sanjiv Ahuja keeps the executive chairman of Augere position. His primary role will now be chairman and CEO LightSquared, the LTE network based in the USA though.

David had also carried out responsibilities as CEO of Celtel Zambia prior to being appointed CEO of Vodafone Ghana.

Harbinger Capital, France Telecom, New Silk Route and Vedanta Opportunity Fund as well as its founder, Sanjiv Ahuja constitute the principal shareholders of Augere.

At the moment Augere holds spectrum access in Pakistan, Bangladesh, the states of Madhya Pradesh and Chhattisgarh in India, Uganda, Rwanda and Tanzania while aggressively going after spectrum in Africa and Asia.

Under the Qubee brand, Augere had launched its first commercial wireless network in Pakistan in July 2009. Then the Bangladesh network had followed in October 2009. As of mid 2011, Augere operates widely reaching wireless networks. Its network is powered by more than 650 radio base stations and serves more than 100,000 broadband customers.

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The Bangladesh subsidiary of Bharti Airtel announced that it has reached the 5 million subscriber milestone in the country. As a matter of fact, the company also said that it now penetrates more than 2100 towns in all, across the country after they had added 160 more new towns to its network.

According to Bharti Airtel President, Atul Bindal, it has been a remarkable journey as far as Airtel is concerned; now that they have reached the 5 million subscriber mark in Bangladesh. He believes that it is a testament to the vision and commitment of the company that sets its targets at par with the world’s best in the industry. He also, dedicated this milestone to their customers, partners and key stakeholders for supporting them constantly.

Airtel’s future plans have expanding its reach and cover 72 percent of the country’s population by December in its sights. Airtel currently boasts of 2,220 base stations in the country.

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Robi, which operates in Bangladesh, has reported that its Q1 profits drop on the back of higher revenues.

Profits fell 13 percent to US$ 0.74 million from US$ 0.85 million in the year-earlier period due to forex losses.

Robi achieved revenues of 7.06 billion reporting an increase 19% from 5.94 billion due to increased revenues from the prepaid segment. EBITDA increased by 45% to 2.25 billion compared to 1.55 a year earlier while EBITDA margin improved to 31.8% from 26.1%.

Robi ended the quarter with 18.32 million customers, an increase 37% from 13.40 million in Q1 2010.

 

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The bidding process was cancelled by the review panel of the Central Procurement Technical Unit (CPTU) but the regulator denied the allegations and is continuing the audits. The ministry is urging the BTRC to comply with the decision and begin a new tender round for audit firms.

The Bangladeshi telecommunications ministry has asked the BTRC (Bangladesh Telecommunication Regulatory Commission) to cancel the bidding process to appoint audit firms for inspecting mobile operators, as the regulator breached rules in recruiting auditors for the task.

According to reports, the ministry has stated that BTRC did not take permission from the ministry before appointing the audit firms, and violated telecommunication and public procurement rules, alleged the telecom ministry and experts.

The ministry has directed BTRC to comply with the decision of the review panel of the Central Procurement Technical Unit (CPTU), which cancelled the bidding process.

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