DoT plans annual subsidy for BSNL, MTNL (India)
India’s Department of Telecommunications (DoT) is reportedly planning to support the country’s two economically-challenged state-owned telecoms operators with an annual subsidy of USD655 million.
It is believed that both Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) will benefit from the additional funding, with the former given help towards supporting its operations in remote and rural regions from the country’s Universal Service Obligation Fund (USOF).
MTNL, meanwhile, will use the extra money it is handed to cover higher pension and retirement payouts. With initial estimates by the DoT that BSNL is currently incurring a loss of between US$443.86 million and US$554.82 million from its landline business, the regulator has called on the telco to specify what level of losses it attributes to its social telephony obligations before it finalizes any plans for additional funding.
MTNL lost 10,355 users from MNP (India)
Junior Telecom Minister, Sachin Pilot stated that state-run telecom company Mahanagar Telephone Nigam Ltd. (MTNL) has lost 10,355 users since the launch of mobile number portability (MNP).
According to Pilot, MTNL gained 4,486 new users from other telecom companies through MNP, a service that allows mobile phone users to switch their service providers without changing their numbers.
MNP service was launched on Nov. 25 in the northern Indian state of Haryana, and subsequently extended it across the country on Jan. 20. MTNL provides communications services only in the Delhi and Mumbai service areas.
Pilot added that state-run Bharat Sanchar Nigam Ltd. lost 223,824 users to other mobile phone companies after the launch of MNP and gained 92,243 new users from others. BSNL offers services in the remaining of 20 of India’s 22 telecom service areas.
India extends reservation period for telecom orders made to ITI
The Indian government has extended the period after the state-run telecommunications companies need to compulsorily provide nearly 30% of their orders to ITI Ltd. by two more years, ensuring constant revenue for the ailing telecom equipment maker.
ITI, once India’s sole telecom equipment maker, has been sustaining mainly on contracts from Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. as companies such as China’s Huawei Technologies Co. and France’s Alcatel-Lucent captured the market with latest technology and low-cost products.
As per the reservation rule, BSNL and MTNL have to give 30% of their orders to state-run ITI. These account for 70% of ITI’s revenue.
As per the Government’s statement, ITI had sought a three-year extension of the quota policy, which expired on Sept. 20. The reservation period has been extended starting Sept. 21 because in today’s highly competitive environment, it is very difficult for ITI to survive on its own without the benefit of the quota.
ITI’s weak financial health has provoked the government to take several measures for reviving it in the past. The company has also asked for an additional money support from the government to upgrade infrastructure at its manufacturing plants.
According to the statement, the reservation rules also require BSNL and MTNL to give 70% advance payment against the orders placed with ITI, so that ITI does not face the problem of working capital for the execution of the orders.
BSNL offers telecom services in 20 of the country’s 22 service areas and is in the process of expanding its 2G and 3G mobile services, while MTNL operates in the other two service areas of Delhi and Mumbai.
The statement also revealed that the extension of the quota policy would be applicable for products manufactured by ITI and on turnkey projects, including network rollout.
BSNL shortlists 3 companies for rural WiMAX (India)
www.WirelessFederation.com/news: In order to roll out wireless broadband, or WiMAX, technology in the rural areas, final orders with the three top bidders for a contract has been placed by state-run telecom company Bharat Sanchar Nigam Ltd (BSNL).
ZTE Ltd, Gemini Communications, and ICOMM Tele are the top three bidders. ZTE Ltd is the Indian unit of Chinese equipment maker ZTE Corp. Spanco Ltd, Telecommunications Consultants of India Ltd, or TCIL, Huawei Telecommunications India, and Aster Communications are the other bidders for the rural WiMAX second-phase bid floated in June 2009.
According to Minister of State for Communications Gurudas Kamat, there were no delays in procuring equipment.
BSNL’s stake sale proposal approved by Indian govt
www.WirelessFederation.com/news: Proposal to divest 30% stake of state owned Indian telco Bharat Sanchar Nigam Ltd (BSNL) by the operator has been approved by the Indian government. The decision has come after a committee headed by advisor to the prime minister on infrastructure, Sam Pitroda suggested equity sale.
BSNL has also decided that the recommendation of the committee to cut the strength of 300,000 staff the telco currently employs by third. In addition, it will also look to implement a contract-based appointment system for top management, separate positions for MD and CEO and will begin the formation of an advisory board.
According to a BSNL official, the stake sale would take place in two to three stages, while with relation to staff reductions the telco will offer a voluntary retirement scheme to around 60,000 employees.
Approval from the Union cabinet is required by BSNL board on the stake sale. A request has also been made by the company from the state to cover the cost of the retirement scheme.
Quick response has come from BSNL employee unions which has condemned the proposals making clear that both the equity sale and staff reduction plans will be opposed through demonstrations planned across India.
Indian telco BSNL unveils 24Mbps VDSL service
www.WirelessFederation.com/news: India’s fastest xDSL-based commercial internet services has been launched by state-owned telco Bharat Sanchar Nigam Ltd (BSNL) offering downstream connection speeds of up to 24Mbps using Very High Bitrate Digital Subscriber Line (VDSL) technology.
However, the top-end speeds will be gained only by the customers living within 500 meters of an enabled exchange while those subscribers within 1km of the node should be able to connect at speeds of up to 16Mbps.
INR9,999 (USD216.4) per month will be charged for 24Mbps service while the cost of lower level 16Mbps service will be INR4,999 per month.
BSNL awards INR112m contract to Moser Baer
www.WirelessFederation.com/news: INR112 million worth contract has been awarded to Moser Baer India Ltd by India’s state-run telecommunications company Bharat Sanchar Nigam Ltd. Solar power systems for BSNL’s wireless village public phone equipment will be provided by Moser Baer by March 20 under the terms of the contract.
A complete solar photo voltaic kits comprising a module, battery, controller, structure and cable will also be supplied by the company.
According to spokesman for Moser Baer India, this is one more step towards utilization of solar application in rural markets, the kits will be supplied all across the country and BSNL will use these kits to charge the WLL phones in their rural network.
BSNL ‘mega tender’ not to be retendered (India)
www.WirelessFederation.com/news: The 93-million GSM line ‘mega-tender’ is unlikely to be retendered by state-owned Indian telco Bharat Sanchar Nigam Ltd (BSNL).
According to Kuldeep Goyal, chairman and managing director of BSNL, BSNL does not need to scrap or re-issue its INR350 billion (USD7.55 billion) GSM lines tender, as suggested by the Central Vigilance Commission [CVC], as the existing tender conditions already have a clause that the company can reduce the size of the tender on its own as per requirements.
Under the provisions of the tender, it could be limited to only one phase for 31 million lines rather than three phases as decided and it can also be reduced to 50% of the total quantity.
Bharti Airtel added 2.85m GSM users; Vodafone adds 2.28 million users
www.WirelessFederation.com/news: 2.85 million GSM subscribers have been added by India’s largest telecom services company by users, Bharti Airtel while 2.74 million users have been added by Vodafone Essar, the country’s third-largest mobile phone operator by subscribers in the month of January.
About 2.28 million subscribers have been added by Idea Cellular while Aircel added 2.01 million users during the month.
Among the state-run telecom companies, 2.23 million users have been added by Bharat Sanchar Nigam Ltd. in January while Mahanagar Telephone Nigam Ltd. added 45,067 users.
