TRAI plans legal action against Airtel for violation of MNP guidelines (India)
Telecom Regulatory Authority of India (TRAI) is reportedly planning to take action against leading telecom operator Bharti Airtel for violation of norms regarding Mobile Number Portability (MNP). According to reports, the regulatory authority had previously issued a show cause notice to the operator for the same.
As per sources, TRAI has reportedly been receiving complaints from users across different operators for rejecting their request for MNP services, with Bharti Airtel accounting for as many as 893 complaints, the largest number amongst all operators.
Further, reports reveal that TRAI wrote a letter to the Department of Telecommunications (DoT) stating that the regulatory authority had sent a team of officers to various network operators for analyzing the reason behind rejection of MNP requests, and has found that operators have not been complying with the MNP guidelines.
Airtel signs exclusive partnership with Samsung (Africa, South Korea)
Indian telecom giant Bharti Airtel has reportedly entered into a two year agreement with South Korean mobile phone maker Samsung, giving Airtel exclusive rights for distributing select Samsung products across 17 African countries. According to reports, Bharti Airtel has said that this agreement gives the operator exclusive distribution rights for select Samsung products for the initial six months after they are launched.
As per company reports, the partnership will leverage both Airtel’s and Samsung’s strong brand equity, well-developed distribution infrastructure and footprint across the continent. Further, sources claim that the companies will work together to provide market-specific products based on trends and consumer preferences, ensuring Airtel customers have access to products that are tailor made to their individual needs. The agreement is expected to cover a wide range of products including smartphones, mass market handsets, dongles, routers and tablets.
Manoj Kohli, CEO (International) and Joint Managing Director, Bharti Airtel has said that this partnership demonstrates that they remain committed to meet Africa’s needs and will work closely with Samsung to provide customers across every segment with cutting edge products. He added that the companies will also work together to develop services to enhance mCommerce, mHealth and other areas that have significant social benefits for the communities in Africa.
New Telecom Policy to bring major reforms to Indian telecom sector (India)
The Indian telecom industry is expected to reach new heights and witness further changes with the new regulations to be announced by the government early next year. With a subscriber base of nearly 900 million users, the Indian telecom industry is one of the world’s largest and fastest growing economies.
The New Telecom Policy is expected to introduce new reforms for renewal of licences for telecom companies, sale of new licences to mobile operators, more transparent norms for mergers and acquisitions in the telecom sphere so as to maintain the competitiveness of the market and enhance growth.
In addition to its success, the telecom industry in India also faces a multitude of challenges which may be addressed by this policy. Concerns regarding network quality and 3G services have been raised by subscribers, while decreasing profit margins continue to worry the senior level management at major telecom companies. Further, scandals and cries of corruption have been keeping the regulatory authorities quite busy. As reported by Wireless Federation earlier, Bharti Airtel Ltd. and Vodafone India Ltd. were approached by federal officers on allegations of irregularities in the 2001 and 2002 spectrum allocation.
However, industry analysts believe that even with its fair share of challenges, an introduction of a favourable set of rules for telecom operators could see the Indian telecom sector emerge as a strong contender in the global mobile market.
DoT may auction more bandwidth for wireless broadband services (India)
The Department of Telecommunications (DoT) in India may reportedly auction more bandwidth in an attempt to provide wireless broadband services, post the government’s decision on a pricing policy. According to reports, India’s telecom secretary, R. Chandrashekhar said that there is one chunk of bandwidth for wireless broadband services available in 15 of India’s 22 service areas; however, the government may not complete the auction process within this fiscal year. Reports reveal that the Government of India had raised about $ 8.23 billion with the auction of two slots of wireless broadband bandwidth.
As per sources, Chandrashekhar has also said that state-run telecom companies Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. have sent proposals to the government to offer voluntary retirement to employees to save costs. Industry sources claim that BSNL hopes to offer retirement schemes to about 100,000 employees, in an attempt to save up to US$ 6.73 billion by March 31, 2027. BSNL and MTNL have been facing stiff competition from private players such as Bharti Airtel and Vodafone, which has been affecting their overall profit margins.
Bharti Airtel signs managed services contract with Ericsson (India, Sweden)
Bharti Airtel, a dominant player in the global telecommunications market, has reportedly expanded the managed services contract with Ericsson for its India operations. Company reports indicate that Ericsson will operate, maintain and provide services across 70 percent of Bharti Airtel’s network in India, as part of this five year managed services agreement.
Further, it has been reported that Ericsson will also be responsible for the Intelligent Network that manages Airtel’s prepaid customer base, keeping in line with Airtel’s commitment to take user experience in wireless communications to the next level. Sources claim that the operator will extend the contract across fifteen circles for five years.
According to reports, Sanjay Kapoor, CEO, India and South Asia, Bharti Airtel, has said that with India emerging as the third largest internet market and a multi-fold growth in data traffic on the back of a rising number of smartphones, wireless networks need to be ready for the data revolution that has only just begun. This unique multi-technology Managed Services partnership with Ericsson will help them focus on creating a compelling service proposition for their customers, as they look to ramp up their market access for next generation services on 3G and 4G.
The fifteen circles that are covered in the partnership consist of Delhi, Jammu and Kashmir, Haryana, Punjab, Himachal Pradesh, UP(W), UP(E), Rajasthan, North Eastern states, Assam, Karnataka, Andhra Pradesh, Tamil Nadu, Chennai and Kerala.
Further, Fredrik Jejdling, President and India region-head, Ericsson, claims that the rapid increase in customer numbers and the network complexities due to multiple technology overlays defines the need for a renewed focus on differentiated user experience. As more and more people are joining the Networked Society, in which everybody and everything is connected it is imperative that they continue to provide high-quality, innovative services to the end users.
As per the contract, Ericsson will reportedly work towards ensuring effective management of operational expenditure and maximizing the efficiencies of scale along with improving the overall quality of the network in these circles.
Rwanda’s mobile industry expected to witness unprecedented change (Africa)
Emerging markets such as Rwanda have shown great potential for growth in the telecom industry. With leading telecom giant, Bharti Airtel, entering the mobile segment in Rwanda, mobile phone users are bound to experience a wider range of services and more competitive pricing.
According to reports, industry analysts believe that the increasing amount of investments from international firms are going to help Rwanda’s mobile phone segment, reach newer heights. Bharti Airtel’s investment of US$ 100 million in Rwanda, will have a significant impact on the country’s economy, by driving competition and furthering the overall growth in the industry.
Prior to Airtel’s entry in the market, Tigo Rwanda witnessed great success by adding as many as one million subscribers within three years of its launch, thereby bringing in the first signs of competition in the stagnant market with only two operators – MTN and Rwandatel.
As per sources, all operators have been working at ways to counter Airtels’ entry strategies, which is expected to be on the basis of price wars, in an attempt to maintain their market share. However, the next year is likely to bring many surprises for Rwanda’s mobile industry which could change the entire structure of the current market.
Bharti Airtel furthers m-payment services in Madagascar (Africa)
India’s leading mobile phone operator Bharti Airtel has reportedly begun the operation of its money-transfer service in Madagascar, in an attempt to provide financial services for the unbanked via their mobile devices. According to reports, Heiko Schlittke, Director, Airtel Madagascar, had earlier said that the service would compete with Orange SA’s Orange Money and the M-Vola product offered by Telma, the state-run phone company.
As per sources, the mobile operator has entered into an agreement with the taxi operators association, thereby enabling passengers to pay for their taxi fare using their Airtel Money account. Further, reports reveal that the operator has also provided around hundred taxis with the required reader equipment. The selected taxis will display the Airtel logo and the drivers will be required to wear a red jacket provided by Airtel.
Mobile operators shift focus towards rural markets (Nigeria)
With the increase in saturation of mobile services in urban markets across the world, mobile operators have shifted their focus to towards the relatively untapped rural markets for better business opportunities and a chance at increasing revenues.
According to reports, industry analysts predict Nigeria the largest mobile market in the continent, to be home to over 90 million subscribers by this year end. Further, improvements in broadband connectivity along with the emergence of new generation smartphones are expected to drive mobile data growth in the economy.
In most rural economies, the lack of adequate infrastructure has been a grave cause of concern for mobile operators as it reduces their profits and drives up costs for customers. Currently, industry reports suggest that a fully functioning network grid could help operators cut their mobile tariffs by 50 percent, which is higher than those being offered in developed countries.
Changes have been observed in the investment environment as well. With operators offering discounted services to low income users in order to expand their reach, the ARPU (Average Revenue Per User) has witnessed a decline. Bharti Airtel, which had acquired Africa’s Zain, slashed its prices by significant amounts in a bid to increase its market share, which increased the pressure across the industry. Further, sources reveal that Etisalat (Saudi Arabia) and Globacom have also been increasingly gaining customers, giving strong competition to market leader MTN.
The next big thing in the economy is being considered to be mobile banking services. With a large portion of the population being unbanked but gaining access to mobile devices, more and more consumers are using their phone to transfer money and pay for goods, in a more convenient and secure manner.
Airtel, Vodafone and Idea threaten to pull out of 3G services (India)
India’s leading telecom operators Bharti Airtel, Vodafone India and Idea Cellular have reportedly threatened to pull out of 3G services following the government’s proposal to disallow 3G Intra Circle Roaming. According to reports, the firms have written a letter to the Prime Minister expressing their concern over such a decision which has been signed by Sunil Mittal, Chairman and CEO, Bharti Airtel; KM Birla, Chairman, Aditya Birla Group and Vittorio Colao, Group CEO, Vodafone.
As per sources, the firms have said in the letter that by not allowing 3G Intra Circle Roaming, the government would be going back on what was promised during the pre-auction confirmations. Further, the telcos have asked the government to refund the amount spent by them during spectrum action along with interest as compensation for their expenditures.
Reports suggest that while the telecom firms claim that the government is going back on its technology-neutral stand, the Telecom Ministry along with the Telecom Regulatory Authority of India (TRAI) have said that the roaming agreement is illegal as it is equivalent to spectrum sharing.
Sources claim that after the 3G spectrum auction held last year, the operators had entered into roaming pacts with one another in an attempt to offer services in those circles where they could not win the bid. Further, reports also claim that the Department of Telecommunications (DoT) may revoke 3G spectrum of five telecom service providers – Bharti Airtel, Vodafone, Tata Teleservices, Aircel and Idea Cellular, for violation of licence agreement by offering 3G telecom services in states where they do not have spectrum.
