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.
Bezeq’s Pelephone to host virtual mobile operator
Israeli cellco Pelephone has agreed to allow an MVNO to operate over its network. The move follows efforts by the country’s Communications Ministry to boost competition and lower rates for consumers, including the issuing of licences for several MVNOs.
Pelephone has no pre-paid business and so was widely assumed to be the most likely candidate to host the country’s first MVNO, the identity of which has yet to be made public.
Pelephone is an Israeli-based telecommunications company, founded in 1986 as a joint venture between Motorola and Tadiran, today owned by Bezeq. It was the first company to offer mobile phone services in Israel. Due to this, the brand-name “Pelephone” became the genericized trademark for mobile phones in Israel, regardless of service provider.
India’s MNP deadline deferred yet again
India’s communications ministry has deferred the deadline for operators to execute mobile number portability once again and this time until December 31. The implementation of MNP has now been delayed by a full year as it had to commence 31 December last year.
As per reports, some operators are still not ready with the technical solutions required to ensure MNP, and the one of the parties chosen to implement MNP may be barred from operating in India.
The company is MNP Interconnection Telecom Solutions a Joint Venture between Telecordia and local firm Deepak Talwar Consultants.
While the Foreign Investment Promotion Board (FIPB) had previously cleared Telecordia to participate in the MNP Interconnection Telecom Solutions venture, it has since threatened to overturn this. Telecordia picked up a contract to implement MNP in Pakistan, and as a result FIPB has proposed to revoke Telecordia’s approval to take part in the venture citing security concerns.
Deepak Talwar, being a new and inexperienced telecom network it is also struggling to receive clearance to take part.
No Chinese equipment for border areas- Indian Govt to BSNL.
www.WirelessFederation.com/news: India’s government run telecom company, Bharat Sanchar Nigam Ltd (BSNL) will not be able to procure Chinese telecom equipment as proposed by the Indian Government.
These equipments will not be bought in the border areas considered to be sensitive. Indian states bordering Pakistan, China, Bangladesh and Myanmar have been declared as sensitive by communications ministry in the Parliament.
The lawmakers were told that that the telecom companies are expressing concern over the plan which is still under consideration.
Vietnam to privatise telecom groups next year
HANOI (AFP) – Vietnam’s three major telecom companies are expected to be partly privatised next year with the majority of the stakes remaining under government control, officials said.
State-owned Vinaphone, MobiFone and the army’s Viettel said earlier this year they would open their mobile activities to the public without providing any firm calendar dates.
“We plan to equitise them next year, according to a program approved by the government in 2005,” said Nguyen Khac Lap, office manager of Vietnam Posts and Telecommunications Ministry.
“We have set no specific date for each company. There are a lots of things to do before the plan is achieved,” he said.
Vinaphone and MobiFone, both subsidiaries of state-owned giant Vietnam Posts and Telecommunications Corp (VNPT), currently lead the market.
But the Vietnam Military Electronics and Telecommunications Co. has won widespread praise for its dynamic approach to business since it started operations in late 2004.
The country is considered the second fastest growing telecoms market in the world after China. There are about 13 million mobile phone users in the country of more than 84 million people.
Several foreign groups have shown interests in the sector, among whom French France Telecom, Swedish Comvik and Norwegian Telenor.
Vietnamese banks, investment funds and other local private companies have also followed the process closely, observers said.
But major details remain to be settled. The government has not yet decided on the size of a maximum stake foreign investors can acquire.
“We advised authorities to choose one strategic partner for each company, someone that would invest and bring methods, technology and know-how,” an industry insider said, asking not to be named.
“In a second phase, they could also list the group at the stock exchange and open it to other smaller investors.”
“The privatisation will be a long and progressive process,” he added saying the 2007 target was not impossible but might prove difficult to reach.
Vietnam’s telecom sector has experienced major changes over recent years and will face further pressure once Vietnam joins the World Trade Organization (WTO).
Privatisation of the sector has been fiercely negotiated with foreign countries, especially the United States, and is part of Vietnam’s commitment to join the world trade body.
“The integration of the equitised companies would lower the state’s investment burden, sharing the costs among investors,” said the English-language daily Vietnam News, citing the deputy minister of posts and telecommunications.
Internet and the landlines network will remain entirely controlled by the Vietnamese state.
Source- http://au.news.yahoo.com
