ED initiates probes on DoT officials (India)
www.WirelessFederation.com/news: According to the Enforcement Case Information Report, a criminal case has been registered against some unknown DoT officials with other unknown companies for committing an offence under the Prevention of Money Laundering Act.
As per the official sources, the investigation would bring under the scanner nine companies which were awarded licenses in January 2008 along with some DoT officers who were alleged to have connived with some private telecom firms for causing pecuniary loss of an estimated Rs 22,000 crore to the exchequer.
Companies like Swan, Unitech, Venugopal Dhoot-promoted Videocon and many others were provided licenses bundled with start-up spectrum for Rs 1,651 crore for pan-India operations.
CBI has started its investigation and has also registered an FIR in this regard.
MNP gets govt approval in India
www.WirelessFederation.com/news: After a series of postponement and hassles that surrounded the implementation of Mobile number portability in India, the service seems to have come a step closer to reality as Ministry of Home Affairs (MHA) has given clearance to one of the companies selected to oversee the process.
Department of Telecommunications (DoT) selected Telcordia joint venture MNP Interconnection Telecom Solutions (MITS) India in March 2009. The move was taken to administer MNP in southern and eastern states, however, the ministry revealed in December 2009 there were security concerns over the ownership structure of MITS.
As a result of the delays caused by the reconsideration of the company’s status the launch of MNP would be pushed back from a March deadline to May. After the revelation that the ministry had reissued the clearance for MITS at a meeting held by the Foreign Investment Promotion Board (FIPB), the new timeframe looks reasonable.
After reexamining the matter, no objection has been conveyed by the ministry to the proposal subject to addressal of the certain issues. According to MHA, suitable conditions are imposed to ensure that the equipment and services provided to India or to any Indian associate company would have no connection with its operating company in Pakistan.
Batelco JV ordered to shut down mobile network – India.
In a shocking move, the Indian Department of Telecom has asked a Bahrain Telecommunications Co (Batelco) JV in India to shut down its 2 month old operation. The company has approximately 500,000 subscribers who will be affected by this move.
S-Tel , a joint venture between the Siva Group and Bahrain Telecommunications Co (Batelco), had launched services in 3 circles in the country – Himachal Pradesh, Orissa and Bihar starting December 2009.
The government body sent the notice on Friday and has not spelt out the details of the security concerns leading to the order. Sources close to the situation cite one of 2 possible reasons:
1. ZTE a Chinese vendor is supplying the network equipment – India had made it mandatory for all telcos to get security clearance for setting up a mobile network using imported equipment.
2. Bahrain-based Batelco’s presence in the JV, and that may have flagged something to the Indian authorities. (surprising though!)
The company had earlier announced investments of close to $4 Billion in rolling out 2G services with a target of achieving 20 million subscribers by 2016 and EBITDA break-even by 2013.
Believe it or not, this is not the first time. Earlier in 2002, Koshika Telecom had its licenses revoked due to non-payment of dues and just last year, a Russian venture (ByCell) lost out because of security concerns over the company’s shareholding and source of funds.
Indian govt extends pre-paid services in Jammu & Kashmir
www.WirelessFederation.com/news: A directive has been issued by the Indian government extending permission for the use of pre-paid mobile voice services in the Jammu & Kashmir (J&K) circle for a further twelve months. The legislation to use such services was due to expire on February 23, 2010.
After the review of those mobile operators which offer services in the region, the decision was taken ensuring that correct customer verification processes are being followed.
The terms of the permission include- the validity of SIM cards will not be beyond February 22, 2011; no pre-activated SIMs may be sold; recharge of SIMs within last three months of expiry of permission will not have validity beyond February 22, 2011; SIM cards will have no roaming facility outside J&K; service providers can appoint franchises only after seeking clearance from the Department of Telecommunications (DoT).
Winning 3G bid might be used as base price for future sale: DOT
www.WirelessFederation.com/news: The base price for all airwaves sale in the future will now be based on the winning bids in each circle for the upcoming third generation (3G) spectrum in India. It may also be recommended by TRAI that the current policy of allocating 2G spectrum based on the operators’ subscriber numbers should be stopped and instead of that the international policy of auctioning should be followed.
As per the recommendation, in the immediate future, the telecom operators will have to shell out huge amounts for radio frequencies besides shelling out the equivalent or more money for 3G spectrum for all additional frequencies.
Rs 25,000 and Rs 35,000 crore has been expected by Government through this auction. By bringing out this proposal, DOT is also expected to rake in an equivalent amount from the 2G spectrum sale in the next fiscal. All fresh allocations of 2G spectrum has been frozen by DOT.
BSNL asked to expedite alternative network rollout for defence forces by DOT
www.WirelessFederation.com/news: Bharat Sanchar Nigam Ltd (BSNL) has been called by India’s Department of Telecommunications (DoT) to speed up the construction of the alternative network for the country’s armed forces.
The delay in the deployment of the new infrastructure has raised alarm and the department has requested that the telco set up a monitoring mechanism with immediate effect.
A team comprising representatives from the DoT and the Defence Ministry with BSNL’s chairman and managing director as the head was due to be formed, under the terms of the approved proposal. The proposal was for the alternative network, which is being constructed to allow the armed forces to vacate spectrum that is needed for the impending 3G auctions.
Concerns are also raised by BSNL over the rising costs of the project as more states ask for right of way compensation.
