Relaince Communications terminates Etisalat DB’s services (India, UAE)
Indian broadband and telecommunications company Reliance Communications, has disconnected Etisalat DB’s services on account of non-payment of charges. Etisalat DB is a joint venture between UAE’s leading telecom operator Etisalat and India’s DB Group, enabling Etisalat to provide services using Reliance Communication towers. As per reports, the non-payment of fees despite several reminders is what led to this decision.
Etisalat DB has reportedly been having network trouble since the past few days owing to technical reasons. The firm released a statement apologizing for the inconvenience caused to customers, but is yet to admit to any rift with Reliance. The company has said that they their team has been working round-the-clock to resolve the issue and restore the mobile services at the earliest.
Reports reveal that Etisalat DB is allowed to provide services in 15 circles consisting of Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East and West), Madhya Pradesh and Bihar.
Decision on license cancellation in a month’s time (India)
The Telecom Ministry has stated that it will decide in a month’s time on cancellation of licenses given by former Telecom Minister A Raja in 2008 to allegedly ineligible firms.
According to Telecom Secretary R Chandrasekhar, they have received replies from all 85 license holders who were issued showcause notices. They are legally examining them and should be able to take a decision on it in a month’s time. He categorically denied that any license has been cancelled so far.
He added that the Telecom Ministry has issued notices to firms on two issues — ineligibility to get licenses and missing roll-out obligations within the stipulated timeframe; the process to send notices would be completed within a week.
As per the DoT officials, DoT has to give 60 days to the operators to file their response to the showcause notice for cancellation of licenses. In certain cases, 60 days are over while in some, there is till some time.
The matter is being examined by various investigating agencies and also a parliamentary panel.Notices have been issued to Swan Telecom (now Etisalat DB), Datacom (now Videocon Telecom), S Tel, Uninor and others, either due to ineligibility or for missing roll out obligations.
In its reply to the Public Accounts Committee, headed by BJP leader Murli Manohar Joshi, the DoT again rejected the allegation of any notional loss due to the issuance of 122 new licences in 2008 . He stated that the premium placed on the scarce resource from the perspective of a producer need not necessarily translate into a loss when seen from the view point of the consumer and public welfare.
According to DoT, the concept of notional loss when spectrum is given at a price discovered few years earlier has to be balanced with the gains accruing to the consumers and the general improvement in public welfare in the form of faster economic growth.
The PAC had sent 40 questions to the DoT related to the 2G spectrum scam.
Suggesting that the notional loss reported by the audit report should be seen in light of the benefit that it has given to consumers and general public welfare in the form of quick economic growth, the DoT stated that the objectives of the Telecom Policy since 1999 was to increase teledensity and affordability for consumers, while maintaining a level playing field between incumbents and new players as well as revenue accrual for the government.
DoT issues notice to Idea, Etisalat DB for cancelling licenses (India)
The Indian government has issued notices to Aditya Birla group company Idea cellular for Punjab circle and new operator Etisalat DB for Delhi and Mumbai for cancelling their 2G licences for missing roll-out obligations respectively.
According to DoT Secretary R Chandrashekhar, a notice has been issued to Idea Cellular for Punjab circle.
Earlier, a similar notice had been issued to Etisalat DB for cancellation of its licence in Delhi and Mumbai circles.
In Idea’s case, the notice has been issued for not meeting launched obligations and for other violations of licence conditions.
DoT issued Letters of Intent (LoIs) to Idea Cellular for providing Unified Access Services in nine service areas– Kolkata, West Bengal, Assam, Karnataka, Orissa, North East, Jammu & Kashmir, Punjab and Tamil Nadu (including Chennai) on January 10,2008.
A. Raja remanded to stay in jail until March 17 (India)
India’s former Telecoms Minister, Andimuthu Raja has been remanded to stay in jail until March 17th as investigations into the 2008 telecoms licensing scandal continue. Three other men, who were also arrested by the investigators, were also remanded to stay in jail.
The Central Bureau of Investigation (CBI) Special Judge sent Shahid Usman Balwa, the owner of DB Realty – a minority shareholder in the mobile network, Etisalat DB, R.K. Chandolia, former personal secretary to Raja, and Siddarth Behura, former telecom secretary, to an additional 14 days judicial custody after their earlier remand order expired.
Raja, Behura and Chandolia were arrested on 2nd February, while Balwa was arrested on the 8th February.
The CBI has been investigating the total loss to the government made by the huge number of telecom licenses granted in 2008. The loss is estimated to be nearly US$5 billion.
Etisalat DB’s Shahid Balwa arrested as India widens 2G probe
Indian federal investigator has arrested Shahid Balwa, Vice Chairman of Etisalat DB Telecom India Pvt., widening a probe into the sale of mobile-phone licenses that has already triggered the detention of a former minister.
According to the agency’s spokeswoman, Binita Thakur, the Central Bureau of Investigation arrested Balwa yesterday. His arrest comes a week after authorities’ detained former telecommunications Minister Andimuthu Raja for questioning. Balwa is also the managing director of DB Realty Ltd., a Mumbai-based property developer.
A Mumbai court has remanded Balwa to two days in custody after the agency argued that Raja conspired to favor companies including the then Swan Telecom Ltd., now known as Etisalat DB, and Unitech Ltd. by violating guidelines in the license sale. The bureau, which won approval to quiz the former minister until tomorrow, told a New Delhi court on Feb. 3 that Raja caused a loss of US$4.8 billion to the exchequer.
RCom cleared of holding excessive stake in Swan Telecom (India)
Indian Ministry of Corporate Affairs has cleared Reliance Communications from allegations that it held more than 10% of Etisalat EB (formerly Swan Telecom) which would be have been a breach of Indian law, which limits cross shareholdings in rival companies.
The review of the company shareholders came as a result of the investigation into the telecoms licenses scandal and whether the company had qualified for the licenses awarded to it in 2008.
In its report Ministry, Reliance Communications had no equity share holding or voting rights in any of the subsidiary companies who created Etisalat DB. The company was created in last 2007 and was granted telecoms licenses in January 2008, although RCom did hold a 9.9% equity stake in the firm at the time. The UAE based Etisalat later took a 45% stake in the company.
The company is still facing a show notice from the regulator to explain why it should not forfeit some of its licenses, which is it alleged to have been awarded without the necessary qualifications.
Telcos pay penalties for missing roll-out obligations? (India)
Certain new telecom operators including Etisalat DB are understood to have paid penalty to the government after facing cancellation of licences for missing launch obligations.
According to sources, Etisalat DB, a joint venture between Swan Telecom and UAE-based Etisalat, has paid about US$2 million to the Department of Telecom (DoT) for missing the deadline to launch its network or expand services in four circles.
Uninor, a joint venture between realty major Unitech and Norway’s Telenor, has stated that the company has paid the penalty as demanded by DoT, however, under protest.
According to company’s statement, various factors, including delay in clearances required for each site, new last minute pre-launch testing requirements and new equipment security clearance processes, came in the way of roll out and were beyond their control. They have requested the DoT to consider these in its assessments. As a serious long term operator with considerable presence in India, they intend to continue delivering the benefits of competition to customers in the country.
Some more operators’ including Loop Telecom and Videocon are also facing action for missing the roll-out deadline, but it could not be ascertained if they too have paid the penalty.
Etisalat DB Opens Second Customer Contact Center (India)
Cheers Mobile Services, the GSM service from Etisalat DB Telecom Pvt. Limited (Etisalat DB), a joint venture between UAE’S largest telecom group, Etisalat and the Dynamix Balwas Group, today inaugurated its second customer contact centre in Noida, India. The company has an end-to-end outsourcing partnership with Tech Mahindra, the leading provider of solutions and services to the telecommunications industry.
With the launch of its second contact centre, Etisalat DB has reinforced its commitment to provide superior customer management services and establish itself as a leading telecom player in one of the world’s fastest growing mobile markets.
While Tech Mahindra will be responsible for managing Etisalat DB’s services in North & South India; West and Central India will be managed by Aegis. The BPO’s multi-site centers will provide inbound, outbound and back-office services in the respective regional languages besides English and Hindi.
Enabled by state-of-the-art technology, the contact centre operations will offer distinctive features like ‘automated call-back’ in case the customer’s call gets terminated; ‘schedule a call-back’ which allows customers to schedule calls from the contact centre as per their convenience. The BPO’s safeguards will ensure seamless service and business continuity for Etisalat DB with all centres being linked to each other, thereby presenting the company with a single window to provide superior experience to customers.
Commenting on the occasion, Official Spokesperson, Etisalat DB said, We are pleased to announce the opening of our second customer contact centre in India. These state-of- the-art contact centres align with our long-term commitment in India and are in line with our global strategy of, customer focus, innovation and market leadership. Our outsourcing partner Tech Mahindra has demonstrated capability and expertise in managing extensive customer-support operations for large telecom service providers, in India and globally. Tech Mahindra’s superior customer-facing processes will reflect the strong customer service ethos of Etisalat.â€
Mr. Sujit Baksi, President – Corporate Affairs & BPO, Tech Mahindra, said, “We are excited about further strengthening our relationship with Etisalat DB as they have innovative plans to address the mobile telephony market in India. With robust BPO capabilities, Tech Mahindra has a proven track record of delivering world class seamless customer experience leading to increased customer stickiness and growth. Our association with Etisalat DB will further strengthen our leadership position in the telecom software and solutions ecosystem.”
With an initial investment of USD 900 million, in India, Etisalat DB has built a strong telecommunication network in the Indian market. Backed by global and domestic financial institutions, the company, in the last 18 months has entered into long term strategic relationships with the leading names in the Telecom sector for its IT Outsourcing, Telecom Equipments and Network Infrastructure. Over 2000 proficient employees of Etisalat DB have been engaged to established widespread retail distribution network across the country to be a part of and value add to the Indian Telecom growth story.
About Etisalat DB
Etisalat DB Telecom Pvt. Ltd. has the Unified Services Access License in 15 circles. The company launched its services across its circles under the brand name, Cheersâ€. These licenses enable the Company to provide a full spectrum of telecom services covering a population of over 900 million across these circles. Under the license the Company can also provide Internet Telephony, Internet Services and Broadband Services. The company is headquartered in Mumbai. Etisalat DB’s services will include national & international long distance telephony solutions, full range of prepaid & postpaid products, national & international roaming and Value Added Services.
About Etisalat:
Etisalat is the Middle East’s largest operator and third largest corporation. With a market value in excess of Dhs. 80 billion (US$20 billion) and annual revenues of approximately Dhs. 30 billion (US$8 billion) Etisalat is today on the verge of being numbered amongst the top ten operators in the world. Etisalat, a true multinational powerhouse with operations in eighteen countries across the Middle East, Africa and Asia. Etisalat’s terrestrial GSM network now covers a population of two billion and its satellite network provides services over two thirds of the planet’s surface. Etisalat’s Dhs. 36 billion international acquisition programme began in earnest in 2004 by winning the second mobile license in Saudi Arabia. Since then the company has witnessed rapid expansion positioning Etisalat as one of the world’s fastest growing operators with its mobile subscriber numbers rocketing 2,500% from 4 million in 2004 to 107 million in 2010. It is one of the telecommunication industry’s innovation pacesetters powering its home country, the UAE, into the top ten nations list by providing the latest technologies first. It is a pioneer in next-generation networks for both fixed-line and wireless networks and is in the process of deploying a nationwide fiber-optic network that includes enough cable to stretch to the moon and back two and a half times. In 2009, Etisalat reported annual Net Revenues of Dhs. 30.8 billion (US$ 8.4billion) and Net Profits of Dhs. 8.8 billion (US$ 2.4 billion) ranking Etisalat as the eighteenth most profitable telecoms group in the world. For the first nine months of 2010 Etisalat has achieved healthy Net Revenues of Dhs. 19.1bn (US$ 5.2 billion) and Net Profits of Dhs. 7.3bn (US$ 1.9bn). As a result, Etisalat has been named ‘Best Overall Operator’ in the Middle East ten times since 2006 and was named Best International Carrier at the World Communications Awards in 2008. It has also won numerous accolades for its innovative marketing being awarded for having the ‘Best Brand’, ‘Best Customer Service’ and ‘Best CSR Programme’. Etisalat’s management team is also well-celebrated with its Chairman, Mohammed Omran, receiving the top accolades in 2010 at both the International Business Awards and the World Communications Awards.
About Tech Mahindra:
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra Limited, in partnership with British Telecommunications plc. With total revenues of INR 4625.4 crore in the year ended March 31, 2010, Tech Mahindra serves telecom service providers, telecom equipment manufacturers, and software vendors. Tech Mahindra enables clients to maximize return on IT investment by providing solutions which help the clients achieve shorter time-to-market, reduced total cost of ownership, and high customer satisfaction. Tech Mahindra achieves this through its domain and process expertise, distinctive IT skills, research and development, and proven innovative delivery models. Assessed at SEI-CMMi Level 5, Tech Mahindra’s development centres are ISO 9001:2000 & BS7799 certified and the company has principal offices in the UK, United States, Germany, UAE, Egypt, Singapore, India, Thailand, Taiwan, Malaysia, Philippines, Canada, and Australia.
Idea to Launch MNP (India)
The Department of Telecom (DoT) had ordered the mobile operators to launch MNP by November 25. The Idea has taken lead by releasing its ‘Switch to Idea’ commercials debuting on TV channels.
MNP enables a subscriber switch from his cellular operator to any other operator, and retain his mobile number. It is being rolled out on 25 November in Haryana circle where subscribers can switch in between any of the operators. The Haryana has eight cellular operators Airtel, Idea, BSNL, Aircel, Loop, Vodafone, Etisalat DB, and Videocon.
According to figures from Cellular Operators Association of India, the circle has 11.68 million subscribers as on Oct 31, 2010. India’s total cellular subscriber base stands at around 700 million.
According to Rajat Mukharjee, the official spokesperson for Idea Cellular, implementation of MNP in India will definitely come as a boon for the established players as they have the better service capability and the networks in comparison to the small operators who are yet to offer better service and networks.
