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.
Etisalat DB to enter Indian market as Cheers Mobile
www.WirelessFederation.com/news: GSM service of Etisalat DB will be soon launched in India under the brand Cheers Mobile Service. The website of the company has already gone live providing information on various tariff and customer care numbers. Etisalat DB is one of the pre-qualified bidders for 3G spectrum in India, the auction if which is expected to begin on April 9, 2010
The GSM Mobile Network of Telecom Talk has already gone live in Tamil Nadu and Kerala but it is still to come to Delhi. The commercial service of the operators is also expected soon in Mumbai, Andhra Pradesh and other circles. On launching its service in April, the operator will become the fourth telco to launch GSM services in the last 5 months and second this year.
Etisalat DB is a joint venture between Etisalat and Dynamix Balwas Group after Etisalat bought 45 percent share for $900 million in Swan Telecom.
UASL license has been granted to Etisalat DB to operate 2G services in 15 circles including Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar.
Etisalat will ask FIPB for increased stake in Etisalat DB
www.WirelessFederation.com/news: Etisalat DB, formally known as ‘Swan Telecom’, a yet-to-launch Indian mobile operator will witness a further stake of 5.27% by UAE fixed line incumbent Emirates Telecommunications Corporation (Etisalat).
According to the agreement Etisalat will acquire 5.27% stake from Chennai based Genex ventures in a deal worth over INR 3.8 billion.
If the Foreign Investment Promotion Board (FIPB) shows a green signal to the deal, Etisalat will become the biggest stake holder of Etisalat DB. At present the Gulf telco holds approximately 45% stake in the mobile operator after paying USD900 million for holding in September 2008.
Real estate firms including DBG Group held through Tiger Trustees are other major shareholders with almost 45.73% stake in the company apart from Delphi Investments holding 4.27% stake.
Swan Telecom re- named Etisalat DB Telecom India Pvt. Ltd (India)
www.WirelessFederation.com/news: The Board of Etisalat DB, announced the ‘change of name’ of the erstwhile Swan Telecom, ajoint venture between Etisalat and DB Realty. The companyhas officially been re-namedas Etisalat DB Telecom India Pvt. Ltd. The company is headquartered in Mumbai, India.
Etisalat DB India Pvt. Ltd has been awarded the Unified Services Access License in 15 circles including Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar.
These licenses enable the Company to provide a full spectrum of telecom services covering a population of over 900 million across India. The services will include national & international long distance telephony solutions, full range of prepaid & postpaid products, national & international roaming and Value Added Services which includes Voice Mail, Audiotex services, Video Conferencing, Videotex, E-Mail, Closed User Group. Under the license the Company can also provide Internet Telephony, Internet Services and Broadband Services.
