Govt wants SC to surrender 1% commission in Vodafone (India)

The government has requested the Supreme Court to surrender its 1% commission for letting it withdraw US$551.75 million, which has been deposited in the court by telecom firm Vodafone International Holdings.

Instead, it has requested the court to direct Vodafone to submit US$5.517 million extra, so that the government gets the full amount of US$551.75 million.

Vodafone had deposited the sum as court fee for the adjudication of its appeal against the government’s demand of US$ 2.42 billion in taxes, for its deal to buy Hong Kong based Hutchison Telecom that had substantial cellular assets in India through a JV with Essar group.

In 2007, Vodafone, through its group firm Vodafone International Holdings, bought Hutchison Telecommunications India’s 67% stake in Hutchison Essar for about US$11 billion.

The plea filed today by the Income Tax department is to be heard by a bench of Chief Justice S H Kapadia.

Additional Solicitor General Mohan Parasharan has stated that the IT department has pleaded to the court to exempt it from paying US$5.517 million as commission for withdrawing the sum deposited by Vodafone.

He added that the IT department has also requested the apex court to direct Vodafone to submit US$5.517 million extra, so that the government gets US$551.75 million.

China Unicom’s new service contract of IPhone brings government rebuke

China Unicom’s new service contract with new users of the iPhone brought a rebuke from government regulators as the contract caused “widespread concern”.

The Ministry of Industry and Information Technology has asked the operator to respect and protect the legitimate rights and interests of telecommunications users, improve the service agreement, and improve service quality.

China Unicom said that since this week new users of the iPhone service bundle who break the service contract will be penalized.

It will check the usage of services, SIM cards and numbers via its back office systems on a monthly basis.

If someone is found to be using an iPhone with another operator’s SIM card, the user’s number and mobile phone will be locked.

China Unicom is the sole partner of iPhone in China which means the smartphones sold in the country are expected to belong to its network.

Analysts believe that the new regulation is mainly to curb speculative reselling of iPhones and partly to beat back China Mobile, the country’s top mobile carrier, in the domestic market.

MIIT officials said that China Unicom had promised that the company would maintain the healthy development and promote fair competition o f telecom market and would make great efforts to respect and protect consumer rights and improve its 3G service.

Bharti Airtel gives highest tele revenue to government in Q2 (India)

Bharti Airtel has paid the highest amount of over US$ 210.35 million to the government in terms of license fee and spectrum usage charge for the quarter ended September 30.

According to the data compiled by telecom regulator TRAI, Bharti paid US$150.18 million as license fee and US$60.18 million as the spectrum charge for the quarter.

While, new players like Etisalat, Unitech Wireless, Loop STel and Sistema Shyam Teleservices, who got the radio waves spectrum in 2008, paid US$ 10.72 million as the spectrum charge and license fee to the government.

Bharti was followed by Vodafone Essar, which has paid a combined amount of US$130.72 million for the quarter. Besides, the two state-run firms BSNL and MTNL have paid US$120.87 million for the same.

Service started only after Government nod and FIPB approval: Telenor

Uninor, a joint venture of Norway’s Telenor and Indian realty firm Unitech, which is in the eye of a storm over CAG revelations on 2G spectrum allocation, stated that it started operations in India only after getting all government clearances.

According to Uninor Managing Director Sigve Brekke, the company entered Indian market by clearing the license obligation. They also asked the government for FIPB approval allowing them to own above 50%.

Getting government approval and also FIPB nod means the application has been scrutinized twice, first by the Department of Telecom (DoT) and then by the Ministry of Finance for acquiring more than 50% stake in Unitech Telecom Services.

He, however, added that the company is taking a cautious approach towards investments, particularly in a daily changing environment of the Indian telecom industry.

As per Brekke statement, the company entered India with the clear understanding that everything is OK and they have invested in US$ 1.2 billion, have 40 million subscribers of Uninor already. So they will see what the Government is doing as its responsibility.

Chinese firm ‘hijacked’ U.S. government web traffic: report

A Chinese telecommunications corporation briefly hijacked almost 15 percent of the world’s Internet traffic in April, including data transmissions originating from the U.S. government, according to a U.S. congressional report released Wednesday.

On April 8, for 18 minutes, email and web page requests from around the world were routed through the servers of state-owned China Telecom, in an event that could ”compromise the integrity of supposedly secure encrypted sessions,” according to the U.S. China Economic and Security Review Commission, a bipartisan panel established by Congress to monitor security issues related to Sino-U.S. relations.

The incident involved both commercial and governmental web traffic, affecting such companies as Yahoo! and Microsoft as well as all four branches of the U.S. military, the National Aeronautics and Space Administration, the Department of Defense and others, according to the report.

An official at the Department of Defense, meanwhile, said the department does ”not have information that suggests the April incident occurred,” adding that such an event would not have affected the department’s internal communications or endangered the security of its information.

However, experts note that the event could have compromised communications between U.S. government agencies and other entities, including foreign governments, with potentially serious ramifications for the security of those communications.

”Temporary custody of Internet traffic could possibly allow the perpetrators to break encryption schemes and gain access to supposedly secure data,” said Larry Wortzel, the commission’s vice chairman.

While emphasizing there is no proof that the incident was intentional, he noted that if so ”it would be classified perhaps as an attempt at cyber espionage that could possibly help in some other cyber activity, including an attack.”

Other experts shared Wortzel’s view that the incident was not deliberate. James Lewis, an expert on China’s cyber capabilities at the Center for Strategic and International Studies, was one of them.

”If this was an intelligence exploit, it was clumsy,” Lewis said, adding that redirecting Internet traffic on such a large-scale would not only draw attention to the perpetrator, but would also produce an unmanageably large amount of information, most of which would be useless.

”It would be like diverting Niagara Falls to get a glass of water,” he said, adding that Beijing has much more sophisticated means for conducting espionage.

On the other hand, the incident illustrates the urgent need to update the Internet’s basic infrastructure, according to Lewis.

”The Internet is still running on technologies largely developed in the 1970s,” he said. ”It was originally designed for a few thousand users…Maybe we have to start saying the system might not be as robust as we like.”

Telecom suspends dividend reinvestment plan (New Zealand)

Telecom has suspended its dividend re-investment plan for its Q1 dividend, blaming doubt about the Government’s broadband plans.

Shareholders who have elected to participate in the dividend reinvestment plan will receive a cash dividend at the same time as dividends are paid to shareholders who do not participate in the dividend reinvestment plan. The dividend is payable on December 3.

According to the company, when it announced it first quarter result and first quarter dividend on November 5 it expected an imminent announcement in relation to the Government’s ultra fast broadband (UFB) initiative, in accordance with Crown Fibre Holdings’ (CFH) expected timetable. But claimed today that it does not know when the next CFH announcement will be and it does not know the likely outcome of the UFB process.

Due to delays in the announcement it was not prudent to proceed with the issue of shares under its dividend reinvestment plan for the upcoming quarterly dividend, or undertake the associated on-market buyback of Telecom ordinary shares.

Telecom reported a net profit of $103 million in its first quarter, down from $163 million last year. It declared a dividend of 3.5 cents a share, compared with six cents per share last year.

Telcos to archive text messages for 6 months (India)

The home ministry has asked all mobile phone companies to store all text messages for six months, against the current practice where they are usually saved for just a couple of days, a step telcos say will considerably increase their operational costs.

As per the research it is found that Indians send 130 to 150 billion text messages, a month. Storing text messages will require operators to invest in data centres, and telcos fear that the government may soon extend demands for storing voice calls.

According to sources, presently, lawful interception is only done for calls and text messages from specific numbers on the instructions of security agencies. Intelligence agencies are of the view that archiving all SMSes over a six-month period is vital to meet security requirements of the country, and this proposal was outlined to telcos during a recent meeting.

According to reports the industry would jointly take up this issue with the Centre. Telcos alleged that the Center must first spell out privacy issues and frame laws that will address concerns related to storing text messages for a six-month period.

India has over 700 million cellular connections and customers enjoy the lowest call rates in the world. As per the operators, setting up data centres for SMS storage will force them to pass on the costs to customers. They also add that operating costs per tower will be up by 50%, unless the government agrees to their demands for a phased implementation of tracking devices on cell towers.

The home ministry had recently asked mobile firms to upgrade their networks infrastructure to implement a system similar to that of Enhanced 911 or E911 in the US.

According to an executive of a telecom company, all the data collected by location measuring units will have to be hauled back to the network operating centre either on fibre on backhaul increasing the operating .

Sistema Shyam (MTS) to invest USD 55 Mn

Sistema Shyam TeleServices Limited (SSTL), a joint venture company between Russia’s Sistema and Shyam Group of India, will be investing USD 55 Mn to expand its code division multiple access (CDMA) network in one of the southern states in India (Andhra Pradesh) by the end of this year.

MTS India has successfully launched in 12 circles now and MTS India CEO, Vsevolod Rozanov,  said the plan for this year was to complete all the 22 circles with an investment of over USD 1.1 Bn.

Currently, MTS India has 4.5 million subscribers, including 72,000 for high-speed data services. Data is the future of our company and is clearly a differential business model than other aggregators. We expect data services to account for one-third of our revenues and achieve break-even by 2013,” Rozanov told Business Standard in India.

Replying to a query, Rozanov said the company would switch to another vendor if China-based Huawei Technologies’ products were not allowed into India.

It may be recalled that the Indian government has blocked Huawei Technologies and ZTE Corporation from selling telecom network equipment to domestic phone carriers due to security reasons.

Commercial companies lag behind in adopting mobile touch than govt, nonprofits: Research

A recent study conducted by a mobile search engine has revealed that government and nonprofit organizations are outpacing commercial companies in developing creative uses and services for the mobile touch Web.

The study has found out how organizations get users to access information and content while on the go. Additionally, religious organizations are the most active of all, making up 72.5 percent of the 13,600 mobile touch Web sites in the category.

According to an official of the research agency, the key finding of the study is that although nonprofits, government agencies and charities are typically slow to adopt new technologies due to budget and personnel constraints, these groups are adopting the mobile touch Web for many purposes.

In his opinion, they found them eager to hop on the touch Web in order to get the word out, raise funds and connect with mobile Web users who have touchscreen devices.

Mobistar considering 4G, can also challenge MTR proposals

Belgian mobile network Mobistar has announced that the company is looking forward to acquire 4G concession following reports earlier this month that the government would offer such licenses later half of 2010.

Earlier it was reported that Belgian authorities are planning to offer a fourth 3G license alongside five 2600 MHz concessions in September 2010, with an auction for five 15Mhz blocks of 2600MHz spectrum suitable for offering Long Term Evolution (LTE) services to take place immediately after the UMTS frequency sale, with an expected minimum price of EUR15 million per 15MHz block.

According to Mobistar CEO Benoit Scheen, the company will have to see what the conditions are for these 4G licenses, but it is logical that the company is interested. Scheen also informed that Mobistar would seek to challenge regulatory proposals put forward with a view to cut fees for routing calls.