Indian govt to kick start 3G auction, to invite application

www.WirelessFederation.com/news: In a bid to kick start the long pending 3G auction process in the country; the Indian government will start issuing notices inviting applications from bidders this week.

According to telecommunication minister Andimuthu Raja, the notice inviting applications will be released this week, while the auction will occur 40-45 days later.

Revenue of INR 350 billion has already being cited by the government in its budget for the current fiscal year, and the lack of the auction before the end of the fiscal year in March could widen the deficit.

BSNL cancels GSM network contract with Huawei (India)

www.WirelessFederation.com/news: China’s Huawei lost 20 million lines GSM network contract with the state owned telecom operator of India, BSNL, after the latter cancelled it because of the unacceptable conditions imposed by Huawei.

However, Huawei has always denied the rumors allegedly linking it to Chinese government and military. BSNL has been asked by the Indian government to make sure that there are no software exploits within any equipment supplied by Huawei. BSNL might retender the contracts as the one with Ericsson covering the North and Eastern regions are also not finalized yet.

Earlier, it was reported that if there is any problem in Huawei tender, Alcatel-Lucent might take over the contract in the lines with Huawei’s tender prices.

For 25-million lines for the North Zone and 18-million lines for the East Zone, BSNL shortlisted Ericsson while Huawei was selected for 25-million lines for the South Zone. Initially, BSNL wanted to award the contract for Western zone to Huawei but later it contended that western zone was not a priority.

3G services and GSM will be provisioned for some 21 million lines. The total sum spent on these contracts is estimated to be US$6.5 billion.

Orange & T-mobile get approvals to merge. UK’s largest Mobile Operator is now in the making.

The proposed merger between Orange and T-Mobile gets all the nods from competition authorities and government bodies in UK and Europe. This signals the creation of UKs largest mobile operator with 30 million users and a market share of around 37 percent.

Timotheus H¶ttges, the CFO of Deutsche Telekom said- “The negotiations were conducted in a fair way and I am certain that this spirit of professionalism and partnership will shape the future of our joint venture. It will set new standards as number one in UK mobile market.”

Of late, T-mobile has faired well but Orange has been fairing below expectations with its fixed broadband customer base dwindling to below the 1 million mark.

Most analysts believe that the merger will allow the companies to better leverage their synergies and develop competitive synergies in high growth sectors such as mobile broadband and roll out innovative services.

TATA india to offer SIM cards on its CDMA network

Oberthur Technologies the world’s second largest provider of Smart Card based solutions today announced the commercialization of its OMHTM (Open Market Handsets) SIM cards for CDMA (Code Development Multiple Access) networks. OMH SIM cards contain subscriber, network and service configuration data that allow subscribers the freedom to easily change and upgrade their handset, but maintain their network configuration.

Oberthur Technologies collaborated with Tata Teleservices Limited, one of India’s fastest growing private telecom service providers, and Qualcomm Incorporated, a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies, to introduce OMHTM SIM cards into the India market.

Olivier Leroux, Head of the Mobile Product Line for the Card Systems Division at Oberthur Technologies said, “Oberthur Technologies is the first to commercially launch OMHTM SIM cards. We are pleased to partner with industry leaders such as Tata Teleservices and Qualcomm who are enhancing the subscriber experience for Indian consumers.”

The OMHTM SIM card, referred to as a removable user identity module (R-UIM), is a state of the art smartcard that stores operator and subscriber specific configuration parameters, separate from the handset memory. By having this configuration parameters located on the OMHTM SIM card rather than the device, subscribers can more easily switch or upgrade their handsets. These cards allow CDMA network operators to increase the selection of devices and services while lowering distribution and inventory costs.

“These are exciting times in the Indian telecom space where innovation, research and development are the key to success and remain competitive in the business. In our constant effort to redefine the telecom space keeping customers at the central point, Tata Teleservices decided to partner with Qualcomm and Oberthur Technologies to further develop the Open Market Handset initiative and offer more choice to customers”, said Lloyd Mathias, Chief Marketing Officer, Tata Teleservices Limited.

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“Qualcomm is pleased to work with Oberthur Technologies for its leadership as one of the first companies to develop OMH SIM cards,” said Nakul Duggal, Senior Director and OMH Project Lead, Qualcomm Corporate Engineering Services. “The OMH initiative is focused on increasing device variety by offering new channels and distribution options within the CDMA ecosystem to provide greater subscriber flexibility.”

About Oberthur Technologies

With sales of 882 million Euros in 2008, Oberthur Technologies is a world leader in the field of secure technologies. Innovation and high quality services ensure Oberthur Technologies’ strong positioning in its main target markets:

– Card Systems: The world’s second largest provider of security and identification based on smart card technology and associated services for mobile, payment, transport, digital TV and convergence markets. – Identity: Leading international supplier for the manufacture and personalization of secure identity documents such as passport, identity card, driving license or health care card – traditional and electronic – and associated services for both governmental and corporate markets. – Security printing: World’s third largest private security printer specialized in high security for the production of banknotes, checks and other fiduciary documents in more than fifty countries. – Cash protection: World leader in the emerging market of intelligent systems to secure cash-in-transit and ATM.

Close to its customers, Oberthur Technologies benefits from an industrial and commercial presence across all five continents.

Oberthur Technologies S.A. is a limited liability company (societe anonyme) registered in France with its registered office at 50 quai Michelet 92 532 Levallois Perret, France. Oberthur Technologies S.A.’s corporate registration number is 340 709 534 R.C.S. Paris.

Website: http://www.oberthur.com

About Tata Teleservices Limited

Tata Teleservices Limited is one of India’s leading private telecom service providers, having a pan-India presence across all of India’s 22 telecom Circles. The company offers integrated telecom solutions to its customers under the Tata Indicom, Tata DOCOMO, Photon and Walky brands, and uses both the CDMA and GSM technology platform(s) for its wireless networks. Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Limited, operates in more than 325,000 towns and villages across the country. In November 2008, Tata Teleservices entered into an agreement with Japanese telecom major NTT DOCOMO, and this transaction marks a key step in the strategic evolution of Tata Teleservices Limited. Tata DOCOMO has so far launched GSM services in eight telecom Circles, and the remaining part of the country is also expected to be covered shortly. In December 2008, Tata Teleservices announced a unique reverse equity swap strategic agreement between its fully-owned telecom tower subsidiary-Wireless TT Info-Services Limited-and Quippo Telecom Infrastructure Limited, thereby becoming the largest independent entity in this space. Tata Teleservices’ bouquet of telephony services includes mobile services, wireless desktop phones, public booth telephony and Wireline services.

For details, visit http://www.tatateleservices.com, http://www.tatadocomo.com or http://www.tataindicom.com.

About Qualcomm

Qualcomm is a registered trademark of Qualcomm Incorporated. All other trademarks are the property of their respective owners.

Why the Bharti-MTN deal failed & a $48 Million loss for the bankers.

Reliable sources have revealed that the Bharti-MTN merger’s fate was sealed three weeks before it was called off on SEP 30, 2009.

It is learnt that the South African governments treasury wrote to MTN on September 11 demanding that the merged entity be domiciled in South Africa (a request earlier made in mid August as well) AND that it should be listed in both countries, OR the deal would not be blessed (South African government’s pension fund, Public Investment Corp, holds 21% stake in MTN).

Members of the South African treasury had visited India on September 24 to understand the regulatory and legal framework of Indian laws and deliberate upon hurdles to the deal. The Indian side revelaed that the dual listing structure would result in huge tax losses for India among other factors.

The South African treasury insisted on a parallel listing via the trust route. Such parallel listing would mean creating two trusts, both listed, one in India and one in South Africa. Both trusts would mirror a share swap deal. Such parallel listing would have been compliant with existing Indian laws.

It turns out that the deal fell through because of South Africa’s political compulsions!

P.S: The investment banks involved in the deal – Bank of America, Merrill Lynch and Deutsche Bank from MTNs side and  Standard Chartered & Barclays from Bharti’s side will not be making the potential 24 to 48 Million dollars had the deal gone through.

Russian Government to buy stake in Indian Mobile Operator

Russian Government is said to have budgeted $680-$780 million to acquire a 20% stake in Indian Mobile operatorSistema Shyam TeleServices. Russia’s Sistema owns 73.71 percent in the company and India’s Shyam Group holds 23.79 percent.

Russian Finance Minister Alexei Kudrin said that they were in the process of completing the appraisal to acquire the stake. It would be paid through Indian Rupee deposits that the russian government now holds.

According to sources, Avers, a St. Petersburg-based consultancy commissioned by Russia’ Federal Property Agency is said to have valued the company at around $3.4 Bn.

Sistema Shyam TeleServices operates in 6 of India’s 22 telecom circles (zones) and has licences for the remaining 16.

India’s Mobile Market Subscribers to Top 350 Million by 2010, Says The Diffusion Group

The number of mobile subscribers in India is expected to grow from just over 100 million today to more than 350 million by 2010, an addition of 250 million subscribers in just four years, according to The Diffusion Group. The analysts predict that the evolving mobile markets in China and India will reshape the global telecommunications and technology landscape and realign market share among today’s mobile market leaders.

According to The Diffusion Group, China market is widely heralded as the most immediate and largest market opportunity for mobile vendors. India’s growth rate will be equally explosive. When combined, China and India — what TDG calls “New Asia” — have a population of approximately 2.5 billion people and comprise the single largest opportunity for mobile vendors in the history of mobile telecom.”While India’s mobile market growth will in many ways follow China, the reasons for its growth are very different,” noted Michael Greeson, founder of The Diffusion Group. “India continues to experience a level of poverty far deeper than China and has little in the way of fixed-line infrastructure to support telecommunications. More than half of India’s 700 million rural inhabitants have no access to residential electricity and must rely on community pay phones. It is because of this unique confluence of factors that mobile technologies make so much sense to both India’s government and to operators.”

As Greeson notes, modern mobile telecommunications technology offers developing nations a way to cover expansive ‘greenfield’ territories — in this case, areas bereft of home or personal telecommunications — in a faster and less expensive way than traditional fixed telecom infrastructure. Combined with the world’s lowest per-minute charges, inexpensive handsets, and the social status of mobile phone ownership, India’s mobile operators are preparing to exploit this opportunity.

Other key findings from TDG’s study of India’s mobile markets include the following:

  • Despite 12 years of deregulation, the number of fixed-line telecom subscribers has increased less than 15% in the last three years: from 41.5 million to 47.5 million, most of which has been confined to urban areas.
  • In India, the cost of installing new fixed lines is roughly three times the price of installing a mobile line.
  • As of early 2006, about half of all the towns and villages in India could receive a mobile signal. The Ministry of Communication and Information Technology has set a goal to reach 90% coverage by the end of 2006 – a very ambitious goal, but one that could be within reach given the steps that the Telecom Regulatory Authority of India (TRAI) and the Indian government have taken to enable competition and increase foreign investment.
  • Despite the fact that government taxes on mobile phone revenues are amongst the highest in the world, TDG expects that taxes, levies, and spectrum fees will be reduced to cover only the Universal Service Obligation (USO) fund and administrative costs.
  • Given the rapid pace of growth, upgrading current infrastructure has taken a backseat to network expansion and quality of service in most areas is extremely poor.
  • Total mobile service revenue will increase over 170% from 2006 through 2010, which translates to a compound annual growth rate of 22.1%.

While India offers tremendous opportunity for mobile telecom vendors, exploiting these opportunities requires understanding India’s regulatory and business environment, as well as comprehending India’s unique social and demographic landscape.

About the market research report

TDG’s 65-page report, “India’s Mobile Markets – Analysis & Forecasts” (July 2006) by Thomas Wolf and Kambam Deepak with Michael Greeson, presents an in-depth analysis of the social, political, technological, and market forces that are shaping India’s telecom evolution and pushing mobile subscriptions to record levels. The report provides forecasts for total subscriber demand, an analysis of 3G subscriber growth, market share analysis among India’s mobile operators, and forecasts for mobile ARPU through 2010.

Source- http://www.tekrati.com

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