Bharti set to acquire Qualcomm’s India BWA licences
If reports are to be believed, Bharti Airtel is set to buy Qualcomm’s broadband wireless licences in India for US$1.2billion. Previously, it was suggested that Qualcomm was looking for US$1.1 billion to sell its 74 percent stake in the business, having brought in local partners Global Holdings and Tulip Telecom during 2010 in a US$58 million deal.
Qualcomm was awarded one slot of 20MHz TDD BWA spectrum in the 2.3GHz band covering the key telecom circles of Delhi, Mumbai, Haryana and Kerala, spending more than US$1 billion in a 2010 auction process.
The sale of the licences has been long-anticipated, with the US wireless technology company stating that is has been very transparent†about the fact that it does not want to be an operator its reason for acquiring the business was to promote the use of TD-LTE technology in the country, over the potential rival WiMAX.
3G connections to reach 400 mn mark in four years (India)
A new study has revealed that the number of 3G subscriber connections in India are predicted to reach 400 million mark within four years, representing almost 30% of the country’s total mobile connections.
According to the study, 3G connections are set to grow three-fold between 2011 and 2015 as operators ramp-up launch of new 3G networks.
It added that Indian operators spent a combined $15 billion in acquiring Wideband Code Division Multiple Access (WCDMA) 3G spectrum at an auction last year and are forecast to jointly invest a further $2.5 billion in building the new networks and launching 3G services in 2011. More than 80% of 3G connections would be based on WCDMA in five years, with the remaining 20% on CDMA-based 3G networks. Competition in the Indian 3G space is likely to be intense as most operators have set ambitious targets.
The study notes that India’s Circle A and Circle B service areas would account for 75% of the country’s 3G connections by 2015. Even though initial 3G launches are concentrated in the so-called metro areas (Mumbai, Delhi, Chennai, Kolkata), they will soon be outstripped by fast-growing demand for 3G in more populous regions such as Punjab, Bihar, Andhra Pradesh and Haryana.
According to the study, by 2015, 3G market shares will more closely resemble the overall national picture: Bharti — India’s largest operator — is forecast to command the largest 3G share (18 per cent), followed by Reliance (15 per cent) and BSNL (13 per cent).
MTNL lost 10,355 users from MNP (India)
Junior Telecom Minister, Sachin Pilot stated that state-run telecom company Mahanagar Telephone Nigam Ltd. (MTNL) has lost 10,355 users since the launch of mobile number portability (MNP).
According to Pilot, MTNL gained 4,486 new users from other telecom companies through MNP, a service that allows mobile phone users to switch their service providers without changing their numbers.
MNP service was launched on Nov. 25 in the northern Indian state of Haryana, and subsequently extended it across the country on Jan. 20. MTNL provides communications services only in the Delhi and Mumbai service areas.
Pilot added that state-run Bharat Sanchar Nigam Ltd. lost 223,824 users to other mobile phone companies after the launch of MNP and gained 92,243 new users from others. BSNL offers services in the remaining of 20 of India’s 22 telecom service areas.
Idea Cellular faces $66 mn fine for M&A violation (India)
Idea Cellular has been threatened with the loss of 3G spectrum and several of its GSM licenses after the Additional Solicitor General of India stated that the company had broken M&A rules when it brought a stake in Spice Telecom in 2008.
The Additional Solicitor General (ASG) also proposed a fine of US$66 million against the company.
Idea Cellular has strongly denied the allegations.
The ASG has sent his report to the Department of Telecom writing that the two companies violated a lock-in period clause which says that telecoms companies cannot enter in mergers within three years from the effective date of their licenses being granted. In total, four new licences were issued to Spice and two to Idea Cellular on January 25, 2008. Hence,mergers of their operations should not have started until January 2011.
In 2008, Idea brought a 41.1% stake in Spice – which resulted in the companies holding overlapping licenses in six of the country’s telecoms circles (or licensed zones). The ASG has suggested cancelling the new licences in these six circles of Delhi, Maharashtra, Andhra Pradesh, Haryana, Punjab and Karnataka.
According to the company’s statement, the Idea and Spice merger, since approved by the courts, happened to involve six overlapping licenses. Despite being issued spectrum for five of these, it is Idea which advised the DoT that it was not using such spectrum; in effect, placing overlapping licenses in a de facto escrow pending receipt of the DoT’s formal letter of merger, including surrender, if at all that was attracted.
In addition, Idea has won 3G spectrum in four out of the six circles and DoT has been advised to withdraw the 3G spectrum or the licence would be cancelled.
AT&T in talk with Qualcomm for licence to 4G (India)
Global telecom giant, AT&T is reportedly in talks with chip maker Qualcomm for a possible partnership in India. Qualcomm holds the licence and spectrum to offer fourth generation or 4G wireless broadband services in four telecom circles in India.
AT&T had exited Indian mobile telephony market in 2006, when it divested its stake in favor of its partners — the Tata group and the Aditya Birla Group — and failed in its attempt to gain an entry in 2008.
In the May 2010 auctions conducted by India’s Department of Telecommunications, Qualcomm won spectrum urban circles in New Delhi, Mumbai, Haryana and Kerala for around US$ 1 billion.
Mobile Number Portability to hit India today
Prime Minister Manmohan Singh is scheduled to flag off the nationwide launch of mobile number portability today, a move that will allow users to switch operators without losing their phone numbers and will force telcos to improve the quality of services.
According to Telecom Minister Kapil Sibal, he thinks it’s a great step forward for the consumer, as it enhances choice and brings in more competition, because the more efficient you are as a service provider, the more likely that consumers will choose you. MNP services were first launched in Haryana in November last year. Nevertheless, companies like Idea Cellular and Vodafone started marketing their services to subscribers in other parts of the country.
Indian Networks prepare to launch Mobile Number Portability (India)
India’s mobile network operators are setting up to launch Mobile Number Portability by the end of next week, with at least four of the larger networks confirming that they are now ready to support MNP.
Mobile Number Portability was due to be made available last year, but was delayed several times following difficulties expressed by the networks in meeting the regularly delayed deadlines. MNP was launched on a trial basis in Haryana, with a national launch due on the 20th January.
Vodafone Essar, Tata Teleservices, Idea Cellular have all confirmed their readiness and are starting marketing campaigns. Reliance Communications is also ready for MNP, although the company was not able to confirm to local media if both its CDMA and GSM networks would be ready.
NSN wins Indian 3G Contract
Nokia Siemens Networks (NSN) has won a 3G network contract from India’s Idea Cellular covering four circles – Uttar Pradesh (East), Uttar Pradesh (West), Kerala and Haryana.
Nokia Siemens Networks is currently a major GSM vendor for the operator and the deal will strengthen this relationship with an overlay of 3G on the existing GSM network.
The contract covers about 40% of Idea’s base station portfolio. Nokia Siemens Networks will also supply unified network management, monitoring and optimization based on its NetAct system.
In addition, Nokia Siemens Networks will apply its domain expertise in 3G network operations to provide support to the operator in managing its 3G network.
No financial or timeline details were disclosed.
Sachin Pilot appeal to verify active mobile users (India)
A decision has been taken by the Department of Telecommunications that an exercise should be done on pilot basis in a representative area to know the actual number of active users {Visitor Location Register (VLR) based} as against number of active Subscriber Identity Modules (SIMs) in that area, subsequently information be collected from all areas for the same month.
Accordingly, Delhi and Haryana Telecom Enforcement, Resource and Monitoring (TERM) cells of the Department of Telecommunications have been asked to obtain the information on the same.
This information was given by the Minister of State for Communications & Information Technology, Shri Sachin Pilot in written reply to a question in Lok Sabha today.
