Vodafone India may delay IPO plans till after 2012 (India)

Mobile operator Vodafone India has hinted at delaying its IPO plans which were earlier scheduled for 2012. According to reports, Vodafone India Managing Director and Chief Executive Marten Pieters, said that it is highly unlikely that they are able to do an IPO in the middle of so many spectrum auctions. It depends on what the final decision on auction of spectrum will be.

Regarding the conflict with the Indian tax authorities, Pieters said that Vodafone India is not in a position to comment on changes to legislation set out in the Finance Bill. It would not be appropriate for Vodafone India to discuss any dispute between Vodafone Group Plc and the Indian tax authorities. Any questions related to such issues should be directed to Vodafone Group Plc.

He added that Trai recommendations are economically unattractive and that the regulatory scenario is changing on a day-to-day basis, which is creating a lot of pressure on us. Further, if the Trai recommendations happen, then the IPO for sure would be difficult to do this year.

Pieters said that Trai views on spectrum refarming are against public interest and public policy objectives; also contrary to license conditions; no study of impact of refarming , not in line with international practice. He said that despite average of 26 MHz being available in each circle, only 5 MHz/10 MHz are being recommended for auction, creating artificial scarcity, which will distort auction prices to unsustainable levels licence extension.

Airtel cuts 3G data prices by 70 percent (India)

In a revolutionary move in mobile data price plans, leading telecom operator Bharti Airtel has reduced the price for 3G data plans by 70 percent. As per a company statement, volume based browsing rate on 3G is down from $0.0018 per 10kb to $0.0005 per 10kb. This will be applicable for 3G non-pack users with effect from May 17, 2012.

The company revealed that the new data plan for pre-paid customers would start at $0.18 for 30 minutes of usage over a one-day validity, $0.82 for 150 MB data valid for 7 days and will go till $27.3 for 10 GB data valid for 30 days. On the other hand, for post-paid customers, the plans start at $1.8 with a 300 MB data and 30 days validity, and goes till $27.3 for 10 GB data valid for 30 days.

Airtel also said that with Airtel 3G Smartbytes, post-paid mobile customers will have uninterrupted access to high speed browsing on their mobile devices even after exhausting their monthly data limits. The Smartbytes additional data usage packs will be available in a range of pre-determined price options that allow Airtel 3G customers to choose a plan that suits their needs.

Mobily announces award of MVNE solution and services contract to XIUS (Saudi Arabia, India)

Mobily, the fastest growing mobile communications and technology provider in the Kingdom of Saudi Arabia announced the award of its MVNE solution and services contract to XIUS, an Operating Brand of Megasoft Limited Hyderabad, India.

XIUS is providing MVNE/MVNO network infrastructure and operations managed services as well as MVNE back-office services required for the qualification and launching of MVNO on the Mobily network and MVNE platform and ultimate offering to potential MVNO subscribers in the Kingdom of Saudi Arabia.  XIUS is employing its Mobile Services Platform infrastructure and framework, currently deployed in multiple global locations, which will provide MVNO with its own separate network components and flexible capabilities for service offerings to its targeted subscribers.

GV Kumar, Managing Director and CEO of XIUS, said that they are very proud and excited to be working with Mobily on their foray into the MVNO market in the Kingdom of Saudi Arabia. As well, their Mobile Services Platform provides Mobily, and the MVNO it serves, with a flexible suite of network components, OSS/BSS, and VAS solutions that will be leveraged by the MVNO to offer distinct, separate, and compellingly different subscriber offerings.

Dr. Eyas Al-Hajery, Mobily’s Senior Executive Vice President for Wholesale and Carrier Services, said that they have chosen XIUS Mobile Services Platform after an exhaustive selection process that includes an extensive list of vendors. The platform will enable Mobily to provide carrier class comprehensive MNO/MVNE services to potential MVNOs.

The MVNO will be able to focus on its identified market target segment, develop unique plans and service offerings, and bring new and different value added solutions without dependence on the mobile network operator, utilizing the XIUS Mobile Services Platform being installed solely for the use and utilization of the MVNO.

Airtel in talks with Qualcomm to buy out Indian unit (India)

Leading telecom operator in India, Bharti Airtel, is said to be moving forward in its talks to buy out the Indian partners of Qualcomm in a fourth-generation (4G) broadband venture in the country, according to a report by Reuters.

Qualcomm purchased 4G radio airwaves in a 2010 Indian state auction for $1 billion, and had sold a total 26 percent stake to Indian companies Global Holding Corp and Tulip Telecom for about $58 million to comply with the sector’s foreign holding rules.

As per the report, both sides are still negotiating valuations, but Bharti will likely pay some premium over what Global Holding and Tulip paid in 2010. Further, it is expected that Bharti will make further investments in the company in future and new shares will be issued to them. That automatically dilutes the Qualcomm holding.

The deal will give Bharti access to four telecoms zones, including the lucrative Delhi and Mumbai cities, where it does not have its own 4G airwaves. Bharti, which won 4G airwaves in just four of India’s 22 telecoms zones, has said it would like to have a nationwide 4G broadband network. The company recently launched commercial 4G networks in Kolkata and Bangalore cities.

Qualcomm, which was embroiled in a dispute with the Indian telecoms ministry, was granted the 4G airwaves this month, nearly two years after it won them in the auction. The ministry cut the usage period of the airwaves by 18 months.

Qualcomm, which is pushing for the deployment of LTE (long-term evolution) broadband technology in India, has previously said it is looking at one or more operator partners in the India broadband venture.

ED probes money laundering case against Bharti Airtel (India)

The Indian Minister of State for Finance S S Palanimanickam informed the Rajya Sabha that the Enforcement Directorate (ED) is probing money laundering cases against leading telecom operator Bharti Airtel, according to a report by ET.

As per the report, he said that the Directorate of Enforcement is investigating cases under the provisions of Prevention of Money Laundering Act, 2002, and Foreign Exchange Management Act, 1999, involving M/s Bharti Airtel Ltd.

The minister, however, did not provide additional information, saying that it may not be in the interest of the ongoing investigations to provide any further details. The report reveals that in August last year, Airtel was under the scanner of the Enforcement Directorate for alleged violations of Foreign Exchange Management Act (FEMA).

The company had responded at the time, saying that Bharti Airtel adheres to the highest standards of corporate governance and always complies with all the rules and regulations laid down by various agencies and the licensor namely DoT. They will provide all relevant details to the concerned authorities as and when required and will offer full assistance to clarify any concern.

India accounts for 683 million active mobile connections (India)

India, a dominant presence in the global mobile industry, has over 683 million active mobile connections at the end of March 2012, as reported by MediaNama. According to the report Vodafone’s total subscriber base went up by 1.02 million to 150.46 million, while its active connection base increased by 2.46 million to 133.49 million for the month, indicating that while connections did port out, more connections became active during the month for the telco. Idea Cellular, which has reported the highest percentage of active subscribers since the Telecom Regulatory Authority of India (TRAI) made reporting such information mandatory, reported the highest increase in active subscribers of 2.49 million, with a total base of 105.34 million, and 93.45 percent of its connection base active.

As per the report, Bharti Airtel added 2.50 million connections, taking its connection base to 181.28 million, with 166.28 million of this base active. Airtel has 24.35 percent of the total active connection base. Vodafone added 1.025 million connections, but grew its active connection base by 2.46 million, taking its connection base to 150.46 million, with 133.49 million active. Vodafone has 19.54 percent of the total active connection base.

Idea Cellular added 2.01 million connections, taking its base to 112.72 million, with 105.34 million connections active. Idea Cellular has 15.42 percent of the total active connection base. Reliance Communications (RCOM) 1.04 million connections, taking its base to 153.05 million. However, only 65.39 percent of this base is active – just 100.07 million active connections. RCOM has 14.65 percent of the total active connection base. Public owned telco BSNL has a connection base of 98.51 million, with as little as 53.92 percent of its base - 53.11 million – active. It has 7.78 percent of the total active connection base.

The report highlights that among the new telcos, Uninor added 1.29 million connections, taking its connection base to 42.43 million, but only 24.25 million (57.17) of this base is active. Uninor, which is targeting 8 percent of India’s mobile base, currently accounts for 3.55 percent of the country’s active connection base.

Nokia to launch Nokia 808 phone first in India and Russia (India, Russia)

Finland based mobile maker Nokia will launch the first Nokia 808 phone with a 41 megapixel sensor camera lens in India and Russia this month, according to a report by ET. A Nokia spokesperson claims that this is the highest resolution level that any phone camera has.

Nokia has induced PureView technology in Nokia 808, which focuses on enhancing image capturing and related processing feature in the phone. As per the company, the Nokia 808 PureView features a large, high-resolution 41 megapixel sensor with high-performance Carl Zeiss optics and new pixel oversampling technology.

The price at which the phone will sell in India could not be ascertained. However, the report claims that with a 41 MP, the phone is able to shoot images that Nokia claims can be printed in poster size.

A Carl Zeiss lens shoots in continuous focus HD video, at 1080p. Mary McDowell, the firm’s executive vice president for mobile phones, said the company’s engineers had been working on the product for years.

Airtel to increase Africa revenues in 2013 (Africa, India)

Telecom operator Bharti Airtel announced its Q4 results yesterday, revealing a net decline in its profit for the ninth consecutive quarter. According to the company, increased expenses such as of 3G licence fee amortisation, 3G interest costs, forex losses and tax provisions, were the prime cause for the decline, but said that it will be looking at increasing revenues from its African operations next year.

Bharti Airtel CEO (International) and Joint Managing Director Manoj Kohli, said that the restructuring for Africa is over and thus FY 13 will be a normal year. Therefore, the revenue goal of USD 5 billion definitely remains their target.

He added that all changes they wanted to bring in the network, IT, organisation design are successfully completed and he believes this will be a year of stability, operational consolidation and therefore they are confidant of leading a growth in these markets. He also said that the company aims at achieving 40 per cent EBITDA (earnings before interest, taxes, depreciation, and amortisation) from its African operations.

Kohli claimed that cost efficiencies gained from the new business model in Africa has been completed and now they will see efficiencies moving in steadily.

Operators speak out against TRAI recommendations (India)

Indian telecoms regulator Trai had recommended that refarming of airwaves in the 900 MHz band, largely held by incumbents and BSNL, be undertaken next year, and industry experts estimate that leading mobile phone companies will have to pay about $17.1 billion to retain the airwaves they hold, according to a report by ET. Trai had said that the spectrum available with incumbents in the 900 MHz band should be replaced by spectrum in the 1800 MHz band, which should be charged at the price prevalent at the time of refarming.

In response to this, the chief executives of five mobile phone companies – Bharti Airtel, Vodafone, Idea, Uninor and Videcon – had told telecom minister Kapil Sibal that accepting the regulator’s ‘flawed, retrograde, regressive and uncertain recommendations would irretrievably harm consumer interests, ring the death knell for the sector and lead to prolonged disputes and litigation.

As per the report, Bharti Airtel CEO for India and South Asia, Sanjay Kapoor, Vodafone India MD and CEO Marten Pieters, Idea Cellular managing director Himanshu Kapania, Uninor chief executive Sigve Brekke and Videcon Telecommunications’ director and CEO Arvind Ball had also alleged that the regulator had not carried out any study to examine the socio-techno-economic aspects and had ignored contractual and other rights of the affected operators.

The report claims that Vodafone’s latest communication further adds that substitution of 900 MHz with 1800 MHz will lead to disruption of services for hundreds of thousands of mobile customers severely disrupting the quality of services for years to come while also pointing out the huge costs for setting up additional towers for the 1800 MHz network was likely to translate to higher tariffs for customers.

Vodafone said that extension of licenses with a different type and quantum of spectrum was legally flawed added that mobile permits were already technology neutral.