DoT plans annual subsidy for BSNL, MTNL (India)
India’s Department of Telecommunications (DoT) is reportedly planning to support the country’s two economically-challenged state-owned telecoms operators with an annual subsidy of USD655 million.
It is believed that both Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) will benefit from the additional funding, with the former given help towards supporting its operations in remote and rural regions from the country’s Universal Service Obligation Fund (USOF).
MTNL, meanwhile, will use the extra money it is handed to cover higher pension and retirement payouts. With initial estimates by the DoT that BSNL is currently incurring a loss of between US$443.86 million and US$554.82 million from its landline business, the regulator has called on the telco to specify what level of losses it attributes to its social telephony obligations before it finalizes any plans for additional funding.
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.
India extends reservation period for telecom orders made to ITI
The Indian government has extended the period after the state-run telecommunications companies need to compulsorily provide nearly 30% of their orders to ITI Ltd. by two more years, ensuring constant revenue for the ailing telecom equipment maker.
ITI, once India’s sole telecom equipment maker, has been sustaining mainly on contracts from Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. as companies such as China’s Huawei Technologies Co. and France’s Alcatel-Lucent captured the market with latest technology and low-cost products.
As per the reservation rule, BSNL and MTNL have to give 30% of their orders to state-run ITI. These account for 70% of ITI’s revenue.
As per the Government’s statement, ITI had sought a three-year extension of the quota policy, which expired on Sept. 20. The reservation period has been extended starting Sept. 21 because in today’s highly competitive environment, it is very difficult for ITI to survive on its own without the benefit of the quota.
ITI’s weak financial health has provoked the government to take several measures for reviving it in the past. The company has also asked for an additional money support from the government to upgrade infrastructure at its manufacturing plants.
According to the statement, the reservation rules also require BSNL and MTNL to give 70% advance payment against the orders placed with ITI, so that ITI does not face the problem of working capital for the execution of the orders.
BSNL offers telecom services in 20 of the country’s 22 service areas and is in the process of expanding its 2G and 3G mobile services, while MTNL operates in the other two service areas of Delhi and Mumbai.
The statement also revealed that the extension of the quota policy would be applicable for products manufactured by ITI and on turnkey projects, including network rollout.
MTNL setting up networks for the October Commonwealth Games (India)
www.WirelessFederation.com/news: Three communication networks is under the process of construction by Indian state owned telco, Mahanagar Telephone Nigam Ltd, at a cost of INR2.85 billion for the October Commonwealth Games in New Delhi.
INR1.82 billion will be provided by the Ministry of Sports to the telco for setting up the networks. According to junior minister for telecommunications, Gurudas Kamat, MTNL is further negotiating to receive INR300 million from the Ministry of Home Affairs and INR730 million from the organizing committee.
Besides, MTNL is setting up networks for games data, security data and video broadcast.
MTNL to add 2 million subscribers in two cities (India)
www.WirelessFederation.com/news: Addition of two million lines each in New Delhi and Mumbai has been planned by Indian state-run telecom company Mahanagar Telephone Nigam Ltd on its global system for mobile communications technology.
Addition of 200 telecom towers in New Delhi and 291 towers in Mumbai has also been planned by the company during the current fiscal year that ends March 31. Equipment to set up 500,000 additional broadband lines in New Delhi and Mumbai would be installed by MTNL.
According to junior Telecommunications Minister, Gurudas Kamat, out of the total two million, one million GSM capacities has already been commissioned in Delhi and Mumbai each, and remaining is under installation. Currently, MTNL has 784,000 broadband users in the two cities.
Bharti Airtel added 2.85m GSM users; Vodafone adds 2.28 million users
www.WirelessFederation.com/news: 2.85 million GSM subscribers have been added by India’s largest telecom services company by users, Bharti Airtel while 2.74 million users have been added by Vodafone Essar, the country’s third-largest mobile phone operator by subscribers in the month of January.
About 2.28 million subscribers have been added by Idea Cellular while Aircel added 2.01 million users during the month.
Among the state-run telecom companies, 2.23 million users have been added by Bharat Sanchar Nigam Ltd. in January while Mahanagar Telephone Nigam Ltd. added 45,067 users.
BSNL puts Zain purchase on hold.
www.WirelessFederation.com/news: Bharat Sanchar Nigam Ltd (BSNL) has put its plan to be a part of the consortium looking to buy a stake in Kuwait’s Mobile Telecommunications Co, on hold. The decision was taken as the information sorted by Vavasi Group has still not been received.
Vavasi Group which is not yet listed in India had tied up with Al-Bukhary group of Malaysia to buy a 46% stake in Zain. It was trying to add state-owned Indian telecommunications firm like BSNL and Mahanagar Telephone Nigam Ltd., to the consortium. By joining the consortium, BSNL and MTNL seek to widen its horizon beyond India.
Earlier, Gurudas Kamat, India’s junior telecom minister had said that both MTNL and BSNL are not very serious about joining the consortium.
The state owned telecom companies are facing stiff competition from private sector companies. According to BSNL Chairman Kuldeep Goyal, BSNL’s revenue is going to be severely hit by the latest tariff war in the current financial year.
The company is planning to add 20 million working lines to its present 50 million on the global system for mobile communication platform, over the next six months. Besides, it is also planning to spend INR140 billion in the current fiscal year to expand its mobile services.
India says leading mobile carriers hold 3G trials
NEW DELHI
(Reuters) -
India
has allowed major carriers, including Bharti Airtel Ltd., to conduct indoor trials of mobile services based on the 3G spectrum so they can test equipment, the telecoms ministry said on Wednesday.
Booming growth in the world’s fastest-growing wireless services market has led to a paucity of spectrum in large cities. Carriers have requested the government to allot fresh frequencies in the 3G and other bands to ease congestion.
Carriers that were given 3G spectrum for tests include state-run telecoms firms Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd., and private firms Bharti Airtel, 30.8 percent owned by Singapore Telecommunications Ltd., and Hutchison Essar Ltd., an industry source told Reuters.
India
plans to allot spectrum in the 3G band later this year, and has appointed a panel to look into pricing and allocation.
Shares in
Bharti
,
India
‘s top telecoms stock with a market value of $17.4 billion, closed 4.7 percent higher at 443.05 rupees, an all-time high.
Source- http://in.today.reuters.com
Technorati : 3G, BSNL, Bharti Airtel, Hutchison, India, MTNL, Singapore
Ice Rocket : 3G, BSNL, Bharti Airtel, Hutchison, India, MTNL, Singapore
