www.WirelessFederation.com/news: Pressure on telephone call charges has been expected by Reliance Communications Ltd as new operators continue to rush to the world’s fastest growing mobile phone market by number of users.

The Indian telecom market is undergoing an intense price war and with the entry of new and competent telecom operators,  the already instigated ambience has become all the more aggressive and to counter the situation, aggressive offers are expected to be launched to attract subscribers and existing players lowering tariffs to retain users. The local call tariffs have gone as low as INR0.10 a minute for certain plans because of the tariff war.

According to Mahesh Prasad, president of wireless services at Reliance Communication, by and large, the tariff pressure that the country has seen in the second and third quarters has come down a lot but, there will be continued pressure on tariffs, as some of the greenfield operators have not yet made the entry.

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www.WirelessFederation.com/news: A mobile VAS application called ‘Socially’ has been launched by Reliance Communications giving access to social networks including Facebook, Twitter and LinkedIn through a single client. The most interesting part of this app is that callers recent status updates are shown after receiving the call.

Users can download this application from RWorld and subscribe to the service at Rs. 10 for 30 days. They will not have to pay any additional browsing charges.

Socially is 3G ready, and ready to be extended to 3G networks in India. Earlier, Tata DoCoMo launched its BuddyNet users at a price point of Rs. 10 for 30 days with no additional browsing charges.

Mumbai and Singapore based Antarix Networks founded by former ITFinity exec Nagesh Rao developed Socially.

www.WirelessFederation.com/news: Indian regulator’s plans to move the country to an eleven digit phone number system has been opposed by the majority of India’s mobile network operators. Pending shortage of available numbers within the current mobile prefix has made the changes to the numbering system a requirement and has leaded the TRAI to hold a consultation.

Mobile operators have countered this suggestion of TRAI by suggestion that the numbering blocks currently reserved for landline can be made available to mobile subscribers. The GSM operators have been represented by Cellular Operators Association of India which feels that keeping six billion numbers reserved for fixed line subscribers is unfair. This is a clear wastage of the precious numbering resource as the actual number is even below 40 million.

According to the association, considering the relative size of the subscriber bases in the mobile and fixed sectors and the exponential growth of mobile subscriptions, it is worthwhile to free up the fixed line numbering resources and re-allocate some levels to mobile services

The only operators which had not objected to the idea of longer phone numbers are Reliance Communications and the Tata Teleservices. In their opinion, long term trend towards 11-digit phone numbers in inevitable regardless of how many dialing prefixes are made available.

www.WirelessFederation.com/news: A stock market floatation of tower holding subsidiaries, the wholly owned Bharti Infratel and its smaller joint-venture with Vodafone and Idea Cellular, Indus Towers, has been mulled by India’s Bharti Airtel.

Around 100,000 towers are owned by Bharti Infratel while Indus has around 70,000 towers. 42% in Indus Towers is owned by Bharti Airtel and Vodafone each while remaining 16% is owned by Idea Cellular. Looking at the financial conditions of Infratel or Indus, Bharti may issue initial public offering in the next fiscal.

In 2007, Reliance Communications too sold a 5 percent stake in it towers business with an equity valuation of US$6.75 billion. A merged GSM tower business with 70,000 towers of RTIl could be worth around US$33 billion. However, it has to be kept in mind that RTIL is a whole operations business, whereas the Indus Towers is solely based on the passive infrastructure and does not include any of the RAN or antenna facilities.

www.WirelessFederation.com/news: The tariff war engulfing India’s telecommunication industry and extreme competition in the telecom market is likely to hit the profits of the telecom operators in the October-December quarter.  A decline of 6% to 13% is expected in Average revenue per user, or ARPU.

Only Bharti Airtel Ltd is expected to post an ARPU of more than INR200 in the fiscal third quarter. The price war was started by Tata DoCoMo by introducing per-second billing plans in June. Reliance Communications Ltd. joined the league with a plan in October by offering INR0.5 per minute, and subsequently all operators launched per-second schemes.

Aggressive billing plans launched by new players entering the market also forced established companies to slash call charges to acquire and retain customers.

The Indian mobile sector, a darling of the Indian stock markets has just fallen from grace. Fears that a renewed tariff war may bring its dream run of profit growth to an end and could force smaller players to sell out or shut shop has caused the leader, Bharti Airtel to lose 17% in two trading sessions. Reliance Communications has fallen 11% and Idea Cellular fell 8%.

Mobile tariffs in India are already the lowest in the world. On Monday, Reliance (RCOM) announced the slashing of tariffs across the board for local, roaming and long-distance calls to 50 paise, i.e under a cent per minute.

In addition to this, the Indian Telecom regulator suggested on Monday that telecom operators shift to per-second pricing as opposed to per-minute. After the Indian stock market got jittery with this announcement and telecom stocks started tumbling, the regulator (TRAI) was seen as diluting their position on this statement, stating that proposal on per-second billing was at an initial stage and too much was being read into the issue.

TRAI chairman J.S. Sarma also said that mobile operators were free to oppose the scheme and the regulator would consider their opinion during the consultation process.

Sunil Mittal, the chief of Bharti Airtel said tariffs were best left to market forces.

India’s second largest Mobile Operator, Reliance Communication plans to seek regulatory approval for selling 10% of Reliance Infratel (its infrastructure arm) for close to $1Bn.

Reliance Infratel sold a 5 percent stake to  global investors for about $290 million in 2007. It  had revenue of more than $1 Bn and a profit of $300 Mn in the year ended March 31, according to  Billionaire Chairman Anil Ambani.

The share sale will  help fund an expansion of the nationwide network of 48,000 towers at Reliance Infratel as demand for leasing networks is likely to double in the next couple of years according to Ambani.

www.WirelessFederation.com/news: The Mongolian mobile operator have reportedly reached a deal to restore its interconnection between networks after a dispute over G-Mobile’s introduction of zero tariff rates. It was on 19 August that Mongolian-Japanese joint venture MobiCom, and Mongolian-South Korean cellcos Skytel and BSB Telecom (Unitel) blocked all incoming calls to their networks from the 200,000 CDMA subscribers of local mobile operator G-Mobile. ‘Foreign invested companies MobiCom, Skytel and Unitel have made a joint step against locally-owned youngest operator G-Mobile by cutting off G-Mobile subscribers’ access to their own, which we regard as a rude attempt that is harsh to independence and security of Mongolian national communication,’ stated G-Mobile.
The step was taken in reaction to G-Mobile’s introduction of zero tariff package, enabling subscribers to dial other G-Mobile wireless or fixed line subscribers and the network of Mongolia Telecom without charge. The rates were not applicable to MobiCom, Skytel and Unitel, which all reportedly refused to be part of the package saying that it will cause devaluation to the connection rates between telcos.

www.WirelessFederation.com/news: Mongolian operator MobiCom has launched the first high-speed mobile broadband network in the country, powered by HSPA technology from Ericsson. The launch enables MobiCom to introduce mobile broadband services to its subscribers across Mongolia, starting in the capital Ulaanbaatar where about 40 percent of the country’s 3 million inhabitants live.
Ericsson’s leading HSPA technology provides fast data-transmission speeds, boosts network capacity and lowers response times for interactive services. The new HSPA-enabled network will allow MobiCom to offer a range of new services, such as high-speed mobile internet access, video telephony, multimedia messaging (MMS) and other innovative multimedia services related to e-health and e-commerce.
Under the contract, Ericsson is the sole supplier of the WCDMA/HSPA radio access network. It is also responsible for network deployment and a wide range of professional services, including systems integration of MobiCom’s multi-vendor network, support and competence development.
Bolor Dorjnamjil, CEO of MobiCom Corporataion LLC, says: “This launch reflects MobiCom’s continuous commitment to offering its subscribers the latest services and applications. MobiCom was the first operator to introduce mobile services in Mongolia and is now launching the country’s first mobile broadband services. Ericsson’s experience in 2G-3G network deployments and extensive support capacity make it the ideal partner for this project.”
Jan Campbell, Head of Easter Europe and Central Asia, at Ericsson, says: “It is a great honor to be MobiCom’s partner for this milestone launch of the first 3G network in the country. We are confident that mobile broadband services will further facilitate the development of world-class communications in Mongolia for the benefit of its people.”
Ericsson’s cooperation with MobiCom started in 2004 and includes contracts for GSM radio access and transmission.

About Ericsson

Ericsson is the world’s leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 250 million subscribers. The company’s portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of ‘communication for all’ through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27 billion (SEK 209 billion) in 2008. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic Exchange Stockholm and NASDAQ.
For more information, visit www.ericsson.com or www.ericsson.mobi.

About MobiCom Corporation

A Mongolian-Japanese joint venture, MobiCom Corporation launched its operations in 1996, and was the first operator to introduce mobile phone services in Mongolia. MobiCom has grown from a mobile service provider to an IT solutions provider and now offers a wide range of IT products, including mobile, satellite, wireless, fixed phone and internet services. Its network covers more than 90 percent of the country and provides cellular services across Mongolia. For more information, visit: http://www.mobicom.mn

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www.WirelessFederation.com/news: Mobicom, Alcatel-Lucent and Research In Motion (RIM) have introduced BlackBerry for Mobicom subscribers in Mongolia. The incumbent is offering the BlackBerry Bold as well as service plans for BlackBerry Enterprise Server and BlackBerry Internet Service. As per the distribution agreement, RIM, Alcatel-Lucent will provide end-to-end implementation, integration, launch and support services to Mobicom .