War triggers between GSM and CDMA operators in India over 11-digit No.
www.WirelessFederation.com/news: DOT’s decision to implement 11-digit numbers by January next year has triggered a war between the GSM and CDMA mobile operators putting consumer interests at stake. As per the plan, all the mobile operators will add extra 9 to all mobile numbers in the country by January 1, 2010.
AUSPI representing the interests of CDMA operators like Tatas, Reliance and Sistema, is in favour of moving to an 11-digit numbering plan while GSM operators are vehemently opposing the move. COAI which is representing GSM operators made a detailed presentation to the government claiming this move to be harmful for the industry and consumers.
According to COAI, there is hardly any growth in the number of fixed line subscribers which currently rest at 40 million. Hence, there is no need to reserve levels 2, 3, 4,5,6,7, and 8 for fixed line. It is estimated that with the three series, 7, 8 and 9, a billion plus subscribers can be served without any need for fresh allocation of levels.
On the other hand, AUSPI feels that new opportunities can come up with the implementation of an 11-digit numbering plan and will help the subscribers to migrate from the incumbent operators networks. Besides, it has also claimed that 11-digit numbers are mobile number portability compatible.
With so many contradictory views, uncertainty has been raised on the implementation of the plan by Department of Telecommunication.
IndiaMobile 2009: India’s largest Mobile Usage study results to be announced shortly.
Wireless Federation will shortly be announcing the availability of the results of India’s largest primary research project undertaken to study Mobile usage in India. The project is titled IndiaMobile 2009.
The survey is one of the most representative, independent enumeration of mobile phone usage in India. Close to 285,000 urban and rural Indians, covering all states and union territories574 districts, 3,175 towns and over 2,800 villages were interviewed. With at least 30 plus sample each from 323 districts and 419 towns, and 100 plus sample each from 184 districts and 155 towns, the study could actually be the World’s largest mobile (telecom) usage study carried out in a single country. The survey was carried out by a reputed local research agency under the guidance of Wireless Federation.
With the Mobile sector in India seeing close to 20% of its market capitalisation knocked off in the last few days and increased momentum in the price war in India, the results from this survey will help the sector understand its customers better in order to re-gain some of its strength back.
Airtel, Aircel, Tata Indicom, Tata DoCoMo, Etisalat, MTS India, Loop Mobile, Reliance Mobile, Idea Cellular, Vodafone, BSNL, MTNL, Telenor, Virgin can all now compare data from each and every circle and each live operator to understand demographic spread, handset usage and analysis as well as detailed psychographic analysis of the Indian mobile consumer.
The Indian mobile industry will be able to plan better based on the results from this study, which is now planned to occur each year. A large majority of mobile operators have expressed keen interest in the results of the study.
By using the IndiaMobile 2009 results, Mobile Operators will be able to further mould the study to better suit their needs from 2010 onwards.
This study will be the de-facto benchmark for Mobile Usage in India, given the thorough nature of the research, the sheer size of the sample and the level of interest from the Mobile Eco-System in utilising the results from this study.
For More information, please write to Audrey [at] WirelessFederation.com for your free copy of the headline results.
Price war & the Indian regulator cause mobile stocks to tumble
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.
Reliance plans IPO for Infrastructure arm. Hopes to raise $1Bn for 10% via IPO.
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.
ZTE to market $20 mobiles in India
ZTE has entered the Indian retail market as a standalone player.
It is hoping to hike the contribution of the Indian market to its global handset sales would go up to 20 per cent from the existing 16 per cent.
ZTE India Chairman & Managing Director D K Ghosh said in a statement that India is a key focus market for ZTE.
The company has launched a range of low-cost GSM handsets — S315, A261, R220, R230 and R230BT at price points ranging from USD 20 to USD 80. ZTE has sold over 20 million handsets in India through operator partnerships . It is targeting a network of 100,000 retail outlets in India by this year-end.
The company has appointed “Overseas Mobiles” as its national distributor. Overseas Mobiles will be appointing 80 regional distributors across India and will manage relationships with distributors and corporate customers on behalf of ZTE.
With global sales of over 100 million handsets last year, ZTE is currently the sixth-largest handset manufacturer in the world. It has established partnerships with mobile operators like Vodafone, Hutchison Whampoa, Telefonica globally and BSNL, Reliance, Tata, Vodafone, Spice Telecom and Aircel in India.
India’s GSM subscriber base reaches 335.5 million
www.WirelessFederation.com/news: The GSM subscribers of India have grown by 9.31 million in August, taking its total base to 335.5 million, as per the data released.
According to the Cellular Operators Association of India (COAI), the apex body of GSM operators, Bharti Airtel remained the front runner with 2.8 million additions, taking its number of subscribers to 107.9 million.
Followed to this is Vodafone with the additon of 2.19 million, taking its subscriber tally to 80.8 million.
The monthly data does not include GSM subscribers of Reliance Communications and Tata Teleservices, which report figures separately, COAI said.
Bharat Sanchar Nigam Ltd (BSNL) has gained 1.3 million subscribers, Idea Cellular added 1.5 million subscribers in August.
A mobile revolution in rural India
The total mobile penetration may have reached 14 per cent of India’s population. However, industry experts assert 13 per cent of this is in urban centres and only one per cent in villages.
The opportunity is not lost on market players like Bharat Sanchar Nigam Limited and Reliance Communications who have been present in this segment for a while.
Now Hutchison Telecom, Bharti Airtel and Tata Teleservices too have descended on the turf with big network expansion plans and innovative marketing strategies specially tailored for these regions.
“The B and C category census towns are raking in good business for us. Currently, almost 35 per cent of our business comes from these circles. However, the potential here is immense as only a per cent of the total population actually use mobile phones,” says a spokesperson for Tata Teleservices.
TTS, operating in 20 of the existing 23 mobile telephony circles in India, is using a door-to-door marketing strategy, involving members of gram panchayats and trained market-feelers to make residents of villages and small towns aware of the usefulness of mobile telephony and how the system of pre-paid refills work.
According to the company spokesperson, value-for-money handsets priced between Rs 1,000 and Rs 1,400 with a plethora of tariff plans to choose from is what is driving subscription growth in these regions.
Sanjay Kapoor, joint president, mobility, Bharti Airtel, agrees with the trend and says his company had enjoyed a growth of 166 per cent in June of 2005-06 in circle C towns, as compared to a growth of 65 per cent in metros.
“We are concentrating on improving network connectivity in the rural areas along with existing circles we and are spending $1.5 billion this year for that purpose only,” says Kapoor. Airtel is appointing distributors at the tehsil level and using existing channels of fast moving consumer goods in these areas to push their products.
Reliance Communications will also make investments to the tune of Rs 1,500 crore (Rs 15 billion) till March 2007 to enhance its network in the eight global system for mobile communication circles it operates in.
The company plans to extend its GSM network to 4,000 towns in the existing circles of Bihar, Orissa, West Bengal, Himachal Pradesh, Assam, north east, Madhya Pradesh and Kolkata. Currently, its GSM network covers 340 towns in these circles.
A company spokesperson says the company has added over 200,000 subscribers in its eight Category C circles in the previous quarter alone. Reliance is importing handsets in bulk for use in these markets and is trying to leverage its low tariff plans to increase subscriber vase.
Handset manufacturers too are gearing up. Devinder Kishore, director of marketing at Nokia India, notes that handsets priced between Rs 10,000 and Rs 15,000 are reasonably popular in these regions.
“While the handset market in India is growing at an approximate rate of 75 per cent annually, about 30 per cent of the demand comes from metros now. The rural market, therefore is growing rapidly in terms of sales and it has a tremendous potential in future,” he says.
Nokia is using channels with territorial reach like Doordarshan and All India Radio to reach the interiors. The company has also incorporated nine Indian languages on certain handsets to promote sales.
Says Dinesh Sharma, marketing and sales head of Samsung CDMA, “Sales in category C towns are growing at a rapid pace. Currently the fasted growing circles for us are the categories A and B. Sales in metros have been slower, although absolute numbers are growing as almost a per cent of urban populace buy a phone every month”.
Sharma feels that for rural areas, incorporating local languages in handsets will become a focus area in future, as will be voice short messaging service, the latter dependent on service providers.
“Rural India is keen on high feature phones but not as much as urban India. A customer in the rural area is happy to have features, which are available in the urban markets. They are happy to have colour handsets, other accessories like phone book wherein he can store details of contacts, games, alarm tones and so on,” explains H S Bhatia, National Product Group Head- GSM Division, LG Electronics India.
Industry experts feel an estimated investment of around $6.5 billion would be needed to increase India’s rural tele-density to four per cent from the current one. With the current investments, the expectation may not be far off the mark.
Source- http://inhome.rediff.com
Technorati : BSNL, Bharti Airtel, Hutchison Telecom, India, Reliance Communication
Ice Rocket : BSNL, Bharti Airtel, Hutchison Telecom, India, Reliance Communication
