Govt to send show-cause notice to Idea Cellular (India)
The government has stated that it will be be sending show-cause notice to Idea Cellular asking the telecom operator why its licence of five circles should not be cancelled.
According to Department of Telecom (DoT) Secretary R Chandrashekhar, they will send Idea showcause notice in five circles for overlapping licences.
Idea Cellular in 2008 picked up 41.09% stake in Spice, resulting in an overlapping situation in which both the companies held licences in six circles.
The company had stated that it has not breached any condition of the licence agreement. It stated that it had written 20 letters to the DoT over the past 30 months but had failed to get any response from the government.
Nokia, Samsung see low-end cellphone threat from Indian OEMs
A recent survey has revealed that Nokia enjoys dominant market share in India, but a majority of low income Indian mobile users would prefer their next phone to be made in India. Indian brands – such as Lava, Micromax, and Spice – will benefit from this preference.
As per the survey, international brands that do not enjoy Nokia’s brand equity- vendors such as Samsung, LG, and Sony Ericsson may have difficulties in the low-end handset market.
The Indian brands have only been on the market for a few years, and have gained a modest market share. However, 63% of the respondents who primarily live in rural villages and secondary cities with average monthly household income of about $130 say they would prefer their next phone to be manufactured in India citing the reasons as:
* Lower cost and greater value for money
* Greater ease of repair and availability of parts.
According to sources, national pride is a factor, but when people spend almost 4% of their annual income on a mobile phone, they are going to make purchase decisions based on what will get them the most for their money.
Researcher projects that the bulk of new mobile users in India over the next five years will be the low income consumers, particularly in rural areas. Affordable mobile phones with an appealing set of features will be the key to success in this market.
Extensive 2G Spectrum allotment to old players (India)
CAG has submitted its 2G spectrum report to the Government. As per its report, nine existing operators were allotted spectrum beyond the upper limit as specified in the Unified Access Servicing License. The CAG report on 2G spectrum has estimated that the exchequer lost nearly US$ 8140.87 million.
These operators are Aircel, Bharti Airtel, BPL (Mumbai), Bharat Sanchar Nigam Ltd (BSNL), Idea Cellular, MTNL (Delhi & Mumbai), Reliance Communications, Spice and Vodafone.
According to CAG report, the DoT, on one hand was not processing pending applications for license due to non-availability of spectrum and on the other hand it was giving spectrum to existing operators beyond the contracted limit without any upfront charges being imposed or without determination of market price of spectrum.
Based on the estimates of the Comptroller and Auditor General of India, about a fifth of the presumed loss to the exchequer as a result of the 2G scam was on account of this sold factor.
Mobile handsets shipment boosts by 6.3% (India)
As per the new market study, shipments of mobile handsets in India raise by 6.3% quarter-on-quarter to touch an all-time high of 38.63 million units in a single quarter.
According to market intelligence and advisory firm, IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2010, September 2010 release, Dual- and Triple-SIM card slot phones have grown to achieve as much as 38.5% of the total Indian Mobile Handset shipments, from less than 1% in 2Q 2009 (April-June 2009 quarter).
According to Naveen Mishra, Lead Telecoms Analyst, IDC India, the Indian mobile market saw a unique trend of multi SIM phones capturing 38.5% of the total market. This could be attributed to several new service providers responding with highly competitive tariff plans to a price sensitive mobile telephony user market.
This flood of new brands caused a gush in overall market and saw emerging vendors corner as much as 33.2% of total India mobile handset shipments in 2Q 2010. Nokia retained its number one spot with a market share of 36.3% in terms of units shipped, Samsung was set at 2nd position, while G’Five, a Chinese vendor emerged at the number 3.
According to Anirban Banerjee, Associate Vice President-Research, IDC India, in the recent quarters several new players successfully launched their own devices at considerably lower Average Selling Values (ASVs) in the price sensitive Indian market.Such handsets found complete acceptance amongst first time buyers, especially from small towns and villages. During the last 6 months (January-June 2010) the top five mobile handset vendors in India were Nokia, Samsung, G’Five, Micromax and Spice.
38.63 million Mobile phones shipped to India in Q2 with 35 new handset companies
According to a report by IDC India, fragmentation continues in India’s crowded mobile handsets market: new handset vendors now number 35, and accounted for 33.2% of shipments to the Indian market in the second quarter of 2010.
Nokia retained the number one mark in India, with a market-share of 36.3% of units shipped. Samsung was at number two, and unexpectedly, Chinese brand G’Five stood at number three player in India.
At the end of 2009, IDC revealed there were 28 new handset vendors in the market, accounting for 12.3% of shipments to India. In 2009, Nokia had accounted for 54.1% of units sold in India.
For the first half of 2010, apart from Nokia, Samsung and G’Five, Micromax, which recently raised money from Sequoia Capital India, is at number four, and BK Modi’s Spice at number five.
Anirban Banerjee, AVP (Research) at IDC India attributes this to significantly lower Average Selling Values (ASVs) in the Indian market, particularly attracting first time buyers from small towns and villages.
In 2010, expect bloodshed as margins drop, particularly at the lower end of the market, and prices are pushed behind by launch of more and more Android driven handsets at the higher level from Samsung, HTC and LG.
Service providers penalized over unsolicited commercial calls
Penalties have been imposed by TRAI on various service providers, including state-owned Mahanagar Telephone Nigam Ltd (MTNL) ,Vodafone, Reliance, Bharti, Tata, Spice, BPL, and Aircel for not heeding with regulation on unsolicited commercial calls.
The service providers have been penalized for non-compliance under the Telecom Unsolicited Commercial Communications Regulation, 2007.
The TRAI has the authorities to make a complaint in court for taking knowledge of any offence punishable under the TRAI Act, 1997 or the rules and regulations made there under. It can make recommendations to the licensor for revocation of the licence of a service provider for non-compliance of the terms and conditions of the licence.
Sharp plans to unveil 3D camera for mobile phones
www.WirelessFederation.com/news: A 3D camera module has been created by Sharp for use in mobile phones and it can be used in the Nintendo 3DS Photo: Engadget . Sharp has just announced a tiny 720p 3D camera for its mobile devices adding spice to the already complex world of mobile phone cameras.
A compact point and shoot or a smartphone are the places where the 3D Camera Module has been made to fit inside. Crammed with full of the latest technology, the camera has been enabled to capture both moving and still high resolution 3D images.
This little invention uses things like color synchronizing processing, as well as ‘fast readout’ technology, to produce its images.
Complicated high-density mounting technology has been used by Sharp in order to pack so many features in to this tiny device and it has been insisted that the cameras will go into mass production by the end of the year.
Sharp is also in charge of producing the 3D screens found in the upcoming Nintendo 3DS and it very much likely that one can find these cameras in the device.
Production of a whole range of 3D devices throughout the year is also planned by Sharp, with input devices and screens at the forefront of its technology production.
Idea’ six overlapping licenses to be acquired by Indian govt
www.WirelessFederation.com/news: Idea Cellular is going to be asked by the communication ministry of India to all six overlapping telecom licenses it got following its acquisition of Spice Communications in 2008. Idea Cellular is currently in the process of hiving off these six overlapping licenses it inherited from Spice Communications into two entities.
The operator intends to sell them later but the move of the government can act as a major blow. Airwaves or spectrums that have been allotted to these licenses will also have to be surrendered by Idea. Even the entry fee for these licenses will not be refunded implying that the telco will have to forgo the Rs 800 crore it paid as entry fee.
Last year, Idea planned to demerge licenses for Punjab and Karnataka into a company named Vitesse, while Delhi, Haryana, Maharashtra and Andhra Pradesh licenses was decided to be spun off into an entity called Claridges Communications. After acquiring Spice Communications in October 2008, Idea’s licenses for six regions namely Punjab, Karnataka, Andhra Pradesh, Delhi, Haryana and Maharashtra were held by Spice.
Spice’s licenses were not utilized by Idea cellular in the four regions – Andhra Pradesh, Delhi, Haryana and Maharashtra — since the Aditya Birla-promoted telco already offered mobile phone services in the regions.
Airtel launches mobile radio service in India
www.WirelessFederation.com/news: A mobile radio streaming service has been launched by Bharti Airtel on its network in co-operation with FM radio station Radio Mirchi. Through this service, users will be allowed to listen to Mirchi radio stations from anywhere in India via their phones.
Payment of $0.23 per week will have to be made by the customers for 100 minutes of listening time each week. The service will be initially launched in Mumbai and Delhi followed by a national launch shortly.
According to Airtel marketing director Shireesh Joshi, Airtel is committed to continue delivering innovative offerings that enhance its customer’s experience on their mobile phones. Local vendor Spice Digital has provided mobile streaming technology to Mirchi Mobile. Sprint Digital is mainly known for its music-on-demand portfolio.
Tata launches GSM service in Himachal Pradesh (India)
www.WirelessFederation.com/news: GSM service of Indian telco Tata Teleservices has been launched by the operator in the Indian state of Himachal Pradesh under the Tata Docomo brand. Currently, Airtel, BSNL, Idea-Spice, Aircel, Vodafone and S. Tel are the operators providing network facility to the people of Himachal Pradesh.
According to Rajeev Narayan, the company’s vice-president, corporate affairs, the company is offering per second tariff structure for every service.
286 towns and 4,342 villages in the state have Tata Teleservices connection.
