A Raja may face criminal charges (India)

On 03.28.11, In Mobile, By Editor

India’s former telecoms minister, A Raja and some of his close aides are expected to be charged in reference to the 2008 telecoms license scandal. The charges which were being filed by the Central Bureau of Investigation (CBI) are expected to include allegations of defrauding the exchequer and entering into a criminal conspiracy in securing the telecom licenses.

According to sources, the criminal charges will not specify the loss incurred as that is still being worked out by the regulator. Figures have ranged as wide as just a few million dollars to nearly $40 billion, depending in part on the political leanings of the commentator.

Raja is a member of the ruling DMK political party in Tamil Nadu state and the timing of the politically sensitive charges coincides with the elections in the state.

As per sources, besides those arrested in the case including Raja, his personal aide R K Chandolia, former Telecom Secretary Siddartha Behura, former Managing Director of Etislat DB (earlier Swan Telecom) Shahid Usman Balwa, the name of an MP may be mentioned in the charge sheet for being a part of the company which had received kickbacks in the alleged scam.

 

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MTS crosses 10 mn customers mark, re-brands itself (India)

On 03.16.11, In Mobile, By Editor

MTS which is owned by Sistema Shyam TeleServices Limited (SSTL) has re-branded itself with a new tag “A step ahead” to celebrate the achievement of over 10 million subscriber base in the country.

According to Vsevolod Rozanov, President and Chief Executive officer SSTL, it is indeed a proud moment for the company to have crossed the 10 million customer milestone. They had started this journey about two years ago in Tamil Nadu and have crossed this milestone in less than two years.

MTS has also launched MTS Pulse, an Android based, 3.2 inch touch screen smartphone designed by Taiwanese manufacturer HTC costing US$398.57 (Rs.18,000), which the customers can get free of cost by signing a postpaid agreement with the operator.

As part of the post paid agreement, the customer will need to do is sign up for a monthly rental of US$332.14 (Rs.15,000) with a commitment for 12 months and they would get the smartphone free. Also, bundled with the scheme are 1,500 minutes free talk time, 1,500 text messages and 1,500 MB data usage every month for 12 months.

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DoT issues notice to Idea, Etisalat DB for cancelling licenses (India)

On 03.14.11, In Mobile, By Editor

The Indian government has issued notices to Aditya Birla group company Idea cellular for Punjab circle and new operator Etisalat DB for Delhi and Mumbai for cancelling their 2G licences for missing roll-out obligations respectively.

According to DoT Secretary R Chandrashekhar, a notice has been issued to Idea Cellular for Punjab circle.

Earlier, a similar notice had been issued to Etisalat DB  for cancellation of its licence in Delhi and Mumbai circles.

In Idea’s case, the notice has been issued for not meeting launched obligations and for other violations of licence conditions.

DoT  issued Letters of Intent (LoIs) to Idea Cellular for providing Unified Access Services in nine service areas– Kolkata, West Bengal, Assam, Karnataka, Orissa, North East, Jammu & Kashmir, Punjab and Tamil Nadu (including Chennai) on January 10,2008.

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Reduction in licence fee would lower levies (India)

On 03.04.11, In Mobile, By Editor

An internal report by DoT calls for rationalization of levies to be among the top priorities for the communications ministry. The department is also set to approach the finance ministry for a reduction or even an exception on the 10.3% service tax that consumers are charged on their mobile and landline bills.

According to both government and industry estimates, Indian telcos pay about 31% of their total revenues towards different forms of taxes, which is among the highest in the world, against the global average of 17%.  Any reduction in levies will be a boost for the ultra competitive 14-player telecoms market that has been fighting stagnant revenues and plunging profits over the last 18 months due to the savage price war. According to DoT officials, the first step towards lower levies will be a reduction in the licence fee, which could be implemented from January 2012.

Sector regulator TRAI in May 2010 had suggested that the licence fee be reduced gradually over the next four years to 6%. The regulator stated that the move would allow the industry to save about US$1.43 billion, while adding that Bharti Airtel would see savings to the tune of US$444.14 million, while for Vodafone, the reduced licence fee would give it a benefit of US$308.63 million.

At present, mobile phone companies share between 6-10% of their revenues with the government – the licence fee is highest at 10% for the metros and category A regions, which include lucrative states such as Tamil Nadu, Andhra Pradesh and Maharashtra among others.

TRAI’s proposal involved reduction of licence fee in metros from 10% currently to 9% in 2011-12, 8% in the year after, then 7% and finally at 6% in 2013-14.

In category ‘A’ circles, where operators are currently paid 10%, TRAI had suggested that this be reduced by 1% every year to be at 6% by 2014.

 

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HDFC Bank seeking 3G services to improve mobile banking (India)

On 02.21.11, In Mobile, By Editor

A senior HDFC Bank official has claimed that the bank is planning to increase the number of clients using its mobile banking services in Andhra Pradesh to 10% of its customer base once 3G services are fully launched in the state from below 5% at present.

The leading private lender is also set to open 34 new branches in the state before the end of this financial year, taking the total number to 137.

According to HDFC Bank Senior Vice President, Mr C S Gopinath, mobile banking is still in the budding stage. It has to go a long way. After facilities like 3G services are launched, it is expected to reach 10%. Currently, mobile banking is around 3 to 5%. The aim is to encourage customers to go for more technology based services like ATM, mobile and Internet banking.

According to Mr Gopinath, only 26% of HDFC Bank’s customers visit branches and the rest depend on ATMs, the Internet and mobiles for their banking needs. The bank has 450 to 500 ATMs in AP and up to 20% of customers use Internet banking. HDFC Bank is planning to open 34 new branches in the state by the end of this fiscal.

He informed that they have 103 branches in AP presently. They are planning to open another 34 by the end of this financial year, taking the number of branches to 137. In Karnataka, they have close to 100 branches and in Kerala — 150. In Tamil Nadu, the bank has 135 branches.

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TRAI says 17 lakh users opt for MNP (India)

On 02.09.11, In Mobile, By Editor

Indian Telecom Regulator, Telecom Regulatory Authority of India (TRAI) has reported that after the national launch of the Mobile Number Portability (MNP) service, more than 17 lakh mobile subscribers have opted for this facility that allows users to change their service provider while retaining the number.

According to TRAI, the MNP service was introduced on a pilot basis in Haryana on November 25, 2010 and was later rolled out pan-India from January 20 this year. Of the total 17.11 lakh requests received, about 2.29 lakh were from Haryana circle where MNP was first implemented.

In other circles, Gujarat saw the highest number of switching requests at 1.67 lakh, followed by Rajasthan (1.44 lakh) in Zone-I (northern and western India). In number portability Zone-II (southern and eastern region), maximum number of requests were received in Karnataka (1.16 lakh) and Tamil Nadu (1.14 lakh) circles.

TRAI added that it is constantly monitoring the implementation of the service. It was noted that certain requests were rejected by the  telecom operators because subscribers had quoted incorrect Unique Porting Code (a unique number given to a subscriber who wanted to change his operator) in the porting form. The rejection was also on account of non-payment of outstanding bills and non-completion of 90 days from the date of activation of mobile number.

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Ericsson win contract for 3G launch in six circles (India)

On 11.16.10, In Mobile, By Editor

Ericsson, a telecom equipment maker has won a contract for launching 3G network infrastructure across six circles.

According to Ericsson, Aircel has selected Ericsson for the launch of 3G/HSPA network across six out of its 13 circles, which currently provide over 100 million subscribers. Ericsson will be Aircel’s largest partner for 3G implementation.

According to Aircel COO Gurdeep Singh, the company is confident that with this partnership, Aircel will be benefited from Ericsson’s global expertise of 3G deployments, and will be able to offer customers a world-class 3G experience.

With the roll out of 3G services, Aircel customers would have the access to the services like video telephony, mobile broadband, mobile TV and faster downloads on their handsets.

As per the agreement, Ericsson will provide core, radio and transmission network equipment along with network rollout, network technology and consulting and other support services.

The six Aircel circles cover — Tamil Nadu, Bihar, Orissa, Jammu and Kashmir, North East and Assam. The framework contract will be implemented from 2010 to 2012.

The company did not disclose financial details of the contract.

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For buying 3G equipment Vodafone will invest 500 million dollars

On 10.22.10, In Mobile, By Editor

Marten Peters, the chief executive officer of Vodafone Essar stated that the company for procuring electronic equipment for its third generation service will spend in the tune of four hundred to five hundred million dollars before the launch of the same in the first quarter of 2011.

The company will arrange for the funds by taking bank loans and offering some new shares to its existing shareholders.

Vodafone Essar the third biggest telecom provider of the nation in terms of subscription had spent in the tune of eleven thousand six hundred and eighteen crores of rupees for acquiring the 3G spectrum in the month of May. Mr. Peters added that the company paid that massive amount as there was an artificial dearth of bandwidth.

Vodafone will launch its services, dividing them into phases. The 3G services will first start from metro cities like Mumbai and Delhi and gradually it will spread over all circles of Maharashtra, Kolkata, Chennai, Tamil Nadu, Gujarat, Uttar Pradesh, Haryana and West Bengal. These facts were given by Mr. Sanjoy Mukherjee the director of business operation of Vodafone Essar.
Marten Peters added saying that Vodafone is negotiating with other top quality and long term operators like the Idea Cellular and Bharti Airtel to distribute 3G services where Vodafone does not have 3G airwaves.

The whole idea of taking this move is to provide the customers the experience of 3G services all across the country regardless of the circle owned by Vodafone or any other operator as stated by the Vodafone director of business operations, Mr. Sunil Sood.

Sanjoy Mukherjee further stated that the 3G service will have reasonable pricing and will vary from location to location and on its usage. He cited example stating in cities video calls will be less expensive from the video call s of a remote village.

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Vodafone Essar selects Ericsson and Nokia Siemens Networks for 3G roll-out (India)

On 10.13.10, In Mobile, By Editor

Vodafone Essar, India has selected Nokia Siemens Networks and Ericsson to roll-out ­3G network. The financial details are not yet disclosed.

Ericsson will provide equipment to cover India’s largest metropolitan cities; Mumbai, Delhi and Kolkata, while Nokia Siemens Networks will supply, employ and manage its 3G network in six circles – Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh (East), rest of West Bengal and Haryana – where it secured 3G spectrum.

Ericsson will provide the RAN system, network rollout services, tuning, spare parts and training services, along with the 3G common core platform and will start the transmission in the coming months.

Nokia Siemens Networks will provide services like network planning and project management to enable 3G network implementation. Nokia Siemens Networks will also operate the 3G network for three years under a managed services contract.

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SC issues notice to A Raja on 2G spectrum scam

On 09.14.10, In Mobile, By Editor

The Supreme Court asked the Centre and Union Telecom Minister A. Raja for a response on a plea advising the court to monitor CBI search into allegations that mobile telephony licenses issued by his ministry in 2008 cost the government US$16 billion. The court’s involvement will put further pressure on the minister, belonging to Tamil Nadu’s Dravida Munnetra Kazhagam, whose actions are already being checked out by the country’s chief auditor and the Central Vigilance Commission.

A bench, including Justices G S Singhvi and A K Ganguly, sent notices to the telecom ministry and Raja asking for replies within 10 days. The bench has also issued notice to the CBI, the Enforcement Directorate and the Income Tax department on the petition filed by the Centre for Public Interest Litigation, NGO, and others.

According to the petitioner’s lawyer Prashant Bhushan, the Centre for Public Interest Litigation has requested the court team to monitor the CBI probe. The PIL also challenges a May 2010 judgment of the Delhi High Court, which dismissed the case against Raja and the government. It’s a politically sensitive case. Court monitoring is needed to arrive at the truth. The bench sought Raja and CBI’s response on why the apex court should not monitor the probe.

The petitioners suspected that the DoT, under the minister ship of Raja, had given away 2G spectrum to 122 operators at a throwaway price of US$0.36 billion for pan-India licenses on a first-come-first-served basis in January, 2008. Raja was expected to take the auction route for allotting the 2G licenses to telecom service providers.

The CBI, in an FIR filed in November last year, blamed some DoT officials and executives of some private telecom companies of collusion in a bid to get new licenses. According to the agency, the licenses were sold without competitive bidding at a nominal rate based on prices fixed in 2001, resulting in a loss of Rs 22,000 crore to the government. During the brief preliminary hearing, the court asked why CBI’s FIR is against unknown people and slammed the central agency for not naming the people behind the alleged scam.

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