DoT likely to fine faulty telcos, instead of canceling license (India)
The Department of Telecommunications (DoT) is likely to impose huge penalties on telecom firms that have failed to meet their launch obligations rather than cancel their licenses.
According to telecom minister Kapil Sibal, the DoT would consider the recommendations of telecom regulator TRAI. They will consider it. However the action was not specified.
The Telecom Regulatory Authority of India has also suggested a fine or a levy on telcos for failure to meet rollout obligations as an option to cancelling their licenses.
Meanwhile, speculations have spread about some of the operators benefiting from the license being asked to be cancelled by TRAI. The focus now is on who would benefit if the 150 MHZ worth spectrum is returned to the government.
The biggies of the industry seem to be gaining a lot on the BSE as Bharti gaining 4%, Idea Cellular rising 4% and Tata Communications gaining 3%.
China Telecom in talks with Tata, RCOM and Bharti over direct terrestrial Fibre-optic cable
If reports are to be believed, China Telecom is in talks with three Indian telecom carriers over a planned direct terrestrial fibre-optic cable connection between the two countries.
According to Deng Xiao Feng, chairman of the Chinese firm’s Hong Kong-based international arm, China’s largest fixed line operator is in discussions with Bharti Airtel, Reliance Communications (RCOM) and Tata Communications (formerly VSNL) over a proposed above-ground cross-border cable link.
The two super-states are currently linked by undersea cables, which are vulnerable to earthquakes; the reports added that China Telecom has already laid a landline reaching the Chinese side of their common border.
According to Deng, the company is hoping that this Sino-Indian land cable can start up as soon as possible and promote ties between the two fast-growing economies; because they know the demand is enormous.
China Telecom mulls over acquisitions abroad
China Telecom is considering opportunities for overseas acquisitions and is in discussions with three Indian telecommunications firms to set up a cable connection between China and India.
According to reports, China Telecom is in anticipation of approval from the Indian government to establish a representative office in New Delhi.
The company is currently cooperating with Bharti Airtel, Reliance Communications, and Tata Communications to set up a cable connection over land between the countries. The company will further closely examine opportunities to expand through acquisition in Asia Pacific.
South African telco Neotel causes loss to Tata comm
www.WirelessFederation.com/news: Tata Communications, a global bandwidth carrier has reported a net loss of 5.98 billion rupees for the year, held down by a 4.64 billion rupee loss from its 49% holding in South African operator Neotel, and a 4.1 billion rupee depreciation hit.
Stake in South African firm Neotel has contributed maximum to the loss. The EBITDA of te telco has been reported as 10.12 billion rupees (€176 million) in the year to March, compared with a 13.66 billion rupees loss the previous year.
However, there has been a rise of 10.7% in sales which went up to 110.26 billion rupees and India-only EBITDA increased 10.9% to 1.97 billion rupees, which was 34% ahead of analysts forecast. According to the company, the growth was driven by stable pricing and rising volumes in the data segment.
Indian operators question CAG’s power to audit them
www.WirelessFederation.com/news: Indian government move to direct the Comptroller and Auditor General of India (CAG) to audit telecom operators’ books has been questioned by country’s leading mobile operators, including Bharti Airtel, Vodafone Essar, BSNL and Tatas.
The five major operators, Bharti Airtel, Reliance Communications, Tata Teleservices, Vodafone Essar and state-owned BSNL of India has been asked by the communications ministry to provide all documents relating to their accounting details for three years beginning 2006-07 to CAG.
They have been given a time period of 15 days and have been asked to provide all the details including cost break-up and details of depreciation charged on fixed assets and other income.
Telecom operators like Bharti Airtel and Vodafone Essar have pointed out that powers of CAG do not extend to private operators. Earlier, Tata Communications too questioned the logic behind the government’s move to ask CAG to undertake another audit.
Tata Communications net profit triples in Q3 (India)
www.WirelessFederation.com/news: Tax write-back and lower costs helped in the tripling of Tata Communications net profit in the third-quarter. INR2.81 billion has been gained by tax write backs compared with a tax expense of INR394.5 million a year earlier.
An increase from INR821.9 million to INR2.82 billion has been recorded in the net profit for the October-December period. While the Revenue fell 23% to INR7.70 billion from INR9.99 billion. Total costs slipped 12% to INR7.66 billion from INR8.74 billion.
VSNL to be renamed Tata Telecommunications (India)
The Board of VSNL has approved a proposal to change the name of the company to Tata Communications Limited. The new name and identity will, it is hoped, help the company ‘to leverage the brand equity that has come to be associated with the Tata Group’. According to Mr Srinath, Managing Director and CEO of VSNL: ‘The change in the company’s name is a major step in our commitment to customers, partners and stakeholders. Tata Communications reiterates a focus on the global communications business where we are a major player; at the same time, it reflects our strong heritage and leadership position in India.’
Wireless Mobile Telecom Wireless News
