Decision on license cancellation in a month’s time (India)

On 03.25.11, In Mobile, By Editor

The Telecom Ministry has stated that it will decide in a month’s time on cancellation of licenses given by former Telecom Minister A Raja in 2008 to allegedly ineligible firms.

According to Telecom Secretary R Chandrasekhar, they have received replies from all 85 license holders who were issued showcause notices. They are legally examining them and should be able to take a decision on it in a month’s time. He categorically denied that any license has been cancelled so far.

He added that the Telecom Ministry has issued notices to firms on two issues — ineligibility to get licenses and missing roll-out obligations within the stipulated timeframe; the process to send notices would be completed within a week.

As per the DoT officials, DoT has to give 60 days to the operators to file their response to the showcause notice for cancellation of licenses. In certain cases, 60 days are over while in some, there is till some time.

The matter is being examined by various investigating agencies and also a parliamentary panel.Notices have been issued to Swan Telecom (now Etisalat DB), Datacom (now Videocon Telecom), S Tel, Uninor and others, either due to ineligibility or for missing roll out obligations.

In its reply to the Public Accounts Committee, headed by BJP leader Murli Manohar Joshi, the DoT again rejected the allegation of any notional loss due to the issuance of 122 new licences in 2008 . He stated that the premium placed on the scarce resource from the perspective of a producer need not necessarily translate into a loss when seen from the view point of the consumer and public welfare.

According to DoT, the concept of notional loss when spectrum is given at a price discovered few years earlier has to be balanced with the gains accruing to the consumers and the general improvement in public welfare in the form of faster economic growth.

The PAC had sent 40 questions to the DoT related to the 2G spectrum scam.

Suggesting that the notional loss reported by the audit report should be seen in light of the benefit that it has given to consumers and general public welfare in the form of quick economic growth, the DoT stated that the objectives of the Telecom Policy since 1999 was to increase teledensity and affordability for consumers, while maintaining a level playing field between incumbents and new players as well as revenue accrual for the government.

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Telecom ministry allows video phone calls (India)

On 01.14.11, In Mobile, By Editor

Telecom ministry has allowed mobile carriers to offer video calls on their 3G networks, on condition that they would provide interception capabilities by July 31.

The government had earlier asked operators to stop services such as video calls as security agencies were not able to intercept them.

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Kapil Sibal takes charge of Telecom Ministry (India)

On 11.16.10, In Mobile, By Editor

HRD Minister Kapil Sibal has been given the additional charge of the Telecom Ministry by Prime Minister Manmohan Singh in a development that takes the portfolio away from DMK at least for the time being.

As per Official sources, Sibal will hold the charge of the Ministry held by A Raja, who resigned facing allegations of scam in 2G spectrum allocation.

Sibal may hold charge of telecom till an anticipated ministerial reshuffle takes place after mid-January when other vacancies and changes in portfolios are to be addressed. With the ministry needing to be well represented in Parliament and issues requiring a legal understanding, Sibal, a proficient lawyer, is seen to suit the job.

By tradition, a reshuffle of the Council of Ministers is not undertaken during a Parliament session.

Sibal has also been given the additional charge of Ministries of Science and Technology and Earth Sciences, which fell vacant after incumbent Prithviraj Chavan was made Chief Minister of Maharashtra.

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CAG accuses Telecom Ministry of undervaluing 2G spectrum (India)

On 10.20.10, In Mobile, By Editor

The comptroller and auditor general (CAG) has accused the telecom ministry for undervaluing 2G spectrum, sold to new players in 2008, and held that the allotment price was not realistic.

According to the CAG’s latest report, policy failed to address the issue of price-discovery of spectrum… The August 2007 Report of TRAI brought out that entry fee as it existed in 2001 was not a realistic price for obtaining a license in the changed situation, considering the dynamism and growth of telecom sector and it needs to be reassessed through a market mechanism.

The Department of Telecom (DoT) is facing allegations of having distributed new telecom licenses and spectrum (radio waves) at casual prices, causing huge losses to the exchequer.

Nine firms were issued licenses, bundled with start-up 2G spectrum, in January 2008 at US$37.29 million for pan-India operations.

As per the CAG report, the telecom regulator TRAI observed that the value of spectrum was not correctly reflected in the extent pricing model and recommended for de-linking of spectrum from allotment. The report, however, also observed that ….TRAI did not favor any change in 2G spectrum pricing even for new entrants on the grounds that it would affect the principles for level playing field for the new operators.

According to the government auditor, the price at which the spectrum was allotted in 2008 was based on 2001 prices which was quite low and has resulted in a loss to the government exchequer. The statutory auditor also highlighted that first-come, first-serve basis was not followed in its true sense for the allotment of spectrum.

The CAG also alleged that the DoT decided on cut-off dates twice in November 2007, and later changed it in January 2008 that favored select companies.

As per the report, it was noticed that 13 applicants were even ready with demand drafts drawn on dates prior to the notification of cut-off date and some had even managed securing bank guarantees. These benefited applicants had prior information about the documents and high value demand draft; hence they were able to comply with the LOI conditions within a few hours and in as less as 41 minutes in respect of 22 service areas.

According to CAG, the Telecom Ministry ignored the concerns voiced by the Prime Minister’s Office, the Finance Ministry and the Law Ministry and went ahead with 2G spectrum allotment at a price discovered 7 years back.

the report further claimed that the availability of this spectrum has become scarce and the government has to incur huge expenditure for getting it vacated from Defence Authorities by providing alternate media to them.

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India extends BlackBerry deadline

On 10.12.10, In Mobile, By Editor

If reports are to be believed, India has given BlackBerry maker Research In Motion (RIM) an extended deadline of January 31 to provide its intelligence agencies a way of accessing all its services. Citing a home ministry note, the government had decided to extend the original October 31 deadline by 90 days.

If the deadline is extended, this is going to be the RIM’s third reprieve as it seeks to end a three-year argument with the Indian security agencies which have threatened to shut down services they provide to the users if they fail to provide access to secure, encrypted data.

As per the previous reports BlackBerry has already granted manual access to its messenger service with a promise of real-time, automated access by the start of next year. India in addition to messenger wants access to encrypted corporate e-mails.

RIM’s representatives have met home and telecom ministry officials numerous times to dispel concerns that unmonitored BlackBerry services could potentially be used by terrorists.

India extends BlackBerry deadline

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25 million chinese handsets blocked in India

On 12.02.09, In Mobile, By Editor

www.WirelessFederation.com/news: 25 million Chinese-made mobile phones were banned by Indian authorities on Tuesday due to the lack of International Mobile Equipment Identification or IMEI number.

Telecom ministry officials said that low quality Chinese phones don’t have this 15 digit number needed to trace calls after a government crackdown on the handsets. Subsequently, they have asked all the service providers to block services to 25 million cell phones as it poses security threats.

The IMEI number helps in the identification of the calls received and made on a phone. It also provides information on the manufacturer and the handset type. Generally, when the phones are first activated, they automatically register this number with service providers.

The ministry has given two week deadline to all the customers with such phones to switch to a valid handset. They can manually register their phone with their service provider and buy an IMEI for INR199 ($4).

COAI or the Cellular Operators Association of India said it was adhering to the telecom ministry orders but at the same time they wanted the deadline to be extended. However, their request has been declined and they are sticking to the present deadline.

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Mobile dressing

On 10.18.06, In Mobile, By Editor

MARKETPLACE: From jewellery for cellphones to covers for mobiles, there’s big money in accessories. 
 
Bored of your mobile phone? Want to exchange it for another? Wait, there might be another solution — simply dress it up. Or maybe you’d like to jazz it up anyway as part of your style statement. 
 
Anything from disguising it like a pendant to dressing it up in Swarovski, the market was never as huge for mobile accessories as it is now. 
 
As Indians increasingly turn their handsets into fashion statements, the accessory market is proving to be a huge opportunity for entrepreneurs. 
 
For now, much of this business is in the grey market, and experts feel a mere 5 per cent of the Rs 2,500 crore mobile accessories business is legitimate. But with monthly additions of 6 million subscribers, it can only grow — hopefully the official way. 
 
Already, Indian companies are tying up with their international counterparts to import mobile fashion accessories. 
 
These might include Finland-based Golla branded covers for Rs 200-300, mobile jewellery from a South Korean firm in the Rs 250-700 range (think rings that can be attached to the mobile phone to carry around easily), China’s Screenlife scratch-free covers (Rs 65 onwards) offers scratch fee covers for the screen of the mobile phone — and for a really good splurge, mobile pendants with embedded Swarovski crystals (even perhaps in Ganesha motifs) that could cost a staggering Rs 11,000. 
 
Among those who’re taking the lead in the segment is Delhi-based Molife Communications, which has tied up with US-based Disney Mobile accessories for attractive arm strap and hand strap mobile pouches. 
 
Molife will also offer the Golla range of covers and jewellery for mobiles. We will offer branded accessories and target brand conscious consumers in the metros and in major cities,??? Ashoek Kumar Gupta, director, Molife, says. 
 
Molife is planning four stores, apart from the one in Delhi, and also proposes to place its products in handset outlets and fashion and gift shops. 
 
In all, these products could be available in as many as 10,000 shops in the next six months. We are looking at increasing the availability across the country in the first phase,??? Gupta adds. 
 
Despite a high (35 per cent) duty on some products, the company is hoping for a turnover of $2-3 million in the first year, and is also working on tie-ups for bundling offers with handset manufactures. 
 
The Indian Cellular Association (ICA)is now taking up the issue of high duties with the telecom ministry, as a likely deterrent in increasing official imports. 
 
Because of the high duty on accessories,??? says Pankaj Mohindroo, president of ICA, about 90 per cent of it is traded in the unorganised market.??? 
 
The Indian handset industry expects to sell 60 million handsets this year if we look at 200 million mobile subscribers by 2007???. Says Gupta, Even if each of them spends $5 a year on phone accessories, the market will expand in a big way.??? 

Source- http://www.business-standard.com

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