By Editor on January 31, 2011 · Leave a Comment
The government is expecting market competition and number portability to ensure reasonable tariff for subscribers despite the Centre’s new policy of charging operators for additional spectrum and ushering an auction-based pricing.
With some operators speaking of telecom services costing more in view of added costs the new policy entails, the government did not rule out a more unfettered play of market forces but felt increase in subscriber costs need not be the obvious impact of new charges being levied on air waves that were previously not charged.
According to Telecom Minister Kapil Sibal, there can be some fluctuations in rates but he thinks number portability and more open competition will mean rates remain reasonable. The customer will get low tariffs, the telecom sector can make reasonable profit and the government will get its revenues too.
He added that not adopting the auction route had drawn flak and now that the government was saying all spectrums would be charged and new allocations would be auctioned, the question of cost was raised. You can’t have it both ways, pointing out that the policy aimed to make the processes transparent.
The government believes charging for additional spectrum allotted to telecom service providers is essential to restore public faith in accountability and regulation of the sector. In the past no operator, either new or an early mover, paid for additional spectrum and this anomaly needed to be addressed.
On the demand that new players be allowed 6.2 MHz as start up spectrum instead of 4.4 MHz, the view in government is that the terms of trade will even out any perceived advantage to older service providers. Some licences held by those claiming first mover benefits will run out in a couple of years. These firms will have pay for licences and spectrum afresh while new licences have more years to run while also paying for air waves beyond 6.2 Mhz.
It is also felt that not charging for 1.8 MHz was an important reason in estimates of loss of revenue in 2G spectrum allocations reaching an astronomical US$38.28 billion. This could not be overlooked when the Centre revised policy and looked to shake off the baleful shadow of DMK leader A Raja’s tenure. The national auditor’s report on losses has played Prime Minister’s Office in the line of fire as well for lack of oversight.
Filed under Mobile ·
Tagged with A Raja, additional spectrum, DMK leader, Kapil Sibal, low tariffs, Mobile, new licences, Number Portability, PMO, Telecom Minister, Telecom Sector
By Editor on December 4, 2009 · Leave a Comment
www.WirelessFederation.com/news: Cofetel, Mexico based telecommunications regulator, announced 13.4% rise in their third quarter sector index. However, the company also said that the figure is 11 % lower than last year, reflecting the effect of the international context and drop in the domestic economy on the telecommunications sector.
Mobile telephony, domestic long distance and satellite TV services grew while paging and international long distance declined during most part of the third quarter. Mobile telephony traffic recorded an increase of 18.7% and domestic long distance traffic rose 0.9%.
7.6% and 22.6% fall was recorded in Incoming international long distance traffic and outgoing long distance traffic respectively. 1.6% year-on-year growth reaching to 20.5 million at the end of September was recorded in the lines of services in fixed-line telephony in Mexico.
Filed under Mobile ·
Tagged with Cofetel, Fixed-Line Telephony, international context, Mexico, North America, paging, Regulator, satellite tv services, sector index, Telecom Sector, telecommunications regulator, Traffic
By Editor on August 15, 2006 · Leave a Comment
NEW DELHI: India’s telecom sector has a cause to celebrate, with strong evidence of domestic valuations keeping pace with the highest valued mobile telephone companies in the world – China Mobile and Vodafone.
An analysis of Bharti Enterprises subscriber numbers and stock performance, for example, shows its ratings comparable with China Mobile, the big daddy of mobile telephony in China and Vodafone, the world’s second largest mobile company.
Last week, China Mobile toppled Vodafone to become the world’s most highly valued telecom firm. China Mobiles shares closed at HK$51.50, valuing the company at US$131.46 billion, while Vodafone’s shares closed at 110 p in London, valuing the firm at US$123.11 billion.
China Mobile, with 200 million subscribers, is also the world’s largest mobile operator, ahead of Vodafone’s 186 million global subscribers.
Vodafone, however, remains ahead in terms of its global footprint across 54 countries. In India, it invested US$1.5 billion in Bharti in October 2005.
China Mobile’s subscriber base works out to about 8.3 times and Vodafone’s roughly 7.75 times Bharti’s 24.3 million subscribers. Bharti Enterprises boasts of a 21.2% market share, in comparison to China Mobile’s 40%.
Interestingly, at an average share price of Rs 412, Bharti’s valuation works out to about $16 billion or Rs 72,000 crore. Analysts point out that this mirrors China Mobile and Vodafone, as their valuations, just as with subscriber numbers, works out to around 8.3 times and 7.75 times that of BhartiTele ‘s respectively. The striking feature of this comparison is that subscriber and valuation multiples are exactly comparable and proportionate across three firms.
This is a conclusive evidence that Bharti’s valuation (minus some of its other businesses such as Long Distance, and others), even at a fraction of China Mobile and Vodafone’s subscriber base, is globally benchmarked.
Given economies of scale and projections of doubling of mobile subscribers to 200 million by December 2007, it should be fair to expect Bharti to exceed 40 million subscribers before the close of financial year 2006-07, with a proportionate increase in shareholders value.
With these impressive valuations, it is no surprise that like Birlas and Tatas in the recent past, Hutch and Essar are similarly embroiled in bitter battles for control.
The flip side of this spectacular performance is its propensity to strengthen the argument for charging big bucks to these multi-billion dollar corporations in the controversial allocation of 3G spectrum.
Source- http://timesofindia.indiatimes.com
Technorati : 3G, Airtel, Bharti Televentures, Birla, China Mobile, Essar, GSM, Hutch, Tata, Vodafone
Ice Rocket : 3G, Airtel, Bharti Televentures, Birla, Essar, Hutch, Tata, V
Filed under Mobile ·
Tagged with 3G spectrum, Afone, Allocation, Birla, China, December, Economies of Scale, Essar, India, Indiatimes, London, Numbers, Paris, Proportion, Share Price, Shareholders, Subscriber bas, Subscriber base, Telecom Sector, Vodafone
