Wireless Federation

Shahid Balwa resigns from DB Group (India)

On 03.07.11, In Mobile, By Editor

DB Group Managing Director, Shaid Balwa has resigned from the company. He was arrested on Feb 8 as part of the ongoing probe into the 2G scam by the Central Bureau of Investigation (CBI).

The company, that has arms in realty, hospitality and telecoms, stated that the board had accepted his resignation.

Balwa’s DB Realty had floated Swan Telecom, which was allegedly favored by former telecoms minister, A Raja during the 2008 2G spectrum auction.

The CBI suspects that in 2008, when the government was allocating 2G spectrum for mobile phone networks, Raja might have twisted the rules to benefit a few companies – especially Swan and Unitech.

Swan and Unitech sold equity to foreign companies much before they began the launch of their services.

The DB group’s telecom arm, earlier known as Swan Telecom, is now known as Etisalat-DB.

TDSAT directs Uninor to pay 60% penalty (India)

On 01.10.11, In Mobile, By Editor

Telecom tribunal TDSAT has directed Uninor to pay 60% of the penalty, demanded by the Department of Telecom (DoT), for failing to launch services within the stipulated period.

The Telecom Disputes Settlement and Appellate Tribunal bench, headed by TDSAT chairman Justice S B Sinha, allowed Uninor’s plea but directed it to pay around US$1.98 million within two weeks.

According to TDSAT in an interim order, in their opinion, keeping in view the interest of the parties, interest of justice would be sub served if the petitioners Uninor are directed to deposit 60% of the demanded amount within two weeks.

The tribunal observed that Uninor has raised the issue of delays in getting the start up spectrum from SACFA (Standing Advisory Committee for Frequency Allocation) and it needs to be determined by the bench.

According to bench, Uninor, in their opinion, have raised a prima facie case in as much as the question as to what is meant by start up spectrum or average delay are questions involving interpretation of different provisions of the licence about the other documents filed by it.

Rejecting DoT’s contention, TDSAT observed that the government should have given an opportunity to Uninor to give its opinion before demanding Liquidated Damages (LD) for delays in roll-out obligations.

Later, Uninor stated that they welcome the TDSAT’s interim order today that acknowledges the merit of our arguments.

Uninor, a JV between Unitech and Norway’s Telenor had approached TDSAT on January 4, challenging DoT’s directive.

Filed under:Mobile Tagged with: DoT • India • Liquidated Damages (LD) • Mobile • Norway • SACFA • TDSAT • TDSAT chairman Justice S B Sinha • Telecom Disputes Settlement and Appellate Tribunal bench • Telenor • Uninor • Unitech

Telcos pay penalties for missing roll-out obligations? (India)

On 12.30.10, In Mobile, By Editor

Certain new telecom operators including Etisalat DB are understood to have paid penalty to the government after facing cancellation of licences for missing launch obligations.

According to sources, Etisalat DB, a joint venture between Swan Telecom and UAE-based Etisalat, has paid about US$2 million to the Department of Telecom (DoT) for missing the deadline to launch its network or expand services in four circles.

Uninor, a joint venture between realty major Unitech and Norway’s Telenor, has stated that the company has paid the penalty as demanded by DoT, however, under protest.

According to company’s statement, various factors, including delay in clearances required for each site, new last minute pre-launch testing requirements and new equipment security clearance processes, came in the way of roll out and were beyond their control. They have requested the DoT to consider these in its assessments. As a serious long term operator with considerable presence in India, they intend to continue delivering the benefits of competition to customers in the country.

Some more operators’ including Loop Telecom and Videocon are also facing action for missing the roll-out deadline, but it could not be ascertained if they too have paid the penalty.

Filed under:Mobile Tagged with: DoT • Etisalat DB • India • Loop Telecom • Mobile • Norway • Swan Telecom • Telenor • UAE • Uninor • Unitech • Videocon

India threatens to cancel licenses of 85 telcos

On 11.30.10, In Mobile, By Editor

The new telecom Minister Kapil Sibal has stated that the Indian government is planning to send 85 notices to telecom operators questioning their licenses.

According to officials, Kapil Sibal took the top spot in India’s telecom ministry earlier this month after Andimuthu Raja was forced to resign, accused of granting 2G spectrum and licenses at low prices and possibly costing the state $39 billion in revenue.

According to Sibal, many of the companies, which went through a self-certification process, were not eligible for the 2G licenses granted in 2007 and 2008. This has serious implications for transparency of process. It allow companies to get ahead of the queue on basis of first come first served, in that they did not register first with the registrar of companies. Notices will be sent to the companies mentioned in a report by the Indian government auditor.

The report named Uninor, a unit jointly owned by Unitech and Norway’s Telenor, Etisalat DB Telecom, into which Swan Telecom and Allianz Infratech later merged, Loop Telecom, Videocon Telecommunications and S Tel.

Sibal added that the companies would have 60 days to reply and 52 weeks to fulfill rollout obligations, failing which their licenses could be revoked.

Filed under:Mobile Tagged with: 2G Spectrum • Allianz Infratech • Andimuthu Raja • Etisalat DB Telecom • India • Licenses • Loop Telecom • Mobile • new telecom Minister Kapil Sibal • Norway • S Tel • Swan Telecom • Telenor • Uninor • Unitech • Videocon Telecommunications

Telenor finds no irregularity with India 2G licenses

On 11.22.10, In Mobile, By Editor

Norway’s Telenor has reportedly denied that its Indian subsidiary Uninor had won mobile phone licenses in an irregular manner.

India’s telecoms regulator has called for 38 mobile licenses, including some held by Uninor, to be canceled amid a political scandal that is shaking the government of Prime Minister Manmohan Singh.

As per TRAI, the licenses were awarded too cheaply, and may have cost India a potential $31 billion. The accusations have led to the sacking of Telecoms Minister Andimuthu Raja.

According to Telenor spokesman Glenn Mandelid, the company has now investigated how their licenses were awarded and have not found any irregularities.

As per Mandelid, the award system in 2008 was not the same as todays. Indian authorities feared the telecoms market would turn into a monopoly so they operated under a first come first served principle. The award system was the same from 2000 to 2008 when Unitech got its license. Since then they have gone over to an auction system.

Telenor has about 13.5 million customers in the country’s highly competitive mobile market.

Filed under:Mobile Tagged with: India • Indian subsidiary • Mobile • Norway • Prime Minister Manmohan Singh • Telenor • Telenor spokesman Glenn Mandelid • Trai • Uninor • Unitech • USA

DoT has no plans to withdraw 2G spectrum

On 11.12.10, In Mobile, By Editor

As per the Department of telecom (DoT) secretary and telecom commission chairman R Chandrasekhar, there was no plan to withdraw 2G spectrum allotted in 2008 from any of the players.

According to India’s chief auditor, CAG, many of the licenses given to five of the nine telecom companies were illegal. Swan (now Etisalat), Datacom (Videocon), Unitech (which ceded majority control to Norways Telenor), Sistema-Shyam and Essar Group-owned Loop Telecom were given pan-India licenses and airwaves for a mere 1,651 crore each.

Apart from these five companies, Reliance Communications and Tata Teleservices were also given GSM and CDMA licenses, at prices fixed in 2001. Similarly, auction of 3G airwaves early this year fetched the government US$15077.50 million

According to Mr Chandrasekhar, at this moment, there is no proposal before the department to take back any of the spectrum from any of the players.

Filed under:Mobile Tagged with: 2G Spectrum • CAG • CDMA • Datacom • DoT • Essar • Etisalat • GSM • India • Loop Telecom • Mobile • Norway • Norways Telenor • Reliance Communications • Sistema-Shyam • SWAN • Tata Teleservices • Unitech • Videocon

Telenor Q3 revenues beats street expectations (India, Norway)

On 10.28.10, In Mobile, By Editor

Norwegian telecom major Telenor posted a nearly 6% jump in September quarter revenue helped primarily by a strong showing in India, even as its global profits nosedived.

According to the company it added four million new customers in India in three months ended September and raked in revenue of US$31.72 million. Revenues from India in local more than doubled from last quarter due to higher subscription base and increased ARPU.

However, Telenor’s global profits dropped by 51% to US$273.17 million in the quarter under review, in comparison to a profit of US$515.85 million on a revenue of US$3.37 billion in the year-ago period.

According to Telenor President and CEO Jon Fredrik Baksaas, the group delivered another strong quarter and its consolidated operations added seven million new mobile subscriptions during this period. He is pleased to see promising development for Uninor in India this quarter with strong growth in subscriptions and increased average revenue per user. Going forward, the company will continue its efforts to increase revenues and improve business processes.

In India, Telenor is present through a joint venture with Unitech called ‘Uninor’, in which the company holds a 67.25% stake.

According to Uninor MD Sigve Brekke, he is encouraged by the performance in the September quarter. Company’s dynamic pricing plan that offers up to 60% on calls is attracting customers to try service and increasingly uses (Uninor) as their primary SIM.

Uninor’s total subscriptions touched 7.9 million in the three months ended September. However, Telenor’s total revenue growth was impacted by reduced international roaming fees, lower growth in handset revenues and increased competitive pressure.

In the September quarter, EBITDA declined by US$250.51 million compared to last year due to the negative contribution from Uninor, which was partly offset by the improved performance of Telenor’s established Asian operations.

Telenor noted that it expects Uninor will contribute with an EBITDA loss of around US$665.06 million and capital expenditure in the range of US$222-296 million.

Filed under:Mobile Tagged with: ARPU • ASIA • CEO • EBITDA • India • Mobile • Norway • Telenor • Uninor • Unitech

Uninor launches GPRS services for prepaid subscribers (India)

On 04.27.10, In Mobile, By Editor

www.WirelessFederation.com/news: The GPRS service for the prepaid subscribers has been launched by One of India’s new mobile network operators, Unitech Wireless, which offers services under the Uninor banner. Customers in seven circles will receive GPRS data plans.

The seven circles include- Uttar Pradesh, Bihar, Orissa, Karnataka, Tamil Nadu, Kerala and Andhra Pradesh. Free trial of the services will also be offered to all the users until May 6, 2010.

According to David Mengehello, executive vice president of marketing for Uninor, Uninor will focus hard on data, building on its data capabilities to launch many more exciting ideas soon and the company has some solid experience in markets very similar to India with unique and successful data-based applications.

Filed under:Mobile Tagged with: ASIA • GPRS • India • Uninor • Unitech

ED initiates probes on DoT officials (India)

On 03.26.10, In Mobile, By Editor

www.WirelessFederation.com/news: According to the Enforcement Case Information Report, a criminal case has been registered against some unknown DoT officials with other unknown companies for committing an offence under the Prevention of Money Laundering Act.

As per the official sources, the investigation would bring under the scanner nine companies which were awarded licenses in January 2008 along with some DoT officers who were alleged to have connived with some private telecom firms for causing pecuniary loss of an estimated Rs 22,000 crore to the exchequer.

Companies like Swan, Unitech, Venugopal Dhoot-promoted Videocon and many others were provided licenses bundled with start-up spectrum for Rs 1,651 crore for pan-India operations.

CBI has started its investigation and has also registered an FIR in this regard.

Filed under:Mobile Tagged with: ASIA • DoT • India • RIM • SWAN • Unitech • Videocon

Unitech to stretch its wings in India

On 03.05.10, In Mobile, By Editor

www.WirelessFederation.com/news: Half of the Indian market will be covered by Unitech Wireless, an Indian subsidiary of Telenor, by the end of this year. The company has expressed its desire to position itself in the mid-end to high-end segment besides making it clear that it is not expecting any decrease in the mobile prices.

Sigve Brekke, head of Telenor’s operations in Asia, denied Unitech’s participation in the 3G auction as it sees no immediate demand for it in India.

According to the executive, Unitech will use telecoms towers of existing players rather than its own, and that on a wider note Telenor has no plans to buy companies in Pakistan or Africa.

Unitech commercially launched its service in India in December 2009 under the brand name Uninor. 67.25% stake in Unitech is currently held by Telenor and it is expected to rise to 74% by the end of this month.

Filed under:Mobile Tagged with: 3G • Africa • ASIA • Auction • India • Pakistan • Telenor • Unitech