The Indian telecom regulator, TRAI has stated that Videocon lost more than 1 million subscribers, while Bharti Airtel, Reliance Communications and Vodafone Essar added 3 million subscribers each in January this year.

According to TRAI, more than 71% of mobile subscribers in India are active users. Around 548.66 million people were using mobile phones of the total subscriber base of 771 million mobile subscribers.

Bharti Airtel had the highest ratio of active subscribers compared to its total subscriber base at 92.63%, followed by Idea Cellular with 90.34% but Etisalat showed the lowest ratio of 33.55%.

Bharti Airtel also continued to lead the industry, grabbing more than one-fifth of the market share. RCOM and Vodafone Essar were the second and third largest telcos as of January-end. BSNL was the only public telco to have a market share of more than 11.6%.

Jammu & Kashmir has the highest proportion of active subscribers at 81.26% followed by Assam with more than 81% and Maharashtra at 77.58%. In contrast, the financial capital Mumbai has the lowest proportion of active mobile users.

 

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.

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MNP to start from Jan 20: Sibal (India)

The new Telecom Minister Kapil Sibal has announced that the much-awaited mobile number portability (MNP) will be available to more than 700 million Indian subscribers from January 20, 2011.

MNP is a service that allows subscribers to change service providers while keeping the same number.

According to Kapil Sibal, mobile number portability that they have introduced in Haryana will be available on January 20 across the country next year . As per Telecom department officials, BSNL customers had switched to Idea Cellular and used their examples to demonstrate this facility during the launch.

Mobile phone users in Haryana will be able to switch among nine operators — Airtel, Idea Cellular, BSNL, Aircel, Loop, Vodafone, Etisalat, Sistema and Videocon. The customer has to pay a maximum of Rs 19, the lowest in the world, to migrate to a new mobile phone company.

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Idea to Launch MNP (India)

The Department of Telecom (DoT) had ordered the mobile operators to launch MNP by November 25. The Idea has taken lead by releasing its ‘Switch to Idea’ commercials debuting on TV channels.

MNP enables a subscriber switch from his cellular operator to any other operator, and retain his mobile number. It is being rolled out on 25 November in Haryana circle where subscribers can switch in between any of the operators. The Haryana has eight cellular operators Airtel, Idea, BSNL, Aircel, Loop, Vodafone, Etisalat DB, and Videocon.

According to figures from Cellular Operators Association of India, the circle has 11.68 million subscribers as on Oct 31, 2010. India’s total cellular subscriber base stands at around 700 million.

According to Rajat Mukharjee, the official spokesperson for Idea Cellular, implementation of MNP in India will definitely come as a boon for the established players as they have the better service capability and the networks in comparison to the small operators who are yet to offer better service and networks.

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The Indian telecom regulator TRAI has asked the government to terminate 62 of the 122 licenses issued by ex- telecom minister A Raja as they have crossed the deadline of the services.

The recommendations of TRAI which claims that its views were ignored by Mr Raja, toughens the possibility that several of the licenses issued in 2008 could be canceled.

According to sources, the telecom department, under new minister Kapil Sibal, decided to seek legal opinion on the validity of the telecom licenses allotted by Mr Raja after the country’s national auditor stated that 70% of these mobile permits were obtained through fraudulent means.

The Comptroller and Auditor General of India (CAG) had stated in its report on Tuesday claining that 85 of the 122 licenses given to six companies, notably Uninor, Videocon, Loop Telecom, S Tel, Etisalat and Allianz Infratech, were illegal as these firms were not eligible to obtain them. The auditor also added that these six companies had disclosed incomplete information and submitted fictitious documents and used fraudulent means for obtaining them.

According to the chairman of the Telecom Regulatory Authority of India, JS Sarma, mobile permits held by Loop in 14 service areas; Etisalat DB Telecom in two service areas; Sistema Shyam Teleservices in 10 service areas and Unitech Wireless in eight areas, be withdrawn because of these lapses. India is divided into 22 telecom circles.

TRAI further recommended that 13 licenses of Etisalat DB Telecom; five of Loop Telecom, and 10 of Videocon Telecommunications, also be cancelled, as the network rollouts undertaken by these companies fell short of the requisite conditions specified in the agreements that they had entered into with the government.

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.

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Videocon Industries is busy looking for possible buyers to sell 26% of its telecom arm Videocon Telecommunications that has 1.9 million subscribers and has a market share of 0.31%. The company in the recent past had started discussion with South Korean company SK Telecom, UAE’s Etisalat and Turkey’s Turkcell.  By selling 26% of Videocon Telecom, the main company will raise around INR 15,000 crores which will be employed to improve services and expand operations to improve customer base.

According to a source, Videocon is struggling to keep up with the major players like Bharti Airtel, Reliance Communications, and Vodafone due to fewer offerings to the customer.

The telecom company currently operations in Tamil Nadu, Punjab, Haryana, Mumbai, Gujarat, Kerala, Madhya Pradesh, UP East, UP West and Himachal Pradesh. Videocon recently announced 1 paise/sec international calling to US and Canada. Such schemes may help the company in fetching new customers, but if the company wants a stand in the market it needs to improve service and infrastructure to handle larger customer base.

www.WirelessFederation.com/news: In a latest attempt to bring in a foreign partner for the fledgling mobile phone services, Videocon Telecommunications has started talks with Korea’s Sun Kyung (SK) Telecom to sell a 26% stake. Rs 3,600 crore is expected by the founding Dhoot family from the sale valuing Videocon Telecommunications at a little over Rs 13,000 crore ($3 billion), an amount the analysts feel is too much and estimating the worth of the company at only about $2 billion.

SK Telecom has nearly 50% market share in South Korea and has been scouring for opportunities overseas lately and as far as the Videocon Telecommunications is concerned it has also been linked to a buyout by Mukesh Ambani’s Reliance Industries, whose board is believed to have recently authorized its re-entry into the telecoms space following the peace deal between the Ambani brothers. SK Telecom already provides phone services in China, the US and Vietnam and last month it announced new ventures in Malaysia and Indonesia

No comment has been made by Videocon Group chairman and MD VN Dhoot on a potential deal with SK Telecom but he asserted that the company is evaluating proposals from global communications firms for a strategic partnership.

According to one of the analysts, Mr Dhoot has publicly said that the telco is worth over Rs 12,000 crore, but it remains to be seen if any investor will enter at this price, which we consider a premium, especially under current market conditions and added that the global firms wanting to enter the world’s fastest-growing telecoms market would only pay a premium for a controlling stake and not minority ownership.

Talks with the UAE’s Etisalat and Turkish telco Turkcell had been abandoned by the Dhoot family amid differences over valuation and its talk with Norway’s Telenor also failed as the latter bought Unitech Wireless.

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www.WirelessFederation.com/news: Consumer electronics major, Videocon Group is all set to invest Rs 14,000 crore in its mobile service division over the next three years.

According to Videocon Group chairman Venugopal Dhoot, the company is targeting new customers to begin with, but is also betting on migration, once number portability comes in place.

In his opinion, the company wants to be the top 3 service provider in the country over the next three years. By the end of September, Videocon, which has licenses for all the 23 circles would become pan-India operator.

The company is a latest entrant in the mobile service arena and it has seen the likes of the other new players like MTS, Uninor and Tata Docomo is marketing its service with a sub 1 paise effective tariff” to attract customers.

The target of the company is 100million users in three years and it hopes to break even in two years. In the opinion of Dhoot, they will bag 3G licenses, which Videocon has bid for in all circles, barring Delhi and Mumbai.

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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.

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