When most of the telecom operators in the country are struggling to put 3G services on track, Aircel has set for 4G services too.
The telecom major will commercially launch its 3G services in another 45 to 60 days depending on some government clearances, while test run for 4G is likely to start by the first quarter of the next financial year. It plans to start 4G operations commercially in eight circles by December 2011 or January 2012.
"We are planning to launch our 3G services across 13 circles where we have got the licences in another 40 to 60 days. Moreover, Aircel will be one of the first firms in the country to usher into the fourth generation era. We are planning to start 4G trials by the first or second quarter of the next financial year," said Mallikarjuna Rao, chief technology officer of Aircel, on the sidelines of Intaglio 2011, an international school meet at IIM Calcutta on Thursday.
Rao said the firm would come up with 4G facilities on all the eight circles allotted to it by December 2011 or January 2012.
On the broadband wireless access auction — for access to 4G services — held last year, Aircel got Andhra Pradesh, Tamil Nadu, West Bengal, Bihar, Odisha, Assam, North-East, Jammu & Kashmir circles. While it will provide services for 3G is 13 circles — Andhra Pradesh, Karnataka, Tamil Nadu, Kolkata, Kerala, Punjab, Uttar Pradesh (East), West Bengal, Bihar, Orissa, Assam, North East and Jammu & Kashmir.
However, the firm has not decided on the circle which they will select for the trials.
"We have not decided on it. However, Tamil Nadu, Andhra Pradesh and Assam are under consideration," Rao added. He expressed hope that 3G and 4G era will force operators to have more technological tie ups.
"Since majority of the operators do not have pan-India licences, it will lead to technological tie ups like intra-circle roaming"
Meanwhile, on MTNL’s offer to share its 3G network in Delhi and Mumbai, he said, "The slots were open for two operators. Since, Aircel and Tata Teleservices are the only companies who have submitted bids, it seems we will be able to get it."
Sunday, January 9, 2011
Wednesday, January 5, 2011
MNP not a game changer
In Indian, any survey of mobile users will show Vodafone to be an operator with one of the most, if not the most, loyal customer base. But one statistic shows just how relative that term -- customer loyalty -- is in the telecom industry. According to its British parent's annual report, for the quarter to September, Vodafone's Indian operations recorded an annualised 'customer churn' of 41%.
In other words, 41% of its 118 million subscribers will leave during the year! Dissatisfied, disillusioned, disinterested. Yet, its subscriber base is expected to grow because its subscriber gains outnumber its losses.
Other operators have a similar story to report in a market that is still untapped. And that's why, they say, they are not scared of number portability causing a Pied Piper-like exodus among their subscribers. They are not deterred by this new mechanism of consumer empowerment that, for just Rs 19, lets subscribers switch operators without changing their phone numbers.
"It will have very limited impact," predicts Kumar Ramanathan, CMO of Vodafone Essar. The first reading shows limited impact. In Haryana, which was the first state to offer portability from November 25, industry data for December 2010 shows that 1% of the state's 17 million subscribers opted for it. Annualised, that works out to 12%, which is a fourth or fifth of the churn operators have been living with.
So, they say, even when number portability rolls out in other circles they can live with it. "We are already in a high-churn environment," says Rajiv Bawa, executive V-P (corporate affairs) at Unitech Wireless, a joint venture between Norways's Telenor and India's Unitech.
Yet, behind that business-as-usual veneer, there's a hint of nervousness brought on by the other change gathering momentum in Indian telecom: 3G services, which turns a mobile phone into a TV and an Internet-fired computer, and delivers music, movies, TV, games, information and more seamlessly. "Number portability will not be the game-changer ; 3G will be, and it could lead to outcomes like portability," says Ramanathan.
Old divisions in the industry are being raked up again. GSM versus CDMA. The old guard versus the young upstarts. The 3G haves versus the 3G have-nots. It's a polarised debate, with operators aligning their views to their business strategy.
All these years, operators trained their energies on the 'pre-paid' segment, which accounts for 95% of the 700 million mobile subscribers in India. "A majority of pre-paid users are hardly interested in retaining their number," says Ramanathan.
Not only are pre-paid subscribers fickle, they don't even give operators big revenues.
Yet, operators woo them because are easy to add. In the way the business is run presently, numbers matter. Allocation of spectrum is linked to subscriber base. More subscribers translated into more spectrum — and higher share valuations.
So, the market saw crazy pre-paid plans, where operators essentially paid people to become subscribers.
For example, when it launched in September 2010, Etisalat charged zero rent and gave a subscriber 50 free minutes for three months. 'Use and throw' became the norm with pre-paid users who were price-conscious and didn't care about number retention. This was happening at the operator end.
At the handset end, an upstart manufacturer launched a device in 2008 that promoted this sort of user behaviour. The manufacturer was Micromax and the device was a dual-SIM handset. It was a huge hit. Other manufacturers followed. According to global market intelligence firm IDC, 40% of all handsets sold in India in the past year have been dual-SIMs. For example, Micromax, which has a 5% share, has 45 'active' models. "40 are dual-SIMs," says Rahul Sharma, executive and marketing director, Micromax.
"We've had 'virtual number portability' for the last eighteen months. With new entrants offering free talktime and other incentives for a limited period, customers take up the connection, use the freebie and throw the SIM," the CEO of a leading telco had earlier told ET.
Old operators see a churn of about 45%; some of the new entrants, 60%. "New operators are already dealing with high churn," says Unitech's Bawa. "Their challenge is to get chosen as a second or third SIM, stay in the phone, and over time, move up to primary SIM status."
Much of this churn is in the pre-paid segment, and so portability is expected to have only an incremental effect there. For example, in the quarter to September, Vodafone recorded an annualised churn of 42.4% in the pre-paid segment. By comparison, its churn in the postpaid segment was 23.2%.
With 3G and number portability, the churn in the post-paid segment might increase, which is what operators are concerned about. The postpaid segment is the bedrock of an operator's revenues. Although it accounts for about 5% of the subscriber base of a big operator, it brings in 20-25 % of revenues.
It's also the segment Indian operators have been taking for granted. For example, even as they slashed tariffs in the pre-paid segment to 30 paise a minute to add subscribers, operators haven't done the same for post-paid rentals.
The thinking is that, compared to their prepaid peers, the post-paid set show lower sensitivity to price and greater sensitivity to number retention. With portability, the number attachment is no longer a factor. "The barriers to change will be demolished," says Bawa. "Operators with legacy high-value customers will need to do more to keep them."Adds a recent report by Fitch Ratings: "Subscriber acquisition and retention costs may increase in the post-paid segment over the next 12 months."
However, a price war is not expected in postpaid. "The pre-paid tariff war was not beneficial to players and, hence, we may not see such an intense war in post-paid ," says Rahul Singh, telecom analyst, Standard Chartered Equity Research. "Post-paid customers are more sensitive to parameters like coverage, quality, 3G offerings and brand, rather than low tariffs."
Services will be the clincher especially with 3G services. "Postportability, the single differentiator will be extensive service delivery," says Rajat Mukarji, chief regulatory affairs officer at Idea Cellular.
At the basic level, better service will mean greater voice clarity, fewer call drops and a wider network. Theoretically, all else being equal between two networks, the one with fewer subscribers should give better call quality. That should put newer networks at an advantage.
However, it's not a pronounced advantage, according to the Telecom Regulatory Authority of India, which assesses the service quality of operators quarterly. Most licensees, even those with the busier networks, meet the rgeulator's service norms — for example, 95% success rate in call set-up , 95% of calls of good voice quality, billing complaints of less than 0.1% of pre-paid subscribers. So, there's only a limited case for post-paid subscribers to switch.
But the strength of value-added services provided by an operator could compel a switch. That means 3G. Vodafone's Ramanathan believes the portability impact will eventually gravitate to larger issues. "Companies with differentiated services like 3G in key circles, superior network and greater predictability of quality services will have an edge," he says. "Small players who didn't win any 3G spectrum will have less to offer in value-added services, and so may have limited bite."
When it comes to 3G services, it's the old, big operators that are the best placed. In the 3G spectrum auction held in 2010, seven operators that account for 98% of mobile revenues cornered the three slots available in each circle. So, if there's a push factor working against them because of their clogged networks, they can counter it with a pull factor in the form of 3G.
That's why analysts say portability won't lead to an exodus from old operators. "An increase in churn rate would be temporary. As the euphoria around portability wanes, we expect the longterm churn rate to stabilise at current levels for an operator offering 3G services," says a recent Crisil research report."
In these realignment however, there are three kinds of operators that are more vulnerable to losing subscribers, that too valuable ones, because of portability.
The first is post-paid subscribers of old operators that failed to gain size or traction. Such marginal operators failed to build a brand or go pan-India , or buy a 3G footprint. Their standing among their subscribers derives largely from their first-mover advantage. Since they were among the first operators to offer a mobile service, they roped in the high-spending subscribers.
A good example is Loop, which is present only in Mumbai (though it has inter-connect agreements with other operators) and has a modest 3 million subscribers. Loop was earlier BPL Mobile, which launched in the mid-nineties, when handsets were bricks and an outgoing call cost Rs 32 a minute.
Mobile telephony was the preserve of the rich. And once they chose an operator, many a times, they stuck on because they did not want to lose their number. Now, they can switch while retaining numbers.
The second likely loser is government-owned BSNL, another old player that started as a threat but was cut to size, at times by its own. Even though it is the fifth largest operator with 80 million subscribers, it is in decline. The competition is chipping away at its USP: reach beyond the metros. Unable to add lines, its capacity is strained.
The executive admits portability could deliver a body blow to the company. "BSNL could lose many customers who are unhappy with its quality of services and after-sales support," he says. Even its 3G services, which had a first-mover advantage, have made little impact. Launched in February 2009, 19 months ahead of others, it has managed just 2.1 million 3G subscribers.
Old CDMA operators, namely Reliance and Tata, are the third potential loser. Their subscribers too have been locked in — to an operator, a technology and a handset, along with a number. Liberated, the push factor might be greater for them.
Ramanathan of Vodafone, feels CDMA subscribers would like to break free of the relatively restricted world of their technology. "At least 80% of CDMA subscribers use operatorspecific devices, unlike GSM customers," he says. "Dissatisfied CDMA users well may exercise their freedom to migrate to GSM, which offers more flexibility, both in number of operators and highend devices."
A top Reliance executive who did not want to be identified disagreed with that reading. "CDMA customers keen to go to GSM will need to invest in a new GSM handset," he says. "This will be a natural barrier to churn."
Whether or not, Reliance manages to hold on its CDMA flock, one thing is for sure: for Indian subscribers, the freedom to choose has never been greater. This will nudge operators to acquire a greater customer orientation. Some operators are improving their network quality by putting more points of interconnect - locations where two networks link up and exchange traffic. Expect more group and family plans.
"The world over, number portability has yielded low to moderate results. "Adoption levels are modest," says BK Syngal, former chairman & managing director of VSNL. He cites a recent study by Telcordia, one of the two firms that facilitates portability, that says that the annual average port rate — percentage of subscribers who switched operators in a year — for 19 countries in 2007 was a modest 4.5%.
In other words, 41% of its 118 million subscribers will leave during the year! Dissatisfied, disillusioned, disinterested. Yet, its subscriber base is expected to grow because its subscriber gains outnumber its losses.
Other operators have a similar story to report in a market that is still untapped. And that's why, they say, they are not scared of number portability causing a Pied Piper-like exodus among their subscribers. They are not deterred by this new mechanism of consumer empowerment that, for just Rs 19, lets subscribers switch operators without changing their phone numbers.
"It will have very limited impact," predicts Kumar Ramanathan, CMO of Vodafone Essar. The first reading shows limited impact. In Haryana, which was the first state to offer portability from November 25, industry data for December 2010 shows that 1% of the state's 17 million subscribers opted for it. Annualised, that works out to 12%, which is a fourth or fifth of the churn operators have been living with.
So, they say, even when number portability rolls out in other circles they can live with it. "We are already in a high-churn environment," says Rajiv Bawa, executive V-P (corporate affairs) at Unitech Wireless, a joint venture between Norways's Telenor and India's Unitech.
Yet, behind that business-as-usual veneer, there's a hint of nervousness brought on by the other change gathering momentum in Indian telecom: 3G services, which turns a mobile phone into a TV and an Internet-fired computer, and delivers music, movies, TV, games, information and more seamlessly. "Number portability will not be the game-changer ; 3G will be, and it could lead to outcomes like portability," says Ramanathan.
Old divisions in the industry are being raked up again. GSM versus CDMA. The old guard versus the young upstarts. The 3G haves versus the 3G have-nots. It's a polarised debate, with operators aligning their views to their business strategy.
All these years, operators trained their energies on the 'pre-paid' segment, which accounts for 95% of the 700 million mobile subscribers in India. "A majority of pre-paid users are hardly interested in retaining their number," says Ramanathan.
Not only are pre-paid subscribers fickle, they don't even give operators big revenues.
Yet, operators woo them because are easy to add. In the way the business is run presently, numbers matter. Allocation of spectrum is linked to subscriber base. More subscribers translated into more spectrum — and higher share valuations.
So, the market saw crazy pre-paid plans, where operators essentially paid people to become subscribers.
For example, when it launched in September 2010, Etisalat charged zero rent and gave a subscriber 50 free minutes for three months. 'Use and throw' became the norm with pre-paid users who were price-conscious and didn't care about number retention. This was happening at the operator end.
At the handset end, an upstart manufacturer launched a device in 2008 that promoted this sort of user behaviour. The manufacturer was Micromax and the device was a dual-SIM handset. It was a huge hit. Other manufacturers followed. According to global market intelligence firm IDC, 40% of all handsets sold in India in the past year have been dual-SIMs. For example, Micromax, which has a 5% share, has 45 'active' models. "40 are dual-SIMs," says Rahul Sharma, executive and marketing director, Micromax.
"We've had 'virtual number portability' for the last eighteen months. With new entrants offering free talktime and other incentives for a limited period, customers take up the connection, use the freebie and throw the SIM," the CEO of a leading telco had earlier told ET.
Old operators see a churn of about 45%; some of the new entrants, 60%. "New operators are already dealing with high churn," says Unitech's Bawa. "Their challenge is to get chosen as a second or third SIM, stay in the phone, and over time, move up to primary SIM status."
Much of this churn is in the pre-paid segment, and so portability is expected to have only an incremental effect there. For example, in the quarter to September, Vodafone recorded an annualised churn of 42.4% in the pre-paid segment. By comparison, its churn in the postpaid segment was 23.2%.
With 3G and number portability, the churn in the post-paid segment might increase, which is what operators are concerned about. The postpaid segment is the bedrock of an operator's revenues. Although it accounts for about 5% of the subscriber base of a big operator, it brings in 20-25 % of revenues.
It's also the segment Indian operators have been taking for granted. For example, even as they slashed tariffs in the pre-paid segment to 30 paise a minute to add subscribers, operators haven't done the same for post-paid rentals.
The thinking is that, compared to their prepaid peers, the post-paid set show lower sensitivity to price and greater sensitivity to number retention. With portability, the number attachment is no longer a factor. "The barriers to change will be demolished," says Bawa. "Operators with legacy high-value customers will need to do more to keep them."Adds a recent report by Fitch Ratings: "Subscriber acquisition and retention costs may increase in the post-paid segment over the next 12 months."
However, a price war is not expected in postpaid. "The pre-paid tariff war was not beneficial to players and, hence, we may not see such an intense war in post-paid ," says Rahul Singh, telecom analyst, Standard Chartered Equity Research. "Post-paid customers are more sensitive to parameters like coverage, quality, 3G offerings and brand, rather than low tariffs."
Services will be the clincher especially with 3G services. "Postportability, the single differentiator will be extensive service delivery," says Rajat Mukarji, chief regulatory affairs officer at Idea Cellular.
At the basic level, better service will mean greater voice clarity, fewer call drops and a wider network. Theoretically, all else being equal between two networks, the one with fewer subscribers should give better call quality. That should put newer networks at an advantage.
However, it's not a pronounced advantage, according to the Telecom Regulatory Authority of India, which assesses the service quality of operators quarterly. Most licensees, even those with the busier networks, meet the rgeulator's service norms — for example, 95% success rate in call set-up , 95% of calls of good voice quality, billing complaints of less than 0.1% of pre-paid subscribers. So, there's only a limited case for post-paid subscribers to switch.
But the strength of value-added services provided by an operator could compel a switch. That means 3G. Vodafone's Ramanathan believes the portability impact will eventually gravitate to larger issues. "Companies with differentiated services like 3G in key circles, superior network and greater predictability of quality services will have an edge," he says. "Small players who didn't win any 3G spectrum will have less to offer in value-added services, and so may have limited bite."
When it comes to 3G services, it's the old, big operators that are the best placed. In the 3G spectrum auction held in 2010, seven operators that account for 98% of mobile revenues cornered the three slots available in each circle. So, if there's a push factor working against them because of their clogged networks, they can counter it with a pull factor in the form of 3G.
That's why analysts say portability won't lead to an exodus from old operators. "An increase in churn rate would be temporary. As the euphoria around portability wanes, we expect the longterm churn rate to stabilise at current levels for an operator offering 3G services," says a recent Crisil research report."
In these realignment however, there are three kinds of operators that are more vulnerable to losing subscribers, that too valuable ones, because of portability.
The first is post-paid subscribers of old operators that failed to gain size or traction. Such marginal operators failed to build a brand or go pan-India , or buy a 3G footprint. Their standing among their subscribers derives largely from their first-mover advantage. Since they were among the first operators to offer a mobile service, they roped in the high-spending subscribers.
A good example is Loop, which is present only in Mumbai (though it has inter-connect agreements with other operators) and has a modest 3 million subscribers. Loop was earlier BPL Mobile, which launched in the mid-nineties, when handsets were bricks and an outgoing call cost Rs 32 a minute.
Mobile telephony was the preserve of the rich. And once they chose an operator, many a times, they stuck on because they did not want to lose their number. Now, they can switch while retaining numbers.
The second likely loser is government-owned BSNL, another old player that started as a threat but was cut to size, at times by its own. Even though it is the fifth largest operator with 80 million subscribers, it is in decline. The competition is chipping away at its USP: reach beyond the metros. Unable to add lines, its capacity is strained.
The executive admits portability could deliver a body blow to the company. "BSNL could lose many customers who are unhappy with its quality of services and after-sales support," he says. Even its 3G services, which had a first-mover advantage, have made little impact. Launched in February 2009, 19 months ahead of others, it has managed just 2.1 million 3G subscribers.
Old CDMA operators, namely Reliance and Tata, are the third potential loser. Their subscribers too have been locked in — to an operator, a technology and a handset, along with a number. Liberated, the push factor might be greater for them.
Ramanathan of Vodafone, feels CDMA subscribers would like to break free of the relatively restricted world of their technology. "At least 80% of CDMA subscribers use operatorspecific devices, unlike GSM customers," he says. "Dissatisfied CDMA users well may exercise their freedom to migrate to GSM, which offers more flexibility, both in number of operators and highend devices."
A top Reliance executive who did not want to be identified disagreed with that reading. "CDMA customers keen to go to GSM will need to invest in a new GSM handset," he says. "This will be a natural barrier to churn."
Whether or not, Reliance manages to hold on its CDMA flock, one thing is for sure: for Indian subscribers, the freedom to choose has never been greater. This will nudge operators to acquire a greater customer orientation. Some operators are improving their network quality by putting more points of interconnect - locations where two networks link up and exchange traffic. Expect more group and family plans.
"The world over, number portability has yielded low to moderate results. "Adoption levels are modest," says BK Syngal, former chairman & managing director of VSNL. He cites a recent study by Telcordia, one of the two firms that facilitates portability, that says that the annual average port rate — percentage of subscribers who switched operators in a year — for 19 countries in 2007 was a modest 4.5%.
A Google Mobile Payment Service>>>
"You'll be able to walk in a store and do commerce," says Google's Eric Schmidt. "You'd bump for everything and eventually replace credit cards"
Google (GOOG) is considering building a payment and advertising service that would let users buy milk and bread by tapping or waving their mobile phones against a register at checkout, two people familiar with the plans say. The service may make its debut this year, say the two, who requested anonymity because the plans haven't been announced. It is based on near-field communication technology, which can beam and receive information wirelessly from 4 inches away.
Google joins a slew of companies that want in on the NFC market, which may account for a third of the $1.13 trillion in global mobile-payment transactions projected for 2014, according to IE Market Research. In November, Verizon Wireless, AT&T (T), and T-Mobile USA (DTEGY) formed a venture called Isis to offer an NFC-based service in 2012. Visa (V) is testing contactless payments and planning to roll them out commercially in mid-2011, says Bill Gajda, Visa's head of mobile innovation.
"It's a land grab," says Jaymee Johnson, a spokesman for Isis. "Folks are sort of jockeying for position." "
Open to Partnerships
EBay's (EBAY) PayPal may start a commercial NFC service in the second half of 2011, says Laura Chambers, senior director of PayPal Mobile. The system would also power peer-to-peer NFC transactions. For example, a restaurant patron might beam his share of the bill to his dining companion's phone. PayPal is open to partnering on NFC payments with companies such as Google, Chambers says.
Speaking about NFC at a technology conference in November, Google Chief Executive Eric Schmidt said, "You'll be able to walk in a store and do commerce. You'd bump for everything and eventually replace credit cards." Andy Rubin, Google's vice-president for engineering, declined to comment on future services and products.
A single NFC chip on a mobile phone would hold a consumer's financial account information, gift cards, store loyalty cards, and coupon subscriptions, say the people familiar with Google's plans. Users may also be able to make online purchases from their phones. By scanning a movie poster, for instance, a consumer might read reviews and use the Google service to purchase tickets.
"NFC could displace the cash register," says Charles Walton, chief operating officer for NFC chipmaker Inside Secure. "This is going to come superfast."
New Version of Android
Google may be in a good position to disrupt the payments industry because merchants and consumers already use its technology widely. Some 300,000 people activate phones daily that use its Android software. On Dec. 6, Google released its newest version of Android, called Gingerbread, which has some NFC features, such as reading information from NFC tags. More functionality "will come out pretty quickly," says Google's Rubin. On the market since Dec. 16, the NFC-enabled Nexus S phone, developed with Samsung Electronics, will serve as a test for a Google payment and ad service, says one of the people knowledgeable about Google.
Last year, Google bought Zetawire, a Canadian startup with a patent on a way to combine a phone-based wallet with a reward-and-loyalty system. Google Ventures, the company's venture capital arm, also invested in Corduro, a closely held developer of mobile-payment solutions in Southlake, Tex.
Google is ramping up efforts to seed merchants nationwide with NFC tags, which can be read by NFC-enabled phones. Since mid-December, it has handed out hundreds of NFC kits—including window tags and fortune cookies to give to customers—to businesses in Portland, Ore., where Google is testing a project called Hotpot.
What the Oregon Test Shows
When scanning an NFC-enabled window decal with an Android-based NFC phone, a user can see the business's work hours, check out reviews, rate the business, and get advice from Google on other local businesses. "It's something that helps local businesses," says Sara Heise, an event planner at Voodoo Doughnut, one of the businesses taking part in the Portland test. "It'll allow us to interact with our customers more, especially the younger, texting generation."
To promote the technology and local advertising, Google gave out 22,000 T-shirts at a Portland Trail Blazers basketball game. "We are going to start expanding into more and more cities in the near future," says Lior Ron, group product manager for Hotpot. "We want to make it national."
Global shipments of NFC phones will jump to 220.1 million units in 2014, up from 52.6 million in 2010, according to consultant ISuppli in El Segundo, Calif.
Last year, iPhone maker Apple (AAPL) hired Benjamin Vigier, an expert on NFC technology. The company also filed for a patent on a way to transmit payments from one cell phone to another using NFC. Apple spokeswoman Natalie Kerris didn't return a request for comment. Research In Motion (RIMM), which makes the BlackBerry, filed for a patent on a system that makes NFC payments more secure. RIM spokeswoman Marisa Conway didn't immediately return a request for comment.
An NFC payment and ad service may let Google grab a bigger piece of the U.S. mobile-ad business. The company ended 2010 with 59 percent of the $877 million market, according to an estimate by research firm IDC in Framingham, Mass. "Google is a very innovative company," says Johnson at Isis. "They'll continue to push the envelope and have a number of potential roles to play." :By Kharif
Top Five Venture Capital Investments In 2010
The verdict is clear. Technology and IT sector continue to be an all time favourite of venture capital firms, if the list of top VC investments in 2010 is a pointer.
Two of the top five companies attracting venture capital funding raised money in their follow-on deals (Series C & D) and three of them were related to IT sector, according to data from VCCedge. All the big VC deals were in the USD 10-million plus range.
Check out which firms raised the most and what makes them tick:-
iYogi: Raising more money from existing investors is one thing and making shareholders cough up more in the same year twice is quite a feat. The remote consumer technology support company iYogi raised $30 million for its series-D round of funding, two weeks ago, led by Sequoia Capital India. Early this year, it had raised $15 million in series C funding from Draper Fisher Jurvetson (that also participated in latest round) earlier this year. The Gurgaon-headquartered firm that is planning an IPO in 2011 (that could even come up through a US listing) will use the new funds raised to expand services outside the existing consumer market and the Windows Operating System platform.
Aryaka Networks: The US-based provider of the world’s first cloud-based application acceleration and WAN optimization solution raised $14 million including Series A funding from Nexus Venture Partners, Trinity Ventures, Mohr Davidow Ventures and Stanford University. The two-year-old firm headed by Ajit Gupta (owner of Speedera Network which was acquired by Akamai for more than $500 million) is banking on growing demand for WAN Optimization that is
projected to reach $4.27 billion globally by 2014.
Agni Property: Many private equity firms have burnt fingers with investment in real estate space but some VC firms pulled a smart one to get an exposure to the sector without picking up the riskier side of the business. Real estate transaction services firm Agni Property Group raised $12 million from Silicon Valley based venture capital firm Foundation Capital and India based Helion Venture Partners. Delhi-based Agni Property Group partners with property developers in various cities for selling mainly new properties and charges a commission on the asset value of the property. With the new cash it also plans to enter broker housing finance for buyers as an extension of its existing business.
Webaroo Technology India: A group company of Webaroo Inc (an offline mobile search service provider in the US) that runs SMS GupShup, a mobile group SMS service platform, raised $12 million in Series D round led by US-based Globespan Capital Partners besides participation of existing investors Charles River Ventures and Helion Venture Partners. It plans to utilise the money for global expansion, starting with emerging markets that have a high mobile adoption. It also intends to roll out new features such as mobile CRM solutions for small businesses and corporate brands. Two years ago it had raised $11 million in Series A funding from Helion Ventures and Charles River Ventures. It says it has over 2 million SMS communities in categories ranging from finance, entertainment, business, news, education, spiritual and health and claims it accounts for 5% of all text messages sent in India.
NetAmbit InfoSource & e-Services: India’s largest financial third party products distribution company, NetAmbit InfoSource & e-Services Pvt. Ltd., raised Rs 50 crore ($11 million) in a second round of funding led by Helion Venture Partners earlier this year to fuel its growth. Bessemer, which invested in the company in 2007, has also participated in this round by investing Rs 10 crore. The firm acquired in personal finance portal Rupeetalk.com, which is backed by early stage investor Seedfund, in December 2 10. The deal would help NetAmbit start internet enabled model to generate and complete leads. NetAmbit has grown from just 13 to 140 locations between FY06 & FY09 and increased the amount of business sourced by 12x in the past 3 years.
By: Madhav Chanchani
Two of the top five companies attracting venture capital funding raised money in their follow-on deals (Series C & D) and three of them were related to IT sector, according to data from VCCedge. All the big VC deals were in the USD 10-million plus range.
Check out which firms raised the most and what makes them tick:-
iYogi: Raising more money from existing investors is one thing and making shareholders cough up more in the same year twice is quite a feat. The remote consumer technology support company iYogi raised $30 million for its series-D round of funding, two weeks ago, led by Sequoia Capital India. Early this year, it had raised $15 million in series C funding from Draper Fisher Jurvetson (that also participated in latest round) earlier this year. The Gurgaon-headquartered firm that is planning an IPO in 2011 (that could even come up through a US listing) will use the new funds raised to expand services outside the existing consumer market and the Windows Operating System platform.
Aryaka Networks: The US-based provider of the world’s first cloud-based application acceleration and WAN optimization solution raised $14 million including Series A funding from Nexus Venture Partners, Trinity Ventures, Mohr Davidow Ventures and Stanford University. The two-year-old firm headed by Ajit Gupta (owner of Speedera Network which was acquired by Akamai for more than $500 million) is banking on growing demand for WAN Optimization that is
projected to reach $4.27 billion globally by 2014.
Agni Property: Many private equity firms have burnt fingers with investment in real estate space but some VC firms pulled a smart one to get an exposure to the sector without picking up the riskier side of the business. Real estate transaction services firm Agni Property Group raised $12 million from Silicon Valley based venture capital firm Foundation Capital and India based Helion Venture Partners. Delhi-based Agni Property Group partners with property developers in various cities for selling mainly new properties and charges a commission on the asset value of the property. With the new cash it also plans to enter broker housing finance for buyers as an extension of its existing business.
Webaroo Technology India: A group company of Webaroo Inc (an offline mobile search service provider in the US) that runs SMS GupShup, a mobile group SMS service platform, raised $12 million in Series D round led by US-based Globespan Capital Partners besides participation of existing investors Charles River Ventures and Helion Venture Partners. It plans to utilise the money for global expansion, starting with emerging markets that have a high mobile adoption. It also intends to roll out new features such as mobile CRM solutions for small businesses and corporate brands. Two years ago it had raised $11 million in Series A funding from Helion Ventures and Charles River Ventures. It says it has over 2 million SMS communities in categories ranging from finance, entertainment, business, news, education, spiritual and health and claims it accounts for 5% of all text messages sent in India.
NetAmbit InfoSource & e-Services: India’s largest financial third party products distribution company, NetAmbit InfoSource & e-Services Pvt. Ltd., raised Rs 50 crore ($11 million) in a second round of funding led by Helion Venture Partners earlier this year to fuel its growth. Bessemer, which invested in the company in 2007, has also participated in this round by investing Rs 10 crore. The firm acquired in personal finance portal Rupeetalk.com, which is backed by early stage investor Seedfund, in December 2 10. The deal would help NetAmbit start internet enabled model to generate and complete leads. NetAmbit has grown from just 13 to 140 locations between FY06 & FY09 and increased the amount of business sourced by 12x in the past 3 years.
By: Madhav Chanchani
Monday, January 3, 2011
3G takeoff
attempts to decode what 3G will mean for telecom operators and consumers, and how that might change the nature of marketing communication.
A product category that did not exist 15 years ago is now among India's top ad spenders. Last year, 2009-10, telecom marketers spent an estimated `1,400 crore in communicating to their consumers.
According to media agency Mindshare, about Rs 1,000 crore went into television with print getting Rs 195 crore and radio Rs 104 crore. Mindshare estimates digital spends of about Rs 30 crore and industry estimates peg out of home budgets at another Rs 100 crore, taking the total to around Rs 1,400 crore.
Now that 3G is upon us and is expected to change the telecom business in a fundamental way, will it also affect the nature of the media plan?
3G will be a big business as evidenced by the fact that seven private players bid and won licences across all the 23 circles in India, paying over `65,000 crore between them. These seven include Vodafone, Bharti Airtel, Reliance, Tata, Aircel, STel and Idea Cellular. MTNL and BSNL introduced 3G last year but failed to create much buzz.
People in the telecom business are both excited and nervous about what 3G could mean. All of them have been brought up in the 'voice' era and are trying to adjust to the reality that growth will now come from 'data' (that is, everything other than voice). To complicate matters, there isn't a single telecom player who has got a 3G license across all circles. Pricing and service delivery will be a complex issue. Some form of collaboration between service providers across circles seems inevitable.
There is excitement because, in the simplest terms, 3G will enhance the mobile telephony experience. In voice, this means greater clarity and fewer call drops while in VAS (value added services) 3G spells efficient interactivity on the move, with outstandingly fast speed for internet access, downloads, photos and video sharing and more.
afaqs! attempts to decode what 3G will mean for telecom operators and consumers, and how that might change the nature of marketing communication.
A whole new world
In just 15 years, mobile telephony in India has been through a lifetime. In the early days, the task was to educate consumers about easier mobility and talking on the go, which later became a fight to gain critical mass and penetration. The coming of Reliance opened up the market for the common man. Unrelenting competition brought rates down, making India one of the most affordable mobile telephony markets in the world.
As rates fell, telecom service providers turned to other forms of earning revenue, known in the business as VAS. Though technically a part of VAS, peer to peer SMS (that is, messages from one consumer to another) is low value and not much of an improvement over voice. Of the rest, the only other VAS service to have really taken off is ringtone downloads.
The one recent exciting development is the mobile web which has grown by over 300 per cent in the last 12 months. Beyond that, the success of VAS has been limited.
It is currently a pale reflection of what it ought to be: one may talk of cricket, Bollywood and 'Astro' alerts but these are just 'scratching the surface' variety of applications.
In a voice-dominated business, VAS currently contributes around 10-12 per cent of the total revenue. According to telecom analyst Kunal Bajaj, director, Analysys Mason, VAS' share is expected to reach 20 per cent by end of 2014, with the average for the 3G user being higher than the one using 2G.
Experts believe 3G will be more about enhancing the VAS experience. "Voice clarity will be slightly better, but it won't be much of a discernible difference for a consumer," reckons Mahesh Prasad, president, Reliance Communications. "Speed is where 3G will make a difference," he adds.
Punitha Arumugam, group CEO, Madison Media, which handles the Airtel media account, adds that 3G won't increase the now stable voice revenues "for sure". "In fact, fewer call drops means I won't land up calling the same person ten times, so hey, where's the revenue?" she quips. "As far as 3G goes, the excitement around VAS is what will lead to revenues."
TG for 3G
Popular notion has it that 3G is aimed at only the top 10 per cent of the subscriber base. Within this, media planners predict that youth and business executives will adopt 3G quickly, and should be ideally targeted. The typical ARPU (Average Revenue Per User) today is around `200 per month but for the top 10 per cent it is about `900-1,000. College students are tech savvy and will guide growth in mobile social networking but many others don't know how to use data services and will need to be guided through marketing communication.
"3G won't be cheap at all," states Kapil Arora, senior vice-president and country head, Team Vodafone at Ogilvy India, because the government has offered a limited amount of spectrum and companies have paid a fortune for it. Players cannot afford to 'massify' it.
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However, another school of thought says targeting just the crème de la crème won't work - 3G after all, is not a service in itself, but a technological enabler of services. Which socio-economic strata are targeted could well be an equation of the mix of services a telecom operator chooses to promote on the back of 3G.
Telecom analyst Mahesh Uppal prophesies that in the initial stages, the top end would be the ideal TG as it is more familiar with gadgets and data services. But elements like Bollywood, cricket and religion generate huge interest, so in small towns perhaps 3G can help capitalise on the craze for such information and entertainment.
Low-spend consumer in small-town India could be enchanted because they can't get enough of big-town India. "If 3G can be a facilitator on that count, it will excite all of India," thinks brand consultant Harish Bijoor of Harish Bijoor Consults. If the price is right, it could get in people who have never gone online leapfrogging to use the mobile web.
Another marketing consultant, Delhi-based Samit Sinha, in fact thinks that "the moment we have mobile phones giving an enhanced experience and bigger screens, things will explode. The internet consuming population on mobile phones will probably double overnight!"
It may be realistic to assume a '3G for all' scenario, the way tariffs are getting competitive already, with the launch of Docomo's 3G service at 0.6 paise per second. "It won't be a terribly niche technology. There will be substantial numbers. It isn't just about better data services, it is also about leading to the spurt of better devices, larger screens and applications. So, the 3G reach will be better as affordability and devices get better," says telecom analyst Bajaj.
Pricing: it's all about money
In 2008, it was assumed that the top 15 per cent of the subscribers would turn to 3G within five years of launch. That figure is now being revised to about 20-25 per cent. As time passes, the belief that 3G is unaffordable is being questioned and market forces predict that competitive pricing will shape its future. There will be bundled offers - applications for free, advertising of co-branded handsets and devices (like music devices).
Prashant Gokarn, senior executive vice-president, Reliance Communications (which will roll out its 3G services by 2010-end), says that services on 3G will be for every class of consumers. The latest music video by a popular artiste will cost more than a low resolution Hindi song video, for instance. There will be affordable services for the lower classes and the media mix will vary accordingly.
3G poses different challenges for newer and well established players. While established players struggle to get their high-end subscribers to warm up to the concept, newer players might bleed a little more as they try to get the higher revenue subscribers to migrate to them, especially in view of imminent number portability.
Affluent and perhaps urban audiences will like a good mix of entertainment and utility services, while the less privileged and rural audiences will prefer mostly utility services, feels Ravi Kiran, the outgoing CEO, Starcom MediaVest Group, South Asia.
There will be affordable services meant for the lower SECs as well - today, 3G-enabled handsets are available at price points as low as `1,900. Clearly, 3G need not be a premium offering, if a customer sees value in it, he will pay for it.
What's the Big Deal? |
A look at some of the services 3G hopes to enhance…
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What it means to advertising
How will all of this change the nature of telecom advertising? A lot of layering will be involved when one talks of the manner in which 3G is presented to the public. Telecom experts agree that educating people about 3G is extremely important, and the initial stages of communication perhaps ought to be about the general experience of 3G without getting too technical. A prime job will be to make current 3G-enabled handset owners understand what they can do with 3G, and convince non-believers - or who are unaware - to make the switch.
Abdul Khan, senior vice-president, marketing, Tata Teleservices, feels the advertising should highlight access to entertainment whenever and wherever one wants at mind-blowing speeds.
"Communication will be more about the services mix one uses," he says. 3G will encourage telecom players to increase their allocation for online and mobile advertising significantly.
Arumugam of Madison Media says it is difficult to predict media plans since these will depend entirely on a marketer's game plan. "There will also be a big push on experiential marketing, since a lot of 3G service benefits will need to be demonstrated person to person," opines Kiran of Starcom.
So the judgement at this stage on how telecom operator's new media plans will look: television will continue to be the driver medium with support from the print.
However, as telecom operators try to reach the young as well as business executives to build the early mass of 3G converts, spends on online media, mobile advertising and experiential media will increase significantly.
(Based on interviews with Abdul Khan, senior V-P, marketing, Tata Teleservices, Anand Halve, director, chlorophyll, Harish Bijoor, brand expert and CEO, Harish Bijoor Consults Inc, Kapil Arora, vice-president and country head on Vodafone at Ogilvy India, telecom analyst Kunal Bajaj, director, Analysys Mason, Mahesh Prasad, president, Reliance Communications, Mahesh Uppal, telecom consultant, Prashant Gokarn, senior executive vice-president, Reliance Communications, Punitha Arumugam, COO, Madison Media, Ravi Kiran, the outgoing CEO, Starcom MediaVest Group, South Asia, and Samit Sinha, managing partner, Alchemist Brand Consulting).
By Devina Joshi, afaqs
Sunday, January 2, 2011
The change !!!
With the introduction of 3G services, the expected rise in mobile data consumption will modify user habits. The 3G wireless platform that would provide data speeds of up to 21Mbps, mobile TV, high-definition video content, multimedia gaming, video calling and conferencing on your mobile handset is definitely worth waiting for. Here’s what industry experts think about the third generation of mobile telephony and how it would influence new consumption regions and patterns for the 700 million mobile subscribers – growing at the rate of 15 million subscribers every month – in the country.
Mobile services to modify user habits
3G was introduced in several other countries in the past decade, but the evolution of services have been different. Samaresh Parida, director strategy, Vodafone Essar, is betting on “easy access to Internet.” He said services like entertainment, sports and news will gain importance among users. “In the next phase, a number of ‘economic enablers’ will gain traction rising on the back of 3G - services like finding potential employees and employers, specific information like market prices, etc.”
But for now Vodafone is focusing on educating the consumer about the potential of the services on offer.
For now, the delay in the launch of services like video calling on 3G networks following regulatory & security concerns, has not dampened the enthusiasm, either in consumers or telecom operators.
Reliance Communications (RCom), which had launched its 3G services in Mumbai, Delhi, Kolkata and Chandigarh, said the key to success will be the infotainment segment.
Syed Safawi, president & CEO (wireless division), RCom said: “The favoured services on the Internet has moved from e-mail to m-commerce to social networking. We expect to see similar social behaviour on the mobile platform as well.”
RCom is also confident about the targeted 3G applications like medical journals and disease-specific apps for doctors and patients; tutorials and guides for students appearing in various competitive exams; or banking and trading platforms for those who are hooked on to the financial markets.
Payment and banking through mobiles
Sample this: India has about 70,000 bank branches, 6,000,000 villages and a mobile subscriber base of 700 million. It is getting increasingly difficult for banks to expand in rural areas because of infrastructure, manpower and operational problems. Mobile phones have penetrated almost all Indian villages. The way forward for banks is to expand through mobile phones.
Last year, when mobile banking and m-commerce services were introduced, people shied away especially due to security concerns. But in the second half, with most banks offering mobile services and educating the customers, the average Indian are more at ease with the use of these services. In 2011, banks are all set to capitalise on the mobile platform for full range financial services following the introduction of 3G and an encouraging regulatory framework.
“Initially customers used m-banking to check their account balance on handsets, but we expect it to graduate to person-to-person money transfer and payment of utility bills,” said Deepak Chandnani, president, Obopay, an m-payment solutions company that has tied up with Yes Bank and Nokia for its Mobile Money Services in Pune, Chandigarh and Nasik.
With commercial banks empowered to open mobile branches without RBI’s approval in areas with less than 50,000 population, Chandnani feels the move will allow easy and cost-effective access to financial services among the unbanked rural areas. “The thumb rule for any m-payment service provider will have to be platform agnostic service. This will enable consumers across various telecom service providers, banks and handset users to adopt m-payments without any glitches.”
Entertainment morphs into premium mobile content
“While content makers are making tall claims in this space by redoing existing content, from Films, TV and other Video formats, for mobile consumption — I believe that is very short sighted,” said UTV Group CEO and founder chairman Ronnie Screwvala. Original content, especially designed for the mobile keeping in mind the consumer ‘snacking’ habits, is the key to cracking the code for 3G, he said.
Screwvala said up to 15 per cent of 3G consumption will come from aggregated content while massively re-purposed content will be around 35 per cent. “Leverage an existing brand like films or TV shows to create something for the mobile and the rest will flow from original content and that alone.”
Content providers like T-Series claimed to have tasted success with new delivery models like selling music on websites like www.itunes.com. The primary challenge, according to Bhushan Kumar, CMD of T-Series, was micro payments. “In order to sell our content on mobile, we are evaluating subscription models, including freemium models.” The challenge ahead, said Kumar, was to ensure that interaction with the content or the artist was seamless on mobile phones and “3G will play a very vital role in enabling this interactivity.”
Screwvala argued that while most of us have been paying a meager sum for our cable connection – average of Rs 100 for 400 channels a month – at the same time, we are comfortable paying Rs 30 per month to download a ringtone. Clearly, mobile offers an excellent opportunity for subscription revenue rather than just being dependent on advertisers. However, piracy continued to be a concern, especially with high-speed data on mobile phones. “If telcos are not able to stop illegal content sharing websites, then 3G will become a double-edged sword for both telcos and content owners like us,” said Kumar.
Social Networking on mobiles to become a ‘must-have’ feature
According to a study report by Analysys Mason, the number of mobile social network users in India is expected to reach around 72 million by 2014, driven by reduced costs of smartphones and the launch of 3G services.
With users tuning in with social personas on their mobile phones, professional networking sites like LinkedIn have launched apps for iPhone, Palm and BlackBerry to ensure that mobile professionals stay connected on the go. “A new application for the Android platform from LinkedIn will provide users of this fast-growing operating system to connect with professionals on their tablets and handhelds,” said Hari Krishnan, country manager of LinkedIn India.
Web access on mobiles is gathering speed but players have realised that 3G services may be limited, initially, to metros and Tier-I cities. “Within social media, the most heavily used services on mobile phones will be messaging and photos. Besides social media, we will also see increased usage of other web-based services such as content, travel, commerce, education etc,” said Beerud Sheth, CEO SMSGupShup, a popular social networking platform on mobiles.
“As interfaces on handheld devices evolve to enhance user experience, communication in social and professional contexts is bound to increase over the next decade,” said Krishnan. Sheth said 3G data plans need to be cheap and simple — without any hidden costs. “Educating customers on web usage is a particularly unique hurdle in India — if users don’t know the benefits of using the web, how can we expect them to use the mobile web?” he wondered.
Priyanka Joshi
Mobile services to modify user habits
3G was introduced in several other countries in the past decade, but the evolution of services have been different. Samaresh Parida, director strategy, Vodafone Essar, is betting on “easy access to Internet.” He said services like entertainment, sports and news will gain importance among users. “In the next phase, a number of ‘economic enablers’ will gain traction rising on the back of 3G - services like finding potential employees and employers, specific information like market prices, etc.”
But for now Vodafone is focusing on educating the consumer about the potential of the services on offer.
For now, the delay in the launch of services like video calling on 3G networks following regulatory & security concerns, has not dampened the enthusiasm, either in consumers or telecom operators.
Reliance Communications (RCom), which had launched its 3G services in Mumbai, Delhi, Kolkata and Chandigarh, said the key to success will be the infotainment segment.
Syed Safawi, president & CEO (wireless division), RCom said: “The favoured services on the Internet has moved from e-mail to m-commerce to social networking. We expect to see similar social behaviour on the mobile platform as well.”
RCom is also confident about the targeted 3G applications like medical journals and disease-specific apps for doctors and patients; tutorials and guides for students appearing in various competitive exams; or banking and trading platforms for those who are hooked on to the financial markets.
Payment and banking through mobiles
Sample this: India has about 70,000 bank branches, 6,000,000 villages and a mobile subscriber base of 700 million. It is getting increasingly difficult for banks to expand in rural areas because of infrastructure, manpower and operational problems. Mobile phones have penetrated almost all Indian villages. The way forward for banks is to expand through mobile phones.
Last year, when mobile banking and m-commerce services were introduced, people shied away especially due to security concerns. But in the second half, with most banks offering mobile services and educating the customers, the average Indian are more at ease with the use of these services. In 2011, banks are all set to capitalise on the mobile platform for full range financial services following the introduction of 3G and an encouraging regulatory framework.
“Initially customers used m-banking to check their account balance on handsets, but we expect it to graduate to person-to-person money transfer and payment of utility bills,” said Deepak Chandnani, president, Obopay, an m-payment solutions company that has tied up with Yes Bank and Nokia for its Mobile Money Services in Pune, Chandigarh and Nasik.
With commercial banks empowered to open mobile branches without RBI’s approval in areas with less than 50,000 population, Chandnani feels the move will allow easy and cost-effective access to financial services among the unbanked rural areas. “The thumb rule for any m-payment service provider will have to be platform agnostic service. This will enable consumers across various telecom service providers, banks and handset users to adopt m-payments without any glitches.”
Entertainment morphs into premium mobile content
“While content makers are making tall claims in this space by redoing existing content, from Films, TV and other Video formats, for mobile consumption — I believe that is very short sighted,” said UTV Group CEO and founder chairman Ronnie Screwvala. Original content, especially designed for the mobile keeping in mind the consumer ‘snacking’ habits, is the key to cracking the code for 3G, he said.
Screwvala said up to 15 per cent of 3G consumption will come from aggregated content while massively re-purposed content will be around 35 per cent. “Leverage an existing brand like films or TV shows to create something for the mobile and the rest will flow from original content and that alone.”
Content providers like T-Series claimed to have tasted success with new delivery models like selling music on websites like www.itunes.com. The primary challenge, according to Bhushan Kumar, CMD of T-Series, was micro payments. “In order to sell our content on mobile, we are evaluating subscription models, including freemium models.” The challenge ahead, said Kumar, was to ensure that interaction with the content or the artist was seamless on mobile phones and “3G will play a very vital role in enabling this interactivity.”
Screwvala argued that while most of us have been paying a meager sum for our cable connection – average of Rs 100 for 400 channels a month – at the same time, we are comfortable paying Rs 30 per month to download a ringtone. Clearly, mobile offers an excellent opportunity for subscription revenue rather than just being dependent on advertisers. However, piracy continued to be a concern, especially with high-speed data on mobile phones. “If telcos are not able to stop illegal content sharing websites, then 3G will become a double-edged sword for both telcos and content owners like us,” said Kumar.
Social Networking on mobiles to become a ‘must-have’ feature
According to a study report by Analysys Mason, the number of mobile social network users in India is expected to reach around 72 million by 2014, driven by reduced costs of smartphones and the launch of 3G services.
With users tuning in with social personas on their mobile phones, professional networking sites like LinkedIn have launched apps for iPhone, Palm and BlackBerry to ensure that mobile professionals stay connected on the go. “A new application for the Android platform from LinkedIn will provide users of this fast-growing operating system to connect with professionals on their tablets and handhelds,” said Hari Krishnan, country manager of LinkedIn India.
Web access on mobiles is gathering speed but players have realised that 3G services may be limited, initially, to metros and Tier-I cities. “Within social media, the most heavily used services on mobile phones will be messaging and photos. Besides social media, we will also see increased usage of other web-based services such as content, travel, commerce, education etc,” said Beerud Sheth, CEO SMSGupShup, a popular social networking platform on mobiles.
“As interfaces on handheld devices evolve to enhance user experience, communication in social and professional contexts is bound to increase over the next decade,” said Krishnan. Sheth said 3G data plans need to be cheap and simple — without any hidden costs. “Educating customers on web usage is a particularly unique hurdle in India — if users don’t know the benefits of using the web, how can we expect them to use the mobile web?” he wondered.
Priyanka Joshi
Telecom Minister kicks off new year with new promises
The government will evolve a new telecom policy which takes care of the interests of the common man, the government and the telecom service providers, and will include a clear regime on contentious issues like spectrum allocation, Communications and IT Minister Kapil Sibal said Saturday.
"In the ultimate analysis, we want efficient use of spectrum, and optimal use of spectrum. We want revenues to be generated," Sibal told reporters, while unveiling a 100-day agenda of his ministry with regards to all three departments - telecom, post offices and information technology.
"So in the next 100 days, we will hold consultations with key stakeholders to evolve a clear and transparent regime covering licensing, spectrum allocation, tariff, pricing, linkage with rollout performance, flexibility within licences, spectrum sharing, spectrum trading and mergers and acquisitions in a technology-agnostic environment," the minister added.
According to the minister, the revamped policy will usher in an era of transparency in all dealings with regards to precious resources like spectrum.
"The new policy would also take care of use of foreign equipment by telecom service providers while extending services using the third-generation spectrum.
"When we do all this, we will do this in the interest of the aam admi (common man). There are three public interests here - how do we get reasonable revenues for the government, the consumer must get the service at a reasonably low rate, while we keep the industry robust," Sibal said.
The minister also said that all pending security issues with regards to foreign equipment suppliers will be resolved in the next 100 days, which would allow operators "to launch their 3G services in their entire plenitude without delay".
"Security issues regarding telecom equipment procurement, messenger services and subscriber verification will be resolved in the next 100 days," Sibal said.
Sibal said that his ministry would start a dialogue with the department of space, ministry of defence and public sector companies to free up spectrum and make it available for the telecom sector.
"We will also rollout the national frequency plan 2011 in the next 100 days," he said
"In the ultimate analysis, we want efficient use of spectrum, and optimal use of spectrum. We want revenues to be generated," Sibal told reporters, while unveiling a 100-day agenda of his ministry with regards to all three departments - telecom, post offices and information technology.
"So in the next 100 days, we will hold consultations with key stakeholders to evolve a clear and transparent regime covering licensing, spectrum allocation, tariff, pricing, linkage with rollout performance, flexibility within licences, spectrum sharing, spectrum trading and mergers and acquisitions in a technology-agnostic environment," the minister added.
According to the minister, the revamped policy will usher in an era of transparency in all dealings with regards to precious resources like spectrum.
"The new policy would also take care of use of foreign equipment by telecom service providers while extending services using the third-generation spectrum.
"When we do all this, we will do this in the interest of the aam admi (common man). There are three public interests here - how do we get reasonable revenues for the government, the consumer must get the service at a reasonably low rate, while we keep the industry robust," Sibal said.
The minister also said that all pending security issues with regards to foreign equipment suppliers will be resolved in the next 100 days, which would allow operators "to launch their 3G services in their entire plenitude without delay".
"Security issues regarding telecom equipment procurement, messenger services and subscriber verification will be resolved in the next 100 days," Sibal said.
Sibal said that his ministry would start a dialogue with the department of space, ministry of defence and public sector companies to free up spectrum and make it available for the telecom sector.
"We will also rollout the national frequency plan 2011 in the next 100 days," he said
52-WEEK FLOP: ONMOBILE GLOBAL SERVICES
Value-added services provider for telecom operators — OnMobile Global, has witnessed a significant de-rating by the markets.
As a play on both domestic and other key emerging markets' telecom fortunes, the worst may probably be over for the company.
With several new entrants launching mobile services, there was a tariff ‘war' as each operator tried to woo subscribers. This led to falling average revenues for a user and affected value-added services usage as well.
The entire telecom sector witnessed a significant rating and as a result even a VAS player such as OnMobile's stock price fell by as much as 36 per cent over the past year. Of course 2009-10 was a difficult year for OnMobile with net profits falling steeply over the previous fiscal.
But there seems to have been a revival of sorts in the first half of FY11, with revenues growing 18.3 per cent to Rs 255.3 crore over the same period in the previous year, while net profits zoomed 123.8 per cent to Rs 41.4 crore.
The tariff wars now seems to be abating and with the launch of 3G by some operators and many more of OnMobile's clientele set to do the same over the next few months, the company would hope to drive up volumes.
Globally too with strong wins from Telefonica, where implementation in 13 Latin American countries is set for March 2011, and strong execution for Vodafone in countries such as Egypt, revenue visibility is enhanced significantly.
— K. Venkatasubramanian
Re-Evaluating Your Mobile Service
It would seem virtually everyone owns a cellular phone these days, everybody from senior citizens to young kids. Mobile phones are getting to be an important part of our daily lifestyles. However as we keep adding regular monthly programs to our list of expenses it can easily begin to seem expensive. If you start to add up the cost of cable television, a land line, cell phone as well as web service it may be astonishing to discover what we shell out each month on these things. A lot of individuals are finding they should pare down and cut down on a number of these types of bills. A signal booster can increase cell phone reception for those on a lower cost network.
A number of people already have reduced payments by simply eliminating their residential phone line and using their cellular phone exclusively. For other individuals bundling offerings with one provider has decreased costs. Often the best alternatives are different from one individual to another because most of us have a little bit different preferences, routines, ways of life not to mention prices and services may vary a bit from one area to another.
The main thing to do would be to think about what you truly need. Give thought to whatever you really need most as well as what you make use of the most. Think about those additional features that you don’t really need, in some cases dropping these extras will help save a few dollars and we don’t notice that much difference.
When it comes to cell phone services there are plenty readily available. Just be certain you currently have the cell plan which suits your needs most effectively. For many people an unrestricted cellular plan will be the cheapest choice, but for other consumers a prepaid plan is actually best. Either way if you utilize your cell phone often be certain you have enough minutes accessible each month. If perhaps you won’t use it very often make sure that you are not wasting a lot every month simply for the luxury of having a cellular plan; check out a prepaid cell plan.
If perhaps you have a family with kids that prefer to text, look for a wireless family plan which offers a lot of service in this particular area. If you don’t you will probably spend way more than you ought to for the coverage. It is usually difficult to restrain your childrens texting behaviors, it’s often more economical to choose a a cell plan that will cover this type of usage.
A number of people already have reduced payments by simply eliminating their residential phone line and using their cellular phone exclusively. For other individuals bundling offerings with one provider has decreased costs. Often the best alternatives are different from one individual to another because most of us have a little bit different preferences, routines, ways of life not to mention prices and services may vary a bit from one area to another.
The main thing to do would be to think about what you truly need. Give thought to whatever you really need most as well as what you make use of the most. Think about those additional features that you don’t really need, in some cases dropping these extras will help save a few dollars and we don’t notice that much difference.
When it comes to cell phone services there are plenty readily available. Just be certain you currently have the cell plan which suits your needs most effectively. For many people an unrestricted cellular plan will be the cheapest choice, but for other consumers a prepaid plan is actually best. Either way if you utilize your cell phone often be certain you have enough minutes accessible each month. If perhaps you won’t use it very often make sure that you are not wasting a lot every month simply for the luxury of having a cellular plan; check out a prepaid cell plan.
If perhaps you have a family with kids that prefer to text, look for a wireless family plan which offers a lot of service in this particular area. If you don’t you will probably spend way more than you ought to for the coverage. It is usually difficult to restrain your childrens texting behaviors, it’s often more economical to choose a a cell plan that will cover this type of usage.
Mobile users face Epic problem
HUBLI: Election Photo Identity Card (Epic) is supposed to be one the authentic documents to prove one's identity. But with the government's fresh directive to mobile service providers, several mobile users who had obtained mobile connection by furnishing their EPIC are facing the threat of disconnection.
"If your face is not clearly visible in the EPIC photo, then we cannot accept it as an authenticate ID proof" is what mobile service providers have been telling mobile users who are rushing to mobile service outlets in the city and elsewhere after their mobile screens flashed an emergency SMS.
V Savita, a homemaker in Vidyanagar here, had obtained Idea connection by furnishing a photo copy of her election ID card two years ago. She was shocked after receiving the text message a few days ago __ "Document submitted for this number does not comply with revised Govt directive. Pls submit valid docs before 31st Dec to avoid disconnection".
When panic-stricken Savita rushed to an Idea outlet with her election ID and a photocopy of the same, the staff told her that her face is not properly identified in the card, and "hence it was rejected during verification".
Savita, who does not have DL or other documents to prove her identity, is now under the fear of disconnection.
Another customer, Basavaraj Hiremat, a farmer in Sulla village, is also equally disturbed. After having his photo ID card rejected for the same reason by Airtel, he has been cursing the government agency for its negligence in clicking photographs in poor light. He says many in his village are facing the same problem.
A private mobile service dealer, on condition of anonymity, said they are left with no choice but to reject the voter ID proofs of several consumers because of mismatch or lack of clarity in photos. "Most of the ID cards that are not being accepted are either old or mismatch. The benefit of doubt goes against the mobile user as we have to send the data to the authorities every month. We have to face music for any fault. So we are strict about it," he added.
"If your face is not clearly visible in the EPIC photo, then we cannot accept it as an authenticate ID proof" is what mobile service providers have been telling mobile users who are rushing to mobile service outlets in the city and elsewhere after their mobile screens flashed an emergency SMS.
V Savita, a homemaker in Vidyanagar here, had obtained Idea connection by furnishing a photo copy of her election ID card two years ago. She was shocked after receiving the text message a few days ago __ "Document submitted for this number does not comply with revised Govt directive. Pls submit valid docs before 31st Dec to avoid disconnection".
When panic-stricken Savita rushed to an Idea outlet with her election ID and a photocopy of the same, the staff told her that her face is not properly identified in the card, and "hence it was rejected during verification".
Savita, who does not have DL or other documents to prove her identity, is now under the fear of disconnection.
Another customer, Basavaraj Hiremat, a farmer in Sulla village, is also equally disturbed. After having his photo ID card rejected for the same reason by Airtel, he has been cursing the government agency for its negligence in clicking photographs in poor light. He says many in his village are facing the same problem.
A private mobile service dealer, on condition of anonymity, said they are left with no choice but to reject the voter ID proofs of several consumers because of mismatch or lack of clarity in photos. "Most of the ID cards that are not being accepted are either old or mismatch. The benefit of doubt goes against the mobile user as we have to send the data to the authorities every month. We have to face music for any fault. So we are strict about it," he added.
Saturday, January 1, 2011
Upgrading from 3g to 4g Wireless Internet
While many people are still patting themselves on the back for mastering 3g technology, the next wave of wireless service has recently come out. Today's fourth generation of high speed mobile internet has been the talk of the town lately, and puts those 3g phones and notebook connections to shame. With a new 4g wireless enabled phone or computer, people are able to get high speed internet service everywhere and anywhere as long as they are in a coverage zone. This isn't the same compromised speeds that come with 3g wireless, but speeds for both uploads and downloads that rival what many people are using at home. Although it takes a while for a technology like this to become ‘universally available' (consider that terrestrial broadband internet is still not universally available in many parts of the US let alone the rest of the world) this latest wave of mobile technology is off to a good start. With about 60% of the people in the United States already living in a coverage zone, like one of the initial major metropolitan areas to get coverage, there's a good chance that those who want or need this new internet service the most are already able to give it a try.
Everyone knows that 4g wireless is faster than 3g wireless, but exactly how much faster is it? Many adverts will say that the latest generation is "four to ten" times faster than current third generation technologies, but what does that really mean? At the end of the day, it means that download speeds will fall somewhere between 2 and 6 Mbps. In some areas and given the speeding up of networks over time, it could peak out at 10 Mbps to 12 Mbps depending on the technology behind the connection. The 3g phones that most people are using right now only operate at speeds of around 0.5 Mbps, if that, and get up to around 1.5 Mbps. That's a big difference! When it comes to checking emails and social networking there won't be much of a change right away until the mobile websites catch up with the new capabilities, but the implications for watching and sending videos are huge. Think high definition live streamed videos anywhere and everywhere like in the car, on the bus, in line at the doctor's office or grocery store, and anywhere else you could want to go, and you've got an idea of just how convenient the world could suddenly be!
At the end of the day there are many reasons why people choose to stay with their current 3g service or switch over to 4g wireless. The higher cost might be a factor, especially for those who don't currently use much internet on their phones anyway. Those, however, who are chomping at the bit for better download speeds, improved data performance, and the ability to stream video, videoconference, at compete in networked gaming on the go might be ready to get in on the action right away! Those who barely ever use their home internet subscription might also be great candidates, since they can get the same speed with ten times more mobile convenience froma mobile carrier!
Everyone knows that 4g wireless is faster than 3g wireless, but exactly how much faster is it? Many adverts will say that the latest generation is "four to ten" times faster than current third generation technologies, but what does that really mean? At the end of the day, it means that download speeds will fall somewhere between 2 and 6 Mbps. In some areas and given the speeding up of networks over time, it could peak out at 10 Mbps to 12 Mbps depending on the technology behind the connection. The 3g phones that most people are using right now only operate at speeds of around 0.5 Mbps, if that, and get up to around 1.5 Mbps. That's a big difference! When it comes to checking emails and social networking there won't be much of a change right away until the mobile websites catch up with the new capabilities, but the implications for watching and sending videos are huge. Think high definition live streamed videos anywhere and everywhere like in the car, on the bus, in line at the doctor's office or grocery store, and anywhere else you could want to go, and you've got an idea of just how convenient the world could suddenly be!
At the end of the day there are many reasons why people choose to stay with their current 3g service or switch over to 4g wireless. The higher cost might be a factor, especially for those who don't currently use much internet on their phones anyway. Those, however, who are chomping at the bit for better download speeds, improved data performance, and the ability to stream video, videoconference, at compete in networked gaming on the go might be ready to get in on the action right away! Those who barely ever use their home internet subscription might also be great candidates, since they can get the same speed with ten times more mobile convenience froma mobile carrier!
Govt to frame rules for digital data protection
With incidents of cyber crime on the rise, the government on Saturday said that it would frame and notify rules for data protection and liabilities of service providers under the Information Technology Act as part of its 100-day agenda. The government will frame and notify the rules in respect of
key sections viz 43A (Data Protection), 70A (Protection of Critical Information Infrastructure), 70B (Agency to handle Cyber Security), 79 (Liabilities of Service Providers) relating to cyber security in the Information Technology Act," minister for communications and IT Kapil Sibal told reporters in New Delhi.
The government will also prepare three manuals for skill enhancement in the area of cyber forensic, he added.
In the last few months, many government websites have been defaced, while incidents of false schemes offering money online are also on the rise.
The government will also bring out a draft consultation for policy on rolling out mobile governance and draft the Electronic Service Delivery Bill as part of the 100-day agenda.
"As part of various e-governance initiatives, the government will focus on nationwide roll-out of e-district mission mode project and draft the Electronic Service Delivery Bill," Sibal said.
A draft consultation document on policy for mobile governance will also be brought out, he added.
Union and state governments have been working towards adoption of technology for providing citizen services like birth and land records, across Internet and mobile platforms.
A pilot scheme for providing digital literacy to women, especially in rural areas will also be introduced during this period.
The government also envisages to set up a National Electronic Mission, which was one of the recommendations made by a high-level task force.
The Minister said that the government is working on attracting investment in semiconductor units and promoting innovation and intellectual property rights.
Sibal said that emphasis would be laid on promoting development of human resource by "framing a suitable scheme for enhancing capacity of institutions like C-DAC and DoEACC," along with setting up IT academies under PPP mode.
A National facility for assessing quality of biometric devices for Unique Identification (UID) applications will be set up, apart from infrastructure at Kolkata, Bangalore and Hyderabad for testing of large area photovoltaic modules, he said.
www.hindustantimes.com
key sections viz 43A (Data Protection), 70A (Protection of Critical Information Infrastructure), 70B (Agency to handle Cyber Security), 79 (Liabilities of Service Providers) relating to cyber security in the Information Technology Act," minister for communications and IT Kapil Sibal told reporters in New Delhi.
The government will also prepare three manuals for skill enhancement in the area of cyber forensic, he added.
In the last few months, many government websites have been defaced, while incidents of false schemes offering money online are also on the rise.
The government will also bring out a draft consultation for policy on rolling out mobile governance and draft the Electronic Service Delivery Bill as part of the 100-day agenda.
"As part of various e-governance initiatives, the government will focus on nationwide roll-out of e-district mission mode project and draft the Electronic Service Delivery Bill," Sibal said.
A draft consultation document on policy for mobile governance will also be brought out, he added.
Union and state governments have been working towards adoption of technology for providing citizen services like birth and land records, across Internet and mobile platforms.
A pilot scheme for providing digital literacy to women, especially in rural areas will also be introduced during this period.
The government also envisages to set up a National Electronic Mission, which was one of the recommendations made by a high-level task force.
The Minister said that the government is working on attracting investment in semiconductor units and promoting innovation and intellectual property rights.
Sibal said that emphasis would be laid on promoting development of human resource by "framing a suitable scheme for enhancing capacity of institutions like C-DAC and DoEACC," along with setting up IT academies under PPP mode.
A National facility for assessing quality of biometric devices for Unique Identification (UID) applications will be set up, apart from infrastructure at Kolkata, Bangalore and Hyderabad for testing of large area photovoltaic modules, he said.
www.hindustantimes.com
How Telecom BSS/OSS Is Vital To Staying In The Telecommunications Market
A pair of approaches to managing the immense data in telecommunication is known as BSS/OSS, acronyms for business support system and operations support systems. For clarity, the business systems are all the processes which deal with the consumer, the people portion. The operations system deals with all the process that deliver the actual service, the hardware portion.
There are few places on earth that are not part of a global communications system we refer to as telecommunications. There are cables on the ocean floor stretched between continents, satellites in space, and towers traverse the wilderness and are mainstays in our cities, usually along our transportation infrastructure. Most of us take this service for granted, giving little thought to the complexity of managing a service that is global and personal.
It is important that they pay attention to both elements, as do most businesses, but in the telecommunications field, both customers and capabilities continue to evolve at an incredible speed. Consumers demand faster and more diverse applications to run their devices, which have evolved to the point that resemble computers more than phones. To comply with these increasing demands, the telecom billing system that supports the service has to keep up.
It comes as no surprise that the industry focuses so intensely on their customers, because they have a serious tendency to change providers for even small difficulties. The number of providers is steadily increasing as technology is mined for ever greater options such as voice over internet protocol. Companies have to invest in new transmission methodologies, equipment and transmission towers to stay ahead of the competition.
There have been some successful providers who have made quite a presentation of technical hardware infrastructure development while focusing on all the service this hardware creates. This allows a public focus on both company practices working well while having one bolster the other. This is an ingenious way to have the moneys spent bolstering the consumer process side which the consumer usually ignores.
Dealing with the overwhelming mass of information and attempting to determine what it is the consumer really wants is a Herculean task. Considering the telecommunications consumer population diversity and the extreme penetration each provider is attempting to attain, it is important to evaluate data in multiple levels. Having a dual path system that tracks, analyzes and selectively reports data to management allows maximum flexibility.
What is needed to remain capable and efficient is an overarching system that can control the others. While this may conjure up images of artificial intelligence run amok, in the same light as the computer on board the space ship in the famous movie, there are many examples of computers running computers. The concept of business intelligence, a new managerial approach to business, relies heavily on programs which automatically direct multiple systems to derive data in specific actionable ways.
The success of providers in the telecommunication industry will be selected by their ability to flexibly respond to consumer desires. This requires them to stay abreast of information technology industry progress and innovation in general, as well as predicting applications to the telecommunication customer devices. They also need to be exceedingly aware of the desires of the consumer on everything from colors, shapes and styles to capabilities. It will require a dedication to a robust telecom billing software process to succeed.
There are few places on earth that are not part of a global communications system we refer to as telecommunications. There are cables on the ocean floor stretched between continents, satellites in space, and towers traverse the wilderness and are mainstays in our cities, usually along our transportation infrastructure. Most of us take this service for granted, giving little thought to the complexity of managing a service that is global and personal.
It is important that they pay attention to both elements, as do most businesses, but in the telecommunications field, both customers and capabilities continue to evolve at an incredible speed. Consumers demand faster and more diverse applications to run their devices, which have evolved to the point that resemble computers more than phones. To comply with these increasing demands, the telecom billing system that supports the service has to keep up.
It comes as no surprise that the industry focuses so intensely on their customers, because they have a serious tendency to change providers for even small difficulties. The number of providers is steadily increasing as technology is mined for ever greater options such as voice over internet protocol. Companies have to invest in new transmission methodologies, equipment and transmission towers to stay ahead of the competition.
There have been some successful providers who have made quite a presentation of technical hardware infrastructure development while focusing on all the service this hardware creates. This allows a public focus on both company practices working well while having one bolster the other. This is an ingenious way to have the moneys spent bolstering the consumer process side which the consumer usually ignores.
Dealing with the overwhelming mass of information and attempting to determine what it is the consumer really wants is a Herculean task. Considering the telecommunications consumer population diversity and the extreme penetration each provider is attempting to attain, it is important to evaluate data in multiple levels. Having a dual path system that tracks, analyzes and selectively reports data to management allows maximum flexibility.
What is needed to remain capable and efficient is an overarching system that can control the others. While this may conjure up images of artificial intelligence run amok, in the same light as the computer on board the space ship in the famous movie, there are many examples of computers running computers. The concept of business intelligence, a new managerial approach to business, relies heavily on programs which automatically direct multiple systems to derive data in specific actionable ways.
The success of providers in the telecommunication industry will be selected by their ability to flexibly respond to consumer desires. This requires them to stay abreast of information technology industry progress and innovation in general, as well as predicting applications to the telecommunication customer devices. They also need to be exceedingly aware of the desires of the consumer on everything from colors, shapes and styles to capabilities. It will require a dedication to a robust telecom billing software process to succeed.
Four arrested for cheating telecom company
Four people accused of cheating telecommunication company Uninor of Rs.95 lakh have been arrested, police said Saturday.
Manoj Pahwa, 34, Varun Mittal, 23, Rahul Sharma, 33, and Nitin Sharma, 24, cheated the company - a joint venture of Norway-based Telenor and Indian firm Unitech - by fraudulent withdrawals using 13 cheques stolen from the company's office in Saket area of south Delhi, a police official said 'Signatures of the authorised signatory of the company were forged by them,' the police official said.The police have recovered around Rs.30 lakh and a kilogram of gold from the accused.
Manoj Pahwa, 34, Varun Mittal, 23, Rahul Sharma, 33, and Nitin Sharma, 24, cheated the company - a joint venture of Norway-based Telenor and Indian firm Unitech - by fraudulent withdrawals using 13 cheques stolen from the company's office in Saket area of south Delhi, a police official said 'Signatures of the authorised signatory of the company were forged by them,' the police official said.The police have recovered around Rs.30 lakh and a kilogram of gold from the accused.
'RIM offers data tapping at India office'
: Blackberry maker Research in Motion , which had been slapped with a January 31 deadline to provide a 'final solution' for lawful interception of services offered on its handsets , has offered to install a network data analysis system at its premises in India, to end the three-year standoff between the Canadian company and security agencies here.
The home ministry has suggested that the Canadian company set up this NDAS infrastructure that has the capabilities to automatically decode all data flowing on RIM's network, and also ensure that intercepted and decoded information will not travel outside the country, at the premises of mobile phone companies.
In an internal note reviewed by ET, the home ministry said its opposition towards RIM setting up the network data analysis system at its own premises here stemmed from a security perspective.
Earlier this month, RIM had offered a cloud-based solution to India's home ministry , but the latter then sought changes after it was found that intercepted and decoded data was flowing via the internet from the Canadian company's servers in Europe to that of mobile networks here.
"In the final solution proposed by RIM, the decoding will be automatic. Intercepted and decoded data will not travel out of India. RIM has proposed to install NDAS in India. In the final solution, intercepted and decoded data will travel between service providers and RIM India ," adds the home ministry note issued by its deputy director Arvind Kumar.
This marks a significant climbdown for the Canadian company, which had previously resisted pressure from India's home ministry, to install servers here, while also maintaining that it did not have any master key to intercept any BlackBerry communication.
The stakes are big for the Canadian smartphone maker, especially since India is one of its fastest growing markets. Super secure corporate email has been RIM's unique selling point, which has made the BlackBerry service an instant hit with high-flier executives. Today, India has over a million BlackBerry users although less than 4 lakh subscribe to its email and messenger service.
In October, the government ordered RIM to come up with a solution by January 2011-end that would give the country's intelligence agencies complete access to all services offered on its handsets.
It had earlier asked RIM to hand over the encryption keys and codes of its corporate mail and messaging services to the Indian security establishment by October 31. The extension to January-end 2011 was given since RIM had sought a timeframe of 23 weeks in August to provide a solution for lawful access 'that would not involve overseas data path'.
The home ministry has suggested that the Canadian company set up this NDAS infrastructure that has the capabilities to automatically decode all data flowing on RIM's network, and also ensure that intercepted and decoded information will not travel outside the country, at the premises of mobile phone companies.
In an internal note reviewed by ET, the home ministry said its opposition towards RIM setting up the network data analysis system at its own premises here stemmed from a security perspective.
Earlier this month, RIM had offered a cloud-based solution to India's home ministry , but the latter then sought changes after it was found that intercepted and decoded data was flowing via the internet from the Canadian company's servers in Europe to that of mobile networks here.
"In the final solution proposed by RIM, the decoding will be automatic. Intercepted and decoded data will not travel out of India. RIM has proposed to install NDAS in India. In the final solution, intercepted and decoded data will travel between service providers and RIM India ," adds the home ministry note issued by its deputy director Arvind Kumar.
This marks a significant climbdown for the Canadian company, which had previously resisted pressure from India's home ministry, to install servers here, while also maintaining that it did not have any master key to intercept any BlackBerry communication.
The stakes are big for the Canadian smartphone maker, especially since India is one of its fastest growing markets. Super secure corporate email has been RIM's unique selling point, which has made the BlackBerry service an instant hit with high-flier executives. Today, India has over a million BlackBerry users although less than 4 lakh subscribe to its email and messenger service.
In October, the government ordered RIM to come up with a solution by January 2011-end that would give the country's intelligence agencies complete access to all services offered on its handsets.
It had earlier asked RIM to hand over the encryption keys and codes of its corporate mail and messaging services to the Indian security establishment by October 31. The extension to January-end 2011 was given since RIM had sought a timeframe of 23 weeks in August to provide a solution for lawful access 'that would not involve overseas data path'.
BSNL to enter into roaming arrangements with private players
State-owned BSNL is set to invite bids from private operators to share its third generation airwaves, a company official told ET.
The telco is of the view that it can raise between Rs 2,500 crore to Rs 5,000 core over five years if it were to enter into roaming arrangements with two players for its third generation airwaves.
"Having tracked MTNL's success in attracting bids (for sharing its 3G airwaves by entering into roaming agreements, we are working to put in place a similar model," BSNL's acting chairman and managing director Gopal Das told ET.
BSNL has 3G airwaves in all circles except in Delhi and Mumbai. The telco had to shell out over Rs 10,000 crore for these airwaves, as it had to match the bids by private operators.
The 3G auctions, which took, place last year failed to throw up a pan-India licence holder. The country's top two mobile firms—Bharti Airtel and Reliance Communications (RCOM) —each won 13 of the 22 telecom zones on offer while other major operators Vodafone Essar, Idea Cellular and Tata won a total of nine, 11 and nine circles, respectively.
Analysts also say in a bid to retain their high-end users, all telcos are set to enter into roaming agreements with each other, a move that can enable them offer high-end data services even in those regions where they have not bagged 3G spectrum. This is not spectrum sharing, but a commercial pact where operators can offer its customers 3G services on another operators' platform.
For BSNL, which has failed to make any significant progress in attracting 3G customers, despite having a first mover advantage, the revenues from sharing 3G spectrum will help the company reduce its losses. BSNL saw its overall revenue fall from Rs 32,842.30 crore in 2007-08 to Rs 30,169.42 crore in 2008-09 and further to Rs 27,913.44 crore in 2009-10 and has reported revenues of Rs 13,823.96 crore for the first half of the current financial year (2010-11). BSNL's fall from grace is best explained from the fact that its annual revenues were over Rs 40,000 crore for the year-ended March '06.
ET had earlier reported that BSNL, which suffered from rampant political interference and neglect under former telecoms minister A Raja, had recently announced a loss of Rs 1,823 crore for the year to end-March , a first for the company since it was set up, while also adding that the actual losses are as high as Rs 5,955 crore during this period. The telco only managed to reduce its losses due to its Rs 4,132 crore income from non-telecom related activities.
The telco is of the view that it can raise between Rs 2,500 crore to Rs 5,000 core over five years if it were to enter into roaming arrangements with two players for its third generation airwaves.
"Having tracked MTNL's success in attracting bids (for sharing its 3G airwaves by entering into roaming agreements, we are working to put in place a similar model," BSNL's acting chairman and managing director Gopal Das told ET.
BSNL has 3G airwaves in all circles except in Delhi and Mumbai. The telco had to shell out over Rs 10,000 crore for these airwaves, as it had to match the bids by private operators.
The 3G auctions, which took, place last year failed to throw up a pan-India licence holder. The country's top two mobile firms—Bharti Airtel and Reliance Communications (RCOM) —each won 13 of the 22 telecom zones on offer while other major operators Vodafone Essar, Idea Cellular and Tata won a total of nine, 11 and nine circles, respectively.
Analysts also say in a bid to retain their high-end users, all telcos are set to enter into roaming agreements with each other, a move that can enable them offer high-end data services even in those regions where they have not bagged 3G spectrum. This is not spectrum sharing, but a commercial pact where operators can offer its customers 3G services on another operators' platform.
For BSNL, which has failed to make any significant progress in attracting 3G customers, despite having a first mover advantage, the revenues from sharing 3G spectrum will help the company reduce its losses. BSNL saw its overall revenue fall from Rs 32,842.30 crore in 2007-08 to Rs 30,169.42 crore in 2008-09 and further to Rs 27,913.44 crore in 2009-10 and has reported revenues of Rs 13,823.96 crore for the first half of the current financial year (2010-11). BSNL's fall from grace is best explained from the fact that its annual revenues were over Rs 40,000 crore for the year-ended March '06.
ET had earlier reported that BSNL, which suffered from rampant political interference and neglect under former telecoms minister A Raja, had recently announced a loss of Rs 1,823 crore for the year to end-March , a first for the company since it was set up, while also adding that the actual losses are as high as Rs 5,955 crore during this period. The telco only managed to reduce its losses due to its Rs 4,132 crore income from non-telecom related activities.
Friday, December 31, 2010
Free SMS sites expect jump in usage around New Year :)
Free mobile short message services provider and e-card sites are betting big on the growing net savvy gene-ration. As netizen finds e-way the ‘cool’ way to wish their loved ones across the globe, firms like Indyarocks, Way2sms, 123greetings and ibibo are expecting a double digit growth in their revenues this December.
“We are seeing an increase in usage of free platform for every single festival. New Year will be the biggest occasion for us and we are expecting around 15 million SMS greetings to be sent during December 31 and on January 1,” said Kalyan Manyam chief executive officer, Indiya-rocks, one of the free SMS providers.
The free service providers who follow a revenue model based on advertisements also see advertisers evincing interest this year. “We are on way to touching a revenue of $0.75 million (around Rs 3.3 crore) this year and we generally see a 60 per cent rise in revenues this festive season due to a high interest from advertisers,” added Manyam.
One of the important resons for the uptake of free SMSs in the rencet time is because all major mobile service providers withdrew offers on voice calls and SMS during festive season. These free services provide netizen the ease of use and ability to send group SMS greetings with a single click of the mouse.
ibibo, a social game provider in India also provides free SMS and free call option for its registered users. “We use all means to enhance social commun-ication, free SMS and free call is also part of this. During the festive season we see a trend in the usage of e-card and we expect an increase of 40-50 per cent this season,” said Rahul Razdan, president - products & operations, ibibo. The companies which witnessed an increment in visitors during Christmas eve, has even come out with innova-tive means to lure users for New Year. For example, Indiyarocks is running a contest where users can share their special moments in 2010 and is also running a virtual movie awards based on users choice. Another player specialised in eCards —123Greetings, has come out with New Year e-greeting with music, animation, special effects and offers more customisation. The site, which sees an average of 399, 250 visitors per day from across the globe, said visitors from India make up around 20 per cent of its traffic.
“Our service is used by over 91 million unique visitors annually and we offer 20,000 greeting cards which is a mix of 3,000 seasonal and everyday cards. However, we see more users using our service during December. We expect a two-fold growth in the number of users and also revenues from India this month,” said Arvind Kajaria, managing director of IntraSoft Technologies Ltd., which owns 123Greetings.com.
The data available at Google Trends India and Google Insights websites hosted by Google which analyses a portion of hot Google web searches, some of the hot searches on December 24 were Way2sms, New year greet-ings, Christmas SMS hindi, jingle bell songs and Christ-mas scraps. The graphs and statistics state most of these searches are being done from cities like Mumbai, Bangalore, Delhi, Chennai and Pune where majority of the working youth are concentrated and Internet penetration is high. Even the data from last New Year’s eve shows that Indians prefer e-cards and e-sms to wish their loved ones and the trend is expected to be the same this year.
“We are seeing an increase in usage of free platform for every single festival. New Year will be the biggest occasion for us and we are expecting around 15 million SMS greetings to be sent during December 31 and on January 1,” said Kalyan Manyam chief executive officer, Indiya-rocks, one of the free SMS providers.
The free service providers who follow a revenue model based on advertisements also see advertisers evincing interest this year. “We are on way to touching a revenue of $0.75 million (around Rs 3.3 crore) this year and we generally see a 60 per cent rise in revenues this festive season due to a high interest from advertisers,” added Manyam.
One of the important resons for the uptake of free SMSs in the rencet time is because all major mobile service providers withdrew offers on voice calls and SMS during festive season. These free services provide netizen the ease of use and ability to send group SMS greetings with a single click of the mouse.
ibibo, a social game provider in India also provides free SMS and free call option for its registered users. “We use all means to enhance social commun-ication, free SMS and free call is also part of this. During the festive season we see a trend in the usage of e-card and we expect an increase of 40-50 per cent this season,” said Rahul Razdan, president - products & operations, ibibo. The companies which witnessed an increment in visitors during Christmas eve, has even come out with innova-tive means to lure users for New Year. For example, Indiyarocks is running a contest where users can share their special moments in 2010 and is also running a virtual movie awards based on users choice. Another player specialised in eCards —123Greetings, has come out with New Year e-greeting with music, animation, special effects and offers more customisation. The site, which sees an average of 399, 250 visitors per day from across the globe, said visitors from India make up around 20 per cent of its traffic.
“Our service is used by over 91 million unique visitors annually and we offer 20,000 greeting cards which is a mix of 3,000 seasonal and everyday cards. However, we see more users using our service during December. We expect a two-fold growth in the number of users and also revenues from India this month,” said Arvind Kajaria, managing director of IntraSoft Technologies Ltd., which owns 123Greetings.com.
The data available at Google Trends India and Google Insights websites hosted by Google which analyses a portion of hot Google web searches, some of the hot searches on December 24 were Way2sms, New year greet-ings, Christmas SMS hindi, jingle bell songs and Christ-mas scraps. The graphs and statistics state most of these searches are being done from cities like Mumbai, Bangalore, Delhi, Chennai and Pune where majority of the working youth are concentrated and Internet penetration is high. Even the data from last New Year’s eve shows that Indians prefer e-cards and e-sms to wish their loved ones and the trend is expected to be the same this year.
Mobile TeleSystems acquires 100% stake in Sistema Telecom
TeleSystems OJSC (MTS), a provider of mobile communication services, has acquired 100% stake in Sistema Telecom LLC (LLC Sistema Telecommunications, Informatics and Communications), a non-operating subsidiary of JSFC Sistema (AFK Sistema OAO). All the three companies are based in Russia.
Announcement (November 16, 2010):
MTS has signed a non-binding indicative offer to acquire 100% of Sistema Telecom for RUB11,590 million ($374.86 million).
The acquisition includes a 45% stake in TS-Retail, in which MTS currently holds a controlling 55% interest, certain promissory notes previously issued by MTS in the amount of RUB2,000 million ($64.68 million), and property rights in respect of the group of trademarks, including the egg trademarks of MTS, Comstar-UTS and Moscow City Telephone Network (MGTS).
As part of the transaction, MTS will assume debt considerations totaling RUB1,800 million ($58.21 million), which include the settlement of RUB1,350 million ($43.66 million) in debts between MTS subsidiaries and Sistema Telecom.
ING Bank is acting as financial advisor, while Latham & Watkins is acting as legal advisor to MTS.
The transaction is expected to close in the end of 2010.
Deal Participants
Deal Rationale
The acquisition will provide MTS full control of its logos and trademarks to ensure that all shareholders benefit equally in its brand's further development.
Announcement (November 16, 2010):
MTS has signed a non-binding indicative offer to acquire 100% of Sistema Telecom for RUB11,590 million ($374.86 million).
The acquisition includes a 45% stake in TS-Retail, in which MTS currently holds a controlling 55% interest, certain promissory notes previously issued by MTS in the amount of RUB2,000 million ($64.68 million), and property rights in respect of the group of trademarks, including the egg trademarks of MTS, Comstar-UTS and Moscow City Telephone Network (MGTS).
As part of the transaction, MTS will assume debt considerations totaling RUB1,800 million ($58.21 million), which include the settlement of RUB1,350 million ($43.66 million) in debts between MTS subsidiaries and Sistema Telecom.
ING Bank is acting as financial advisor, while Latham & Watkins is acting as legal advisor to MTS.
The transaction is expected to close in the end of 2010.
Deal Value (US$ Million) 374.86
Deal Type Acquisition
Sub-Category 100% Acquisition
Deal Status Completed: 2010-12-27
Deal Participants
Target (Company) OOO Sistema Telecom
Acquirer (Company) Mobile TeleSystems OJSC
Vendor (Company) AFK Sistema OAO
Deal Rationale
The acquisition will provide MTS full control of its logos and trademarks to ensure that all shareholders benefit equally in its brand's further development.
Mobile Data Growth in India an Opportunity and a Challenge!!!
Mobile data continues to grow at a phenomenal rate in countries that have already deployed data centric 3G networks. AT&T for example has noted a data growth of over 5000 percent in just three years. Most of this growth is attributed to high bandwidth video related services like video chat, IP TV and access to video content over sites like YouTube on the Internet access. The continued price pressure on data rates together with an unprecedented growth in demand has created a major challenge for operators around the world forcing them to seek ‘unconventional’ solutions.
One such solution is a ‘small cell’ approach where operators deploy femtocells in locations with poor cellular coverage. The data is backhauled via the existing broadband network using standard IP providing a more cost effective data coverage. The alternative solution that is gaining favor is to enable the Wi-Fi radio on the user’s smart phone and deoliver data over that interface rather than over licenced spectrum like UMTS/3G. Data in this case is also backhauled via the pubic Internet. Studies have shown that the majority of mobile data is generated by smart phones in indoor settings which make Wi-Fi an excellent data offload technology. Both these technologies allow data to be moved at a fraction of the cost – though Wi-Fi can be an order of magnitude cheaper than deploying femtocells.
India has been late to the 3G party but is fast catching up. Earlier this year, seven private operators paid a whopping $14.6 billion to buy 3G spectrum. A number of operators like Reliance and Tata have already launched their 3G services. As of end of September 2010, the wireless subscriber base in India stood at 687.71 million, second only to China. However, iSuppli forecasted that 3G will garner 250 million subscribers by 2012.
While there are similarities between India and other 3G enabled nations, there are some very significant differences. Due to fierce competition, voice tariffs in India are one of the lowest in the world. The Telecom Regulatory Authority of India recently reported a year-over-year decline in Average Revenue per User (ARPU) per month of 33.9 percent for GSM subscribers and 19.6 percent for CDMA subscribers. As of June 2010 the ARPU for GSM was Rs. 122 ($2.71) and for CDMA INR 74 ($1.64). This can be compared to an ARPU of more than $50.00 for post paid service in the U.S. Hence, to recover their huge investments in 3G, Indian operators will have to increasingly look at data services to drive revenue growth.
Indian operators do have a great track record in generating significant revenue from VAS services like ring back tones, music downloads, SMS and a variety of downloadable applications. Most of these services are offered through a strong web portal as ‘premium services’. So it is reasonable to assume that as 3G gains momentum, a lot of these services will be supplemented by high bandwidth services like video sharing, mobile TV, multi-player high-definition gaming and videoconferencing which can become a major revenue generator for them.
Another important factor that is likely to drive up data traffic is India is general internet access from mobile devices. While India has a rapidly growing mobile subscriber base, the low penetration of laptops and personal computers means that the primary source of internet access are likely to be mobile devices. Whatever be the driver, the focus on mobile data is likely to become a double edged sword, quickly outstripping network capacity. These factors, coupled with the limited spectrum allocated to operators in India, may lead to a ‘perfect storm’ where the networks get overwhelmed.
Operators are already aware of this problem and are actively seeking solutions to this problem using offload techniques. Femtocells are a valid proposition for them but they are pricey and are still not proven in the current deployments. A more appropriate solution for the Indian market is data traffic offload to Wi-Fi networks.
With this in mind operators are looking at developing Wi-Fi zones of their own or partnering with Wi-Fi operators and aggregators to see if some of the data can be offloaded to these networks. Both, Tata Communications and Bharti Airtel have been actively deploying hundreds of Wi-Fi hotspots across the country as a service to their broadband subscribers. BSNL, Reliance and Spectranet are also offering Wi-Fi Internet access.
Vikas Singh, CMO for Telemedia Services at Bharti Airtel was quoted as saying: “Airtel Wi-Fi hotspots will be strategically located at leading premium hotels, hospitals, chains of restaurants, coffee shops and corporate buildings that are the hub of corporate, community and social activities. For us, this is an initiative to increase customer stickiness and enhance average revenue per user (ARPU) of our broadband customer base.”
In parallel with the 3G roll out, alternative wireless services are being deployed to address the demand for wireless Internet services.
Companies like Tikona, a recent startup, are building all-IP wireless networks using unlicenced spectrum. The technology, referred to as WI-BRO - a variation of WiMAX, is built on meshed networking routes traffic over wired and wirelessly meshed access points. The iSuppli study forecasted a subscriber base for such services to reach 19 million by 2012.
By deploying a Wi-Fi data offload solution, mobile network operators can provide:
l Improved coverage and Quality of Service (QoS) for mobile data subscribers
l Seamless transition between 3G and Wi-Fi – no need for subscribers to manually register or log in to use the network
l Utilization of the existing mobile billing and charging infrastructure
l Subscriber access to secure content provided by the mobile operators – known as “walled garden” services
However, some work must be done to implement this functionality. Based on the operators’ requirements we have classified them into the following three categories.
The 3GPP and 3GPP2 standards bodies have published specifications for these techniques and some companies have developed products to enable seamless integration of Wi-Fi and Cellular networks. IntelliNet has been actively involved in a commercial trial with a leading edge operator in India and the initial results are promising.
However, successful deployment of this solution will require the vendors and the operators to work closely to implement a complete end-to-end solution which will not only address the technological aspects but also all the operational issues in deploying this service such as the integration with the backend OSS systems.
This technology will not only assist operators with 3G licenses offload their excess traffic but also will help operators with 2G licenses to provide their subscribers a 3G-like experience - and do so at a fraction of the cost of deploying 3G infrastructure.
Anjan Ghosal
The author is President, CEO and Founder, IntelliNet Technologies
One such solution is a ‘small cell’ approach where operators deploy femtocells in locations with poor cellular coverage. The data is backhauled via the existing broadband network using standard IP providing a more cost effective data coverage. The alternative solution that is gaining favor is to enable the Wi-Fi radio on the user’s smart phone and deoliver data over that interface rather than over licenced spectrum like UMTS/3G. Data in this case is also backhauled via the pubic Internet. Studies have shown that the majority of mobile data is generated by smart phones in indoor settings which make Wi-Fi an excellent data offload technology. Both these technologies allow data to be moved at a fraction of the cost – though Wi-Fi can be an order of magnitude cheaper than deploying femtocells.
India has been late to the 3G party but is fast catching up. Earlier this year, seven private operators paid a whopping $14.6 billion to buy 3G spectrum. A number of operators like Reliance and Tata have already launched their 3G services. As of end of September 2010, the wireless subscriber base in India stood at 687.71 million, second only to China. However, iSuppli forecasted that 3G will garner 250 million subscribers by 2012.
While there are similarities between India and other 3G enabled nations, there are some very significant differences. Due to fierce competition, voice tariffs in India are one of the lowest in the world. The Telecom Regulatory Authority of India recently reported a year-over-year decline in Average Revenue per User (ARPU) per month of 33.9 percent for GSM subscribers and 19.6 percent for CDMA subscribers. As of June 2010 the ARPU for GSM was Rs. 122 ($2.71) and for CDMA INR 74 ($1.64). This can be compared to an ARPU of more than $50.00 for post paid service in the U.S. Hence, to recover their huge investments in 3G, Indian operators will have to increasingly look at data services to drive revenue growth.
Indian operators do have a great track record in generating significant revenue from VAS services like ring back tones, music downloads, SMS and a variety of downloadable applications. Most of these services are offered through a strong web portal as ‘premium services’. So it is reasonable to assume that as 3G gains momentum, a lot of these services will be supplemented by high bandwidth services like video sharing, mobile TV, multi-player high-definition gaming and videoconferencing which can become a major revenue generator for them.
Another important factor that is likely to drive up data traffic is India is general internet access from mobile devices. While India has a rapidly growing mobile subscriber base, the low penetration of laptops and personal computers means that the primary source of internet access are likely to be mobile devices. Whatever be the driver, the focus on mobile data is likely to become a double edged sword, quickly outstripping network capacity. These factors, coupled with the limited spectrum allocated to operators in India, may lead to a ‘perfect storm’ where the networks get overwhelmed.
Operators are already aware of this problem and are actively seeking solutions to this problem using offload techniques. Femtocells are a valid proposition for them but they are pricey and are still not proven in the current deployments. A more appropriate solution for the Indian market is data traffic offload to Wi-Fi networks.
With this in mind operators are looking at developing Wi-Fi zones of their own or partnering with Wi-Fi operators and aggregators to see if some of the data can be offloaded to these networks. Both, Tata Communications and Bharti Airtel have been actively deploying hundreds of Wi-Fi hotspots across the country as a service to their broadband subscribers. BSNL, Reliance and Spectranet are also offering Wi-Fi Internet access.
Vikas Singh, CMO for Telemedia Services at Bharti Airtel was quoted as saying: “Airtel Wi-Fi hotspots will be strategically located at leading premium hotels, hospitals, chains of restaurants, coffee shops and corporate buildings that are the hub of corporate, community and social activities. For us, this is an initiative to increase customer stickiness and enhance average revenue per user (ARPU) of our broadband customer base.”
In parallel with the 3G roll out, alternative wireless services are being deployed to address the demand for wireless Internet services.
Companies like Tikona, a recent startup, are building all-IP wireless networks using unlicenced spectrum. The technology, referred to as WI-BRO - a variation of WiMAX, is built on meshed networking routes traffic over wired and wirelessly meshed access points. The iSuppli study forecasted a subscriber base for such services to reach 19 million by 2012.
By deploying a Wi-Fi data offload solution, mobile network operators can provide:
l Improved coverage and Quality of Service (QoS) for mobile data subscribers
l Seamless transition between 3G and Wi-Fi – no need for subscribers to manually register or log in to use the network
l Utilization of the existing mobile billing and charging infrastructure
l Subscriber access to secure content provided by the mobile operators – known as “walled garden” services
However, some work must be done to implement this functionality. Based on the operators’ requirements we have classified them into the following three categories.
The 3GPP and 3GPP2 standards bodies have published specifications for these techniques and some companies have developed products to enable seamless integration of Wi-Fi and Cellular networks. IntelliNet has been actively involved in a commercial trial with a leading edge operator in India and the initial results are promising.
However, successful deployment of this solution will require the vendors and the operators to work closely to implement a complete end-to-end solution which will not only address the technological aspects but also all the operational issues in deploying this service such as the integration with the backend OSS systems.
This technology will not only assist operators with 3G licenses offload their excess traffic but also will help operators with 2G licenses to provide their subscribers a 3G-like experience - and do so at a fraction of the cost of deploying 3G infrastructure.
Anjan Ghosal
The author is President, CEO and Founder, IntelliNet Technologies
Mobile connections cross 4 crore in Gujarat, 1 crore added in just 9 months
From a little over 4,000 in 1997 to over four crore in 2010. That is how Gujarat has progressed in number of mobile connections in the past 13 years. Now, the state boasts of 4,01,58,662 mobile connections.
The October 2010 subscription data report of the Telecom Regulatory Authority of India (Trai), which was released last week, says the mobile subscription in Gujarat stands at 4,01,58,662.
These connections have been provided by 10 operators.
Considering that Gujarat's estimated population is about six crore, the current number of cellularconnections gives one the impression that about 66.6% of people (or 6.66 out of every 10 people) have mobile connections.
But industry sources say there are many who possess more than one connection, so it is not necessarily true that 66.6% of people hold mobile connections.
In May 1997, there were only 4,100 mobile connections in Gujarat. At that time there were only two operators and the incoming charge was Rs8 per minute. It took 11 years for the number of mobile connections to reach one crore in May 2007.
However, the number of subscriptions increased remarkably in short spans thereafter.
Then it took another 18 months for that figure to double. And by the end of January 2010, that is, in only about 14 months, Gujarat recorded a total of three crore mobile phone connections. And soon, in next nine months, one crore connections were added and the number of connections now is over four crore.
Five years back, Gujarat was on the top in the number of connections among 22 circles in India but today it stands seventh.
By end of October 2010, Tamil Nadu had 6.36 crore mobile connections followed by Uttar Pradesh (East) with 5.46 crore, Andhra Pradesh (5.40 crore), Maharashtra & Goa excluding Mumbai (5.23 crore), Bihar (4.63 crore) and Karnataka (4.38 crore). The number of mobile connections in India is now 70.66 crore,of which Gujarat contributes 5.67%.
In last one year, five new telecom companies - Videocon, Uninor, Aircel, Etisalat (GSM service) and Shyam Sistema (CDMA service) - have launched their services in Gujarat. Besides, two existing CDMA players _ Tata and Reliance _ have also started their GSM operations in the state.
Of the total four crore mobile connections, the new players have a share of around 50 lakh connections. Industry sources say since there is a rise in multi-SIM users in Gujarat, there is a huge potential for mobile penetration in rural areas.
"It is pure SIM card penetration in which more than one SIM card is sold to a person. At present, in rural areas of Gujarat the actual mobile penetration is less than 40% so there is a huge potential there," said COO ofBharti Airtel (Gujarat Circle) Shivan Bhargava.
Of the total mobile subscription of 4,01,58,662 in Gujarat, about 3.80 crore are believed to be prepaid connections. "Around 95% of the total mobile connections are prepaid. With more telecom players entering the market, the prepaid connection sales have gone up. Simultaneously, there is also a rise in multi-SIM holders in which people want to try out the cheapest tariff services," said senior vice president (operations) Idea Cellular, Arul Bright.
He said in September and October which are months of festive season, many numbers were added and that pushed the mobile subscriptions to over four crore.
The October 2010 subscription data report of the Telecom Regulatory Authority of India (Trai), which was released last week, says the mobile subscription in Gujarat stands at 4,01,58,662.
These connections have been provided by 10 operators.
Considering that Gujarat's estimated population is about six crore, the current number of cellularconnections gives one the impression that about 66.6% of people (or 6.66 out of every 10 people) have mobile connections.
But industry sources say there are many who possess more than one connection, so it is not necessarily true that 66.6% of people hold mobile connections.
In May 1997, there were only 4,100 mobile connections in Gujarat. At that time there were only two operators and the incoming charge was Rs8 per minute. It took 11 years for the number of mobile connections to reach one crore in May 2007.
However, the number of subscriptions increased remarkably in short spans thereafter.
Then it took another 18 months for that figure to double. And by the end of January 2010, that is, in only about 14 months, Gujarat recorded a total of three crore mobile phone connections. And soon, in next nine months, one crore connections were added and the number of connections now is over four crore.
Five years back, Gujarat was on the top in the number of connections among 22 circles in India but today it stands seventh.
By end of October 2010, Tamil Nadu had 6.36 crore mobile connections followed by Uttar Pradesh (East) with 5.46 crore, Andhra Pradesh (5.40 crore), Maharashtra & Goa excluding Mumbai (5.23 crore), Bihar (4.63 crore) and Karnataka (4.38 crore). The number of mobile connections in India is now 70.66 crore,of which Gujarat contributes 5.67%.
In last one year, five new telecom companies - Videocon, Uninor, Aircel, Etisalat (GSM service) and Shyam Sistema (CDMA service) - have launched their services in Gujarat. Besides, two existing CDMA players _ Tata and Reliance _ have also started their GSM operations in the state.
Of the total four crore mobile connections, the new players have a share of around 50 lakh connections. Industry sources say since there is a rise in multi-SIM users in Gujarat, there is a huge potential for mobile penetration in rural areas.
"It is pure SIM card penetration in which more than one SIM card is sold to a person. At present, in rural areas of Gujarat the actual mobile penetration is less than 40% so there is a huge potential there," said COO ofBharti Airtel (Gujarat Circle) Shivan Bhargava.
Of the total mobile subscription of 4,01,58,662 in Gujarat, about 3.80 crore are believed to be prepaid connections. "Around 95% of the total mobile connections are prepaid. With more telecom players entering the market, the prepaid connection sales have gone up. Simultaneously, there is also a rise in multi-SIM holders in which people want to try out the cheapest tariff services," said senior vice president (operations) Idea Cellular, Arul Bright.
He said in September and October which are months of festive season, many numbers were added and that pushed the mobile subscriptions to over four crore.
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