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Thursday, February 17, 2011
Samsung mobile connects customers to ' RockeTalk'
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Etisalat to introduce Western Union mobile money transfer service in 18 countries
UAE based mobile operator Etisalat Group has signed an agreement with Western Union to introduce the Western Union international mobile money transfer service in the 18 countries where Etisalat operates.
Western Union said once the agreement is introduced, it will enable Etisalat's subscribers to send and receive Western Union Money Transfer transactions using their mobile 'wallets,' or accounts tied to their mobile phones.
Subscribers who initiate transactions from their mobile phones would be able to send funds to a receiver for cash payout at more than 400,000 Western Union Agent locations in 200 countries and territories.
In addition, this agreement will enable Etisalat subscribers to send funds to other selected mobile subscribers who have mobile wallets.
Etisalat subscribers who receive a Western Union money transfer in their mobile wallets would be able to use the funds to pay bills, top up airtime, send money domestically or internationally, or withdraw cash at a cash-out agent or any participating ATM, according to Western Union.
Western Union senior vice president of Electronic Channels Khalid Fellahi said their research shows that many of their customers want to send and receive money via electronic channels like the mobile phone.
"This alliance with Etisalat, a leading and rapidly expanding mobile operator in the region, will offer Etisalat's extensive subscriber base a convenient service they can use anywhere, anytime," Fellahi said.
Western Union offers the Mobile Money Transfer Service in the Philippines with Smart Communications and Globe Telecom; in Kenya with Safaricom; in Malaysia with Maxis; and in Canada with EnStream.source
Ambani questioned over telecom scam (AFP)
Indian telecom tycoon Anil Ambani met police investigators on Wednesday to answer questions over a suspected mobile licensing fraud that robbed the government of billions of dollars.
Ambani's Reliance ADA group, which controls India's second-biggest mobile group Reliance Communications, said the visit by the billionaire to the Central Bureau of Investigation (CBI) headquarters in New Delhi was voluntary.
"No summons of any kind has been issued by the CBI," the Reliance statement said.
Ambani, India's fourth-richest man with an estimated $13.7 billion fortune, according to Forbes, met CBI officials "to clarify ongoing issues relating to telecom matters", the group said.
The CBI would not immediately comment on Ambani's visit in connection with the widening police probe into the alleged fraud, one of the biggest corruption cases in Indian history that has badly damaged the Congress-led government which is also battling a slew of other scandals.
Television channels showed the 51-year-old Ambani leaving the CBI offices mobbed by TV crews.
Reliance ADA Group has denied any wrongdoing over the second-generation (2G) licensing scandal in which the government sold mobile licences at knockdown prices in 2008.
Ambani's CBI appearance came after the group said last weekend police had questioned several of its officials over alleged irregularities in the awarding of licences.
The industrialist's CBI visit came after Premier Manmohan Singh earlier Wednesday, in a rare media roundtable, defended himself against accusations of "inaction" in fighting corruption and vowed anyone found guilty would be punished.
The national auditor said late last year irregularities in awarding the sought-after licences cost the public exchequer up to $40 billion in lost revenues.
The CBI is looking into companies which may have benefited from suspected rigging of licence bidding rules under then telecom minister A. Raja and whether kickbacks were paid.
Raja was arrested with two former aides earlier this month in the scandal along with a senior executive of one of India's biggest real estate firms DB Realty which has a joint telecoms venture with Abu Dhabi's Etisalat.
The police agency has not alleged that any of the Reliance ADA Group firms profited from the scam.
It has, however, named India's Swan Telecom -- now known as Etisalat DB Telecom -- and India's second-largest listed real estate Unitech as allegedly having benefited. Unitech has joint telecom venture with Norway's Telenor.
The government auditor accused Reliance Communications, through its Reliance Telecom unit, of violating licensing rules by holding over 10 percent of rival Swan Telecom when it applied for a licence.
However, Reliance said on Wednesday no Reliance group company "held even a single share in Swan Telecom Ltd at the time of granting of the 2G licence."
All individuals and companies being probed have denied any wrongdoing.source
Wednesday, February 16, 2011
Apple Unveils Subscription Service for Digital Content Publishers
On Tuesday, Apple published details relating to its new App Store subscription services. The new policy outlines precisely how content publisher may provide subscription-based magazines, newspapers, videos, etc. through the App Store.As widely anticipated ahead of the policy’s publication, publishers of content-based applications can offer recurring billing. However, they are strictly prohibited from including external links to websites where the content subscriptions are similarly available.
Apple is requiring that all subscription payments go through the App Store’s new recurring billing option. The process secures a 30% share of the subscription cost for Apple, but only when Apple generates the new subscription.
“Our philosophy is simple — when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing,” said Apple Chief Executive Steve Jobs.
“All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app. We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers.”
Protecting customer privacy, Apple notes, remains of vital importance to the company – a situation that has proven a headache to publishers eager to get their hands on highly valuable personal subscriber data.
Apple, however, is meeting publishers half-way in this matter. That is, customers purchasing a subscription through the App Store will be given the option of providing the publisher with their name, email address and zip code when they subscribe. “The use of such information will be governed by the publisher’s privacy policy rather than Apple’s,” the Cupertino, California-based tech giant announced. “Publishers may seek additional information from App Store customers provided those customers are given a clear choice, and are informed that any additional information will be handled under the publisher’s privacy policy rather than Apple’s.”source
68% of Total Mobile & Digital Income reported by PPL in 2010
Phonographic Performance Ltd (PPL), a copyright society for Sound Recordings in India, which administers the Broadcasting / Telecasing and Public Performance Rights for over 139 music companies, reported a Mobile and Digital Income of Rs. 139 crore in the financial year ending March 31st 2010 (FY10), according to annual reports filed with India’s Registrar of Companies, sourced by Intellectual Property focused blog Spicy IP.
As per our analysis of the documents, Mobile and Digital segments have grown the most and the fastest since FY05, and this is indicative of the music industry’s dependence on the segment. The segment has been the dominant source of revenue for PPL at least since FY05, when it accounted for 39.18% of total income, and in FY10, it accounted for 67.75% of total Net Income.
Note that Mobile and Digital:
- Has grown 1753.33% since FY05, from Rs. 7.43 crore in FY05 to Rs. 137.81 crore in FY10
- From FY05 to FY08, in line with the growth in the mobile VAS industry, Mobile and Digital revenuesalmost doubled each year.- In FY09 and FY10, in line with the uncertainty in the mobile space – multi SIM environment, entry of multiple new telecom operators, and regulatory uncertainty from the TRAI, Mobile and Digital revenues grew 42.71% and 39.01% respectively.
- Caller Ringback Tones (CRBT) went from accounting for 5.72% of total mobile and digital revenue in FY05 to 57.2% of total Mobile and Digital Revenue in FY06. Subsequently, PPL stopped reporting CRBT and Ringtone revenues separately.
- CRBT and Ringtones together accounted for most of Mobile and Digital Revenues in FY05 and FY06.In just one year (FY05 vs FY06), CRBT overtook Ringtones as a the key source of mobile net income for PPL.
Complete Overview Of PPL’s Net Operating Income
Below is a table that gives you an overview of PPL’s Net Operating Income from FY05 to FY10, which we’ve prepared on the basis of annual reports published at SpiceIP:
Some notes to accounts that we’ve culled out:
FY06
- Rediff.com was responsible for PPL’s webcasting revenue in FY06, but it discontinued the deal due to a decline in revenue from Rs. 12.04 lakh in FY05 to Rs. 2.48 Lakh in FY06
- An unnamed Audio on Demand licensee did not renew the license
FY07
- Ringtone and Ringback Tone Revenues were clubbed together as Mobile Revenues
- Webcast Licensing Fees, Jukebox Licensing Fees and IVR Fees clubbed together as ‘Others’. Given that these are included as digital revenues in FY08, we’ve represented this as ‘Others (Digital)’ in the chart above.
- Radio and Telecasting Fees clubbed together as ‘Broadcasting’
FY08
- Mobile and ‘Others’ revenues were clubbed together in FY08 as ‘Mobile and Digital’.
- Telecasting Fees and Radio revenues were clubbed together as ‘Broadcasting’
FY09
- Mobile Radio business picked up, but the Ringtone business suffered on account of piracy. PPL also faced payment delays from a few content aggregators.
According to PPL’s Notes to the financial statements: “IVR license fees, Ringtone Service Fees, Ringback Tone Service Fees, Juke Box License Fees, Webcasting License Fees and Telecsting Fees have been accounted on the base of usage report submitted by parties at rates as per agreements. Estimates are made on a prudent basis wherever applicable.” and “Ringback Tone Service Royalty, IVR, Webasting License Royalty have been accounted for to the extent of the corresponding income for the year from fees, net of legal and administrative expenses”. source
IndiaTimes join hands with Reliance for WorldCup
The rights, bagged from Reliance Communication Limited, include mobile content services including all the needed services like SMS , voice & video alerts, live audio commentary, mobile content downloads and 2G and 3G.
Mahesh Prasad the president of Reliance communication said that, Indiatimes had an absolute and broad network services on 58888 and had the largest collection of infotainment content, it was therefore a strong natural choice for them distribution partnership. He added that they believe that with media strength alongside, Times would bring great value to the mobile subscribers.
Commenting on Reliance Mobile’s association with ICC Cricket World Cup 2011, Mr. Anil Pande, Head VAS, Reliance Communications said that, as ICC's 'Global Partner' till 2015 they were honored to be associated with the game that was gaining popularity across the World.
Mahesh Prasad the president of Reliance communication said that, Indiatimes had an absolute and broad network services on 58888 and had the largest collection of infotainment content, it was therefore a strong natural choice for them distribution partnership. He added that they believe that with media strength alongside, Times would bring great value to the mobile subscribers.
Commenting on Reliance Mobile’s association with ICC Cricket World Cup 2011, Mr. Anil Pande, Head VAS, Reliance Communications said that, as ICC's 'Global Partner' till 2015 they were honored to be associated with the game that was gaining popularity across the World.
' The Name Tunes' service fromTata Docomo
Tata DOCOMO has introduced a new innovative feature - Name Tunes, a VAS application in partnership with mCarbon.
You can now greet your caller with your name, not just tunes, with Tata DOCOMO’s 'Name Tunes'. Adding another exciting, new feature in its 'Call Me Tunes' portfolio and continuing to Do the New, Tata DOCOMO, has announced another new innovative feature—Name Tunes. The pioneering VAS application, a first-of-its-kind globally—is a result of Tata DOCOMO’s partnership with mCarbon, one of the leading VAS providers in the telecom industry.
Name Tunes allows subscriber to greet callers with his/her name and a personalized message of their choice, chosen easily from the Template Messages, thereby allowing callers a refreshing experience, rather than making them listen to the traditional ring tones or caller tunes. The offer is available exclusively to Tata DOCOMO subscribers.
"Name Tunes is in line with our way of doing things in a Refreshingly Different manner and brings in an element of fun and newness to the existing set of VAS offerings. Greeting callers with their own name, and then with a personalized message while the phone rings, will enable our subscribers to make their conversations even more pleasant and special, Mr Rishi Mohan Malhotra, the Value-Added Services Head at Tata DOCOMO, said while announcing the launch of the service.
"This offers a new vista of Caller Tune opportunities for our subscribers who want to stand out and be different. For Tata DOCOMO, this is an opportunity to reach out to the untapped market of personalized 'Call Me Tunes'. We are delighted with our association with mCarbon, which has helped us launch a global-first service, in keeping with our objective of redefining the telecom experience," he added.
Activating this service is quick and easy—Tata DOCOMO subscribers simply have to SMS 'First Name' to 52100, toll free. Subscription charges are Rs 30 per month and Name Tunes downloads will be charged at Rs 15 for 90 days.
So don’t waste any time, DO the New with this cool service and make an impression on your friends everytime they call you!source
Name Tunes allows subscriber to greet callers with his/her name and a personalized message of their choice, chosen easily from the Template Messages, thereby allowing callers a refreshing experience, rather than making them listen to the traditional ring tones or caller tunes. The offer is available exclusively to Tata DOCOMO subscribers.
"Name Tunes is in line with our way of doing things in a Refreshingly Different manner and brings in an element of fun and newness to the existing set of VAS offerings. Greeting callers with their own name, and then with a personalized message while the phone rings, will enable our subscribers to make their conversations even more pleasant and special, Mr Rishi Mohan Malhotra, the Value-Added Services Head at Tata DOCOMO, said while announcing the launch of the service.
"This offers a new vista of Caller Tune opportunities for our subscribers who want to stand out and be different. For Tata DOCOMO, this is an opportunity to reach out to the untapped market of personalized 'Call Me Tunes'. We are delighted with our association with mCarbon, which has helped us launch a global-first service, in keeping with our objective of redefining the telecom experience," he added.
Activating this service is quick and easy—Tata DOCOMO subscribers simply have to SMS 'First Name' to 52100, toll free. Subscription charges are Rs 30 per month and Name Tunes downloads will be charged at Rs 15 for 90 days.
So don’t waste any time, DO the New with this cool service and make an impression on your friends everytime they call you!source
New Study Reveals the Mobile Channel is First.
Neustar, Inc., (NYSE: NSR), a provider of market-leading, innovative solutions and directory services to enable trusted communication across networks, and Aepona, a provider of software solutions for Mobile Cloud Computing, today released the results of a new industry white paper*, authored by Yankee Group, called, "The Mobile Cloud: Unlocking New Profits". The research investigates the growing demand from consumers for high-speed mobile services and its impact on mobile network operators (MNOs), brands, advertisers, content owners, and enterprises. The report reveals that these stakeholders have an opportunity to differentiate themselves and add new revenue-generating services by harnessing mobile cloud computing (mobile cloud).
"Yankee Group is bullish on the prospects for the entire mobile ecosystem - if stakeholders have the ability to work together more efficiently. The industry needs capable stakeholders to step up and reduce the friction that currently stymies the creation of an efficient and profitable mobile platform," said Brian Partridge, vice president, Anywhere Network Research at Yankee Group. "Solutions that can successfully address these key challenges can help the entire mobile ecosystem create more profits."sourceHighlights:
- MNOs will require new sources of revenue that harness the value of the network investments;
- Yankee Group believes that the mobile cloud has the potential to change how consumers work, transact commerce, socialize, and entertain themselves.
- In the last five years, the mobile channel has moved from the bottom of the value stack to the top priority.
- Enterprise IT managers must deal with the growing need for enterprise application mobility and the impact from productivity tools created in the consumer world that are increasingly being brought into the work environment.
- Application developers face significant choices about which platform they should target for development and how to achieve wholesale access to MNO APIs.
"The study conducted by Yankee Group confirms our view that the mobile marketplace is at an inflection point," said Steve Edwards, senior vice president, Carrier Services. "Operators need monetize their network investments and support consumers' increasing appetite for rich media services. The Neustar Intelligent Cloud changes the mobile services business model by reducing operating costs and improving the consumer experience, while creating new revenue streams."
Key Findings:
Based on an examination of the mobile marketplace and ecosystem, the Yankee Group believes that a well-executed mobile cloud service eliminates the commercial and technical fragmentation that has proven to be a barrier in the past. The firm believes that by combining mobile cloud services with a motivated ecosystem, there are significant opportunities to enrich the entire marketplace.
"The Aepona software engine powers the convergence of open mobile networks with Mobile Cloud Computing," said Al Snyder, Chief Executive Officer, Aepona. "Through our work with OneAPI, we saw the need for a service that streamlines the path to market for mobile services. By working with Neustar, we are able to enable a rich variety of applications and series that utilize the mobile network features and intelligence available on-demand via the mobile cloud."
The complete white paper titled "The Mobile Cloud: Unlocking New Profits" can be downloaded at: http:// www.neustarintelligentcloud.biz/.
Tuesday, February 15, 2011
NextGen Voice Portal
Reliance Communications, one of India's telecom service provider, is all set to launch R World, a next generation mobile portal, a press release revealed.
The portal would deliver a host of futuristic mobile internet and data services to the customers.
Motricity's m-Core platform has been selected by the Indian telecom service provider to deliver advanced capabilities on its 3G, GSM and CDMA mobile platforms.
"The initial customer response to R World has been exceptional. We believe the future of mobile experiences is going to be based on the delivery of highly personalized offerings which include localized content, delivered to our customers in their native language," said Prashant Gokarn, head of 3G Business at Reliance Communications (News - Alert), in a statement.
Gokarn said that Reliance is pioneering a new way of delivering personalized information anytime, anyplace and through any device.Motricity's (News -Alert) m-Core Platform provides the company the scale and the capabilities it needs to deliver on this vision, he added.
"Motricity is pleased to continue to work closely with Reliance to evolve R World," said Ryan Wuerch, chief executive officer of Motricity.
Wuerch said that through the delivery of highly relevant experiences, Reliance will be in position to delight and retain its customers, and further monetize these offerings through the marketing of targeted mobile value added services, as well as, targeted mobile marketing and advertising campaigns.
Motricity is a mobile data solutions provider exclusively focused on the rapidly growing mobile Internet market.
Officials with Reliance pointed out that key features which the company intends to make available through R World include-Highly-targeted mobile marketing and advertising campaigns, to further monetize the mobile Internet experience; localized regional content to serve individual consumer interests and tastes; multiple language support, starting with Hindi, the native language of over 250 million Indians and location-based services to help ensure users get what matters most to them based on where they are at any given time.source
DTH+3G can bring the next big revolution.
These days I’m in Mumbai, and as I entered here while coming from Delhi I found almost every slum house on the way fitted with Airtel DTH. That’s some awesome thing, isn’t? DTH subscribers are over 20 Million now and guess what? It added 10 million subscribers during 2009-2010 i.e. adding half of it’s 5 year total during last year. It’s growth is amazing and everyone from Broadcasters to Subscribers are loving it.
Be it the innovations like- HDTV, Digital Dolby, Record via Mobile, Pause live TV or the content- interactive TV, Movies on Demand, people seem to praise every thing about DTH. And thanks the competition, prices are coming down almost every day.
As DTH expand it’s tentacles to untapped markets where Cable Industry couldn’t reach in last 10 years, it may give an answer to very important questions- Could we connect every household in India (specially rural India) via broadband? The answer lies in new-age wireless technologies like 3G and WiMAX (BWA). As Airtel Digital TV, CEO Ajai Puri puts it-
The advent of new wireless access technologies like 3G & BWA will make it possible for customers to experience the true power of two-way interactivity even on DTH.
Companies like Airtel, Tata and Reliance can actually take true advantage of being in both DTH and Telecom industries and acquiring costly 3G spectrum.
Wireless is the only solution to connect whole of India and TV can be a medium of choice to connect to internet for those who have never used a physical computer. Imagine the day when you can connect to internet just by attaching a mouse and keyboard to your Television!
Let’s see how fast these companies implement 3G technologies over DTH to enable 2-way interactivity which will not only enhance TV viewing experience but will also connect millions of Indians to broadband internet.
Do you think DTH can achieve what TRAI has been saying but couldn’t achieve till now- 200 Million broadband users?source
First Intel-branded 3G, 4G chips debut
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| Add capApple's iPad uses what is now an Intel 3G chip--formerly Infineon. (Credit: Apple) |
Intel announced shipments of the first 3G chips--and future 4G silicon--that sport its branding today at Mobile World Congress--the fruits of its acquisition of Infineon's wireless business.
"Intel Inside" takes on a new meaning with 3G chips. After the acquisition, Intel Mobile Communications has overnight become a major supplier of so-called baseband processors, which handle the 3G connection and are one of the most critical chips in a smartphone or tablet.
Announced today, the XMM 6260 is designed for smartphones and can be coupled with a smartphone's application processor or offered as a standalone solution for PC modems and data cards, Intel said.
The HSPA+ technology "comprises a fully integrated HSPA+ system solution supporting HSPA category 14 (21 megabits per second) in the downlink and category 7 (11.5Mbps) in the uplink," according to Intel.
Intel's MWC wireless rollouts don't stop there. The world's largest chipmaker also announced LTE technology, generically referred to as 4G.
The multimode (LTE/3G/2G) platform XMM 7060 "is suitable for integration in LTE-enabled portable devices such as mobile handsets, data cards/dongles and other embedded solutions," Intel said.
The 3G silicon is shipping in volume now, while the LTE solution will be available for volume shipment in the second half of 2012. Though the world's largest manufacturer of chips, Intel will not be making these products, instead consigning production to an Asia-based manufacturer.source
CBI questions brass of 9 telcos
NEW DELHI: CBI has accelerated its task of identifying the main beneficiaries of the 2G scam , masterminded by former Telecom Minister A Raja , ahead of the March 1 deadline set by the Supreme Court. Senior functionaries of S-Tel and Unitech, Loop Telecom, Swan Telecom and Reliance Communications have been questioned about their role in the scam in the last few days.
The investigating agency has already conducted one round of examining of officials of all 9 telecom companies which were conferred the 2G licences in 2008, and is in the process of interrogating them again. According to CBI, the charges against the companies which were awarded a total of 122 licences across 22 circles in 2008, fall broadly in three categories. They are, violation of the first-come-first-served policy, tampering of cut-off date for licences and failure to meet the eligibility criteria. The charges against most companies fall under any of the three categories or more.
In its status report before the apex court last week, CBI described it as multiple-conspiracies. CBI had last week arrested DB Realty promoter and Swan (now called Etisalat DB) director Shahid Balwa in connection with the scam. The prosecution claimed that Balwa had entered into a conspiracy with some private companies to cause a loss to the exchequer. The Comptroller and Auditor General (CAG) of India in its report last November said priority lists in Punjab and Maharashtra were tweaked to benefit Swan in spectrum allocation.
In the same report , CAG had alleged that S-Tel was not eligible for getting six mobile permits . The national auditor found that the company had submitted false certificate from the company secretary. S-Tel Chief Operating Officer Shamik Das said CBI had asked for information from all companies who got licences in 2008 and there were no specific charges against the company. He said the company had for its interaction with CBI sent its official representative.
A Unitech spokeswoman said pursuant to the Supreme Court order, all the 9 telecom companies which received the licenses were being questioned by the agencies and was not specific to any one company. Unitech is a responsible corporate, functioning within the guidelines prescribed by the government and has been fully co-operating with the investigating agency, she said.
RCOM CEO Wireless Syed Safawi said CBI was reportedly examining a large number of telecom companies and their officials from across the entire telecom industry in relation to various matters for 2001-2008 . “We are fully co-operating with the authorities in this regard, and will continue to extend all assistance as required to enable them to complete their investigations ,’’ he said.source
The investigating agency has already conducted one round of examining of officials of all 9 telecom companies which were conferred the 2G licences in 2008, and is in the process of interrogating them again. According to CBI, the charges against the companies which were awarded a total of 122 licences across 22 circles in 2008, fall broadly in three categories. They are, violation of the first-come-first-served policy, tampering of cut-off date for licences and failure to meet the eligibility criteria. The charges against most companies fall under any of the three categories or more.
In its status report before the apex court last week, CBI described it as multiple-conspiracies. CBI had last week arrested DB Realty promoter and Swan (now called Etisalat DB) director Shahid Balwa in connection with the scam. The prosecution claimed that Balwa had entered into a conspiracy with some private companies to cause a loss to the exchequer. The Comptroller and Auditor General (CAG) of India in its report last November said priority lists in Punjab and Maharashtra were tweaked to benefit Swan in spectrum allocation.
In the same report , CAG had alleged that S-Tel was not eligible for getting six mobile permits . The national auditor found that the company had submitted false certificate from the company secretary. S-Tel Chief Operating Officer Shamik Das said CBI had asked for information from all companies who got licences in 2008 and there were no specific charges against the company. He said the company had for its interaction with CBI sent its official representative.
A Unitech spokeswoman said pursuant to the Supreme Court order, all the 9 telecom companies which received the licenses were being questioned by the agencies and was not specific to any one company. Unitech is a responsible corporate, functioning within the guidelines prescribed by the government and has been fully co-operating with the investigating agency, she said.
RCOM CEO Wireless Syed Safawi said CBI was reportedly examining a large number of telecom companies and their officials from across the entire telecom industry in relation to various matters for 2001-2008 . “We are fully co-operating with the authorities in this regard, and will continue to extend all assistance as required to enable them to complete their investigations ,’’ he said.source
Mobile Call Charges Likely To Rise
he Telecom Regulatory Authority of India (TRAI), on Wednesday, has recommended a six-fold jump in 2G spectrum cost for operators. This is after the Comptroller and Auditor General’s (CAG) findings that the exchequer has lost an estimated amount of Rs. 1.76 lakh crore in 2008 by selling 2G licenses bundled with start-up spectrum at Rs. 1,658 crore to pan-India operators.
The operators are currently paying Rs. 1,658 crore for the contracted 6.2 MHz spectrum for pan-India license but TRAI has come out with a new rate of Rs. 10,972.45 crore. Also, each MHz of additional spectrum held by operators should cost a one-time charge of Rs. 4,571.87 crore (all India). However, this would vary from circle to circle and operators would be required to pay only for those circles, where they hold extra spectrum. TRAI has also recommended that the suggested prices should be made effective from April 1, 2010.
This would mean that our mobile bills are going to multiply in the coming days. Imagine the call rates being Rs. 5 or Rs. 6 per minute, for local calls. That would be “disastrous”, as the Cellular Operators Association of India (COAI), the general body for GSM service providers, says.
“This would mean that my mobile charges are going to triple or even more. My father lives abroad and if the call charges are going to be hiked, all I can do is reduce my dependency on mobile phones and make use of cheaper internet based services like Skype or GTalk,” says Arun Shajan, Quality Controller, Hilton Hyundai, Trivandrum.
“Also, in the long run, this is going to cause heavy loss for the government as more and more people would turn to the aforementioned services,” he adds.
Major telecom operators like Bharti and Vodafone have raised their concern over the new recommendations by TRAI, terming them as “flawed, illogical and discriminatory” against the old operators. The COAI also commented that it is like “changing the goal post in the middle of the game.”
However, the telecom operators in Trivandrum, when contacted chose not to comment on this. “I’m not aware of any such issues and as such I have not been intimated about any call charge hikes,” says Jyothi Shankar, XX, BSNL, Trivandrum.
Telecom minister Kapil Sibal also criticised the CAG for the methodology used to arrive at the presumptive figures. source
The operators are currently paying Rs. 1,658 crore for the contracted 6.2 MHz spectrum for pan-India license but TRAI has come out with a new rate of Rs. 10,972.45 crore. Also, each MHz of additional spectrum held by operators should cost a one-time charge of Rs. 4,571.87 crore (all India). However, this would vary from circle to circle and operators would be required to pay only for those circles, where they hold extra spectrum. TRAI has also recommended that the suggested prices should be made effective from April 1, 2010.
This would mean that our mobile bills are going to multiply in the coming days. Imagine the call rates being Rs. 5 or Rs. 6 per minute, for local calls. That would be “disastrous”, as the Cellular Operators Association of India (COAI), the general body for GSM service providers, says.
“This would mean that my mobile charges are going to triple or even more. My father lives abroad and if the call charges are going to be hiked, all I can do is reduce my dependency on mobile phones and make use of cheaper internet based services like Skype or GTalk,” says Arun Shajan, Quality Controller, Hilton Hyundai, Trivandrum.
“Also, in the long run, this is going to cause heavy loss for the government as more and more people would turn to the aforementioned services,” he adds.
Major telecom operators like Bharti and Vodafone have raised their concern over the new recommendations by TRAI, terming them as “flawed, illogical and discriminatory” against the old operators. The COAI also commented that it is like “changing the goal post in the middle of the game.”
However, the telecom operators in Trivandrum, when contacted chose not to comment on this. “I’m not aware of any such issues and as such I have not been intimated about any call charge hikes,” says Jyothi Shankar, XX, BSNL, Trivandrum.
Telecom minister Kapil Sibal also criticised the CAG for the methodology used to arrive at the presumptive figures. source
Secrecy in deal kept DoT, TRAI out of the loop
The Antrix-Devas controversial deal has brought to the fore the secretive functioning of the Department of Space (DoS) and the Indian Space Research Organisation while dealing with allocation of their resources for general use. The Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI), which are responsible for the growth of telecom and DTH services, have been making unsuccessful attempts at getting the DoS and ISRO to streamline issues related to these two sectors.
While the DoT is the custodian of spectrum (radio waves) and it frames policies on satellite communications and VSAT services such as DTH, the TRAI decides the regulatory mechanism of the two sectors. But in the deal between ISRO's commercial arm, Antrix Corporation, and Devas Multimedia, both the DoT and the TRAI were not kept in the loop.
“The use of satellites and transponders has undergone major changes since the boom in the mobile telephony and DTH sectors in recent years. As far as the use of space technologies for general use goes, it is no longer a secretive issue. Telecom and DTH come under our purview … we tried to discuss the matter with the DoS and ISRO officials on several occasions, but they never cooperated,” a former TRAI Chairman told The Hindu.
“The telecom sector is plagued by the scarcity of spectrum due to a tremendous boom in mobile telephony ... we have been trying to get unused spectrum from various government agencies like defence, police, Railways, and the DoS to ensure that the telecom sector gets spectrum to support growth. [But] the response from the DoS has been poor. We wanted to discuss the use of S-band to help the growth of broadband where India is lagging behind, but the DoS would either bring the Union Cabinet into the picture or talk about national security to scuttle our moves,” he said.
Significantly, the Department of Telecom opposed the ISRO-Devas deal in 2007, two years before ISRO asked for a review, while senior DoT officials have been saying ISRO had no power to allocate spectrum.
Devas' claim
Devas Multimedia president and CEO Ramachandran Viswanathan has been claiming that as per the agreement signed by the Bangalore-based firm and Antrix, the allocation of transponders was based on the SATCOM Policy as an “open window process,” just like DTH and GSAT service providers received in the past.
But the SATCOM Policy forms part of the New Telecom Policy 1999 that comes under the DoT and is made as per recommendations of the TRAI. Similarly, licences to VSAT service providers are also given under the NTP 1999. “The SATCOM Policy shall provide for users to avail [themselves] of transponder capacity from both domestic and foreign satellites. However, the same has to be in consultation with the Department of Space … Under the existing ISP policy, international long distance communication for data has been opened up. The gateways for this purpose shall be allowed to use SATCOM,” says NTP 1999.
Pointing out that they were never informed by the DoS at the time of the signing of the deal between Antrix and Devas, the former TRAI Chairman also said that legally they should have informed both the DoT and the TRAI. “And when the use of spectrum was for general interest, the DoS and ISRO should have consulted us. We have been demanding S-band spectrum for broadband services, but now it seems that Devas wanted to get the high-value spectrum for similar services,” he added.source
Vodafone says - Auctioning is the only way out of 2G mess
Vodafone Essar has told the Department of Telecom that auctioning 2G spectrum is the only right way forward to deal with the current mess. The mobile phone company said that recommendation by the telecom regulator to price spectrum based on calculations was incorrect and unjustifiable.
“Even though the one-man committee has criticised DoT for not implementing the 2003 decision of the Cabinet to move to auctioning of spectrum….even today the TRAI refuses to advice to move to an auction model and has come out with an arbitrary and flawed administrative way of charging for spectrum, designed to aggravate the discrimination between different operators,” the Vodafone letter to DoT Secretary said.
“We believe that there is only one way out of this mess viz. allocation of spectrum through transparent auctions. In respect of an administrative approach to address legacy issues, we believe that it at all it has to be applied, the only acceptable way forward will have to be a solution that is anchored around on uniformly applied principles — i.e. no distinctions between below and beyond 6.2 Mhz or between GSM and CDMA,” it said.
The TRAI has suggested that the Government should collect a one-time fee from operators with 2G spectrum at the rate of Rs 1,769 crore per Mhz of spectrum up to 6.2 Mhz and Rs 4,571 crore per Mhz for anything beyond that. This will cost the telecom firms about Rs 16,000 crore, according to Government estimates. Over the next few years, this could go up to Rs 40,000 crore, when the operators go for renewing their licences
Vodafone said that the TRAI had not granted a hearing. The company said that TRAI has no powers to impose retrospective charges for spectrum already allocated.
Last week, Reliance Communications had come out saying that the TRAI recommendations benefitted incumbent operators such as Vodafone as it had reduced the per Mhz price compared with the May 2010 proposals. In May last year, TRAI had said that 2G spectrum should be priced on a pro-rata based on 3G auction price.source
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