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Telecom Newsletter - November 05 to November 09, 2012

India Infoline News Service | Mumbai |

Nokia has been ranked the 3rd Most Trusted Brand in the country in The Economic Times-Brand Equity's annual 'Most Trusted Brands' survey for 2012.

Top Stories     


821mn smart devices will be bought globally in 2012: Gartner


The consumerization trend has hit IT as an unstoppable force, as 821 million smart devices (smartphones and tablets) will be purchased worldwide in 2012 and pass the billion mark in 2013, according to Gartner, Inc. Smart devices will account for 70 percent of total devices sold in 2012.

“For most businesses smartphones and tablets will not entirely replace PCs, but theubiquity of smartphones and the increasing popularity of tablets are changing the way businesses look at their device strategies and the way consumers embrace devices,” said Carolina Milanesi, research vice president at Gartner.

“In 2016, two-thirds of the mobile workforce will own a smartphone, and 40 percent of the workforce will be mobile,” said Milanesi. Tablets will be the key accelerator to mobility. Gartner estimates that in 2012 purchases of tablets by businesses will reach 13 million units and will more than triple by 2016, to reach 53 million units.
Read more…


TRAI’s recommendations on “Spectrum Management and Licensing Framework”


The Cabinet considered the following issues in its meeting held today:


(i) Spectrum pricing i.e. charging of spectrum currently held by the incumbent Telecom Service Providers (TSPs); and


(ii) Charging in the event of spectrum sharing and intra service area merger.


As recommended by the Empowered Group of Ministers (EGoM), the Cabinet approved the following:


(i) No one time charge be levied for spectrum holding upto 4.4 MHz (GSM);


(ii) For all spectrum holdings beyond 4.4 MHz (GSM), a onetime charge be levied prospectively upon the existing operators at 2012 auction determined price. The date of applicability of the charge shall be the date of commencement of the first quarter following the date of the Cabinet decision;


(iii) For spectrum held above 6.2 (GSM), a one-time charge would be levied from July 2008 onwards. There will be two prices. The price, pro-rated for the period July 2008 upto the date of applicability of auction determined price, would be the 2001 entry fee divided by 6.2, duly indexed using State Bank of India Prime Lending Rate (SBI PLR). With effect from the date of commencement of the first quarter following the date of the Cabinet decision the auction determined price would be levied; Read more…


We need today is to put in place a system designed for cyberspace: Sibal


Internet has evolved itself into a powerful, ubiquitous, empowering and liberating medium, even though only a fragment of its full potential is known and has been exploited by us so far. In its borderless cyberspace, internet provides limitless opportunities for freedom of speech and expression. Internet, perhaps is the nearest approximation to the utopian world of freedom, envisioned by one of our greatest poets, Dr Rabindranath Tagore. He said and I quote:

“Where the mind is without fear,

Where the head is held high,

Where knowledge is free,

Where the world has not been broken into fragments by narrow domestic walls...” Read more…


In focus Stories


Highlights on telecom subscription data as on 30th Sept 2012


Mobile Number Portability requests increased from 64.92 million subscribers at the end of August 2012 to 69.78 million at the end of September 2012. In the month of September 2012 alone, 4.86 million requests have been made for MNP. 


Active wireless subscribers on the date of Peak VLR in September 2012 are 698.96 Million, 77.10% of the total subscribers. 


Broadband subscription reached 15.08 million in September 2012 from 14.82 million in August 2012. 


The number of telephone subscribers in India decreased to 937.70 million at the end of September, 2012 from 939.57 million at the end of August 2012, thereby registering a monthly growth rate of -0.20%. The share of urban subscribers has declined to 63.53% from 63.77% whereas share of rural subscribers has increased to 36.47% in the month of September 2012.  With this, the overall Teledensity in India reached 77.04 at the end of September 2012 from 77.28 of the previous month. Read more…


Domestic News


Bharti Airtel Q2 net profit at Rs7.21bn


Bharti Airtel Ltd has posted results for the second quarter ended 30th September, 2012.Its net profit stood at Rs7.21bn, while its net sales is at Rs202.73bn.

Total Income has increased from Rs. 172764 million for the quarter ended September 30, 2011 to Rs. 202830 million for the quarter ended September 30, 2012.

In a statement, Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti AirtelLimited, said: “Despite a seasonally weak quarter, I am pleased to see that our overall revenue growth has sustained through diversified segments and geographies as well as the continuing healthy demand in data services. I am also happy to note that in India, the much needed market corrections in customer acquisition practices have been put in place by the operators. Our African operations continue to reflect sustained and steady growth on all major parameters of revenues, profitability and cash flow”.
Read more…


Reserve price for second generation airwaves in upcoming auctions is 'too high': Sunil Mittal


On the sidelines of the World Economic Forum,  Sunil Mittal reportedly said that the reserve price for second generation airwaves in the upcoming auctions is 'too high' and it will force the bidding process to be 'over in the first day itself'.


Sunil Mittal ruled out a repeat of the 3G spectrum sale in 2010, where telcos bid aggressively stretching the auctions to 35 days, according to reports.


Reports stated that the government has set a base price of Rs 140bn for 5 MHz of GSM airwaves in the 1800 MHz band on a pan-India basis, and the auctions are scheduled to start on November 12.


Polycom selected by Bajaj Group to streamline operations and enhance collaboration


Polycom, Inc.the global leader in open standards-based unified communications and collaboration (UC&C), today announced that Bajaj Group is using Polycom Real Presence video solutions to streamline its operations, reduce opex costs and enhance collaboration between the company’s corporate headquarters in Mumbai and Noida, its group companies, and six power plants, operated by the Energy division, in remote locations across India. 


This has helped the company to significantly improve delivery times on projects and reduce its travel and downtime manifold, going up to 70 percent in the space of 12 months, whilst also enhancing the productivity of its workers and cutting down on carbon emissions.


The Bajaj Group is amongst India’s top 10 business conglomerates. It has interests in a diverse range of sectors from power generation, fast moving consumer goods (FMCG), and coal mining to sugar manufacturing, ethanol production and real estate. The group currently employs over 15,000 people across India. Read more…


ICICI Bank and Vodafone India announces strategic alliance to launch ‘m-pesa’


ICICI Bank, India’s largest private sector bank and Vodafone India, one of India’s largest telecom service providers, announced a strategic alliance to launch aunique mobile money transfer and payment service called ‘m-pesa’. ‘m-pesa’ is the trademark of Vodafone. The announcement was made by Chanda Kochhar, MD & CEO, ICICI Bank and Marten Pieters, MD & CEO, Vodafone India Ltd.


ICICI Bank and Vodafone India through its 100% subsidiary, Mobile Commerce Solutions Ltd. (“MCSL”) have finalized plans to launch mobile payment services this year, under the brand name ‘m-pesa’. This offering will comprise: a mobile money account with ICICI Bank and a Mobile Wallet - issued by MCSL. Read more…


Airtel Selected Barco to supply video wall at its State of the Art Network Experience Centre


Visualization specialist Barco installed the largest suspended LED video wall at the state of the art Network Experience Centre of Bharti Airtel, a leading telecommunications services provider with operations in 20 countries across South Asia and Africa. 


The first of its kind Network Experience Centre was inaugurated on 31st October 2012 by the Hon'ble Minister of Communications and Information Technology, Shri Kapil Sibal. 


The installation consists of no less than 175 modules of 80", in a 25x7 configuration. This huge LED video wall will monitor the company's operations, optimizing the network's performance throughout India. Read more…


Nokia voted as 3rd Most Trusted Brand!


Nokia has been ranked the 3rd Most Trusted Brand in the country in The Economic Times-Brand Equity's annual 'Most Trusted Brands' survey for 2012.  The survey also recognizes Nokia as the No. 1 Technology name that consumers trust and the 2nd most trusted brand amongst young users in the age group of 15-25 years. 


Nokia’s leadership position highlights its deep relationship with the Indian consumer who recognize the truly differentiated experiences that the brand has to offer. 


The Brand Equity Most Trusted Brand survey identifies brands that have won that most special attribute – the consumers trust. Conducted by the Nielson Company for Brand Equity, this year the survey reached out to 8160 respondents across 12 cities. Read more…


Nokia and Idea Cellular Partner to Catalyze Mobile Internet Adoption in India


As a part of its strategy of connecting the next billion to the internet, Nokia India today announced a strategic partnership with Idea Cellular that will make the hugely popular Nokia Store and Nokia Music service easily accessible tomns of Idea Cellular consumers. The partnership will allow Idea Cellular consumers using Nokia phones to get the best Indian and global premium content from Nokia Store and Nokia Music and pay for it via their pre-paid or post-paid accounts. India’s 3rd largest mobile operator, Idea has over 115mn users on its network. The service will go live by the end of this week.


Nokia and Idea plan to leverage the superior internet experience offered by Nokia phones powered by Idea 2G and 3G data connections to further the adoption of the mobile internet in India and open up significant additional monetization opportunities for Indian and global app developers, music labels and publishers. Read more…


Lenovo unveils Turbo-Charged, Multi-Touch Smartphones in India


Lenovo the number one PC maker in India for 2 straight quarters (Source: IDC Q1 and Q2 CY2012) announced its foray into the smartphone market in India. This move strongly stems from Lenovo’s 4 screen strategy in the PC + era, of which smartphones is a key component.  The four screens comprise of PCs, tablets, smartphones and smart TVs. While PCs are central to the digital lives of millions, the epicenter of communication and businesses is shifting towards wireless devices like smartphones, tablets and netbooks.

Lenovo is entering the Indian market for smartphones after having built a strong and successful mobile phone business as the number two player with 11.2% (Q2 CY2012) market share in China. With this launch, a full range of Android based Lenovo smartphones will be available in the market, starting from the fully featured and affordable Lenovo A60+to the premium quad-core Lenovo K860.


“Having witnessed success in the PC space where we are currently No. 1 in India, our entry into the smartphones category is a strategic move that reinforces our commitment to lead technology and innovation across the 4 screens.  The number of consumers adopting smarter, wireless technology in the country is on the rise and we anticipate a huge increase in smartphone users. Lenovo smartphones offer a compelling value proposition for the Indian consumer and we are confident that our audiences will strongly consider our product portfolio,” said Ashok Nair, Director - Sales (South), Lenovo India. Read more…


Unsolicited SMSes: TRAI issues order


The Telecom Regulatory Authority of India (TRAI) released “The Telecom Commercial Communications Customer Preference (Tenth Amendment) Regulations, 2012” and Telecommunication Tariff (Fifty Fourth Amendment) Order, 2012 prescribing further measures to tighten the framework for controlling the menace of Unsolicited Commercial Communications (UCC), especially relating to commercial SMS from unregistered telemarketers.


TRAI has taken a series of measures in the recent past for curbing the menace of UCC. It issued “The Telecom Commercial Communications Customer Preference Regulations, 2010” on 1st December 2010, which came into force from 27th September 2011. Subsequently, for addressing the operational issues and for tightening the regulatory framework, a number of amendments have been issued to the principal regulations besides issue of a number of directions. The Telecom Commercial Communications Customer Preference (Tenth Amendment) Regulations, 2012 has been issued to further tighten the regulatory framework, especially relating to commercial SMS from unregistered telemarketers.  Read more...


iBall unveils Fab 22e fastest bar phone


iBall – known for innovation and latest technologies introduces yet another first. Its latest offering on the phone shelf is the Fab 22e, whose 312 MHz processor is the speediest among all bar phones in India. Endorsed by the charismatic Kareena Kapoor, the Fab 22e is packed with a big battery offering 8.5 to 9 hours talk time giving freedom to continue without the fear of being disconnected in the middle of your tete-a-tete. It also has a wirefree FM and MicroSD card support upto 8GB, making it envy for every other product in its segment.

This desirable beauty offers features that justify its ‘Shaan’ tag at an appealing best buy price of Rs 1499, with a 1.3 MP camera, web browsing capability and a clear 2.4 inch display. USB-friendly and supporting various file formats, the Fab 22e lets you play and watch a multitude of entertaining content.

Besides, with a 500 phonebook memory, multi-party conference capacity, dual SIM dual standby and music playback time of nearly 13 hours, there is every chance that professionals and leisure lovers alike will find it an attractive buy.
Read more…


Tata Teleservices withdraws application to bid for mobile airwaves: reports


Tata Teleservices has withdrew its application to bid for mobile airwaves used for CDMA-based services, according to reports.


Earlier Videocon, the only other participant in CDMA spectrum auctions had withdrawn its application, reports said.


Telecom department officials reportedly said that all bidders for GSM airwaves - Bharti Airtel, Vodafone, Idea Cellular, Telenor and Videocon - have confirmed participation in the 1800 MHz band sale process scheduled to begin on November 12.


Idea unveils International Roaming offer with new ‘iRoam’ packs!


Using mobile phone while travelling abroad just got more affordable, as Idea Cellular, India’s 3rd largest mobile operator has now launched special International Roaming Offer called ‘iRoam’ for its postpaid subscribers, which gives up to 75% discount on using both Voice & Data services.


Starting now, Idea Postpaid subscribers can avail upto 75% discount on their mobile phone usage while traveling to any of the 37 most frequently visited countries in the world including UAE, USA, Singapore, UK, Thailand, China, Germany, France, Switzerland, Sri Lanka, Hong Kong, Italy, etc. This exciting offer is valid for Voice, SMS and Data usage is valid for 30 days from the date of activation. 


Speaking about the new offer, Sashi Shankar, Chief Marketing Officer, Idea Cellularsaid, “Today voice and data usage is integral for International roamers - both business as well as leisure travelers. Our latest offer will cater to them, while also offering seamless connectivity, using the same number, for those customers travelling overseas, thus making their stay more affordable and convenient. We are confident that the new offer will provide immense benefits to international roamers during the festive season.” Read more…


SITI Digital Cable crosses 1.2mn customers


SITI Cable Network Limited believes that digitization provides an opportunity to build the business based on transparency at the same time servicing the customers using latest technology. The company has en cashed the life time opportunity by timely implementation of digitization in Delhi, Mumbai and Kolkata market & has announced having achieved over 1.2 million digital Cable TV customer base in three markets of Phase-1 cities of DAS (Digital Addressable System).


There is sharp rise in Set-top-Box (STB) penetration in last 15 to 20 days in its three markets of Delhi, Kolkata & Mumbai. The company has expected multifold increase in STB penetration due to digitization deadline of phase-1 cities.


Commenting on the landmark achievement, Mr. Anil Malhotra, Chief Operating Officer, SITI Cable Network Ltd said: “We are delighted and thank over 1.2 million SITI digital cable TV customers who helped us in achieving this landmark. We also owe this achievement to our cable operators who have bestowed confidence in us. SITI Cable pioneered the digital cable in India and since then we have been the frontrunner of digital cable tv innovations in the country. Now we aim to achieve the next 1.3 million customers very soon." Read more…


Hat-trick for ABIBA Systems by Deloitte, NASSCOM and TiE Lumis


ABIBA Systems, a leader in Telecom Analytics space, today announced that it is a winner in NASSCOM Emerge 50 2012 under the ‘Growth’ Category. This achievement comes to ABIBA soon after it has won Deloitte’s Technology Fast 50 India 2012 and TiE – Lumis Entrepreneurship Excellence Awards 2012 over a span of few weeks. The hat trick of awards won by ABIBA is something that only very few companies have achieved, if any.


ABIBA ranked Number 6 on the Deloitte Technology Fast 50 India 2012, a ranking of the 50 fastest growing technology companies in India. Rankings are based on percentage revenue growth over three years. ABIBA Systems grew 836 percent during this period.


The NASSCOM EMERGE 50 is an initiative that identifies and honours the Emerging companies that are redefining the benchmark of excellence for the next generation of SMEs and companies that are succeeding in emerging/domestic markets. ABIBA won the award under the ‘Growth’ Category. Read more…


Results watch


RCOM Q2 net profit at Rs1020mn


Reliance Communications Ltd has posted a net profit after taxes, Minority Interest and Share of Profit of Associates of Rs. 1020 mn for the quarter ended September 30, 2012 as compared to Rs. 2520.00 mn for the quarter ended September 30, 2011.


Total Income has increased from Rs. 50710.00 mn for the quarter ended September 30, 2011 to Rs. 52020.00 million for the quarter ended September 30, 2012.


Tata Comm Q2 cons net loss at Rs2742.40mn


Tata Communications Ltd has  posted a net (loss) (Loss) after taxes, minority Interest and share of proflt/(loss) of associates of Rs. (2742.40) mn for the quarter ended September 30, 2012 as compared to net loss of Rs. (1652.00) million for the quarter ended September 30, 2011.


Total Income has increased from Rs. 33717.40 mn for the quarter ended September 30, 2011 to Rs. 43027.70 million for the quarter ended September 30, 2012.


BT Group 2 revenue at £4,474mn


BT Group plc (BT.L) today announced its results for the second quarter and half year to 30 September 2012.


Ian Livingston, Chief Executive, commenting on the results, said:“We have delivered another solid quarter of growth in profit before tax despite the economic conditions and regulatory impacts. We continue to make significant investments in the future of our business and we are again accelerating our fibre roll-out. We now expect fibre to be available to two-thirds of UK premises during spring 2014, more than 18 months ahead of our original schedule, and we are recruiting more than 1,000 engineers in 2012 to help deliver this.“Over the summer we helped to deliver the most connected Olympic and Paralympic Games ever and I am proud of the part that our people played in its success.“Our confidence in the future of our business is demonstrated by the 15% increase in the interim dividend.”



Operating results overview

This quarter a number of prior year and/or one-off items have impacted the year on year revenue trends. Read more…


Global News


Tablets and Smartphones are the latest shopping tools: InMobi survey


InMobi, the world’s largest independent mobile ad network, in a latest survey conducted on mobile connected devices and its usage patterns in India, revealed that connected devices like tablets and Smartphone have taken over conventional fixed devices like desktops and laptops. InMobi partnered with Mobext, the mobile marketing network of Havas Digital, to conduct a study to better understand how consumers are using mobile connected devices in India, as mobile internet usage has surpassed desktop internet usage earlier this year.

According to the InMobi survey, covering more than 2,800 respondents across the country, Smartphone still remain the most preferred for entertainment and communication, while tablets are soon catching up. In what could be termed as technology adoption, the survey revealed that 54% of Indian desktop users & 56% Smartphone users are likely to purchase a tablet in next six months.
Read more…


Calpian’s emerging market mobile payments solution achieves milestone growth


Calpian, Inc. (CLPI) announces that as of October 31, 2012, the Money-on-Mobile service offered by its Indian subsidiary is now being supported by over 110,000 retail locations and accessed by approximately 17.8mn unique users since April 1, 2012.  


The October 2012 processed transaction volume, measured in Indian rupees, was 536.5mn INR – a 3.4% increase over processed volume in September 2012. At current exchange rates, October processed transaction volume was approximately $9.8million.

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