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Sunil Jain: Telecom nirvana
Look at regular reports from the Telecom Regulatory Authority of India (TRAI) and the message is clear: India’s mobile phone firms are providing pretty lousy service to their customers. That’s also a perception you get from talking to customers — who doesn’t have his/her call-drop stories? While the established telcos deny their service is that bad, or blame it on the lack of spectrum, the question is whether the service is bad enough to get subscribers to leave. It is for this reason that TRAI decided Mobile Number Portability (MNP) had to be introduced at the earliest. In return for a fee, subscribers can retain their existing number but use the service of another mobile phone company — so, you can have an Airtel phone but actually get your service from Vodafone, or vice-versa.
TDSAT member to be new Trai chairman
The decks have been cleared for the appointment of TDSAT member JS Sarma as the new chairman of the Telecom Regulatory Authority of India (Trai).
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According to sources close to the development, the official announcement of his name is expected to be made in a few days after the various formalities are completed.
Once appointed, Sarma will succeed former Trai chairman Nripendra Mishra who retired on March 22, 2009. Interestingly, Sarma’s name was not among the 13 names shortlisted from the 26 applications received by the search committee formed to select the next chairman. Sarma will relieve AK Sawhney of his duties as interim chairman when he takes charge.
Govt loses Rs 265 cr due to false reporting of cable numbers
The government is losing about Rs 265 crore of service tax collections annually in the top 20 towns due to cable operators under-declaring the number of subscribers.
These numbers have been submitted to the regulator, the Telecom Regulatory Authority of India (Trai), by various stakeholders in the cable industry, including broadcasters and multi-system operators (MSOs). These are based on the information collected from the tax departments of various state governments.
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The government is losing about Rs 265 crore of service tax collections annually in the top 20 towns due to cable operators under-declaring the number of subscribers.
These numbers have been submitted to the regulator, the Telecom Regulatory Authority of India (Trai), by various stakeholders in the cable industry, including broadcasters and multi-system operators (MSOs). These are based on the information collected from the tax departments of various state governments.
DoT rejects TRAI’s call for 3G policy review
In a move that would keep the roll out of third generation services on track, the Department of Telecom has rejected telecom regulator’s call to review some parts of the recently announced third generation policy.
The TRAI had sought a review on several issues in the policy – the key one being DoT’s decision to allocate spectrum to CDMA players based on subscriber numbers. The regulator had also asked the Government to refer the issue of allowing new and foreign players back to TRAI so that it can suggest the terms and conditions of the new licence category.
Rejecting TRAI’s view on foreign players, an internal DoT note said, “ The unified access licence are authorised to provide triple play – voice, data and video without any limit on speed of data. 3G service providers are not new category of licensees and they shall be offering 3G services under terms & conditions of the UASL licence. Therefore, the provision of the TRAI ACT 1997 is not applicable in this situation.”
Govt starts process to look for new Trai chairman
The government has initiated the process to look for a successor to head the Telcom Regulatory Authority of India (Trai), whose present chairman Nripendra Misra retires on March 21, 2009.
The Department of Telecommunications has sought permission from the cabinet secretariat to constitute a search committee for the selection of Trai chairperson.
After 3G, Trai differs with DoT on mobile number portability too
In yet another instance of disagreement with policymakers, Telecom Regulatory Authority of India (Trai) has questioned the Department of Telecommunication’s (DoT’s) decision to divide the country into two zones instead of one as recommended by the telecom regulator for mobile number portability (MNP) facility.
RCom links: TRAI, GSM players stand-off continues
The Telecom Regulatory Authority of India (TRAI) has once again rejected GSM operators’ stand on offering links to Reliance Communication and has issued a fresh deadline of August 21 for complying with its orders.
The telecom regulator has earlier asked
Financial Express : Calls from PCs to make long-distance tariffs cheaper; ISPs to gain
Long-distance telecom tariffs could dip again with the telecom regulator expected to announce the rules permitting calls from personal computers to fixed line and mobile phones. Currently, a voice call can travel between two computers but not from a mobil
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Long-distance telecom tariffs could dip again with the telecom regulator expected to announce the rules permitting calls from personal computers to fixed line and mobile phones. Currently, a voice call can travel between two computers but not from a mobile or a fixed phone. This is expected to open huge channels of revenues for the Internet service providers, ISP’s who wouldn’t need to acquire a Unified Access Service Licence (UASL) for operating these services.
This would also benefit the telecom service providers like Vodafone and Idea who don’t have national long distance licence/network and use other operators’ networks to carry long distance calls. These operators can carry their NLD calls using their IP network.
The Telecom Regulatory Authority of India (Trai) is going to announce these recommendations on Monday, despite the misgivings of the current UASL holders . The new competition would push up the heat for established UASL holders such as Bharti Airtel, Reliance Communication, Vodafone and BSNL.
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Telecom players have to shell out Rs 1,650 crore for a pan-India UASL, while ISPs pay token Re 1 as the licence fee and the ISPs providing PC to PC telephony have to pay 6% of their adjusted gross revenue.
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Financial Express : Telcos, ISPs lock horns over IP telephony
Even before the Telecom Regulatory Authority of India (Trai) has taken its first steps towards allowing connectivity between PCs and phones, telecom operators and Internet service providers (ISPs) are locking horns over the issue.
In separate communications to the regulator, Bharti Airtel and Reliance Communications have stated that if voice over Internet protocol—or, VoIP, which basically means using the Internet for telephone calls—is allowed, ISPs should be asked to migrate to the unified access service licence (UASL) regime.
State-owned Bharat Sanchar Nigam Ltd (BSNL) has gone even further to state that PC-to-phone calls should be disallowed, as it would destroy the national long-distance structure.
At stake is the wide difference in licence fees paid by telecom service providers and ISPs. The former pays Rs 1,650 crore for a pan-India licence fee, while ISPs pay a token fee of Re 1. Currently, Internet telephony is allowed but only from PC to PC, for which ISPs pay 6% of their adjusted gross revenue.
Financial Express : Spectrum not a barrier for new players
Telecom companies can now start providing services without getting the key raw material— spectrum —from the government. Thanks to a recent clarification “subtly” made by the department of telecommunications (DoT), new telecom players like the realty major Unitech and Videocon-owned, Datacom, which have been granted licences but no spectrum, can start commercial operations by getting into intra-circle roaming pacts with existing operators.
The clarification dated June 12 basically allows operators to enter into mutual commercial agreements for intra-service roaming facilities with other licensed operators. With this, analysts said, the new operators without spectrum could put up mobile switching centres (MSCs) and get into pacts with existing operators for spectrum. This way, these operators can start operations, that too, without building any network by just trading in spectrum, which is otherwise not permissible. This will also ensure them a good valuation without investing much in creating any infrastructure.
Financial Express : Trai needs accurate TRP numbers, ropes in stat bodies for evaluation
In order to determine the appropriate sample size that can reflect the TV viewership data with an adequate accuracy, the Telecom Regulatory Authority of India (Trai) is evaluating the option of roping in the National Sample Survey Organisation (NSSO) or Central Statistical Organisation (CSO), both of which fall under the ambit of ministry of statistics and programme implementation.
Recently, the existing market benchmarks of sample size (6,000 to 8,000) came under the scanner of information and broadcasting (I&B) ministry. The ministry held the view that a total of 6,000 to 7,000 peoplemetre installed only in urban locations is inadequate to represent 122 million TV households in the country and only reflects skewed TV viewership reality. Subsequently, the Centre referred the matter to the regulatory body. Trai’s recommendation on the issue is awaited.
According to a Trai official, “Arriving at a standard sample size is not an easy exercise. What is clear is that the current sample size is inadequate. But one cannot simply inflate the current figure, 6,000 to 60,000 or 6 lakh to zero on an accurate sample size. There are serious cost implications (cost involved in the data-collection) feasibility factors and profitability of the business of TRP involved. Therefore we are contemplating whether an expert body like NSSO or ministry of statistics can be engaged in the task.”
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In order to determine the appropriate sample size that can reflect the TV viewership data with an adequate accuracy, the Telecom Regulatory Authority of India (Trai) is evaluating the option of roping in the National Sample Survey Organisation (NSSO) or Central Statistical Organisation (CSO), both of which fall under the ambit of ministry of statistics and programme implementation.
Recently, the existing market benchmarks of sample size (6,000 to 8,000) came under the scanner of information and broadcasting (I&B) ministry. The ministry held the view that a total of 6,000 to 7,000 peoplemetre installed only in urban locations is inadequate to represent 122 million TV households in the country and only reflects skewed TV viewership reality. Subsequently, the Centre referred the matter to the regulatory body. Trai’s recommendation on the issue is awaited.
According to a Trai official, “Arriving at a standard sample size is not an easy exercise. What is clear is that the current sample size is inadequate. But one cannot simply inflate the current figure, 6,000 to 60,000 or 6 lakh to zero on an accurate sample size. There are serious cost implications (cost involved in the data-collection) feasibility factors and profitability of the business of TRP involved. Therefore we are contemplating whether an expert body like NSSO or ministry of statistics can be engaged in the task.”
3G policy guidelines to be out in June: Raja
The much-awaited guidelines for the 3G policy will be out this month, assured Communications Minister Andimuthu Raja today. Speaking on the sidelines of a conference, the minister said, "It has been delayed for some time. I will ensure that the policy is out by the 30th of June."
"I met both the finance secretary and the telecom secretary today. The guidelines for 3G, spectrum auction, as well as on participation of players, will be out this month," he added.
Global bidding for 3G is okay with Law Ministry
In what could be good news for foreign telecom companies wanting to invest in India, the Union Ministry of Law and Justice has suggested that the Communication Ministry may take the issue of following an open auction for third generation mobile services to a Group of Ministers if it wanted to overrule the views expressed by the Telecom Regulatory Authority of India.
While the Telecom Regulatory Authority of India has expressed concerns against an open auction on the grounds that existing players were more prepared for 3G mobile services, the Communication Ministry is in favour of inviting bids from international players also.
The Finance Ministry has also backed Communication Ministry on the grounds that an open auction will get more revenues for the Government.
TRAI has, however, told the Government that such a decision cannot be taken legally without considering the views of the regulator.
Telecom players divided over WiMax spectrum pricing
The telecom regulator’s move to review the spectrum pricing for wireless broadband services using technologies such as WiMax has divided the telecom industry.
While the GSM operator’s lobby Cellular Operators Association of India (COAI) has pushed for parity between the price for third generation mobile and WiMax to keep the playing field level, others — including Reliance Communication and Intel — want the spectrum for WiMax to be priced lower to make broadband services more affordable.
The outcome of this debate will have an impact on what consumers pay for wireless broadband services.
DoT asks RIM to find solution for Blackberry
The Department of Telecom (DoT) had another round of discussion with Research In Motion (RIM) in a bid to find a solution to the security concerns around Blackberry services.
DoT had asked the company to come out with a solution that would enable Indian security agencies to monitor data being transmitted through Blackberry devices.
RIM has already told DoT that it cannot give the codes to the device since it has been designed in such a way that it does not allow anyone, including RIM, to know the content of any email being sent through the device.
RIM also said that setting up a local data centre in India would not help in addressing the security needs since the network design would not allow anyone to snoop into the system at any point of the transmission.
TDSAT declines to stay spectrum allocation
In a relief to new operators Telecom Dispute Settlement Appellate Tribunal (TDSAT) on Wednesday refused to stay the allotment of spectrum. The TDSAT turned down the appeal of B.K. Modi-promoted Spice Communications which has pleaded that since tribunal would not be sitting for a month on account of summer vacation, it should stay allotment of spectrum till July 3, next date of hearing. Spice’s main contention is that if the spectrum allocation is not stopped then the re will not be enough left for them. T
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In a relief to new operators Telecom Dispute Settlement Appellate Tribunal (TDSAT) on Wednesday refused to stay the allotment of spectrum. The TDSAT turned down the appeal of B.K. Modi-promoted Spice Communications which has pleaded that since tribunal would not be sitting for a month on account of summer vacation, it should stay allotment of spectrum till July 3, next date of hearing. Spice’s main contention is that if the spectrum allocation is not stopped then the
re will not be enough left for them.
DoT removes cap on number of bandwidth resellers
In a move that would improve the availability of cheaper international bandwidth in the country, the Telecom Commission, the apex policy making body of the Department of Telecom, has given its approval for allowing unlimited number of bandwidth resellers in the country.
Bandwidth resellers are companies, which do not own any infrastructure, but buy capacity from large international long distance service providers like VSNL or AT&T and then resell it to consumers like business process outsourcing units. This could result in cheaper Internet services and international long distance calls.
The move will benefit larger consumers of bandwidth such as ITeS companies, BPOs and Internet service providers who will be able to buy bandwidth from the resellers at much lower costs.
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In a move that would improve the availability of cheaper international bandwidth in the country, the Telecom Commission, the apex policy making body of the Department of Telecom, has given its approval for allowing unlimited number of bandwidth resellers in the country.
Bandwidth resellers are companies, which do not own any infrastructure, but buy capacity from large international long distance service providers like VSNL or AT&T and then resell it to consumers like business process outsourcing units. This could result in cheaper Internet services and international long distance calls.
The move will benefit larger consumers of bandwidth such as ITeS companies, BPOs and Internet service providers who will be able to buy bandwidth from the resellers at much lower costs.
Licensing proposed for telecom content providers - IndianExpress.Com
The Telecom Regulatory Authority of India (TRAI) today initiated a move to bring value added service (VAS) providers under a licensing regime. Ring tones, video clippings, games and SMS-based services are value-added services.
In a consultation paper released today, the regulator has sought industry’s views on “need to bring content provider/aggregators called Value Added Service Providers (VASPs) under the licensing regime.”
In India, the revenue from mobile VAS is anywhere between 10 per cent and 14 per cent of the total revenue. It is expected to cross 30 per cent of the mobile telecom service provider’s revenue in the next 5-7 years, say experts. Today, SMS constitutes major a portion of the VAS revenue. While entertainment services have become popular with consumers, there is scope for utility-based services such as location information, mobile commerce (M-Commerce) for transactions.
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The Telecom Regulatory Authority of India (TRAI) today initiated a move to bring value added service (VAS) providers under a licensing regime. Ring tones, video clippings, games and SMS-based services are value-added services.In a consultation paper released today, the regulator has sought industry’s views on “need to bring content provider/aggregators called Value Added Service Providers (VASPs) under the licensing regime.”
In India, the revenue from mobile VAS is anywhere between 10 per cent and 14 per cent of the total revenue. It is expected to cross 30 per cent of the mobile telecom service provider’s revenue in the next 5-7 years, say experts. Today, SMS constitutes major a portion of the VAS revenue. While entertainment services have become popular with consumers, there is scope for utility-based services such as location information, mobile commerce (M-Commerce) for transactions
TRAI cautions DoT against overriding regulatory procedures
The Telecom Regulatory Authority of India (TRAI) has cautioned the Department of Telecom against taking any decision on policy matters without consulting it.
In a note written to Mr Siddarthha Behura, Secretary, Department of Telecom; TRAI’s Chairman, Mr Nripendra Misra, said that the recommendations of the regulator is required according to existing laws and DoT should keep this in mind to avoid any legal complications.
TRAI said that it had come to know that DoT was planning to amend licence term for unified access service and basic telecom providers.
DoT identifies new spectrum bands for 3G
The Department of Telecommunications (DoT) has called a meeting with operators on May 28 to discuss the allocation and pricing of 3G spectrum bands for launching new generation mobile phone services.
Spectrum or radio waves in the bands 2.3-2.4 GHz, 2.5-2.69 GHz, and 3.3-3.6 GHz were not available for allocation earlier. Therefore, when the Telecom Regulatory Authority of India (Trai) issued recommendation for 3G spectrum allocation and pricing in 2006, it had decided that allocations of spectrum in these bands will be decided as and when these were made available.
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The Department of Telecommunications (DoT) has called a meeting with operators on May 28 to discuss the allocation and pricing of 3G spectrum bands for launching new generation mobile phone services.
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</script>Spectrum or radio waves in the bands 2.3-2.4 GHz, 2.5-2.69 GHz, and 3.3-3.6 GHz were not available for allocation earlier. Therefore, when the Telecom Regulatory Authority of India (Trai) issued recommendation for 3G spectrum allocation and pricing in 2006, it had decided that allocations of spectrum in these bands will be decided as and when these were made available.
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n the draft guidelines, the DoT has said 3G spectrum will be allocated in the 2.1 GHz band.
Recently, the International Telecommunication Union (ITU) has identified 2.3-2.4 GHz band also as International Mobile Technology (IMT) band. Spectrum in the band of 2.5-2.69 GHz was already identified as IMT-2000 band and the DoT, as per its recent guidelines on Broadband Wireless Access (BWA), is also considering allotment of spectrum in these bands. Currently, they are used for satellite services.
The use of 2.3-2.4 GHz and 2.5-2.69 GHz band offers significant scope for innovation with the potential for induction of new technologies, services, applications and devices.
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