nl telecom july 25 - july 31, 2015

© Gyan Research and Analytics Pvt. Ltd., 2015 1

Policy News ❑ Vodafone and Madhya Pradesh government tie up for mobile-‐based disbursements Vodafone has tied up with the Madhya Pradesh government to facilitate mobile-‐based disbursement of financial assistance to mothers under the Janani Suraksha Yojana scheme. The Vodafone M-‐Pesa has been running in Vidisha from May 2015 and is fully ready. The payment of health care subsidies under the Janani Suraksha Yojana Scheme aims at reducing neo-‐natal and maternal deaths in India.

❑ Telecom companies to share network during disasters The Department of Telecommunication (DOT) announced that all telecommunication companies will share network with subscribers of other operators during disasters. It also directed companies to give public alerts to the users at such times. In April 2015, DOT had instructed operators to implement priority call routing facilities for personnel responsible for managing disasters.

❑ Telcos to auction 700 MHz in two years Indian telecommunication service providers plans to call for an auction of airwaves in the fourth generation band of 700 Mhz after two years, which include frequencies in the 2G, 3G and 4G bands. The Telephone Regulatory Authority of India (TRAI) recommended 700 MHz for 4G, apart from 800 MHz, 900 MHz, 1,800 MHz for 2G and 2,100 MHz, 2,300 MHz and 2,500 MHz for 3G. According to the Global Mobile Suppliers Association, only seven operators have commercially launched LTE services using 700 MHz band spectrum. The government earned INR 1.098 lakh crore from the sale of 418.5 MHz of airwaves in the March auctions.

Industry News ❑ Uninor is looking to grow in India Uninor is looking to grow its presence in India through sharing and trading of airwaves, after recovering from existential challenges of losing INR 70.3 crore in 4Q2014-‐15. Uninor was among the 22 operators whose licenses were cancelled by the Supreme Court in 2012. By 2017, the company’s 4G/LTE ecosystem will be available, with handsets costing around INR 13,000 and relevant services like financial and health services, citizen services on mobile device. Uninor currently has 46 million subscribers using 2G technology.

❑ Airtel, Ericsson extend ties with LTE deployment in Gabon Airtel’s subsidiary in the African state of Gabon is partnering with Ericsson to bring the latest mobile technology to India. Airtel Gabon has appointed Ericsson as its only supplier for the deployment of a new LTE network in India, including transformation of the existing mobile radio access and core network infrastructure.

Telecommunication NewsJuly 25, 2015 -‐ July 31, 2015

© Gyan Research and Analytics Pvt. Ltd., 2015

❑ Idea to to roll out 4G in 10 service areas Idea plans to deploy 4G services in 10 service areas within the first half of 2016. The company’s capex plan for 4G has surged to INR 6,000 -‐ 6,500 crore from INR 1,000 crore for this fiscal year. Bharti Airtel was the first to deploy 4G.

❑ Nokia rejects MTNL’s purchase order for network expansion Nokia has rejected the purchase order of MTNL’s network expansion project. On March 4, 2015, MTNL had placed an advance purchase order on Nokia Solutions. MTNL plans to upgrade its network with investment worth INR 400 crore. Under the project, the company decided to add 1,080 3G sites and 800 2G sites in Delhi and 1,080 3G and 566 2G sites in Mumbai to its network.

Investment News ❑ Sterlite hires Hay Group to recast new telecom services Sterlite Technologies has hired global management consultancy Hay Group to recast its new telecom services and solutions business into a separate vertical. Till now, Sterlite earned most of its revenue from optical fibre. The company plans to design, engineer, build and maintain telecom networks.

❑ Reliance Industries to launch 4G with over 1,000 stores Reliance Industries plans to launch its 4G telecom venture in over 1,000 stores, in December 2015. The company has already invested USD 1,500 million in India’s 4G broadband network. It will start extensive beta tests across the country within the next few weeks. Reliance will have 5,00,000 connectivity outlets and 1 million additional recharge outlets at launch.

❑ Reliance Jio to raise INR 3,500 crore debt to fund roll-‐out expenses Reliance Jio intends to raise a debt of INR 3,500 crore for funding 4G rollout expenses. During May 2015, Reliance raised USD 750 million from Korea Trade Insurance Corporation. The company plans to sell 4G mobile phones at INR 4,000 a unit. Reliance is now present in all 29 states of India. It has built an optical fibre network of approximately 2,50,000 route km.

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Weekly Snapshot

Source: Ministry of Communications and Information Technology


Segment-‐wise Broadband Subscribers and Monthly Growth Rates

Segment

Broadband Subscribers (millions)

Monthly growth rates (percent)

As on February 28, 2015

As on March 31, 2015

Wired subscribers 15.45 15.52 0.43

Mobile devices users (Phones and dongles) 81.48 83.24 2.17

Fixed wireless subscribers (Wi-‐Fi, Wi-‐max, point to point radio & VSAT 0.44 0.44 1.03

Total 97.37 99.2 1 .88

Top-‐4 Wired Broadband Service providers as on March 31, 2015

Company Number of Subscribers (million)

BSNL 1.43

Bharti Airtel 1.14

MTNL 0.67

Atria Convergence Technologies 0.44


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Telecommunication News, July 25, 2015 -‐ July 31, 2015