Friday 18 May 2012
India announced a uniform telecom licence fee policy under the new telecom policy on Wednesday. Telecom minister Kapil Sibal announced that the telecom regulator will announce a migration path for existing licence holders to the uniform licence regime.
“All future licences would be unified and telecom spectrum in each city for operators would be alloted separately,” telecom minister said.
The government also permitted telecom operators to share 2G spectrum. This means they can now pool, share and trade in it to efficiently utilise the spectrum which is a scarce resource. Spectrum sharing is permitted in the same service area. The permission for sharing will be given for 5 years.
The new policy does away with the previous licence policy of allocating the spectrum to telecom companies in various telecom circles based on regions. This means companies like Vodafone or Bharti Airtel had to acquire different licences to operate in different cities across India. Going forward, they can pay a migration fee and acquire a national uniform licence.
The telecom policy also lays down rules for mergers and acquisitions between various players. This is important because 80 per cent of the mobile phone subscribers are controlled by 4-5 national telecom players. Since India had divided the nation into different telecom circles, it was not possible to merge telecom businesses. With a single nationwide licence, mobile operators can exit through M&A.
Highlights of the new telecom 2012 policy:
* The new policy to have uniform license fee across telecom sector
* TRAI to recommend migration path for telecom companies
* All future licenses will be unified licenses
* Telecom spectrum to be allotted separately
* Govertnment sets rules for mergers and acquisition between telecom companies
* There will be an entry charge for migration to the unified licence
* Licences to be renewed for 10 years after expiry
* Licence fee will be implemented in FY13 for 2 years
* Uniform license fee up to 8 per cent of adjusted gross revenue of the telecom company
Tata Consultancy Services see more growth coming from telecom
Announcing its Q3 results here on Tuesday, IT major Tata Consultancy Services ( TCS) said it has witnessed growth in all its market geographies across the world and across all verticals. TCS saw more growth coming from the telecom vertical.
“In terms of markets, all our markets have witnessed growth, whether it is US, UK, Europe, India, Asia Pacific or Latin America. All our markets have grown sequentially. We have grown across all verticals, whether it is banking, retail or manufacturing. Services have also seen a pretty balanced growth. We have also had a good uptake in enterprise solutions, in addition to some growth in consulting as well,” TCS’ CEO & MD N Chandrasekharan told reporters here.
“Last quarter, I had said that telecom has grown, but we need one or two quarters of growth. I would say deal closure has been very good. So even though you don’t see a substantial growth in the current quarter, telecom is going to do well going forward,” he added.
After the launch of third- generation (3G) telecom services, India may see more advanced 4G services in the second half of next year, Telecom Minister Kapil Sibal said.
“We have large capacities in spectrum to move forward in 4G which is hopefully going to be launched towards end of next year. Later half of 2012…we should be ready to launch 4G,” Sibal said at an event.
The peak data transfer speed (internet) in 4G technology is up to 100 Megabit per second on a device moving at high speed of around 100 kilometer (high mobility) per hour and 1 Gigabit per second for low mobility.
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Indian telecom sector will provide employment to around one crore people by 2012, a study by PwC.
The telecom industry will provide about 28 lakh direct jobs and around 70 indirect jobs by 2012, the study commissioned by the Cellular Operators Association of India (COAI).
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iPhone 4 launched in India at Rs 34,500
Telecommunication firms–Bharti Airtel Ltd. and Aircel Ltd. have started selling Apple Inc.’s iPhone 4 smartphones in a bid to tap growing smartphone consumption in the world’s fastest-growing mobile phone market.
The plans are pretty interesting as well. You have to pay upfront the price for the phone and then for the lock-in period of 2 years, for a fixed monthly rent of INR 800 (Around 18$) . The enticing offer is that over a 2 year span, the savings through this plan would be equivalent of buying the phone itself.
In a news release, Aircel said it will offer the new model of iPhone–which is popular for its high-speed Internet and mobile software capabilities–under both post-paid and pre-paid subscription plans.
Qualcomm, Ericsson demo LTE TDD in India
Qualcomm and Ericsson have demonstrated LTE Time Division Duplex (TDD) mobility in India, including the ability to hand off calls between basestations.
The demonstration streamed multiple, live HD video feeds to a mobile van, showing the ability to hand off between basestations while maintaining session continuity. The partners used Ericsson’s Radio Access Network and Evolved Packet Core technologies and USB dongles based on Qualcomm’s MDM9x00 multimode chip set that supports both LTE and 3G
”We are pleased to have collaborated with Ericsson on this demonstration showcasing LTE-TDD mobility in an outdoor environment in India,” said Kanwalinder Singh, president of Qualcomm India and South Asia and senior vice-president of Qualcomm.
The demonstration is significant as Qualcomm recently paid $1 billion in the India BWA auction for a 20 megahertz TDD spectrum license in the 2.3 GHz spectrum band covering Delhi, Mumbai, Haryana and Kerala, India. As part of that win, Qualcomm formed a joint venture under the India LTE Venture name to move forward with building out a mobile network using the spectrum.
LTE is a next generation broadband technology that offers speeds of 7-10 Mbps
3GPP Long Term Evolution (LTE), is the latest standard in the mobile network technology tree that produced the GSM/EDGE and UMTS/HSxPA network technologies. It is a project of the 3rd Generation Partnership Project (3GPP), operating under a name trademarked by one of the associations within the partnership, the European Telecommunications Standards Institute.
The current generation of mobile telecommunication networks are collectively known as 3G (for “third generation”). Although LTE is often marketed as 4G, first-release LTE does not fully comply with the IMT Advanced 4G requirements. The pre-4G standard is a step toward LTE Advanced, a 4th generation standard (4G) of radio technologies designed to increase the capacity and speed of mobile telephone networks. LTE Advanced is backwards compatible with LTE and uses the same frequency bands, while LTE is not backwards compatible with 3G systems.
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