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Sunday, September 16, 2007

Tata Tele launches Web browser handset

Tata Teleservices has launched a Web browser mobile phone ‘Samsung Explore’ that is customised to access the Internet.

At Rs 5,499, the phone has other features such as 0.3-mega pixel digital camera, FM radio, MP3 player, mobile tracker, SOS alert and provision to insert external memory cards.

Starter kits and SIM cards would be additionally charged. Tariff plans for Internet access include Rs 10 a day, Rs 30 for 7 days and Rs 99 for a month – all offering unlimited access at speeds of about 156 kbps, Mr Srinivas Rao Sarapalli, Chief Operating Officer, Tamil Nadu Circle, Tata Teleservices, said at a press conference.

Both pre-paid and post-paid consumers can use this phone. The company currently has over 1.9 crore subscribers, about 60 per cent of who access the Internet via mobile phones.

The company expects to sell about 4,000 ‘Samsung Explore’ handsets this month, Mr Sarapalli said.

Subscriber base

Tata Teleservices has about 9 lakh subscribers in Chennai and Tamil Nadu telecom circles and is investing about Rs 400 crore this year to expand network in the State.

It expects to add about 60 lakh subscribers pan India and is investing about Rs 4,000 crore in network expansion and other activities.

Idea Cellular backs COAI on licence row

Idea Cellular on Thursday lent support to the Cellular Operators Association of India's (COAI) concern on the recent spate of unified access service (UAS) licence applications.

Idea Cellular managing director Sanjeev Aga described them as "nameplate applications".

"Despite 74 per cent FDI being permitted in the sector, not even one major telecom service provider has made an application," Aga, who was in New Delhi to announce an 'Asia Mobility Initiative', said.

"A nationwide mobile network will take over Rs 20,000 crore to be put up. It is unbelievable for a tenth or a twelfth operator to justify a business case for genuine investment. What is it they see that sober, serious players cannot? Are national interests to be furthered in this manner?”, He asked.

Recent UAS applications to the Department of Telecommunications (DoT) for pan-India coverage were either from unknown entities or non-telecom companies like Swan, Cheetah, Bycell, Alliance Infratech, S Tel, Datacom Solutions and Parsvanath.

It's believed that Anil Ambani's Reliance Communications holds minority stakes in both Swan and Cheetah, while Parsvanath is a real-estate major.

COAI director general TV Ramachandran had already written to the DoT that corporate veils must be lifted while considering applications for telecom licences.

The rush for nationwide licences was triggered by some recent recommendations by the Telecom Regulatory Authority of India (TRAI).

It's decision not to cap the number of operators in a telecom circle while examining it as a solution to the spectrum crunch was the trigger.

TRAI chairman Nripendra Misra said that one of the objectives of the recommendation was to prevent entry barriers in the telecom sector.

On Wednesday, in a legal notice to DoT, the COAI had sought preference for existing GSM service providers in spectrum allocation. It argued in the letter that GSM service providers had been "disadvantaged by the government policy of 2003 from expanding their footprint as desired".

BPL’s Innovation: Watch TV and track your cell if lost

BPL MOBILE a GSM cellular service provider launches two new feature packed services in India. One of it is a solution to track down mobile phones that are lost or stolen. Called the BPL Mobile Tracker, this solution can be availed not only by BPL customers but also by any GSM service user. And the other one being the TV on cell: Who doesn’t want to have their dose of entertainment even at the same time as they are on the move? Meeting this need, BPL Mobile has an exciting announcement to make for its customer base in India. BPL Mobile has introduced an all-new Mobile TV service for its valued subscribers across India. With this progressive launch, BPL Mobile gets the distinction of being one of the very few selected GSM operators to announce Mobile TV in 2-2.5 G environment.

The BPL Mobile Tracker is well matched with all Symbian operating system mobile phones, which are mostly seen in Nokia phones. AS of now, around 35 medium to high-end Symbian handsets can use the BPL Mobile Tracker service. They also plan to introduce many more handsets that are compatible with the Mobile Tracker service.

Without affecting the phone’s performance, the BPL Mobile Tracker solution will run in the background. Basically this application will always be hidden. Not only this but also this tracker is exceptionally easy to set-up, and when installed works at the background of the mobile phone.

If a mobile phone that has the BPL Mobile Tracker application installed in it gets stolen, this application detects any changes in the SIM card, after which 2 SMSes are immediately sent to the two substitute recipient numbers which had been entered during the setup of this service application. These messages are sent automatically from the phone’s operating system through the kernel, without any sort of notification on the phone’s screen. Thus, the mobile phone gets tracked down, without the burglar even knowing anything. Not only this, but also the application is so very efficient that such messages get periodically sent every 60 minutes, assuring the owner that the mobile phone is active.

With the speedily growing mobile phone infiltration, this Tracker application is sure to relieve all mobile phone users from the worries of mobile theft and address three of the larger issue of mobile security namely preventing any unwanted usage, securing mobile phones and securing the safety of near ones through emergency SMS and securing the confidential data’s that are stored in the mobile phones.

Listed below are the salient features of BPL Mobile Tracker at a glance:
  • Rs 149 one-time fees. No Monthly Rentals.
  • Developed on SYMBIAN and works with the O.S. of the phone.
  • Works in the background as a watchdog
  • Application icon is always hidden and will not allow thief to uninstall it.
  • Implementing the system takes less than 10 minutes.
  • Extremely easy to use and setup.

On the other hand, in the entertainment domain, BPL Mobile TV ‘Real Time’ streaming will have an attractive flat rate of Rs.5 per minute with no hidden costs. And that can mean fairly a lot of money if it’s a long program.

BPL Mobile is planning amalgamation with ZTE, China’s largest listed telecommunications manufacturer and wireless solutions provider on the technology to make Mobile TV possible on a GSM platform. For content, BPL Mobile has tied-up with NDTV, CNBC and Aajtak for providing Real Time News channels on mobile and news clips. In addition to this, deals have been struck with over 50 top content providers like Onyx, Indiatimes, T-Series and others to provide latest videos under various categories.

Currently, BPL Mobile’s new Mobile TV service will offer users ‘Real Time’ streaming from top Indian news channels such as NDTV India, NDTV 24×7, NDTV Profit, Aajtak, Headlines Today, Tez, CNBC TV18, CNBC Awaaz, CNN-IBN, IBN 7. In addition, content from major television channels will also be available as downloadable ‘Video On Demand’ clips, in the form of news, Bollywood Music, devotional music and others.

Any BPL Mobile customer using the Mobile TV service will pay only Rs.5 if he/she has used for a minute and will not have to pay anything additional for the data traffic. Work is also on, to make available for the BPL mobile customers more Real Time channels, looped contents and content meant particularly for the kids.

Another most important feature of the Mobile TV service is that it will be available through not only the Symbian operating system but also through a much broader directory of handsets. Handsets.

This service has an understandable navigation system. It will also be quite simple to use since it’s made on the line of the very popular BPL Mobile WAP page. A Mobile TV icon will appear of Mobile TV on the home page of WAP site. The users will need to simply click on the icon to start their Mobile TV. No applications are to be downloaded, thus the experience is as simple as using a WAP page.

With these two advances in the mobile technology, BPL Mobile is trying to capture some portion of the very huge telecom market. Not only this, but it will also try and regain its standing that had diminished after the aggressive campaign of Bharti Airtel.

Friday, September 07, 2007

BPL Mobile applies for telecom licences

BPL Mobile's application for license has created a flutter in telecom circles. The question on everybody's mind is, are the Ruias trying to make a backdoor entry through them since the Ruias already partner Vodafone in India.

It has been learnt that there is an application for a new licence filed by a company called ShippingStock.com, which has applied for 21 telecom licenses and it is a wholly owned subsidiary of BPL Mobile.

The company in a press release said "BPL Mobile Communications Limited (BMCL) has submitted an application with the DoT seeking mobile licenses in 21 circles, i.e, all India licenses apart from the Mumbai license, where the company is currently operating."

Essar has acquired BPL Mobile from Rajiv Chandrashekhar and was supposed to sell it to Hutch. But the deal for BPL's Mumbai circle was not completed and now both Hutch and Essar are fighting a legal battle over it.

Meanwhile Arun Sarin came to India and bought out Hutch's Indian operations for around $17 billion. Essar, who were Hutch's Indian partners continue to remain in the new company and are now partnering Vodafone with around 33 per cent equity in the new company.

No wonder Essar's move to start a parallel telecom business is not going down too well with Vodafone.

Even though Vodafone officials are not willing to comment on the issue yet but senior Vodafone officials say in private that Vodafone is keeping very close watch on Essar's move and may move in if they feel that Essar's new move in any way violates the non -compete clause between the two.

Telemarketers thumb nose at government

Out of an estimated 25,000 to 30,000 telemarketers, only about 13,000 have registered with the telecom service providers till date, according the Telecom Regulatory Authority of India (TRAI). And, only 5.5 million phone subscribers, out of a total base of around 232.87 million as of end of July, have included their names in the do-not-call list so far.

TRAI had a review meeting with the telecom service providers on Wednesday, to assess the level of industry compliance with the government directive on curbing unsolicited commercial communication.

Although telemarketers from across the country were given time till August 31 to register with the service providers, more than 50 per cent of them are yet to comply. According to sources at TRAI, not more than 20,000 telemarketers are expected to register.

However, TRAI chairman Nripendra Misra pointed out that 13,000 telemarketers would mean 2.5 lakh phone lines have been registered already. "This is because every telemarketer calls up people like you and me from multiple phone numbers," he said.

As for phone subscribers opting for do-not-call facility, it is believed that many of the 5.5 million (the figure given by the industry) may have earlier subscribed to the "do-not-disturb" facility offered by telcos for blocking calls and SMSes originating only from one's own telecom service provider, and not from all telemarketers, as directed by the government.

According to the Department of Telecommunications, any mobile or landline subscriber, who does not wish to receive telemarketing calls, can request their telephone number be included in the national do not call (NDNC) registry.

Such requests are sent through their telecom service providers, which will be stored in the National Do Not Call Registry, established from September 2007. Subscribers can make a 'Do Not Call' request via letter, phone, SMS or on-line. Such a request is free of cost.

Security conditions and government scrutiny are being cited as among the reasons for the slow progress in registration for telemarketers. It is believed that mostly big firms have registered so far.

While telemarketers were asked by the government to register with the telecom service providers by the end of August, in an attempt to restrict unsolicited commercial communication, registration of phone subscribers for the national do not call registry started from September.

Meanwhile, the telemarketers that do not register may continue to make unsolicited calls.

Sify launches broadband initiative

Sify Anywhere will allow users access to the Net from anywhere.

Sify, a leading player in the internet and enterprise services space in India, has launched a new initiative called Sify Anywhere that will allow broadband users to access the internet even while on the move.

Sify broadband subscribers will now be able to access their accounts from any Sify kiosk at airport, hotels or Sify iWay cafe.

“Subscribers can use a laptop and can use the same account as a dial-up account or walk into any of the over 3,500 iWays across the country, or access using Sify Wi-Fi hotspots,” said Naresh Ajwani, president, consumer infrastructure and operations, Sify.

The internet service provider has also announced a briefcase facility that will let users to store files which will open up as a default desktop page whenever they log in from any iWay cafe, Wi-Fi hotspot or even on a dial-up connection.

This way subscribers can access files from wherever without a laptop.

Ajwani said iWay and the broadband-to-home operations will be his priority for the company.

“We are trying to reach more iWays, up to 3 iWays a day from next month, and are looking at partnering more cable operators so that we can reach out to 300,000 from the existing 225,000 broadband consumers by the end of this year,” said Ajwani.

Sify’s Anywhere service outrides Reliance and Bharti’s broadband services since none of the service providers at present provide a unified remote access service.

“We are a step ahead of Reliance, which has only 200 cybercafes, and Bharti has no cybercafes as of today to allow remote access,” claimed Ajwani. Consumer services contributes 32.6 per cent of Sify’s revenues, and Ajwani expects this to reach 45 per cent by the year-end.

Sify is also supporting Microsoft with internet access for Microsoft’s path-breaking IQ PC initiative that seeks to unlock unlimited potential.

The PC, aiming at families with school-going children which include 100 hours of free internet access.

This is over and above the Microsoft suite and its partner offerings from Brilliant, Pacsoft and Edurite.

Ajwani said Sify will offer value-added services so as to transition its iWay cafes into e-stores.

The services include all forms of electronic fulfillment such as subscription-based browsing and computing for the lower-end of the market, rich graphic interactive content across a range of topics of interest to consumers including Sify specialised portals, access to e-commerce services that include train tickets, air tickets, holiday packages, bill payments and online games.

“The objective is to give more people more reasons to walk into the cafes for empowerment of various kinds while increasing the revenue streams of the cafe,” he revealed.

GSM operators differ with TRAI on spectrum plan

GSM-based cellular operators and the Telecom Regulatory Authority of India seem to be on a collision course over the recent recommendations on subscriber base spectrum allocation policy.

While the Chairman of India’s largest cellular company, Mr Sunil Bharti Mittal, said that TRAI had got it wrong in suggesting that the operators should pack in more subscribers to get additional spectrum, the telecom regulator dismissed the GSM operator’s allegations of being non-transparent.

Mr Mittal also said that telecom companies may be forced to raise tariffs if additional charges are levied on them. TRAI has suggested that operators having more than 10 Mhz spectrum should pay higher charges. “Whatever charges the Government raises or brings down will be reflected in the tariff,” Mr Mittal told reporters on the sidelines of an industry event.
Subscriber criteria


On TRAI’s proposal to more than double the subscribers required to qualify for additional spectrum, Mr Mittal said the operators cannot add more number of subscribers with the current spectrum available to them. “TRAI is grossly wrong in its calculations,” he said

Meanwhile, TRAI officials justified its recommendations and said that the operators went overboard by alleging that the regulator’s suggestions were illegal. They said that TRAI was a law making agency and not a law breaking one.
Charting actions


GSM operators led by the Cellular Operators Association of India are charting out their future course of action including the option of approaching the Telecom Dispute Settlement Appellate Tribunal.

However, those opposed to a legal move argue that since the TRAI proposals were only recommendatory in nature, the court may not admit the case. “When the GSM operators had challenged the TRAI recommendations on WLL limited mobility, the TDSAT had refused to pass an order on the grounds that there was no cause of action. The final decision maker is the DoT and operators can only take legal recourse after a policy is announced,” said an operator opposed to taking legal recourse against the TRAI recommendations.

However, those in support said that a legal challenge at this juncture could send the right signals to the DoT when it discusses the TRAI proposals.

Tuesday, September 04, 2007

Telecom players question legality of TRAI’s suggestions

Finding it increasingly difficult to weather TRAI's recommendations of August 29 on spectrum allocation, industry is now taking an aggressive stand by questioning its legal legitimacy.

TRAI had asked over 30 questions in its consultation paper of June 12, on licence reforms and capping of number of service providers, but none of them directly referred to the need for revising or assessing subscriber criteria for allocating spectrum afresh, questions a leading mobile operator.

Since TRAI’s recommended criteria for spectrum allocation is not derived from a set of consultation questions, it will not survive legal scrutiny, says TV Ramchandran, Secretary General, COAI.

Even DoT’s reference to TRAI dated April 13, 2007 does not specifically seek recommendations on subscriber-linked spectrum allocation.

"Interim recommendations without relevant questions is most unusual," says a spokesperson from a leading CDMA firm. The grievance relates to TRAI’s stiffening of subscriber-linked criteria for allocation of spectrum, which adversely impacts all five pan-India operators Bharti, BSNL, Reliance, Tata and Hutch.

For example, a GSM operator who was earlier entitled to 8 MHz of spectrum for 0.8 million subscribers, will now need to wait till he has three million subscribers. For 10 MHz of spectrum, the new benchmark is five million (1.4 million) subscribers and for 15 MHz a whopping 10 million (2.6 million) subscribers.

Even in C category circles, 10 MHz kicks in only at four million (0.6 million) subscribers and 15 MHz at eight million (1.2 million). CDMA players face a similar blow. As with GSM, their allocation has been stiffened multiple times, especially in the 5th carrier, 6.2 MHz range for A, B and C categories of circles.

TRAI’s interim recommendations seriously undermine DOT/TECs standing guidelines. Equally, it raises questions about the GSM industry’s claim that it is short of spectrum. A debate that has already divided the industry, this could now lead to a three-way rift between TRAI, DoT and operators.

Experts agree that section 11, 1 (A) (VIII) of the TRAI Act allows it to make such recommendations suo moto, but industry is quick to point out that suo moto can mean without a government reference but does not allow circumventing the process of asking specific questions and inviting stakeholders views.

They back their allegation with a reference to Section 11 (4) of TRAI Act, which states: The authority shall ensure transparency while exercising its discharging its functions. Agrees a telecom lawyer: "A process of consultation is necessary to ascertain views of all stakeholders. It enhances credibility of the regulators decision."

When contacted, TRAI Chairman, N Misra declined to comment.

ICA Moves to Curb Counterfeits

In the face of exploding batteries triggering safety concerns about usage of mobile handsets, the Indian Cellular Association (ICA) has reportedly moved to tighten the grip on counterfeits sold in the grey market.

According to ICA, nearly nine crore original mobile handsets were sold in the country in 2007-08 along with service packs that included original batteries. However, 70 to 75 percent of the replacement battery market is still dominated by counterfeit batteries.

Counterfeiters illegally use names of well known brands by copying packaging and even misrepresenting technical specifications. The counterfeits are manufactured in extremely poor conditions using manual welding, poor slitting machines, and sub standard material. The fakes lack safety mechanisms such as Protection Circuit Module (PCM), etc.

Pankaj Mohindroo, national president of ICA, believes that there is an immediate need for the government to intervene and crack down on counterfeit mobile accessories and batteries so as to ensure the safety of consumers.

The ICA has sent an appeal to the government to rationalize the duty structure, which according to Mohindroo will go a long way in reigning-in the grey market.

Over the years, the quality and composition of batteries has evolved and new generation Lithium ion batteries are environmentally more friendly than earlier generation Nickel batteries. These batteries have extremely refined ingredients that ensure versatility and safety.

Besides, these batteries, unlike their predecessors, carry a Printed Circuit Board, which prevents overcharge and under charge. The typical life span of a lithium ion battery is 2-3 years under normal use.

The entire telecom ecosystem comprising service providers and handset vendors has urged consumers to use only genuine mobile accessories and check for originality marks like holograms before buying them.

Saturday, September 01, 2007

Vodafone set to conquer Indian mkt

It came, it bought out Hutch but will it conquer the Indian market? That’s what the world's largest telecom company Vodafone wants to do but its tough to be the numero uno.

Number 3 is not his position of comfort! Vodafone Chief Arun Sarin has given the company 3 years to climb up to number one position. Sarin's strategy is focussed clearly on increasing rural subscriber base. But average revenues from these subscribers that are currently between Rs 75 to 125 rupees a month may not be enough to maintain profitability. Analysts say Vodafone will have to aggressively convert the high-end customer with revenues of over Rs 500 to maintain its margins. This may not be very easy

"Don't see a big shift in the market share. There is no reason for people to change the number and they should have a good enough reason to churn" says Prashant Singhal, Partner, E&Y.

Besides, unlike most other markets, Vodafone will have to compete with at least 4 telecom giants in India - Airtel, BSNL, Reliance and the Tatas. Most of these players are very well entrenched in the market. Airtel, Reliance and BSNL already have operations across India. Hutch-Essar, Now Vodafone is present only in 18 circles.

"Is present in all 23 circles to relocate that network and subscriber base, Vodafone will take time to catch up" adds Harit Shah, Research Analyst, Angel Broking

Airtel, Reliance, tata are all household brands in India with high recognition and brand equity. Vodafone will be a brand new name in India especially in the rural areas that is Vodafone's target market.

Analysts say that unless Vodafone can offer a very attractive proposition not only in terms of tariff plans but also in the form of better network quality, customer interface system and innovative value added services, displacing any of these big players could be a long call.

Friday, August 24, 2007

CDMA operators agree on number portability

Even as the government has not acted on the telecom regulator’s recommendation on framing a policy on number portability in mobile phone services for more than a year, Code Division Multiple Access (CDMA) players have now stressed the need for the same.

Number portability enables you to switch from one service provider to another without changing your number.

In a letter to communications minister A Raja, CDMA players, represented by the Association of Unified Service Providers of India (AUSPI), said that the Department of Telecom (DoT) must issue necessary guidelines for implementing mobile number portability.

CDMA players have been favouring number portability in both fixed and mobile networks. Now, they seem to have climbed down a bit, saying only the latter needs to be done for the time being.

AUSPI secretary general SC Khanna said in his letter to Raja: “In case fixed-number portability cannot be introduced at this point of time for any reason, technical or otherwise, mobile number portability should not be held up.”

Global system for mobile communications (GSM) service providers, represented by Cellular Operators Association of India (COAI), is opposed to the idea of number portability in mobile telephony, at this point.

According to COAI, it can be introduced only after the telecom market matures further.

While CDMA operators include Reliance Communications and Tata Teleservices, GSM operators comprise Bharti, Vodafone Essar, Idea, Aircel, and Bharat Sanchar Nigam Ltd.

“Number portability is a very important and effective tool for ensuring competition in the telecom market,” AUSPI’s Khanna has written to the minister.

“Any technical or operational apprehensions should not hold up the implementation of number portability because we have before us the experience of other countries and suitable remedies can always be found,” he said.

The Telecom Regulatory Authority of India had, in March 2006, recommended that mobile number portability should be in place by April 2007.

That was one of the last recommendations/orders by former Trai chairman Pradip Baijal. The government has already missed the Trai deadline by around four months.

The move would have stepped up competition in the telecom industry, thereby improving the quality of service as all service providers would have made an effort to prevent customers from shifting to competition.

The Trai recommendation, issued in March 2006, was only for introducing number portability in mobile telephony and not fixed phones. The regulator wanted the rollout to begin on April 1, 2007, across metros, before moving into A, B and C category cities within six months.

So far, most mobile operators have been against the introduction of number portability, as they didn’t want to let go of the customer base they built. Industry estimates suggest that anything between Rs 1,500 crore and Rs 3,000 crore is required as one-time cost for upgrading the networks to enable number portability.

Now, you can call overseas at Re 1

Come Friday, MTNL broadband customers in Delhi and Mumbai will be able to make an ISD call to any part of the world for as low as Re 1 per minute through their fixed line phones.

The state-owned PSU will become the first telco in the country to offer internet telephony or Voice over Internet Protocol (VoIP) where subscribers can enjoy ultra cheap ISD calls without even having a computer at home. For those who choose to access MTNL’s internet telephony through their personal computers (a PC to PC call), the tariffs are likely to be as low as 10 paise per minute.

If you do not have a PC at home, but want to make cheap ISD calls, just subscribe to MTNL’s broadband connection (which comes with monthly rentals starting at Rs 199) and also buy an Analog Telephone Adaptor (ADA) from the PSU for Rs 1,500.

The adaptor converts the fixed line phone into an IP (internet protocol) device so that the user does not have to use a computer and carry it over the broadband internet line.

Globally, this kind of service, which is fixed to one location, is generally offered by broadband Internet providers such as cable companies and telephone companies as a cheaper flat rate equivalent to the traditional landline service. The state-owned telco has tied up with Aksh Optifibre to offer the VoIP service.

MTNL’s move to enter this segment is set to change the market dynamics and force other operators to follow suit. So far, no telco had ventured into internet telephony as they feared this would eat into their revenues from traditional mobile and fixed line calls.

This may also eat into the business models of Internet service providers (ISP) in these metros. ISPs currently offer internet telephony at rates of 50 paise per minute and upwards, but face a severe disadvantage as they can offer this service only from a PC in India to a landline, mobile or a PC abroad. Sources said, BSNL may also launch internet telephony through fixed line instruments in all major cities, though no time frame was given.

Thursday, August 23, 2007

Mixed signals emanate on portability

There are mixed signals within the government on introduction of number portability in the telecom sector, it is believed. Communications minister A Raja, while replying to media queries on Wednesday, said that the issue of “number portability” was being considered by the government, and that telecom operators would be consulted for the same.

However, sources in the Department of Telecommunications (DoT) pointed out that “number portability is not a priority issue for the government at this point.”

Raja was speaking to reporters on the sidelines of a conference organised to launch the Telecom Equipment Manufacturers Association’s (TEMA) Export Promotion Forum. According to the minister, the spectrum policy would be in place before the end of this year.

Besides the spectrum policy, DoT would also be busy formulating fresh licensing and merger and acquisition rules once the telecom regulator issues its recommendations, sources pointed out. The Telecom Regulatory Authority of India (Trai) is expected to come out with its recommendations on the new licensing rules next week. So, DoT may not have time to focus on number portability in the near future, sources argued. Also, as many of the telecom operators are opposed to the idea of number portability, it may not be introduced so soon, it is learnt.

Trai had, in March 2006, recommended that the facility of mobile number portability should be in place by April 2007. That was one of the last recommendations/orders issued by former Trai chairman Pradip Baijal. The government has already missed the deadline set by Trai by around four months.

A representative in the GSM industry recently said, “the industry is not fighting number portability, but its timing”.

Number portability is all about shifting to another service provider, while retaining your phone number. The move would have stepped up competition in the telecom industry, thereby improving the quality of service as all service providers would have made an effort to prevent customers from switching to competition.

The Trai recommendation, issued in March 2006, was only for introducing number portability in mobile telephony and not fixed phones.

The regulator wanted the rollout to begin on April 1, 2007, across metros, and then moving to A, B and C category cities within six months.

Most mobile operators have been against the introduction of number portability, as they don’t want to let go of the customer base that they have built. They have been arguing that it’s a case of misplaced priority.

Industry estimates suggest that anything between Rs 1,500 crore and Rs 3,000 crore is required as a one-time cost for upgrading the networks to enable number portability.

Spectrum rules to be in place by year-end

The government today said it would announce the spectrum policy by the end of this year. It would also consult telecom operators on the possibility of introducing a facility to enable customers retain their numbers even after changing the service provider.

“I am very optimistic that the spectrum policy will be ready in a couple of months. It will definitely be before the end of the year,’ said communications minister A. Raja.

The policy has four times missed the deadline given by the ministry because of unavailability of spectrum from armed forces. But the defence ministry is expected to release some spectrum in the next couple of months.

Raja said the department of telecommunications (DoT) was aware of the 2G spectrum crunch but the ministry needed at least 35MHz of radio waves from defence forces.

On number portability, he said, “The recommendations given by the Telecom Regulatory Authority of India (Trai) are being considered.

“It is practiced in many countries and is useful for customers,” he added.

Raja said the telecom ministry was in talks with the defence ministry for more spectrum and the exercise was still on. “Some internal technical assessment is being done by both the ministries to see what are the spectrum bands that have not been used for a long time,” the minister said.

“Once the assessment is over, we will come out with a paper and place it before the group of ministers (GoM) .... It will help the GoM look at the release of spectrum in a broad way. Unless there is a quantum of spectrum available on hand, it is very difficult to say anything,” he added.

He also said the DoT had not decided whether to price 2G spectrum. The DoT has sought 42.5MHz of spectrum from defence forces. An alternative optical fibre network will be provided to the Army and the Navy before they vacate any spectrum.

Tariff hike

On the recent tariff hike by mobile operators, Raja said it would refer the issue to Trai and take a decision only after the regulator’s opinion.

“SMS is a mode of tariff. Tariff is in the control of the ministry. Let Trai decide on it first,” he said.

Trai chairman Nripendra Misra said, “There has been no reference from the DoT to look into the matter so far. I will have to get a communication from them first to be able to say anything on the matter.”

Earlier, the regulator had cited market forces as the cause for the hike in SMS and local call charges by Airtel and Hutch Essar. The GSM operators had hiked local SMS, local and STD call charges by 20 per cent. Most of the private gsm players also hiked std tariffs by over 10 per cent for prepaid users.

Earlier, Misra had said, “Although the recent hike in tariffs is not consumer- friendly, there is no scope for intervention as long as there is forbearance.”

MTNL in deal with AOL

The co-branded portal, mtnl.aol.in will offer a compelling combination of AOL products. This strategic partnership leveraging the inherent strength of MTNL’s network and AOL as a global web services player will bring to subscribes a world class Internet experience


AOL, a division of Time Warner, a leading media and entertainment company, and Mahanagar Telephone Nigam Limited (MTNL), the leading provider of broadband and telecommunication services in Delhi and Mumbai, today announced a strategic partnership which would bring AOL’s products and content to MTNL consumers through a co-branded portal.

The co-branded portal, mtnl.aol.in will offer a compelling combination of AOL products: an easy to use e-mail service, Instant Messenger, content straddling across channel like Cricket, Bollywood, Hollywood, Music, including integrated videos in many channels, in addition to MTNL utilities like Services and Product Offerings, Games, Tariffs Plans and Customer care. MTNL users will have the option of making mtnl.aol.in as their default destination to access content across various channels.

“With adoption of Broadband skyrocketing, this strategic partnership leveraging the inherent strength of MTNL’s network and AOL as a global web services player will bring to our subscribes a world class Internet experience” said J. Gopal, Executive Director MTNL, speaking on the occasion.

Commenting on the deal P G Ponnapa, AOL’s Vice President and General Manager, stated, “We are happy to have partnered with MTNL in launching this portal. AOL’s suite of products and services layered over MTNL’s expertise in total telecommunication services including internet access services and broadband services will catalyze the adoption of the Internet for the Broadband era.

Wednesday, August 22, 2007

TRAI talks tough with Bharti on network rectification

Telecom regulator TRAI on Tuesday criticised leading cellular service provider Bharti Airtel for proposing to charge extra for rectifying defects and asked the operator to refund such money, if any, taken from consumers.

Examining the tariff reports submitted by Bharti Airtel, which proposed additional charges for rectification of defects, the regulator said, "such tariff packages are anti-consumer and cannot be permitted."

As per terms and conditions of the licence issued to the service providers, the responsibility for maintaining the performance and quality of service rests with operators.

The customer does not choose the quality of material being used in the network by the company and is not responsible for the bad workmanship in the cable, drop-wire among others and has no say in determining the quality of the network elements.

TRAI has given a deadline of one week to Bharti Airtel to report compliance.

The regulator is the process of issuing separate general guidelines to all the service providers on this issue.

In a separate decision, TRAI has amended the guidelines for registration of consumer organisations/NGOs to attract more representation from the states.

TRAI said 28 consumer organisations/NGOs have been registered with TRAI till now. However, over 11 states in the country have no representation in the registered group of consumer organisations on account of certain eligibility conditions in the guidelines for registration.

Consumer organisations/NGOs can now register after one year of experience in assisting the consumers in redressal of complaints against three years earlier.

The amendment also provides for automatic renewal of registration after a period of three years, taking into account the usefulness of the organisation to protect the interest of consumers of telecom sector and their capacity to advocate the cause of consumers among others.