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| Telecom sector growth rate slips 1.08 pc |
NEW DELHI: The country's telecom sector which boasted bypassing the recessionary trend to chart growth saw a 1.08 per cent dip in new telephone connections in the month of November, according to official data released here on Monday.
Altogether 10.18 million telephone connections (wireline and wireless) were added in November, as compared to 10.29 million connections in October, the Telecom Regulatory Authority of India (TRAI) said in a statement.
India has been the fastest growing telecom market, which was adding over nine million new subscribers each month.
The last time when the sector had witnessed a fall in subscriber base was in April.
"This is a marginal dip, it's not alarming," a TRAI official said adding that addition of 10 million plus subscribers every month is quiet exorbitant and difficult to sustain.
The total number of telephone connections reached 374.13 million at the end of November 2008 as compared to 363.95 million in October 2008.
With this growth, the overall tele-density has reached 32.34 per cent at the end of November 2008 as against 31.50 per cent in October 2008.
The total wireless subscribers (GSM, CDMA & WLL (F)) base stood at 336.08 million at the end of November 2008. SOURCE: ET
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| RCom rolls out GSM operations |
MUMBAI: Leading CDMA mobile telephony player Reliance Communications Ltd. (RCom) on Tuesday announced the roll-out of its much-awaited GSM mobile telephony operations from December 31 across the country.
A culmination of the Rs. 10,000-crore investment programme undertaken by the company, the roll-out will happen in 11,000 towns and 3.40 lakh villages across the country through 2,000 exclusive stores and over one million retailers.
RCom received the spectrum allocation for GSM operations only in January 2008 and in launching the GSM services, it has set a record in terms of speed of roll-out.
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| DoT for dividend restrictions on new telecom companies |
The Department of Telecommunications (DoT) wants no declaration of special dividends for three years by companies which have received new Unified Access Service Licences and are raising funds by issuing fresh equity.
However, this rule will not be applicable to companies holding licences for a period of three years, even if they acquire licences in other circles to expand their operations, according to sources close to the development.
The suggestion was made by the DoT to the Telecom Regulatory Authority of India (Trai), which will decide on making it a regulation, along with other suggestions on the lock-in period put forward by the licensor.
The DoT recommendation aims at restricting “fly-by-night” operators from making a “windfall gain”.
Tata Teleservices Ltd (TTSL) is one company that has recently issued fresh equity. It issued 20 per cent fresh equity to Japanese telecom major NTT DoCoMo (along with 6 per cent from existing shareholders) for around $2.7 billion.
A TTSL spokesperson said the recommendation would not impact the company as it was not applicable to new players. The company is one of the earlier entrants to mobile telephony and provides a pan-Indian service using the CDMA technology.
The rule, however, will be applicable to companies like Unitech Wireless, which has given equity stake to Telenor and Swan Telecom.
According to industry analysts, this would also have an impact on those companies that want to give a bonanza to their shareholders.
The regulator had earlier recommended a three-year lock-in period for the operators for selling the equity.
Trai is mulling to roll out a consultancy paper to get the industry’s opinion on the issue, based on which necessary amendments would be made in the existing regulations.
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| Telecom Min refers matter of 3G slots to MoF |
NEW DELHI: Telecom Ministry has referred the matter of number of 3G spectrum slots in each circle to the Finance Ministry for a wider view.
Sources said Telecom Minister A Raja wants to consult the Ministry of Finance before taking a decision on the number of 3G slots for each circle. The response of the FinMin is expected shortly.
The reserve price for pan-India 3G auctions would be Rs 2,020 crore.
BSNL and MTNL, the state-run companies, have already been given a slot each in Chennai and Delhi, respectively. As per the guidelines, in each circle five operators would be allotted the 3G spectrum and five more operators are expected to be allotted the spectrum on a later date.
Currently, 60 Mhz of the 3G spectrum is available. Off late there are indications from the DoT that the number of players could be restricted up to five per circle, including BSNL and MTNL. This leaves out three private players in a circles.
If this happens, it would be a drift from a decision announced by Raja in August, which allows five to 10 operators per circle or service area for 3G services, that enable faster data downloads via mobile phones.
Operators fear of high bidding price for lesser number of slots. The Telecom Regulatory Authority of India (TRAI) had suggested that five 3G licences of five Mhz each be given through the auctioning route.
Consumers may also lose out on quality of service due to restricted competition and the exorbitant bidding price (in case of less number of players), which may reflect in high retail prices for them.
Industry sources said that the government has not enough radio waves at its disposal and hence it can give no more than four 3G licences, including BSNL and MTNL, in any of the 22 telecom circles.
At present, there are 11 to 12 mobile operators per circle in the country. If there will be few slots up for bidding, the bids are bound to be high, an operator said.
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| Telecom Italia to axe more jobs |
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Telecom Italia, burdened with a 37bn-euro ($44bn, £29bn) debt, has said it will cut an extra 4,000 jobs and sell non-strategic assets worth 3bn euros.
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