Updated: 3G Auction completed after 34 days of bidding

[ssr 10]

Does Rel allows number protability from CDMA to GSM?

Edited February 22, 2009 by ss_rakesh

[Honest 836]

Reliance launching 3G for DATA only within month from now in all circles.

But tariff is expected to be very costly.

^^^

But 3G will be launching only for Reliance GSM services.

Nothing for poor CDMA subscribers.

[santhoshavanoor 7]

You are right Kamal Bhai, we don't have any hope on CDMA expansion....

[ravi_patent 28]

Saturday, Feb 28, 2009 at 13:55

Source : CNBC-TV18

Q: Let me first start by asking you, where does Bharti Airtel stand today? The last declared results showed very robust performance. But there were some points of stress including a decline in the ARPU, lower minutes of usage. We already pick up from the market that a lot of SMEs and other companies are capping telecom expenditure. What is your overall take on Bharti Airtel and its performance going forward?

A: We always rely on our past declared results for people to make their own assessment about the forecast. So, I would say using the same numbers that are publicly available, I would say that the industry continues to grow fairly strongly. In fact, the numbers of customers were already declared by COAI (Cellular Operators Association of India) last week. So that number is pretty robust.

So, I would say while there is a 15 million number that has been given for the last month. But take some of the early offers and freebies out of the system; you are still looking at a robust growth of 9-10 million customers a month. Many of them are coming from tier-II and rural areas.

Q: Reliance Communications – and since you mentioned the last declared numbers, 5 million on an average addition over months – isn’t that a big threat? Do these numbers come as a surprise to you or are you shocked? What is the company doing to prepare for this kind of onslaught?

A: Our focus for the last several years has been on revenue markets here and not on customer markets here because whenever you go into markets, you give special promotions. It is not only about Reliance, it is about Vodafone coming into new circles, Aircel, Idea. And you see a swell, including when we were launching circle after circle you see a swell of customers, and then it kind of stabilises.

But what is important is what is the revenue coming in from each customer? Where you have to focus is on where our revenue market share is? You have seen that certainly increasing quarter-after-quarter. Despite the fact that we have had a strong numbers growth, we haven’t had a skewed number growth compared to some of the skews that you see in the market. But the revenue has constantly gone up.

So, I would say the focus is on revenue earning customers, not just open SIM cards that are in the marketplace.

Q: So in other words, what you are saying is that there is time that will be taken to finally arrive at a real number of R Comm subscribers considering that it is a subsidiary driven scheme. But in terms of its overall impact on the market, don’t you think it is having an impact on expectations and a lot of the incremental additions at the lower level of the market are going to R Comm. And if it has managed to bag so many subscribers, I am sure they would at least be able to retain 70-80% of the subscribers going forward and convert them into revenue paying subscribers?

A: All I would say is good luck because we always want the GSM environment to expand and for many years there were people who said GSM is a lost case. People like us stuck our neck out saying, this is the world technology and everything else is really temporary. That is what you are seeing.

Therefore the large investments made by some of the competitors in wrong technologies costing them billions of dollars need to be dealt with now and we are very happy when the GSM ecosystem grows. I said the same when BSNL was growing in very large numbers that it is good news that the ecosystem is growing, because we believe that when the GSM ecosystem grows people have more handsets in their hands and at the end they will make the right choice to go to the right brand and service. We have seen in the past that all the GSM customers that were created ended up benefiting Airtel.

Q: While Bharti on its own has very strong cash flows, a lot of new operators have been licensed. Do you feel it is a sustainable model for the telecom industry, the way subscribers are being added on in India possibly driven by the need to grab as much spectrum as is available? Do you think that the model of the Indian mobile industry is good and sustainable over a longer period of time?

A: My view is very clear and I have said this before and I can say it again. This is a very tough market to operate in terms of economics in this industry. The business model is very tight. So you need to have very large scale to survive in this market.

When you have an average tariff at Rs 0.50-60-65, you have to get your money or returns out of the same paisas. Unless you have scale it gets very difficult. People like us and some other large operators have very large minutes’ usage every day. Our minutes are in excess of 1 billion and it is far in excess of 1 million minutes a day.

If we were at a lower minutes usage even companies like us will not have a rosy picture. Now imagine new operators who are coming in, they have to have the whole network, same expenses, brand building has to be done. There are very small minutes usages on the network. It is very hard to make a business case. But from our point of view, good luck, open markets are good, competition is great. We have never quibbled about more competition. All we have always said is the existing operators must be given their due weightage in the industry, in the environment by the government, by the regulator. Give us our legitimate due spectrum, do not tighten us. After that what do you want to do? We will play in the market.

In fact, lower tariffs mean some of them will not be even able to start their businesses. But companies like us who have very large volumes will still be fine.

Q: Has the government been fair to Bharti Airtel over the last two-three years?

A: You’ve been a long standing tracker of the telecom industry. I think you know the answer. We don’t believe we have been dealt a fair hand. Time and again, I think regulations have been made to populist noises and demands. It continues to happen.

Occasionally when you see some balancing coming into play, I am pleased that the regulator personally has gone on stage many times to say, the existing five-six operators who have built this industry need to always be saluted and counted in, in any decision making that happens.

So, I think there are senior voices. But occasionally the populist noise, and sometimes it comes from the media saying we want lower tariffs, MVNO will bring further lower tariffs. Those voices then get resonance in the form of policies sometimes that are not conducive to the industry.

Q: Over the past two years, would it be fair to say that Bharti Airtel and Mr. Sunil Mittal failed to manage the regulatory environment, the telecom policy environment in a proper manner? Do you personally sort of feel a deficit on that front?

A: We have been a recipient of policies. We have never managed policies. The good news here is that we have played with every hand that has been dealt to us. Most of the time the hand dealt to us has been tough, but we have played with it.

The good news is our concentration has been in the right quarters. Those right quarters are not in the public policy or in the telecom policy framework, they have been in the area of markets. Distribution, brand building, customer care, innovation, new products, we have relentlessly put our energies into those areas. So while some people have managed regulation to hit us, we have managed the markets to mitigate those hits.

Q: 3G, Mobile Virtual Networks, Mobile Number Portability, new norms on spectrum and several other things that have happened. For instance in 3G, do you feel it would be a fair assessment that private operators like you have been denied an opportunity of an early 3G auction while government-owned operators like BSNL today has announced expansion in eight cities. They have already done Chennai on Sunday. Your major competitor, Reliance Communications is already planning to do EVDO (Evolution-Data Optimized or Evolution-Data only) on its existing CDMA network, while we don’t have a clear timetable for a 3G auction. What is your view on this?

A: I think it is unfortunate. We were all set to be participating in 3G auctions a month to month and a half back. We were all prepared, all set. There have been forces at work that have been trying to create hurdles in the early auction of 3G. I think it is evident again who wants 3G and who don’t want 3G. Most of the existing players would like 3G to come through. An auction is an auction. Let the price be discovered in the market. I will also not quibble in terms of what the base price is. From my point of view, put a reasonable base price and then float the bidding, don’t make it too high.

Q: What is a reasonable base price?

A: I think the first recommendation which came in itself was a very good benchmark. You must reckon a Rs 2,000 crore odd that was there, should be fine for an all India 3G measure. After that if we feel that the bids that have come in are not satisfactory the government is within the right to cancel the tender. That right always belongs to the government. Imagine if you have a Rs 2,000 crore base price and if you get out of the process a very decent bidding amount, I think it will be seen as a successful tender. You have twice the amount and you see a marginal increase over that amount, it will be seen as a failed tender.

So from my point of view, the government must keep this lower, allow 3G networks to come in. They are very good for rural areas. You will never be able to reach copper or fibre in the rural areas. This is to my mind the only thing to create a broadband culture, framework, network in the country. The faster we do it, the better the economic benefits that would come out of that. It is my view that 3G would further kick the GDP growth rates by quarter or 0.5 percentage points, which is direly needed by India today.

[Mufaddal 678]

well just yesterday i read that now even some african countries like ghana have hspa up and running ....

when will we get 3g from other operators ....

[SUDYEcaZ 67]

Centre constitutes GoM to look into the auctions of 3G

The Centre has finally constituted a panel of ministers led by external affairs minister Pranab Mukherjee to look into the auctions

of third-generation (3G) spectrum, vital for offering high-end mobile services such as high-speed Internet and video conferencing.

However, executives with telcos and industry watchers said that move was a mere eyewash and the Group of Ministers (GoM) cannot take any major decisions since the model code of conduct for the Lok Sabha elections are already in place.

The Centre’s move to constitute the GoM comes more than a month after the Cabinet referred the proposal for 3G auctions to a panel of ministers. Differences between different ministries over the floor price for the auction of 3G airwaves, the number of players to be allowed to offer these high-end services in an area, coupled with the fact that there are several pending court cases over the country’s 3G policy resulted in the Cabinet referring this issue to the GoM.

According to government sources, the other members in the GoM include railway minister Lalu Prasad Yadav, chemical and fertilisers minister Ram Vilas Paswan, communications and IT minister A Raja, agriculture, food & civil supplies and consumer affairs & public distribution minister Sharad Pawar, defence minister A K Antony, law minister HR Bhardwaj, minister of State for information and broadcasting Anand Sharma and deputy chairman of the planning commission Montek Singh Ahluwalia.

This is the second time that the UPA government referring a telecom proposal to a GoM. About three years ago, the government had constituted a GoM to look into the ‘vacation of spectrum and raising resources for this purpose’, but so far this GoM headed by defence minister AK Antony has met only once.

The 3G spectrum auctions were scheduled to he held on January 16 and it was then postponed to January 30. But the DoT failed to meet this deadline too as the Cabinet did clear the auction plan and set a base price, but referred the matter to a GoM.

While the DoT in its 3G policy has said that the base price for pan-India 3G spectrum would be Rs 2,020 crore and that for broadband access technologies such as WiMax would be Rs 1,010 crore, the finance ministry had demanded that the this floor price be doubled. The issue got further complicated as the Planning Commission, the department of industrial policy and promotion and the IT ministry opposed doubling of the base price.

In a bid to appease the finance ministry, the DoT then suggested three possible solutions — these included retaining the original base price or accepting the finance ministry proposal. The third plan mooted setting Rs 3,540 crore as the base price for 3G spectrum. Another alternative involved doubling the reserve price for Delhi, Mumbai and category A circles and increasing it by 1.5 times for Kolkata and category B circles while retaining the current base price for category C circles.

Last month, a top source in the communications ministry had told ET that the panel of ministers would will finalise the policy and the road map for auctions of third generation spectrum (3G) before the code of conduct for the general elections kick in, but this was not to be the case. Executives with telcos also point out that all members in this panel of ministers would be busy with elections over the next couple of weeks and therefore it is unlikely that they could hold meetings to sort out the 3G auctions deadlock.

[srk006 21]

3G spectrum auction may happen next year

NEW DELHI: After raising the hopes of both subscribers as well as telecom companies, the government is understood to be in no special hurry for

auctioning spectrum for 3G mobile services this calendar year.

Earlier, indications were that the radio waves would be auctioned by September this year.

According to sources close to the development, there is a feeling that the government may not get the revenue it is looking at if it bids out spectrum in the midst of a global recession - which means mobile users would have to wait a while before they can enjoy faster voice and data services.

The government has projected a revenue of Rs 35,000 crore in budget 2009-10 from the auction of spectrum and had last month decided to keep the reserve price at Rs 4,040 crore for radio waves for pan-India operations.

An Empowered Group of Ministers (EGoM) chaired by Finance Minister Pranab Mukherjee has been formed to look into issues relating to 3G spectrum auction and decide on the number of slots to be auctioned in the first phase.

Asked whether the Department of Telecom (DoT) has sought the first meeting of the EGoM, sources said the meeting is likely to take place soon but confirmed that auction of spectrum may happen only in January-February next year.

Going by the proposed reserve price of Rs 4,040 crore, the government is expecting to garner over Rs 32,300 crore -- assuming that all seven players, including BSNL/MTNL, opt for 3G mobile services across India.

http://economictimes...how/4798537.cms

[Greatest 55]

Now here we go again... the subscribers will suffer..

[me_saket 73]

I am already habituated to listen words like "3G" , "delay"

[pasumark 51]

I am already habituated to listen words like "3G" , "delay"

The circus goes on. . . .

[ani_meher 42]

Can someone please advise me on one thing? I am postponing buying a new cell just because I am waiting for MNP. I read it was due in september, and therefore am holding out on a dying CDMA handset. If MNP comes in September, I plan to change to BSNL, and then buy a decent GSM phone. But if MNP is not within 6 months or more, I may go for a CDMA handset now, because the number is important to me.

Experts please voice your opinions.

[srk006 21]

^^ There was indeed some report that MNP may be launched only in March 2010 and not in September as said earlier. The MNP operators are not happy with the phased launch and they want all-India launch at one go. So I feel MNP will also get postponed as with 3G!

[SUDYEcaZ 67]

Reliance launching 3G for DATA only within month from now in all circles.

But tariff is expected to be very costly.

^^^

But 3G will be launching only for Reliance GSM services.

Nothing for poor CDMA subscribers.

for CDMA govt has already given the spectrum

but with condition to use it for data service as of now...

thats why u c proton netconnect high speed wireless in CDMA

1s Govt acution GSM 3g spectrum i believe, they will allowe CDMA to launch 3G

[me_saket 73]

source

3G spectrum: Ministers to meet on Aug 27

Our Bureau

New Delhi, Aug. 13 The Empowered Group of Ministers set up to finalise third generation (3G) mobile spectrum policy will meet next on August 27.

This will be the second meeting of the new eGoM formed after the UPA Government was re-elected to power. The first meeting took place on July 31 when the Ministry of Communications told the eGoM that the base price for WiMax spectrum may be pegged at 25 per cent of the reserve price fixed for 3G spectrum.

Since there were many new members in the reconstituted eGoM, theDoT briefed them about various technologies and issues related to 3G auction.

For 3G auction, the DoT offered three options to the eGoM — the first entails auctioning four blocks, each 5 Mhz, according to the decision of the Telecom Commission; the second involves auctioning all available spectrum in line with the opinion of the Solicitor-General of India; and the third is to auction all available spectrum but to just four players, which means an operator can bid for more than one 5MHz slot.

[Mufaddal 678]

now even i feel that MNP will be delayed and wont come in sep

[Greatest 55]

^^^ NAHIIII.....

[srk006 21]

Govt to raise Rs 25K cr from 3G; base price at Rs 3500 cr

NEW DELHI: Paving the way for moving to the next generation of mobile services, an empowered Group of Ministers today fixed Rs 3,500 crore as reserve price for 3G spectrum to be given to a maximum five players initially.

The eGoM also decided a base price of Rs 1,750 crore for pan-India WiMax (wireless internet) spectrum and the auction of both will be completed within 90 days, Telecom Minister A Raja told reporters.

"I do feel that the Government of India, putting together 3G and Wimax, will easily get Rs 25,000 crore," he said after over a hour-long meeting of the eGoM.

The eGoM, headed by Finance Minister Pranab Mukherjee, decided that five slots in 3G spectrum would be auctioned and amongst the five, one lot has already been allotted to BSNL or MTNL, the minister said, adding that four more slots would be auctioned.

He, however, said that with only four more slots to be sold, the players are likely to bid higher for the frequency.

The eGoM lowered the base price to Rs 3,500 crore for pan-India 3G spectrum, from the earlier level of Rs 4,040 crore decided by Raja and Mukherjee, after representations from the private players and their respective lobbies.

The Telecom Ministry will now announce the detailed programme for the auction, which will include pre-bid conference in the next couple of weeks, a source said.

http://economictimes.indiatimes.com/Govt-to-raise-Rs-25K-cr-from-3G-base-price-at-Rs-3500-cr/articleshow/4941709.cms

Edited August 27, 2009 by srk006

[Arun 795]

something atlast!

[ravi_patent 28]

The GoM has also decided to auction one slot of 3G spectrum for CDMA players with a base price of Rs 875 crore.

Operators who win the 3G bidding will get a chunk of 5 Mhz spectrum and BWA players will get 20 Mhz. Only 1.25 Mhz spectrum has been earmarked for one CDMA player

http://www.thehindubusinessline.com/2009/08/28/stories/2009082852060100.htm

[pasumark 51]

[srk006 21]

Just one slot for CDMA!!

Who's going to bid for CDMA now. Definitely not RCOM or even TATA after their GSM success! Maybe MTS?

[vvinayakpai 26]

I think it would be a tough fight for the CDMA 3G spectrum.

I say this because, recently the CDMA DEVELOPMENT GROUP's survey had clearly indicated that CDMA subscribers were looking forward to higher end handsets. Hopefully by October, such hansets would be launched. Also, the player who gets access to the CDMA spectrum is in a monopoly like situation. CDMA, having around 100 million subscribers, have to bank upon one such operator for 3G services(not considering the fact that when MNP is introduced CDMA subscribers can migrate to GSM).

Also, existing players like Tata and Reliance have invested in upgrading their respective networks to make them EVDO compliant. So additional spectrum would mean seamless and smooth services by the respective operators. I am sure they would not be foolish enough to let MTS getaway with the 3G spectrum at a cheap price. I assume that there would be a tough competition for the 3G spectrum.

[KumaarShah 143]

I too share the same view, but the way RCOM is going on for the last 6 months or more, it appears that they want to exit CDMA business not immediately but maybe 2,3 or 4 years down the line. And they will do so after grabbing 3G spectrum and will thus demand a very high price for their CDMA business. These are my observations, lets wait and see....

[Arun 795]

3G auction: Which companies may gain

Published on Fri, Aug 28, 2009 at 16:31 , Updated at Fri, Aug 28, 2009 at 17:33

Source : CNBC-TV18

The government on Thursday (August 27) rolled out its roadmap to the 3G and WiMax auctions. The auctions will not only pave the way for next generation technology over voice communication but will also help an already-desperate-for-cash government rake in about Rs 25,000 crore and help ease the fiscal deficit situation.

“Five 3G slots will be auctioned. Among the five, one slot has already been auctioned to BSNL and MTNL so the remaining four would be auctioned. The base price for pan-India would be Rs 3,500 crore,” Telecom Minister Anthony Raja said, adding, “Since the number of slots is only four, the auction price will be more and I feel the department will easily fetch Rs 25,000 crore.” The minister also said the auction would be completed within 90 days. The 3G auction has been delayed for over a year now. The Department of Telecom was earlier looking at a base price of Rs 2,020 crore while the Finance Ministry wanted it doubled.

Who wins, who loses?

Reactions poured in immediately after the auction announcement with big GSM players like Bharti welcoming the auction. Bharti and Vodafone with an easy cash position would be looking forward to the auctions. However, the relatively smaller players like Idea, Reliance Communication and Aircel will need to dig deep into their pockets to pay up. Another player that stands to lose is MTNL, which will — as per the norm set by the government — need to match the highest bids in the Delhi and Mumbai circles where it operates. MTNL, already a loss-making government entity, does have enough cash reserve but if required to shell out Rs 800 crore — as expected — it may be negative for the stock.

The CDMA players are the worst-hit. Reacting to the 3G auctions, SC Khanna of the Association of Unified Telecom Service Providers of India (AUSPI), a CDMA operators’ body consisting of Reliance Communication, Tata Indicom and Sistema Shyam, said he was disappointed with the auction because of both the high reserve price and the limited number of slots.

“The high reserve price will impact the 3G service’s affordability. Also, the government is creating artificial scarcity by auctioning just four slots,” Khanna said, adding that the government should have auctioned all the slots, the number being seven or eight.

[@mitJ@in 256]

The CDMA players are the worst-hit. Reacting to the 3G auctions, SC Khanna of the Association of Unified Telecom Service Providers of India (AUSPI), a CDMA operators’ body consisting of Reliance Communication, Tata Indicom and Sistema Shyam, said he was disappointed with the auction because of both the high reserve price and the limited number of slots.

So they trying to bring HSD to Mobiles also now....