Government to come out with New Telecom Policy 2011: Sibal

[Honest 836]

Govt to come out with New Telecom Policy 2011: Sibal

1st January l The Ecomonic Times l New Delhi

In an effort to infuse greater transparency into the sector, Telecom Minister Kapil Sibal today announced formulation of a new and comprehensive National Telecom Policy 2011 that he says will be "clear and transparent."

"Eleven years have passed since NTP'99 and many changes have taken place thereafter. Action will be initiated to formulate a comprehensive NTP 2011," the Minister told reporters while releasing the 100-day agenda for telecom sector.

He, however, did not elaborate if changes would be made to the existing NTP'99 policy in respect of allocation of spectrum on the basis of first-come first-served. Sources, however, said that revenue share would continue to be the regime for payment of licence fee by operators.

The Department of Telecom (DoT) will hold consultations with key stakeholders to evolve a "clear and transparent" regime covering licencing, spectrum allocation, tariffs/pricing, linkage with roll-out performance, spectrum sharing, trading and mergers and acquisition.

The announcement comes on the heels of the controversy surrounding the allocation of 2G spectrum in 2008 at 2001 prices.

He said that three elements -- reasonable revenue for government, affordable services to users and robust growth of the sector -- would be kept in mind while framing the new policy.

"We need to balance all these three elements," Sibal said, adding that the government should not get revenue at the cost of industry while industry should not make super normal profits at the cost of consumers by keeping tariffs high.

He also emphasised that spectrum needs to be made available to meet the demand and the DoT would initiate a dialogue with the Department of Space, Ministries of I&B and Defence to get the spectrum vacated for civil use.

On extending Mobile Number Portability, a service that allows subscribers to retain their number while changing the service provider, from Haryana to the rest of the country, the Minister said that country-wide launch of MNP was on DoT's priority list.

The government had launched the service from Haryana in November and had announced to cover the remaining parts of the country by January 20.

On the launch of 3G services, which have been delayed due to security concerns, he said: "Steps would be taken to enable operators to launch services in their entire plenitude without delay.

"Security issues regarding telecom equipment procurement, messenger services and subscriber verification will be resolved. Steps will be taken to establish the Central Monitoring System which will facilitate and prevent misuse of lawful interception facility," Sibal added.

[rajanmehta 4,056]

The tone and authority with which Mr. Kapil Sibal is announcing such serious policy measures means that he will remain Telecom Minister for longer than expected and it is not a temporary arrangement after all. I see no chance of anyone from DMK again given Telecom Portfolio.

[Karthik R 246]

The said Rs.1700000000000 loot will keep DMK running for a long while..

[kesav 127]

Indian Telecom Minister Announces Action Plan for 100 Days

Kipal Sibal, Union Telecom Minister has announced the action plan for next 100 days. Mr Sibal said that the ” Action plan ” has been worked so as to ensure that the common people gets telecommunication services at the reasonable cost, the Industry remains robust and the Government gets its share of revenue.

The “100 Day Action Plan” of the Departments of Telecommunications (DoT), on various issues such as MNP, 3G Mobile and Data Services including Video Call service by private operators, Wireless Broadband, 2G Spectrum allocation, MTNL/BSNL and Mobile Tower Radiation and National Telecom Policy 2011 was announced in a Press conference in New Delhi.

Plan of Action for DoT in details as follows :

(1) The Department of Telecommunications (DoT) will hold consultations with key stakeholders (Telecom operators) to evolve a clear and transparent regime covering Licensing, Spectrum allocation, Tariffs/pricing, Linkage with roll out performance, Flexibility within licenses, Spectrum Sharing, Spectrum trading, MVNOs, Unlicensed bands, M&A, etc. in a technology agnostitc environment after due consideration of TRAI recommendations. In this regard, interest of the ‘Aam Aadmi’ would be the prime consideration.

(2) To ensure availability of Spectrum for telecom industry, dialogue will be initiated with Department of Space/Information & Broadcasting/Defence, PSUs on ‘Vacation of Spectrum’ and for identification of Defence Band and Defence Interest Zone. National Frequency Allocation Plan 2011 (NFAP) shall be released. Spectrum allocations, availability and status of pending applications for spectrum shall be published on the department’s web site.

(3) Immediate steps will be taken to resolve outstanding Security Issues. Steps will be taken to enable operators (private operators) to launch 3G Mobile and Data services in their entire plenitude without delay. Security issues regarding telecom equipment procurement, messenger services and subscriber verification will be resolved. Steps will be taken to establish the Central Monitoring System which will facilitate and prevent misuse of lawful interception facility.

(4) 11 years have passed since NTP ’99 and many changes have taken place thereafter. Action will be initiated to formulate a comprehensive ‘National Telecom Policy 2011’ including the recognition of Telecom as infrastructure and as an essential service, encouraging Green Telecom, steps to accelerate migration from IPv4 to IPv6 at the earliest, release of IPv6 standards by Telecom Engineering Centre for implementation in the country, etc.

(5) All possible efforts will be made to fill up Board Level vacancies in PSUs and for greater participation of BSNL/ MTNL and C-DOT in national and socially important programmes, while addressing structural issues, improving internal efficiency and financial performance of BSNL/ MTNL.

(6) Country-wide launch of ‘ Mobile Number Portability ’ (MNP).

(7) Vigorous measures will be taken to address public concerns about health hazards due to the EMF radiation from Mobile towers including laying down relevant standards, supplementing equipment with TERM Cells and ensuring adequate field-testing.

(8) Formulation of a package of measures to promote ‘Manufacturing of telecom equipment in the country.

(9) Launch of a ‘ Wireless Broadband Scheme ’ by USOF to provide wireless broadband coverage to about 5 lakh villages, leveraging the existing passive infrastructure created for mobile telephony in rural and remote areas.

(10) Concrete steps towards finalization of ‘National Broadband Plan’ including strategy for implementation and initiation of steps for roll out of Optical Fibre.

source :: http://telecomtalk.info/indian-telecom-minister-announces-action-plan-for-100-days/52718/

A very good initiative by Sibal on the points 2,3,"steps to accelerate migration from IPv4 to IPv6 at the earliest, release of IPv6 standards by Telecom Engineering Centre for implementation in the country, etc." part of 4,5,6,7,8,9,10

Let us pray to God to entrust with him with courage to deal with person like A.K. Antony (A immovable property of Indian Govt).

Best wishes for him to take Indian Telecom to next level.

:clap:

Regarding point 1 and "11 years have passed since NTP ’99 and many changes have taken place thereafter. Action will be initiated to formulate a comprehensive ‘National Telecom Policy 2011’ including the recognition of Telecom as infrastructure and as an essential service, encouraging Green Telecom" part of point 4 is purely TRAI's task. DoT has only support role to play.

Why on earth DoT wants to do TRAI's job?

Does finance ministry do the job of SEBI, RBI & IRDA?

Why can't Telecom Minister allow TRAI to function at the same league of SEBI, RBI & IRDA?

DoT has so many tasks on its hand like implementation of TRAI regulations and plans like VoIP introduction, National Broadband Plan, CDMA 3G auction, Spectrum re-farming etc., It also has routine job of audit on operators over subscriber verification, radiation, service roll-out, security clearances on network gears, establishing real-time monitoring of services etc., etc.,

When DoT is struggling to do its own tasks it's perplexing to understannd why it's trying to take over job of TRAI?

Why is it trying to engage with operators on policy issues when it very clear that stakeholders'(operators,cosumers etc.,) facing Govt. instrument of Indian Telecom domain is TRAI?

Raja made a mistake of doing TRAI's jobs now & then. We now know the result of such ambitions.

I plead with Sibal not make same mistakes again & again.

Now, operators treat TRAI as cow dung since they know they can overturn any regulation by TRAI through their influence over DoT's office.

Let us give TRAI its place which was enviosioned when it was created....

Stop DoT from even touching single word in policy without consent from TRAI.

Every institute must be allowed to do its job.

It better for DoT to stay away from policy matters so that it'll get good time to do its licensor's task meaningfully and without delay.

The problem in India is everyone wants to do everything.

Greatness of a man does not lie in doing everything by himself instead lies in allowing(guiding) others to do their assinged tasks even when he knows that he can to do it better and has power to do it.

Edited January 4, 2011 by kesav

[sgiitk 32]

He is coming out with a new everything in the next 100 days. Now with the Bofors having blown up 'Headlines Today - Lunchtime' all bets are off!

[Honest 836]

New spectrum policy to create level playing field: TTSL

The Economic Times l 30th January l New Delhi

Tata group firm Tata Teleservices (TTSL) on Sunday welcomed Telecom Minister Kapil Sibal's announcement of delinking spectrum from licence, saying the move will create a level-playing field for all operators.

"We compliment the telecom minister for his announcement, which we are sure is the first of many that will work toward ushering in a level-playing field in the industry," TTSL Executive President (Mobility Business) Deepak Gulati said in a statement.

Telecom Minister Kapil Sibal yesterday announced that spectrum would not come bundled with the licence as per the new telecom policy. The contract limit of spectrum has also been reduced to 4.4 Mhz for new operators, while for the old operators, the limit has been retained at 6.2 Mhz.

"We are confident that this will now end the delay that occurred earlier in the grant of 6.2 MHz spectrum, as also even start-up spectrum in key Circles like Delhi and many other districts, to players like TTSL," Gulati said.

To the decision that henceforth all spectrum, initial as well as additional, would be given at market driven price, Gulati was of the view that operators, who have excess spectrum are charged for the same, preferably retrospectively, to bring all operators to a level-playing-field.

He added that consequent to bringing the level-playing field, the spectrum beyond 6.2 Mhz and up to the limits specified by TRAI in May 2010 could be charged by DoT in line with the telecom regulator's recommendations.

[kesav 127]

Spectrum row ends with gains for government

It was long due. However, it needed a strong minister with a clear-minded approach to implement the new spectrum policy regime envisaging market pricing and scientific management of spectrum. Within 75 days of taking charge as the communications minister, Kapil Sibal has announced a new spectrum

policy under which from now on, all spectrum will be allotted at market price. Even incumbent operators would have to pay for 2G spectrum they hold beyond the contracted spectrum of 6.2 MHz.

This was not really a difficult task but required strong political will in view of strong lobbies working in the telecom sector. What Sibal has done is to simply accept major recommendations of the Telecom Regulatory Authority of India's (TRAI) report on “Spectrum anagement and licensing framework” submitted to the department of telecommunications (DoT) in May, last year.

His predecessor A Raja had sat on it for six months.

Contrary to popular belief, the powerful lobby of incumbent telecom service providers was strongly opposed to market pricing of spectrum. For a very long time, incumbent operators were successful in getting spectrum beyond 6.2 MHz without paying any one-time entry fee to the government. They got spectrum up to 6.2 MHz along with the licences. The licences were silent on spectrum beyond the “contracted” spectrum.

Initially, they were also opposed to any move to auction 3G spectrum. In 2005, the chairman of a leading telecom service provider had mocked the head of another large corporate group by saying that he should donate “extra money” to Prime Minister’s Relief Fund. The head of a large corporate group had wanted 3G spectrum to be priced, but the promoter-chairman of the successful Indian telco wanted no entry fee for it.

The formula for spectrum pricing is yet to be decided, but the government may be richer by up to R37,000 crore, if one goes by CAG estimates.

Though the new policy may pinch operators, the consumers will not be affected. This is simply due to the reason that the Indian market is hyper competitive. There are about 10 to 12 players offering services in a circle. So competition will keep a check on prices.

“Pricing of spectrum at market driven process will not have any impact on tariff for consumers,” said Mahesh Uppal, director, ComFirst, a telecom consultancy firm.

So the shift from “promotional” to “market driven” price policy of spectrum will hopefully ensure that no more scams take place in allotting spectrum.

source :: http://www.hindustantimes.com/Spectrum-row-ends-with-gains-for-government/Article1-656894.aspx

[raccoon 53]

Though the new policy may pinch operators, the consumers will not be affected. This is simply due to the reason that the Indian market is hyper competitive. There are about 10 to 12 players offering services in a circle. So competition will keep a check on prices.

The money has to come from somewhere. Just because there is competition, it does not mean the money will come from thin air. Telcos here are to do business not charity. In the end it is subscribers who will pay thru their nose, this way or that.

[KanagaDeepan 1,084]

Very TRUE... Competition can bring down prices upto a limit only...

[ravi_patent 28]

and trends thus far indicate that mnp is not contributing to competition rather mnp is helping reduce competition

[KanagaDeepan 1,084]

That is NOT true sir... Please dont look at false-half_Baked media hype and come to a conclusion immediatelt... Even though number of ported customers are very small in range of 3 or 4%,

1. almost half of current subscribers are either secondary numbers or fake activations only.. That brings 3-4 to 5-6%

2. Many people are having initial fear and ONLY trying with trial numbers.. (Like me testing my Airtel to BSNL first and then all my TataCDMA to BSNL next)

3. Most ported people will be higher ARPU postpaid users, for whom NUMBER IS VERY IMPORTANT... So even 1% of them leaving a network will blow operators in some way..

4. In order to retain Higher-ARPU subscribers, telecom cos are giving retention plans, which itself is a good example of INCREASE IN COMPETITION.. But we have to note that, those subscribers wont come into the 3-4% Ported list...

5. Further 3-4% of 70Crore is also NOT AT ALL A SMALL NUMBER...

6. After initial-rough edges are removed, there will be many serious porting...

7. Higher ARPU users have got ANY-TIME threatening weapon, in the form of MNP...

But the only problem is NOT many are aware of the use of powerful weapon... Whenever I see my relatives or clients (who are NOT in a mood to port or not much aware/care of MNP) using higher rent plans, I just send PORTING SMS from their handset and tell them "CC people will call you asking the reason for leaving, just say HIGHER TARIFFS and you will get discounts"... Similarly I have done to more than a dozen people now and ALL (NOT A SINGLE PERSON LEFT WITHOUT OFFERS) HAVE got nice offers like Rs100 discount for 3 months and sooo on...

But I do hope, the awareness will increase in course of time and we can get the benefits, especially when the new operators increase coverage (MTS, Videocon, Uninor, Docomo) and let us wait and watch...

[kesav 127]

TRAI to submit the current market price of 2G spectrum in each circle

NEW DELHI: Telecom regulator Trai may recommend a one-time fee ranging from Rs 50.98 crore to a maximum of Rs 707.28 crore for every unit of second generation (2G) airwaves that incumbent GSM-based mobile phone companies have beyond the 6.4 MHz limit.

The regulator may recommend that 2G airwaves in Uttar Pradesh (East) be priced the highest at Rs 707.28 crore as this region holds the maximum potential for future growth, while spectrum in Jammu and Kashmir be charged the least, according to a draft report, reviewed by ET.

Calculations by ET reveal that if an operator were to have one unit of airwaves beyond the 6.2 MHz mark across the country, it must shell out Rs 8380.55 crore, as per the Trai draft report.

The move will impact Airtel, Vodafone Essar, Idea Cellular, Loop (in Mumbai), Reliance Communications, and state-run telcos BSNL and MTNL. The government may also apply this one time fee for additional airwaves allocation for new entrants and dual tech companies.

Currently, these companies have been given only 4.4 MHz of start up GSM airwaves in most circles. If Trai’s draft pricing formula were to be considered, telcos such as Tatas and RCOM may have to pay about Rs 15,000 crore each for pan-India airwaves to take their total holdings to the 6.2 MHz. These companies have been vigorously arguing that that mobile permits entitle them to a minimum of 6.2 MHz of spectrum and only allocations beyond this amount can be linked to a market linked pricing mechanism.

Last week, telecoms minister Kapil Sibal had said that the country will charge mobile operators for additional spectrum at market-determined prices as specified by Trai. Sibal was appointed in November to clean up the sector and bring about reforms after former telecoms minister A Raja resigned facing allegations of selling airwaves for cheap, causing a loss of Rs 1.76 lakh crore to the exchequer according to the national auditor.

Last year, Trai had proposed that GSM telecom companies pay for 2G airwaves beyond the 6.2 MHz limit in every region at rates discovered during the third-generation spectrum auctions. However, due to stiff opposition from the GSM service providers, the regulator said it would revisit the issue.

Under the new pricing methodology, since incumbent GSM operators largely have airwaves beyond the 6.2 MHz mark in the metros and category A circles, their outgo is set to be lower. This is because the regulator is of the view that incremental 2G spectrum is less valuable in the metros , more valuable in category A regions and most valuable in category B areas. In parts designated as Category C regions, the regulator in its draft report said that the incremental 2G spectrum beyond the 6.2 MHz would be about 2.4 times the cost of 3G airwaves.

While a mobile permit allows a maximum of 6.2 MHz of airwaves per circle, GSM operators cite subsequent policy changes that entitle them up to 15 MHz or units of airwaves in each region, and add that the legality of this policy change has been upheld multiple times by the governments and the courts. This is hotly disputed by CDMA based and dual technology companies such as Reliance Communications and Tata Teleservices who content that a mobile permit entitles an operator a maximum of 6.2 MHz of airwaves per region.

India’s national auditor, in its report, submitted in Parliament in November 2010, said loss to the exchequer due to allocation of airwaves beyond the contracted amount to nine GSM players – Aircel, Bharti, BPL (Mumbai), BSNL, Idea, MTNL, Reliance, Spice (Punjab) and Vodafone is Rs 2,561 crore, ‘based on the amount charged from CDMA operators for grant of GSM spectrum in 2007’. The Comptroller and Auditor General of India in its report also added that going by Trai’s proposals, the loss to the exchequer was Rs 36,993 crore.

source :: http://economictimes.indiatimes.com/news/news-by-industry/telecom/trai-may-recommend-one-time-fee-for-extra-2g/articleshow/7401627.cms

Edited February 1, 2011 by kesav

[ravi_patent 28]

dear kanagadeepan

what evr u told holds good as long as long as spectrum charges are not revised. mr sibal (mama or uncle as you like to call him) wants more money for spectrum. and he says MNP will keep prices under control. If the input cost raises for all how come opeartors can keep prices at the same level..

my observation on MNP is based on the rimweb members posts ..from the port ins and port outs i felt that movement is from cdma to gsm..

Edited February 1, 2011 by ravi_patent

[Honest 836]

2G spectrum: Trai may recommend a one time fee

The Economic Times l 1st Feb l New Delhi

Telecoms regulator Trai may recommend a one time fee ranging from Rs 50.98 crore to a maximum of Rs 707.28 crore for every unit of second generation (2G) airwaves that incumbent GSM-based mobile phone companies have beyond the 6.4 MHz limit.

The regulator may recommend that 2G airwaves in Uttar Pradesh (East) be priced the highest at Rs 707.28 crore as this region holds the maximum potential for future growth, while spectrum in Jammu and Kashmir be charged the least, according to a draft report, reviewed by ET (refer table).

Calculations by ET reveal that if an operator were to have one unit of airwaves beyond the 6.2 MHz mark across the country, it must shell out Rs 8380.55 crore, as per the Trai draft report.

The move will impact Airtel, Vodafone Essar, Idea Cellular, Loop (in Mumbai), Reliance Communications, and state-run telcos BSNL and MTNL.

The government may also apply this one time fee for additional airwaves allocation for new entrants and dual tech companies. Currently, these companies have been given only 4.4 MHz of startup GSM airwaves in most circles. If Trai’s draft pricing formula were to be considered, telcos such as Tatas and RCOM may have to pay about Rs 15,000 crore each for pan-India airwaves to take their total holdings to the 6.2 MHz. These companies have been vigorously arguing that that mobile permits entitle them to a minimum of 6.2 MHz of spectrum and only allocations beyond this amount can be linked to a market linked pricing mechanism.

Last week, telecoms minister Kapil Sibal had said that the country will charge mobile operators for additional spectrum at market-determined prices as specified by Trai. Sibal was appointed in November to clean up the sector and bring about reforms after former telecoms minister A Raja resigned facing allegations of selling airwaves for cheap, causing a loss of Rs 1.76 lakh crore to the exchequer according to the national auditor.

Last year, Trai had proposed that GSM telecom companies pay for 2G airwaves beyond the 6.2 MHz limit in every region at rates discovered during the third-generation spectrum auctions. However, due to stiff opposition from the GSM service providers, the regulator said it would revisit the issue.

Under the new pricing methodology, since incumbent GSM operators largely have airwaves beyond the 6.2 MHz mark in the metros and category A circles, their outgo is set to be lower. This is because the regulator is of the view that incremental 2G spectrum is less valuable in the metros, more valuable in category A regions and most valuable in category B areas. In parts of the country that are designated as Category C regions, the regulator in its draft report said that the incremental 2G spectrum beyond the 6.2 MHz would be about 2.4 times the cost of 3G airwaves.

While a mobile permit allows a maximum of 6.2 MHz of airwaves per circle, GSM operators cite subsequent policy changes that entitle them up to 15 MHz or units of airwaves in each region, and add that the legality of this policy change has been upheld multiple times by the governments and the courts. This is hotly disputed by CDMA-based and dual technology companies such as Reliance Communications and Tata Teleservices who content that a mobile permit entitles an operator a maximum of 6.2 MHz of airwaves per region.

India’s national auditor, in its report, submitted in Parliament in November 2010, said loss to the exchequer due to allocation of airwaves beyond the contracted amount to nine GSM players – Aircel, Bharti, BPL (Mumbai), BSNL, Idea, MTNL, Reliance, Spice (Punjab) and Vodafone is Rs 2,561 crore, ‘based on the amount charged from CDMA operators for grant of GSM spectrum in 2007’. The Comptroller and Auditor General of India in its report also added that going by Trai’s proposals, the loss to the exchequer was Rs 36,993 crore.

Circle Price per MHz of additional 2G spectrum

Delhi : 376.82

Mumbai 239.83

Kol 96.15

Maharashtra 581.03

Gujarat 526.29

AP 609.54

Karnataka 494.98

TN 591.97

Kerala 458.17

Punjab 364

Haryana 264.25

UP(West) 587.32

UP(East) 707.28

Rajastan 617.09

MP 591.41

WB 513.78

HP 62.64

Bihar 342.34

Orissa 163.18

Assam 69.79

NE 71.71

J&K 50.98

[Karthik R 246]

Oslo/New Delhi : Hit by an operating loss of 5.04 billion Norwegian Kroner (about USD 876 million) in its India operations in 2010, Norwegian telecom major Telenor today said the country has a "challenging regulatory environment".

Telenor operates a joint venture, Uninor, in India with Unitech as its partner. Uninor added more than four million subscribers in the fourth quarter ended December. At the end of 2010, Telenor held 67.25 per cent stake in Uninor.

For the entire year, Uninor's operating loss widened to 5.04 billion Norwegian Kroner (NOK) from 985 million NOK in the year-ago period.

"Uninor in India added more than four million subscriptions in the fourth quarter and I am pleased to see that our go-to-market model is gradually improving.

"India is a very competitive market coupled with a challenging regulatory environment, and we are focusing strongly on establishing Uninor as an ultra low cost operator," Telenor Group President and CEO Jon Fredrik Baksaas said in a statement.

Uninor's operating loss in the 2010 fourth quarter widened to 1,272 million NOK from 755 million NOK in the year-ago period. However, the group's 2010 profit shot up nearly 66 per cent to 14.33 billion NOK as compared to 2009. The increased earnings came on revenues of 94.84 billion NOK.

Meanwhile, in the fourth quarter, the group's profit slipped three per cent to 2.10 billion NOK, compared to the year-ago period. Revenues during the October-December period rose to 24.86 billion NOK from 22.42 billion NOK in the same period in 2009.

Baksaas said, "Telenor confirms its position as one of Europe's fastest growing telcos, with organic revenue growth of eight per cent and strong operational performance. In 2010, the Telenor Group had an operating cash flow of NOK 18 billion and a solid EBITDA margin."

Courtesy : Economic Times

[Karthik R 246]

TRAI recommends :

• The price for 6.2 MHz of pan-India start-up 2G Spectrum has been proposed at Rs.10,972.45 crore, more than six times the present fee of1,658 crore
  
• Every MHz of additional Spectrum (on an all-India basis) beyond the contracted limit of 6.2 MHz should cost Rs.4,571.87 crore.
  
• Telecom firms could pay over Rs.15,000 crore for the additional Spectrum held by them
  
• The revised prices should be made applicable with effect from April 1, 2010, on pro-rata basis
  

New Delhi: The Telecom Regulatory Authority of India (TRAI) on Wednesday recommended that the price of pan-India 2G licence (that comes with contracted 6.2 MHz spectrum) be fixed at Rs.10,972.45 crore — over six times higher than the 2001 price of Rs.1,658 crore that was charged from new operators in 2008.

It also said that each MHz of spectrum on pan-India basis beyond 6.2 MHz should be charged at Rs.4,571.87 crore.

The earlier price of pan-India 1 MHz spectrum based on the 2001 cost was just Rs.267.51 crore. The revised price now is Rs.1,769.75 crore (up to 6.2 MHz) and Rs.4,571.87 crore (beyond 6.2 MHz). The TRAI recommended that these prices be implemented retrospectively from April 1, 2010.

In 2001, the lowest per MHz price of spectrum was for the West Bengal circle (Rs.16 lakh) and the highest was 37.58 crore for the Tamil Nadu circle (even higher than for metro circles). In the revised prices (up to 6.2 MHz), the lowest is that of Jammu and Kashmir (Rs.7.6 crore) and the highest again is that of Tamil Nadu (Rs.187.38 crore). And beyond 6.2 MHz, the lowest is again of Jammu and Kashmir (Rs.22.89 crore) and the highest is that of Andhra Pradesh (Rs.431.95 crore).

In its recommendations sent to Telecom Secretary R. Chandrashekhar, the TRAI said: “These prices may be made applicable from April 1, 2010, prorated for the remaining validity of the respective licences while charging for excess spectrum.”

Mr. Chandrashekhar told The Hindu: “We have received TRAI recommendations and it would be forwarded to the Telecom Commission... We will also talk to all stakeholders before taking the final decision.”

If the recommendations are accepted fully, incumbents Bharti Airtel, Vodafone Essar, Idea Cellular and the state-owned BSNL will have to pay for the amount of spectrum they are holding beyond 6.2 MHz. Similarly, other (new) operators who are still to get spectrum are likely to pay for whatever radio waves they would be allotted by the Department of Telecommunications. Interestingly, as per the Comptroller and Auditor-General of India (CAG) report on issue of licences and allocation of 2G spectrum in 2008, the government earned just 12,386 crore (based on 2001 prices). But as per the TRAI recommendations, the earnings would have been 65,000 crore (based on 2010 prices).

Courtesy : The Hindu

The Trai recommendations have drawn widespread criticism. In a statement issued soon after the report was submitted, Vodafone Essar said it “disagrees with Trai’s new set of recommendations which are flawed and discriminatory against operators who were the first to invest deeply to build the sector”.

It said the proposals discriminated against GSM players such as Bharti and Vodafone and favoured dual technology operators such as Reliance Communications and the Tatas.

[kesav 127]

Dear members, kindly follow the discussion on the above topic in the below thread.

[Karthik R 246]

All telecom policies will be sorted out by August : Sibal

New Delhi, May 5: Union Communications and Information Technology Minister Kapil Sibal on Thursday said all policies pertaining to the telecom sector would be 'sorted out' and settled by August after due discussions.

"Before August of 2011, we will have all issues decided in terms of policy. All issues will be decided. As you know, we already have been having round tables to have a dialogue with the industry on various issues, whether it is spectrum pricing, or spectrum allocation, or spectrum access, broadband policy, on all these issues, we have been having continuous discussion with the industry," said Sibal, while addressing a business seminar here.

Sibal further said that his prime focus was to formulate a non-discriminatory policy framework that would provide a level ground to operators.

"What we need to do for you is to give you enough spectrum. We need to give you enough speed. We need to ensure there is a policy framework that is non-discriminatory. We need to ensure that the information technology industry has the wherewithal to develop the kind of content that we need," he added.

via : dailyindia

[Karthik R 246]

Sibal holds meeting on R&D in telecom sector

New Delhi : Union Communications and Information Technology Minister Kapil Sibal held a roundtable conference on manufacturing and research and development in telecom and electronics sector with various stakeholders to deliberate upon the measures to promote indigenous manufacturing of telecom and electronic equipments.

Opening the deliberations, Sibal said that telecommunication infrastructure is a critical-asset of any country and it is a key growth enabler.

"It is the delivery vehicle for a large number of IT and IT-enabled services including health-care, education, financial services, e-governance etc. both to the urban as well as rural masses," Sibal said.

He further said that while the growth of telecommunications in India has been rapid; the domestic telecom equipment manufacturing segment has not been able to keep pace with the same. "This forces the telecom operators to import most of the telecom equipment required for their networks," he added.

The conference was attended by Electronics Industries Association of India (ELCINA), India Semiconductor Association (ISA), Manufacturer's Association for IT ( MAIT), Telecom Equipment Manufacturers Association (TEMA), Indian Cellular Association (ICA) as well as organizations associated in research and development like C-DOT, Telecom Centres of Excellence (TCOEs), Professors from IITs to draw a roadmap for ensuring growth of domestically manufactured products.

Telecom service providers and their associations like Cellular Operators Association of India (COAI), Association of Unified Telecom Service Providers of India (AUSPI), Internet Service Providers Association of India (ISPAI), Association of Competitive Telecom Operators (ACTO) as well as industry association like FICCI, CII, ASSOCHAM also attended the conference.

via : Timesofindia

[kesav 127]

DoT readies big-ticket changes in telecom policy

The Department of Telecommunications (DoT) is considering sweeping changes in the country’s proposed new telecom policy. The department is planning a complete overhaul of the archaic Indian Telegraph Act.

Under the new telecom policy, DoT also wants to replace the rollout obligation clause for broadband operators with a new incentive scheme. Other key proposals include re-farming of spectrum with operators for 3G and 4G and setting up of a telecom security council to oversee and audit all issues in this area.

The internal groups in DoT, set up to look into various aspects of the telecom industry and put together the new telecom policy, have given broad suggestions which will come up for final discussions before a draft policy statement is prepared.

The key takeaways of the suggestions include a road map, a time frame and broader guidelines to ensure availability of 800 Mhz spectrum by 2014. At present, there is no clear road map on the requirement and availability of spectrum every year, which has forced telcos not to have a long-term plan.

The new scheme to replace the rollout obligation, a bone of contention between telcos and the government, will have service delivery objectives such as reducing licence fee if the service provider covers a specified area in quicker time.

In lines with highway construction through the BOT route, a public- private partnership (PPP) model has been mooted for building optic fibre and broadband networks in the country.

DOT has also mooted a proposal that the government should also develop a mechanism to take equity stakes without controlling interest in companies which have indigenously developed high-quality telecom products but cannot finance them.

Under the policy of re-farming, while telcos with spectrum have to return it to the government which will then auction it for 3G in case of scarcity, operators will get similar amount of spectrum in another band. The re-farming policy has suggested three different models. One, re-farming spectrum only after the expiry of the current licence, two restrict the licence period and re-farm or three re-farm after the end of the equipment’s life time. Telecom regulator TRAI had suggested re-farming of telcos like Bharti Airtel and Vodafone Essar amongst others which are in 900 band and utilisation of this for 3G.

Apart from charging licence fees for internet services in order to cash in on their future growth, the proposed policy also suggests the integration of UID and The Mahatma Gandhi National Rural Employement Guarantee Scheme (which guarantees rural employment) with mobile telephony.

It has been also suggested that there should be a national telecom infrastructure policy, which would specify uniform procedures for land acquisition, uniform taxation regime, extending of subsidies and encourage optimum sharing of towers. It has also suggested that tower infrastructure should be bought in under the Telegraph Act and mobile telecom infrastructure should be declared as “critical infrastructure services”. And there should be a uniform right of way policy across states.

The internal group has also suggested that telecom services should be treated as public utility and industrial rate of power tariff should be applied. Also 100 per cent utilisation of existing towers should be undertaken before new towers are approved in the same zone.

The internal groups looking at security issues have suggested that there is a need to make security audit of network mandatory and the setting up of a telecom security council for telecom security assurance, policy definition, auditing, certifications amongst others.

source :: http://www.business-standard.com/india/news/dot-readies-big-ticket-changes-in-telecom-policy/439143/

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http://www.business-standard.com/india/news/dot-panel-backs-30-limitmerged-entitys-market-share/439877/

A department of telecommunications (DoT) panel has accepted a majority of the recommendations of the Telecom Regulatory Authority of India (Trai) on merger and acquisition (M&A) rules.

The final approval will have to come from the full Telecom Commission, the highest decision-making body in DoT. However, the way seems clear.

“We have accepted in principle Trai’s views on M&As. These will be part of the new telecom policy, which will be ready by August,” a senior DoT official told Business Standard.

Trai had suggested the merged entity shouldn’t have more than 30 per cent market share in any circle in terms of both subscribers and adjusted gross revenue. The present cap is 40 per cent. Also, it should not hold more than 14.4 Mhz spectrum for GSM services and 10 Mhz for CDMA services. Trai has proposed that the additional spectrum be returned.

This comes amid calls for consolidation in the telecom sector. The presence of at least half-a-dozen operators in each circle has led to tough competition for adding subscribers and a decline in revenues of telecom companies.

At present, a combined entity can have up to 40 per cent market share in a circle and retain the entire spectrum (of the two merged entities) provided it fulfils the subscriber criterion within three months. Otherwise, the excess spectrum has to be returned.

There is also a three-year lock-in period. The DoT panel has accepted Trai’s suggestion that this be done away with. Instead, Trai has recommended that a promoter not be allowed to dilute equity below 51 per cent for five years or till the rollout conditions are met.

Another recommendation is charging a one-time fee from operators holding more spectrum than was mentioned in their contracts.

The policy also proposes allowing companies to share spectrum.

The official said Telecom Minister Kapil Sibal had already announced that the M&A policy would mandate a minimum of six operators per circle, including government-owned MTNL/BSNL.

Bharti Chairman Sunil Mittal had earlier said consolidation in the telecom industry was inevitable and he did not see more than six players surviving. Most of his counterparts have also said this.

Trai says the policy will ensure better use of resources, while preventing abuse of market dominance.

Telecom Secretary R Chandrasekhar, in an interview to Business Standard, had said, “Subject to the floor of six operators in a circle, any artificial barrier that may have crept in, which prevents such consolidation from happening, is being reviewed. But precise details, in terms of how much relaxation and in what manner, will be mentioned in the final policy.”

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Draft telecom security policy takes tough stance

New Delhi : India will soon have a telecom security policy mandating that at least 50% of all 'core telecom network equipment' be indigenously developed or manufactured. The draft Telecom Security Policy, a copy of which was reviewed by ET, states that all network gearmakers and mobile phone operators will be 'suitably engaged to achieve this objective' of local manufacturing .

The proposed policy recommends radical changes aimed at securing the country's mobile networks, which are the second largest in the world after China. For instance, it states that mobile phone companies will be permitted to induct both hardware and software only from 'trusted sources' , a list of which will be complied by the telecom department. The draft also adds that all core hardware required for the telecom network must be installed only on certification by a standard testing organisation irrespective of the origin of equipment . It also calls for periodic audit of the networks of all mobile phone companies by security agencies, government wings or reputed international agencies for bugs and other security breaches.

Importantly, the draft also states that a slew of new regulations will be enacted to 'enable law enforcement agencies to legally track communications , messages and data on a realtime basis' without transgressing on the privacy of citizens. "The effective systems, processes and regulations will be put in place to ensure the traceability of telecom users also in case of need. While best efforts will be made to extend the communication assistance for law enforcement to security agencies, it will be kept in view that privacy of individual is not transgressed without valid reasons, provided the law and development needs of the country are not hampered," the draft policy adds.

The new policy may address the government's concerns regarding 15 forms of communications, including Google's Gmail, Research in Motion's BlackBerry services, Nokia's email offerings and Microsoft Skype amongst others, which cannot be tracked by enforcement agencies here on a real-time basis as the new framework may force operators who offer such services to either locate servers in the country or share encryption keys and assist security agencies in monitoring these services. The telecom department (DoT) had earlier maintained that the ultimate solution to address security issues should involve intelligence agencies building up capabilities indigenously to monitor and intercept these technologies.

It had also suggested that security agencies here avail the help of companies such as Infosys, TCS, Wipro and Tech Mahindra to build such capabilities. The new framework also moots for stricter norms for remote access (RA), or the provision to monitor data and voice traffic on cellular networks from remote locations across the globe and proposed that this facility be carried out only from within the country. The Cabinet cleared the external RA facility in March 2007 with a slew of riders .

Indeed, security concerns over RA delayed the FDI hike in telecom to 74% by a year. Under existing rules, operators should keep an audit trail of all remote access activities for six months, and these must be provided on request to DoT or any other agency authorised by the government. Besides, telecom companies must keep mirror images of such activities for online monitoring and provide the same to security agencies on request. Also, the provision of remote access cannot be used for monitoring content.

The DoT has already circulated the draft policy prepared by its security wing, headed by Ram Narain, to all its members who have been asked to submit their views by September 6. Justifying the need for a new framework , the communication ministry said that most sectors of the economy were dependent on exchange of information , which largely takes place through telecommunication infrastructure . "It is not simply an information infrastructure or even a critical information infrastructure, but has to be viewed as the most important critical infrastructure. Because of the dependence of other sectors on telecom infrastructure , it has become important even for the security of the society and the country," the draft policy states.

Source : Economic Times

Edited August 31, 2011 by Karthik R

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Telecom Min approves NFAP-2011

New Delhi: Telecom minister Kapil Sibal has given in-principle approval to draft National Frequency Allocation Plan-2011 (NFAP), which would help in efficient spectrum management and higher mobile penetration in rural areas, a source in the department of telecom (DoT) said.

The plan (NFAP 2011) aims to give a boost to domestic manufacturing of telecom equipment and efficient utilization of spectrum.

The Wireless Planning Commission (WPC), the spectrum allocation wing of DoT, had issued the draft on NFAP in March. “The draft will now go to a group of ministers with(in) a month and then it will be send to the Cabinet for approval,” the source added.

Various government departments, telecom operators and telecom industry bodies Cellular Operators’ Association of India (COAI) and Association of Unified Telecom Service Providers of India (AUSPI) had expressed disagreement to the DoT on the various clauses under the NFAP for 2011, although, the final draft has rejected the concerns of these organizations.

“The objections raised by organizations concerned have no technical and regulatory base,” the NFAP document said.

Courtesy : Livemint