Auctions for spectrum for 3G or third-generation telecom services could be delayed from an already rescheduled date of January 30 after the Department of Telecommunications sought legal opinion on whether it should send the finance ministry's suggestion on doubling the reserve price back to the Telecom Regulatory Authority of India for its endorsement.
Unified communications providers (video and audio conferencing, IP-based telephony and web-based communications systems) see a silver lining in the dark clouds of the economic slowdown. With companies reducing travel expenditure, thanks to the slump, telecom companies offering such modes of communication are bullish over their business prospects.
The telecom department has sent a letter of intent to NM Rothschild.
Trai has submitted 26 recommendations to the government and released 30 consultation papers so far this year, up from seven and 20, respectively, in 2007. Few of its recommendations are actually accepted by the govt.
WiMax is a telecommunications technology that provides broadband speed without the need for cables. "The subscriber equipment cost or the cost of the instrument that facilitates WiMax is still priced at about $ 175-200 (Rs 8,225-Rs 9,400). So ways and means have to be worked out to offer a feasible tariff," explained a senior BSNL executive.
The regulator has suggested that all spectrum will be auctioned as opposed to the current policy of bundling it with a 2G licence. A beginning has been made with the auctioning of spectrum for 3G services, which is due later this year. Trai has also suggested that licences for any telecom service should be auctioned as opposed to the current policy, where it is given on a first-come-first-served basis. The new policy is expected to be ready by the end of December this year.
3G mobile services, to be launched in India on August 22, is set to have serious competition. The reason is simple: if you are looking for high quality video streaming of movies and want to play multiplayer on-line games, it's not 3G services alone you need to look at.
With 3G mobile services, which provide high-speed downloads of data, movies and videos, around six month away, mobile phone makers are getting ready to offer handsets for as little as Rs 3,500, against the currently available minimum price of over Rs 8,000.
A study by Internet research firm JuxtConsult reveals that one out of every seven regular Internet users is from the rural belt.
Multinational mobile companies such as Nokia, Samsung, Motorola and LG, who dominate the mobile handset space with over 75 per cent of the market share, might face a new challenge. This time it's not from Chinese unbranded products, which have been flooding the Indian market.
According to research firm IDC, China shipped 85 million GSM handsets in the last fiscal. And it says China's percentage share is likely to go up since these phones offer swanky features ranging from 3 megapixel camera, terrestrial TV, music and MP3 players.
As all airlines have raised carriage charges, private couriers have increased their tariffs 8-20 per cent. India Post, on the other hand, has not tinkered with its tariffs at all. As a result, India Post's tariff is 70 per cent cheaper for domestic destinations and 30 per cent cheaper for international destinations.
The next time you walk into your trendy branded mobile retail store you might come out buying an MP3 player, a Sony Play Station or even a laptop rather than a mobile phone.
The Department of Telecommunications (DoT) has decided to allocate one block of 3G spectrum in each service area except Delhi and Mumbai to state-owned Bharat Sanchar Nigam Ltd (BSNL) at a price equivalent to the highest bid in the respective service areas.
The Department of Telecommunications has decided to hike four-fold the reserve price for broadband wireless access services in the country.
Despite the meetings, exchange of letters and reports that made more than 400,000 users of Blackberry services twitch, the Department of Telecommunications has washed its hands clean. Denying reports of a spat between the DoT and Canada-based provider of BlackBerry services, Research in Motion, a senior department official said, "We have always backed our operators, and this is no different."
Telcos may have begun their WiMAX rollouts, but the results are yet to show. Consider this. Tata Teleservices which deployed its first WiMAX network in Bangalore in March, and is expecting to gather a subcsriber base of about 2 lakh by the end of the year, has enrolled just about 7,000 customers in the city.
"The response to these carts have been pleasing, we are planning to increase the number of carts to over 2,500 in this fiscal. It not only takes the product to the consumer right at his doorstep but also provides good employment opportunities," says G Dhananjay, chief operating officer of Moser Baer's entertainment division. As prices of DVDs and VCDs reach levels comparable to vegetables, the company is aggressively pushing its DVDs in the market.
Indian export-oriented information technology (IT) and business process outsourcing (BPO) firms may be grappling with an appreciating rupee and clouds of doubt looming over the extension of tax sops for the sector beyond 2009. An Everest-Nasscom study points out that the domestic BPO market, with a growth rate of 50 per cent over the last five years, has grown faster than the overall Indian BPO market to reach nearly $1.6 billion (Rs 6,400 crore) by end of FY2008.
The fourth quarter of financial year ending March 31, 2008, may hold a mixed bag of results for Indian information technology (IT) companies. On the one hand, IT firms - which hedged themselves taking the view that the Indian rupee would continue rising against the US dollar - will have to bear a negative impact on the portfolio that has been hedged so far. On the other, their top line as well as operating margins (EBIDTA) will get a boost since the rupee has depreciated.
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