While the draft M&A policy for the telecom sector has been revised a few times over the past few months, DoT has not made any major changes to guidelines.
With the Telecom Regulatory Authority of India (Trai) refusing to reserve 900-MHz spectrum for incumbent telcos, asking them to vacate the quantity held and win back through bidding, GSM operators, led by the Cellular Operators Association of India (COAI), have decided to propose a compromise formula.
Mukesh Ambani-led company will squeeze market shares and margins of existing players
It may be the season for corporate matchmaking but India Inc's record of managing partnerships is far from impressive, says Shailesh Dobhal.
For 2100-MHz, 2300-MHz and 2500-MHz bands across circles; aim to offer these with 3G and 4G in February
Reliance Industries Ltd is expected to invest Rs 30,000 crore (Rs 300 billion), of the total Rs 70,000 crore (Rs 700 billion) announced, in its telecom arm Reliance Jio Infocomm over the next two years, credit rating firm Moody's said on Monday. The investment in the telecom business is a credit negative for RIL because RJio will not generate any EBITDA (an indicator of cash flows) for at least next 12 months, it said. Moody's added however that RJio will be a formidable competitor in the sector making it a credit negative for top telecom operators already in the field. "Based on RIL's March 2014 annual report, we estimate that it has already invested about Rs 400 billion (Rs 40,000 crore) in Reliance Jio, and we expect RIL to invest the next Rs 300 billion in Reliance Jio over the next two years," Moody's Investors Service said in a statement. RIL recently announced that it will launch commercial 4G telecom service of RJio in 2015 entailing investment of Rs 70,000 crore. RIL has said that RJio will initially cover about 5,000 towns and cities accounting for over 90 per cent of urban India, as well as over 215,000 villages in India and the target is to expand this to over 600,000 villages. Moody's said RJio will be a "formidable competitor in India's telecom sector" as it will enter the business with financial muscle. RJio's entry into highly competitive telecom sector is also credit negative for incumbent mobile operators and market leaders Bharti Airtel and Vodafone India because "it will undoubtedly result in intensified competition that will lead to declines in average revenue per user and margins". But, it also said that strong spectrum holding of incumbents; existing large subscriber-bases and well- established brand equity; offering 2G and 3G services (apart from 4G services being launched) as well as marketing and distribution architecture mitigate much of the near-term competitive threat from Reliance Jio for them. "Furthermore, given issues of language and literacy, large parts of rural India remain a substantially voice-based market where near-term demand for 4G services may be muted," Moody's said.
As per data, call drop situation in Delhi has improved.
French hacker Elliot Alderson had earlier pointed out UIDAI helpline (1800-300-1947) could just be "the tip of the iceberg", hinting there could be additional data or trackers on Indian phone manufacturers' devices.
The CAG report, tabled in Parliament, states the interest on the short payment stood at Rs 1,052.13 crore for the period up to March 2016.
Netflix and Prime have decided that rather than only buying the rights to Bollywood blockbusters to expand their reach in India, producing original content would be a better idea.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries
The auction will continue on Tuesday as there is still some spectrum left.
The auction will continue on Monday.
The spectrum auction has already generated record amount.
Telecom Commission approves high base price of Rs 11,485 cr per Mhz for 700-Mhz frequency; no decision taken on proposed standard spectrum usage charges of 4.5%
Reliance Jio submitted the highest pre-auction deposit.
Trai's move is seen as a relief for the debt ridden sector and the industry body COAI expects that continuing with six paise mobile call termination charge will not have any impact on consumers as operators have already absorbed this charge in their recently increased mobile call and data rates.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Congress party has alleged that Modi government is surreptitiously taking steps to protect the interests of six leading telecom companies.
The Department of Telecom has put on block around 385 MHz of radiowaves in the 1800 MHz band, and 46 MHz in the 900 MHz band.
Lenders, with Rs 600-cr exposure to telco, want it to sell properties to repay loans.
Taking advantage of the RBI's different accounting year, the Centre had started demanding an interim dividend till the time the latter's final balance sheet is prepared (usually in August). To address this anomaly, an expert committee led by former RBI governor Bimal Jalan had recommended aligning the RBI's financial year with that of the government.
'Unless cash has ceased to be king, the issue is the same in the aviation, telecom and ecommerce sectors: Sustainability,' notes T N Ninan.
Authorities were busy taking steps to restore the battered infrastructure in Visakhapatnam and other cyclone-hit districts in coastal Andhra Pradesh, apart from ensuring supply of essential commodities.
DoT committee rejects most Trai suggestions for freeing airwaves for sale.
Raises cap of market share for merged entity to 50%, spectrum trading allowed, with riders.
ONGC was the top performer while private banking major ICICI Bank extended gains
Spectrum auction: Govt revenues reach Rs 1.02 tln on Day 10
Last August, RBI gave in-principle approval to 11 applicants.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Telecom companies have put in bids worth Rs 58,332 crore (Rs 583.32 billion) in spectrum auction at the end of 49 rounds on the 7th day of bidding on Monday.
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Of the 11 licence holders, only eight remain in the fray as concerns about profitability and rising competition are making them think twice before jumping in.
The agency said the recall of the order granting Kumar an interim protection from the arrest was necessary.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Sources say companies will have to keep the market share of merged entities below 50% in all circles
Telecom companies (Airtel, Vodafone, ABNL-via Idea Cellular), which enjoy larger reach, appear to be better placed among the key companies bagging payments bank licences.
Global rating agency Fitch on Tuesday said the imminent entry of Reliance Jio into the telecom space will see a likely 20 per cent fall in data tariffs, but will not have any impact on the credit profile of the top four incumbents in the medium term as their revenue is on an uptick on rising voice tariffs and improving regulatory environment.
Investing in special situations can help you tap opportunities that arise during adverse conditions, advises Joydeep Sen.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
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