November 2012                                                                             Contact: india.commerce@internat...
The Canadian Trade Commissioner Service                                                Everywhere You Do Businesspetition ...
The Canadian Trade Commissioner Service                                              Everywhere You Do BusinessTech Mahind...
The Canadian Trade Commissioner Service   Everywhere You Do Business
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TCS of Canada - India - Telecom

  1. 1. November 2012 Contact: Contempt of Court Act". It also allowed existing serviceSupreme Court sets Jan 11 deadline for 2G auction, providers to continue operations till January 13.but with stern warningTimes of India, August 28, 2012 While warning the Union government that it might get saddled with "exemplary cost" if it violated the freshThe Centre had pleaded for extension of deadline to deadline, the bench barred all other courts in India fromNovember 12 with an additional 40 days to complete the entertaining any petition, application or suit relating toprocess for auction of 122 spectrum licences in 22 auction of 2G spectrum being conducted on the directionstelecom circles, which were cancelled by the court in its of the Supreme Court.February 2 judgment, while directing their auction byJune 2. Justices Singhvi and Radhakrishnan agreed to entertain the plea for extension of auction deadline only afterSenior advocate P P Rao sought to stretch the time limit telecom secretary R Chandrasekhar filed an affidavitby narrating the lengthy process involved in auction and through advocate Apeksha Sharan undertaking that "therequested the bench of Justices G S Singhvi and K S central government is firmly and irrevocably committed toRadhakrishnan to grant such extension that the implement the aforesaid judgment".government would not need to come back with a requestfor further relaxation. Refuting allegation that the presidential reference was a ploy to step around the 2G judgment directions forHaving extended the deadline twice — first from June 2 auction, Chandrasekhar said, "The presidential referenceto August 31 and now from August 31 to January 11 — has nothing to do in so far as implementation of thethe bench did not give all the relief at one go. Wanting to aforesaid judgment of the Supreme Court, which haswait and test the Centres willingness to abide by its become final and binding. The efforts of the governmentcommitment, it posted the matter for further hearing on are aimed at attracting maximum number of bidders inJanuary 13 without specifying the time it was willing to order to realize the maximum price for 2G spectrum asgrant for allocation of spectrum to successful bidders at contemplated and intended by the Supreme Courtsthe auction. judgment."The bench told the government, "We want to know on To the discomfort of the government, Janata PartyJanuary 13 whether you have completed the auction president Subramanian Swamy said the seven-monthprocess or not and then we will consider the plea for delay in implementation of the 2G judgment due togrant of additional time for allocation of spectrum to the Centres repeated attempts to extend the deadlinesuccessful bidders in the fresh auction." benefited private operators, who as per the original judgment were to surrender their licences by June end.The bench warned the government that "if the Centre The bench said it would consider at an appropriate timefailed to complete the auction process by January 11, Swamys application and contention of advocate2013, the court will be constrained to initiate suo motu Prashant Bhushan that the governments attempt was toproceedings against concerned officials under the overrule the 2G judgment by first withdrawing the review
  2. 2. The Canadian Trade Commissioner Service Everywhere You Do Businesspetition and then sending a presidential reference Mobile tariff hikes indicate improving industryseeking clarifications. dynamics Times of India, September 25, 2012Swamy said, "If further extension of time is granted by thecourt, provision must be made to realize the amount The Indian telecom industry is going through a phase ofequal to the interest the government could have earned consolidation, due to the cancellation of 2G licenses byon the difference between the discovered market price by the Supreme Court earlier this year and a fresh spectrumauction at the date of actual auction, and the spectrum auction scheduled in November 2012. The number oflicence price determined pursuant to the two press operators is likely to reduce after the auctions, which willreleases issued on January 10, 2008 (when A Raja reduce the competition in the sector.headed department of telecom had issued the LOIs onfirst come-first served basis and the payments made by This is the second round of tariff hike following the one inthe licensees) of Rs 1,650 crore." mid-2011. Average revenue per minute (ARPM) will gradually start rising after a sharp decline over the lastTCS insight: Analysts predict the auctioning of 2G few years due to fierce competition in the sector.spectrum will bring back the stimulus in the industrywhich has not seen positive policy changes for a while. Although higher revenue from the tariff increase will resultWhile the telecom incumbents are gearing up for another in an improvement in profitability of telcos, some of it willround of competition , this auction will be good news for cover increasing operating costs including the recentlycustomers and suppliers alike as it will not only bring in increased diesel prices. However, the complete impact ofcompetition and options to consumers, but suppliers of these hikes will be visible only after a few quarters, as ittechnology and services will also see renewed interest for will be gradually implemented across circles andtheir offerings. Canadian companies operating in this subscribers. Moreover, India Ratings expects thespace should monitor this development closely to identify incremental revenue from the tariff hike to easily offset itsnew players in the market in order to effectively position negative impact on the minutes of usage, if any. Attheir products. present, call rates in India are among the lowest in the_________________________________________ world.Making calls should be free: Kapil SibalTelecom Tiger: September 29, 2012 As per the data released by the Telecom Regulatory Authority of India, the mobile subscriber base was 913Telecom Minister Kapil Sibal on Friday urged the million at end-July 2012, down by 21 million from thetelephone operators to change their mindset and focus base at end-June 2012 due to deactivation of inactivemore on data services to generate revenues than voice. subscribers. With an already high subscriber base, thereAddressing the CII broadband summit, Sibal said that is limited opportunity for telcos to grow by adding newtalking to each other should not be taxed. “There should subscribers. As a result, India Ratings expects telcos tobe no charge on voice. Customers should gradually be now focus on other growth levers like tariff hikes, ancharged only for data services and not for making calls. increase in data services usage, value-added services,He said that broadband has a huge potential to empower among others.the people of the country and has become essential tothe lives of the people. India Ratings has a negative outlook on the Indian telecom industry. Most the Indian telcos have stretchedSibal said that empowering the illiterate by providing balance sheets as they had raised debt for acquiringaccess information to them is huge task for the 3G/broadband wireless access spectrum in 2010 and/orgovernment. roll-out of network. Owing to a lower-than-expected take- off of 3G services and subdued operating performance, “The government is investing around Rs 35,000 crore on the credit profile of most of the telcos has weakened overvarious broadband related projects which will create a the last few years.secondary market of around Rs 3 lakh crore”, Sibal said.He said that by December 2013 Rs 20,000 crore national TCS insight: After years of consistent tariff reductions,broadband plan would be completed. telecom companies have finally started revising tariffs upwards. This has been a direct result of 2GIn response to a query Sibal said that Department of cancellations and analysts believe this will be a shortTelecom will soon approach Cabinet to seek approval for lived phenomenon since new telecom operators aremanufacturing five million Akash-2 tablets in the country. expected to enter the market after the new 2G auction planned in January 2013. In the meanwhile, this providesTCS insight: In what could be seen as the new growth an opportunity for telecom companies to tidy up theircycle, data services are expected to drive top line balance sheet with increased revenues.revenues for telecom companies and this gives Canadian _________________________________________companies providing data products, technology andservices a new opportunity to follow._____________________________________________
  3. 3. The Canadian Trade Commissioner Service Everywhere You Do BusinessTech Mahindra sets up three 4G labs may see significant interest from Indian telecomThe Hindu Business Line, September 13, 2012 companies which are looking at increasing efficiency within their bandwidth constraints.Mumbai: Tech Mahindra has set up three laboratories for ___________________________________________Long Term Evolution technology, one in Delhi and oneeach in Pune and Bangalore. Foreign players allowed to bid solo for 2G auctions Business Standard, October 01, 2012The software services provider, in which vehiclemanufacturer Mahindra & Mahindra holds about 48 per New Delhi: The government on Friday allowed foreigncent stake, intends to work along with companies entities to participate in the upcoming 2G auctions withoutreadying to launch the services in the country. an Indian partner. However, the players should form a joint venture with the Indian partner.Long Term Evolution (LTE), commonly called 4G, is a According to the new guidelines issued on Friday bystandard for high-speed data communication for mobile department of telecommunications (DoT), foreign entitiesphones and data networks. In India, 4G (which is 4-10 can participate in the auctions directly and obtain atimes faster than 3G) licences were issued to six licence.operators, with four of them actively looking to deploy theservices. This will make the upcoming auctions more attractive to certain foreign players such as Telenor, which wanted to“We will support the operators to deploy the services. We bid directly without an Indian partner in the auctions.have been working with telecom operators in many The notice inviting applications (NIA) issued on Fridaycountries, including the major ones, and we intend to said that companies interested in starting telecomprovide this expertise here in India,” Tech Mahindra Head business in India will have to pay Rs 1 crore for unifiedof Mobility Business Jagdish Mitra said. licence in a service area where they wish to operate. There will be a lock-in period of three years.However, Mitra declined to names the companies, citing The NIA lists out the rules and regulations governing theconfidential clauses. He also did not disclose the auction and is considered the only legally bindinginvestments Tech Mahindra has committed for the document regarding the, nor the expected returns. Tech Mahindra hasset up a device lab in Delhi. It has also set up an Potential bidders have until October 19 to submitapplication and network integration lab each in Pune and applications. DoT will publish ownership details of biddersBangalore. Tech Mahindra would provide system and on October 21. By November 6, DoT will have the finalnetwork integration services, security services and list of bidders and a mock auction is expected to start onconfiguring of new and emerging devices for 4G services. 7 November. The actual auction is expected to start onBharti Airtel, the country’s largest telecom operator, has 12 November.already launched 4G services in two circles, Kolkata andBangalore. Other three major players — Reliance TCS insight: Foreign players such as Etisalat, Telenor,Industries, Tikona Digital Networks and Aircel — are and Siestema have been asking the government to relaxexpected to launch the services by this year-end, or in bidding norms in order to allow them to apply individuallyearly 2013 for 2G licenses. During the last spectrum auction, these companies had bid with Indian partners and eventuallyTCS insight: Telecom companies are betting on data ended up getting their licenses cancelled after the 2Gdriven revenue models and investing significantly to scam. With the government allowing solo bidding for theprovide consumers high speed data access. new auction expected to start in November 2012, manyTechnologies such 3G, LTE, WiMax, and EVDO, which global telecom players are looking to enter the profitablewere unheard of almost a year back are prominently been Indian telecom industry.promoted by telecom companies in a bid to outplay _____________________________________________competition. Canadian companies operating in this space
  4. 4. The Canadian Trade Commissioner Service Everywhere You Do Business