Gyan Research weekly newsletter on #telecom sector

1. © Gyan Research and Analytics Pvt. Ltd., 2015 1
Policy News
 Union Government lays foundation stoneof mobile manufacturing hub
The Union Government laid the foundation stone of India’s first mobile manufacturing electronics cluster
- Shri Venkateswara Mobile and Electronics Manufacturing Hub – in Andhra Pradesh (AP). It is expected
to generate over 10,000 jobs within a year and contribute a minimum of 5 percent to the country’s target
of 15 lakhs jobs by 2019. Foxconn has already started its operations in AP and is manufacturing brands
such as Gionee and Xiomi. Micromax, UTL (Karbonn) and Celkon are other important brands which will be
starting their manufacturing operations soon.
Industry News
 DoT, TRAI not to increase existing spectrum caps
The Department of Telecommunication (DoT) has decided internally not to increase the existing spectrum
caps. This is a huge blow to the telecom companies which are looking to confirm the efficient use of
spectrum through spectrum trading and sharing. According to the existing rules, an operator cannot hold
over 25 percent of the total spectrum allotted to all companies in a circle and more than 50 percent
assigned in a particular frequency band. The Telecom Regulatory Authority of India (TRAI) has also
recommended not hiking the present spectrum caps. However, the Telecom Commission - the highest
policy making body within the DoT - will take a final decision on the same.
 RCom in talks with Vodafone, BSNL, Idea for 2G deal
Reliance Communications (RCom) is planning to start a 3G ICR-like roaming agreement in order to
continue 2G services in West Bengal, Bihar and Assam, after the expiry of its rights to use 2G spectrum in
December 2015. The company has approached Bharat Sanchar Nigam Limited (BSNL), Vodafone and Idea
Cellular for the agreement. Under the 3G ICR, the telecom operators which are not under the 3G
spectrum in a particular circle can make use of their partner's network to sell and operate 3G services.
 Vodafoneto improve call drop problem in Delhi-NCR
Vodafone has announced significant reduction in call drops in Delhi over the past 12-16 weeks. The
company intends to put up more sites as well as augment capacity of the existing ones, and has invested
over INR 350 crore for the same. It has put up more than 500 sites in the Delhi-NCR region, while capacity
of the existing 550 sites were augmented in the past six months. In Delhi-NCR, the company has 12,322
sites and over 98 lakh subscribers.
Telecommunications News
October 17, 2015 – October 23, 2015

2.  Samsung to lay off 5 percent of its staff in India
Samsung Electronics is expected to lay off about 5 percent of its Indian staffs across managerial-level,
executives, as well as factory and blue-collar workers as a part of their cost reduction strategy. The
mobile phone and consumer electronics maker asked 90 employees to put in their papers with
immediate effect during the last week and another 125-150 employees will be asked to leave after
Diwali. The remaining will be moved out in phases during Q4 of FY2016, with 750 to 1,000 employees in
total to lose their jobs. The company at present has 22,000 employees in the country, including workers
at the company's two factories.
Investment News
 Reboot Systems to raise USD 15 - 25 million
Reboot Systems is in talks to raise USD 15 - 25 million, as the interest of private equity investors in the
business has been increasing. The raised fund will be used to enhance technology to refurbish
smartphones including data wiping and analysis, employing additional employees and adding ‘Reboot’
stores over the next two years. The company refurbishes smartphones, laptops and desktop computers.
It refurbishes only Apple mobile devices at present and intends to include other brands, too.
© Gyan Research and Analytics Pvt. Ltd., 2015 2
Telecommunications News
October 17, 2015 – October 23, 2015
Weekly Snapshot
Source: Cellular Operators Association of India
Subscribers Distribution For Circle A - 2014
Aircel Bharti Airtel IDEA Telewings Videocon Vodafone
Maharashtra 1,730,596 10,748,683 20,732,134 7,019,619 - 16,702,867
Gujarat - 7,706,133 10,442,414 6,604,135 2,151,209 18,318,531
Andhra Pradesh 2,286,045 20,832,753 13,446,612 5,323,081 - 6,871,578
Karnataka 2,906,019 18,066,466 7,611,077 - - 7,547,209
Tamil Nadu 19,032,652 11,283,275 3,763,883 - - 11,542,090

3. © Gyan Research and Analytics Pvt. Ltd., 2015 3
Telecommunications News, October 17, 2015 – October 23, 2015
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