The document summarizes telecommunications industry news from August 29 to September 4, 2015. Key highlights include: - Airtel and Idea increased post-paid data tariffs by 20% in various circles across India. - TCIL partnered with ZTE to develop smart city solutions and information systems for railways. - Ericsson will invest ~$20-27 million to set up a new manufacturing facility in Pune. - Airtel launched a Wi-Fi app called Airtel Hangout to shift data traffic off cellular networks. - Vodafone expanded its distribution network to 9,800 branded stores across India.

1. Industry News
 Airtel, Idea increase post-paid data tariffs
Bharti Airtel and Idea Cellular have hiked data tariffs by 20 percent for their post-paid users in various
circles across India. Airtel has hiked data tariffs in Haryana, Maharashtra, Punjab, Rajasthan, UP East and
West, Himachal Pradesh and Delhi, while Idea Cellular has hiked tariffs in Delhi, Punjab and West
UP. Post-paid customers of both the service providers will now have to pay INR 300 for 1GB 3G data, as
against INR 250 earlier for similar data usage. However, in the case of Airtel, the increase for data tariff is
only for new post-paid customers. The move comes within two months after Airtel, Idea and Vodafone
raised pre-paid data tariffs for 2G and 3G services by nearly 47 percent in Delhi. Telecom operators are
required to report change in tariff rates to the Telecom Regulatory Authority of India (TRAI).
 TCIL, China's ZTE tie up with for smart cities, railway business
Telecommunications Consultants of India Ltd (TCIL) has tied up with Chinese telecom gear maker, ZTE
Corporation, to drive smart city solutions and provide complete information solutions for railways, as
mandated by the Indian government. The collaboration will work on the Public-Private-Partnership (PPP)
model with guiding funds and support policies from the government. State owned TCIL was the first
company in India to design, supply, install, test and commission GSM-based mobile train radio
communication system for the Eastern Railway.
 Ericsson to set up manufacturing facility in Pune
The world’s largest mobile equipment maker, Ericsson has announced its second manufacturing facility in
Pune, with an initial investment of about around INR 99 - INR 132 crore. Most of the investment will be
used for installing automated machinery that will manufacture transmission or microwave products. The
facility is scheduled to come on line in mid-2016 and will be used as an export center. The company plans
to export telecom equipment to about 180 countries. Its first manufacturing plant in Jaipur primarily
serves the domestic market. The Swedish telecom company also plans to double its employees in India
over the next few years. India contributes about 6 percent of the company's global revenue.
 Airtel launches Wi-Fi app
Bharti Airtel has launched a Wi-Fi application - Airtel Hangout - which shifts data traffic away from the
cellular network and decongests it, thereby improving services. This app requires a one-time sign-in and
can be used in Wi-Fi zones through freely available spectrum. With this, consumers get superior network
quality without paying for network congestion. Currently, Airtel's app works in Cafe Coffee Day outlets
and some hotels and hospitals in the National Capital Region. The company will extend the service in
metro cities such as Mumbai, Pune and Bengaluru gradually. Interestingly, Airtel is unlikely to benefit
from the initiative, as Wi-Fi service is not free and data consumption will be charged from consumers’
existing 3G or 4G packs. Subscribers also benefit in service quality only and do not get any data discounts
or additional benefits.
© Gyan Research and Analytics Pvt. Ltd., 2015 1
Telecommunications News
August 29, 2015 – September 4, 2015

2. © Gyan Research and Analytics Pvt. Ltd., 2015 2
 Vodafone's increases distribution network
Vodafone has expanded its distribution network to 9,800 branded stores. Since April, 2014, the company
has added 200 large stores of around 750 sqft and a 1,000 mini-stores across India. Currently, the
company has 700 large stores, 3,300 mini stores in bigger towns and cities and 5,800 mini stores in rural
areas. The company owns over 80 percent of the large format stores, with break-even time pegged at
less than two years. The company directly or indirectly employs 15,000 people and 34 of the large format
stores are run by women.
 Ericsson and Airtel to rollout 3G & 4G
Ericsson has signed a four year contract with Bharti Airtel to rollout 4G and 3G networks. The former will
be rolled out in Delhi and four other circles, while 3G will be available across eight circles. The 3G
expansion contract involves the supply, installation and management of services for WCDMA radio access
networks, which will enable Airtel to offer 3G services in both 2100 MHz bands and 900 MHz in three
circles. For Airtel's FDD-LTE-based 4G network on the 1800 MHz band in Delhi circle, Ericsson will provide
multi-standard radio equipment, including macro base stations and small cells for 4G network. In India,
the Stockholm-based company grew 108 percent in the first quarter and 85 percent in the second.
 New Call Telecom on acquisition drive
The UK-based New Call Telecom is in talks with 12 Indian companies, for acquisition or partnership, over
the next year and a half. Among the 12 companies, nearly four are from the north eastern, where it plans
to expand digital connectivity. Recently, it acquired mobile technology brand Nimbuzz and is in the
process of acquiring New Delhi-based wifi service provider Ozone Networks. To expand its presence in
India, New Call plans to invest nearly INR 2,000 crore, of which about USD 50 million will be spent on
launching entrepreneurs and startup companies through its parent group, New Sparta.
 RJIL launches 4G Wi-Fi Internet in Bhubaneswar
As a part of the Odisha government's initiative to convert Bhubaneswar into a 'Smart City‘, Reliance Jio
Infocomm Limited (RJIL) has launched 4G high speed Wi-Fi Internet services at four prime locations in
Bhubaneshwar - Gopabandhu Chowk , Orissa University of Agriculture and Technology (OUAT) campus,
Governor House Road and Surya Nagar. Consumers in these areas can enjoy free high-speed wireless
connectivity on handheld devices through specially designed apps. RJIL has installed 27 access points at
these locations and 1,000 users can connect to the service concurrently. Feedback from users will be
used to fine tune Jio’s services before its commercial launch. With the commencement of 4G LTE
services, Wi-Fi and LTE networks will operate together seamlessly.
Telecommunications News
August 29, 2015 – September 4, 2015

3.  New Call focuses on the North East
UK-based New Call Telecom is looking to invest heavily in the North East, for which it is in talks to acquire
around 3-4 companies in the region. In a bid to expand digital connectivity in the area, it plans to create
at least 250,000 Wifi hotspots, of which 10,000 are already in place and another 30,000 are in the
pipeline. A hub office to man operations in the seven states is also on the cards. The company also
announced its intention of setting up a telecom academy, either in Assam or Manipur, and creating 500
jobs. The company is keen to expand digital connectivity in the Northeast region in order tap local
resources.
Weekly Snapshot
© Gyan Research and Analytics Pvt. Ltd., 2015 3
Telecommunications News
August 29, 2015 – September 4, 2015
Number of Telephone Subscribers in 2015
Month
Number of Subscribers (crore)
Wireless Subscribers Wired Subscribers Total
May 97.52 2.62 100.20
June 98.08 2.61 100.69
Cellphone Penetration based on Income Variation in Madhya Pradesh, 2015
Income (INR)
Cellphone Penetration (in percent)
Slums Villages
No income 25 0
1,000 - 2,000 48 33
2,001 - 4,000 77 67
4,001 - 8,000 89 84
8,001 and above 99 80
Source: Various Published Sources

4. © Gyan Research and Analytics Pvt. Ltd., 2015 4
Telecommunications News, August 29 – September 4, 2015
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