TRAI will announce recommendations on call drops and compensation to consumers by mid-October, while the government has connected over 23,000 villages with optic fibre cable under the BharatNet project. TRAI also notified two orders allowing broadcasters to enter agreements for TV channel signals with distributors and commercial subscribers.

1. Policy News
 TRAI’s directive on call drops by mid-October
The Telecom Regulatory Authority of India (TRAI) will announce its recommendation on call drops and
compensation to consumers within the next month. TRAI has already issued a consultation paper in this
connection. After an open-house discussion involving allegations and counter allegations by operators the
recommendations will be issued. Thereafter, operators would be given 15 days to address the problem,
after which test drives would be conducted in Delhi and Mumbai to check for improvement in services.
An information paper on the quality of call service, especially in Delhi and Mumbai, is also on the cards.
 Union Government rolled out OFC in 23,604 gram panchayats
The Union Government has successfully connected 23,604 village panchayats with optic fibre cable (OFC)
as on July 2015 to provide high speed broadband connectivity under the BharatNet project. Under the
project, 2.5 lakh panchayats will be connected by the end of 2016. However, the initial target was to roll
out OFC in 50,000 gram panchayats by March 31, 2015. The project has been renamed as BharatNet
from the earlier National Optical Fibre Network project and the tenure of the project has also been
rescheduled.
 TRAI notifies two TAOs
The Telecom Regulatory Authority of India (TRAI) notified two tariff amendment orders (TAO) which
allows broadcasters to enter into tripartite agreements with distribution platform operators (DPOs) and
commercial subscribers for supply of signals of TV channels. TRAI has also differentiated between
ordinary and commercial subscribers in these TAOs – one applicable for TV services being provided
through analog cable TV systems and the other applicable for TV services which are being provided
through digital addressable cable TV systems. As per the notification, it has become mandatory for
broadcasters to offer their channels for commercial subscribers on non-discriminatory terms and
conditions. DPOs can provide TV signals to subscribers only in accordance to policy guidelines for up or
down linking of television channels. These two TAOs have been reported in accordance with the March 9,
2015 order of the Telecom Disputes Settlement and Appellate Tribunal.
Industry News
 RCOM, Reliance Jio in spectrum pacts
Reliance Communications (RCOM) and Reliance Jio Infocomm Limited (RJIL) are ready to announce a pan-
India spectrum sharing cum trading agreement. The move will give Jio more bandwidth options to offer
4G services across most parts of India. Through this initiative, RCOM can reduce its debt and Jio can
increase its airwaves. The sharing pact will help Jio to offer 4G services over RCOM’s 800 MHz band
across 10 circles. The 800 MHz band will also help RJIL to get adequate access for good coverage without
putting wires inside buildings. RCOM has applied to liberalise its 800 MHz spectrum holdings that were
allotted at government prices. The company’s spectrum liberalisation cost is expected to be between
INR1,500 crore and INR 1,800 crore for the 10 circles, and around INR 7,000 crore for all the circles
where it has 800 MHz band.
© Gyan Research and Analytics Pvt. Ltd., 2015 1
Telecommunications News
September 5, 2015 – September 11, 2015

2.  BSNL will launch 4G services by FY2016
Bharat Sanchar Nigam Limited (BSNL) intends to launch competitively priced 4G services, using the 2,500
MHz band, at selected locations by FY2016. The telecom operator also aims to initiate cheaper tariff plans
in both 3G and 4G during the same period, to match with private telecom service providers, especially
Reliance Jio. BSNL will use the Wi-Fi route for 4G services and is now in talks with various device
manufacturers for consumer-friendly schemes as well as with telecom operators for spectrum sharing.
 RCOM, Sistema merger may hit roadblock
Reliance Communications (RCom) and Russia's Sistema JSFC’s merger could be jeopardized, as the deal
may cost an additional INR 3,980 crore. The additional cost is due to the government’s new spectrum
trading rules. The new rule states that trading for 800 MHz airwaves acquired in the March 2013 auctions
will be allowed only if the price difference between March 2015 and March 2013 auctions is paid to the
government. Accordingly, Sistema will have to pay a differential of INR 3,000 crore for contiguous
airwaves given out in 2015. Sistema had paid INR 3,639 crore to acquire 800 MHz spectrum in 2013,
which is valid till 2033. However, it was allotted non-continuous airwaves, which was the then market
standard.
 Aircel eyes 10 million subscribers in Assam
Telecom service provider Aircel is looking to ramp up its customer base and revenues in Assam to 10
million and INR 1,800 crore, respectively, in the coming five years. Currently, Aircel is second largest
operator in the state with 46 lakh subscribers; it has set itself a target of 50 lakh subscribers by the end of
2015. Further, it is the only operator in the state providing 4G 4G technology with services in Guwahati,
Jorhat, Sivasagar, Tezpur and Silchar. The tele density of Assam is low at 54 percent as compared to 77
percent across India.
Investment News
 Idea Cellular to invest INR 550 crore in UP by 2017
Idea Cellular announced investments of over INR 550 crore in Uttar Pradesh (UP) in the next two years, to
deepen its penetration and ramp up internet connectivity. Idea is already present in 82 percent of UP
across 85,000 towns and villages and has a target of 95 percent. with an investment of INR 4,400 crore.
The allocated amount is nearly 11 percent of the operator’s total investment in India. The company
expect internet connectivity in UP to reach to 85 percent from 15 percent, currently. In order to increase
internet connectivity, it requested to the state government for formulating Right of Way policy.
Currently, the telecom service provider invests in UP. The Company covers more than 85,000 towns and
villages across UP and intends to increase its reach to 95 per cent of the population.
© Gyan Research and Analytics Pvt. Ltd., 2015 2
Telecommunications News
September 5, 2015 – September 11, 2015

3. Weekly Snapshot
© Gyan Research and Analytics Pvt. Ltd., 2015 3
Telecommunications News
September 5, 2015 – September 11, 2015
Purpose of Mobile Phone Usage in Madhya Pradesh, 2015
Purpose
Mobile Phone Users (in percent)
Slums Villages
Staying connected with family and relatives 99 91
Socializing with friends 84 74
Information employment opportunities 22 26
Entertainment/ Recreation 51 57
School education (board exam results) 8 2
University/ College admissions 5 2
Source: Various Published Sources

4. © Gyan Research and Analytics Pvt. Ltd., 2015 4
Telecommunications News, September 5 – September 11, 2015
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