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BSNL, MTNL asked to pay Rs 16,751 cr for 3G spectrum

The government is understood to have asked BSNL and MTNL to pay Rs 16,750.58 crore for the 3G spectrum in their possession within the stipulated 10 days of the close of auction.

The Department of Telecom (DoT) has written a letter to BSNL and MTNL asking them to pay Rs 10,186.58 crore and Rs 6,564 crore, respectively, for the 3G spectrum in their respective areas of operations, sources in the know said.

The two PSUs, however, when contacted, said they are yet to receive any communication from the DoT and would decide once they receive such a demand.

Asked whether they would make the payment within 10 days as per the payment schedule, both (BSNL and MTNL) replied cryptically saying an appropriate decision will be taken at an appropriate time.

BSNL and MTNL got 3G spectrum much ahead of private players and both PSUs are supposed to pay as per the final bid of the auction. MTNL offers services in Delhi and Mumbai while BSNL in rest of the country.

As per the final bid of 34-day long auction, which closed on May 19, the bid for Delhi stood at Rs 3,316.93 and Mumbai at Rs 3,247.07 crore and all India bid was Rs 16,750.58 crore.

When contacted, BSNL CMD Kuldeep Goyal told PTI that "once we receive the communication, we shall discuss internally and decide." He had said yesterday that BSNL had not sought any exemption from paying the spectrum fee.

Similarly, an MTNL official said "as and when we are asked by the DoT, we shall take an appropriate decision".

Both PSUs were given 3G spectrum almost a year ahead of private operators to overcome the nitty-gritties of the complex tendering process. The private operators, who recently concluded the auction, would be given spectrum in September this year.

Sources said that the DoT has also sent a formal communication to other operators who have won the bid in respective circles.

As per the Notice Inviting Applications (NIA), issued by the DoT before auction, all the winners are supposed to make 100 per cent payment within 10 days of close of auction.

source :: http://beta.profit.ndtv.com/news/show/bsnl-mtnl-asked-to-pay-rs-16-751-cr-for-3g-spectrum-52831

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Big City gamble: Reliance Communications on 3G turf

Economic Times - 21 May 2010, 0512 hrs IST

Reliance Communications went for the top and bottom circles in the value pyramid of service areas.

The company will spend 76% of its total investment in 3G spectrum on Mumbai and Delhi. In all it has bagged 13 circles for a price of Rs 8,585 crore compared with nine of Vodafone circles for Rs 11,618 crore.

Wins in Delhi and Mumbai give Reliance Communications an edge over its peers, because this may be its opportunity to catch up with Bharti and Vodafone—that lead in these mega-cities with a margin—and leave nine other operators in the circles far behind.

Because it started out with services based on on CDMA technology, Reliance Communications lost out on customers that generate high revenue for service providers. The company’s brand identity is also more immediately identified with low cost rather than luxury, which may change with 3G offerings, an analyst with an MNC brokerage said.

Reliance Communications is also among the worst off in terms of funding. With net debt of Rs19,889 crore, the company debt to operating earnings for the just-ended financial year is 3.3. While the company has cash of around Rs 4,858 crore, not all of it can be deployed for spectrum, the analyst said.

“They will get the money, but it won’t come cheap,” said an analyst with a domestic brokerage. The company is also expected to bid aggressively for WiMax spectrum auction that will start soon, the analyst added.

The company did not respond to queries on how it plans to fund the purchase.

The company is raising money through commercial paper according to a television report. Reliance Communications generates around 55% of its current revenue from the 13 circles it won spectrum in. These circles, broadly equivalent to states, account for around half the revenue of the Indian telecom sector’s.

Average monthly revenue per user in the circles it won was Rs 119.9 compares with Rs 95.8 for the circles it lost, according to an estimate by brokerage Edelweiss.

The company’s revenue must rise 33% to make its 3G spectrum viable, but if this helps it gain market share in Mumbai and Delhi this should be possible, analysts said.

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Telcos including Bharti, TTSL start fund raising exercise towards 3G spectrum payment

Indian telecom operators have started arranging to raise funds to make payment as per the successful bids for 3G spectrum.

Apart from issuance of commercial papers (CPs) operators are also exploring alternative sources of funds. Collectively operators have raised Rs ,7500 crore to Rs.8,000 crore by way of issuance of CPs with the final amount expected to be Rs.10,000 crore. Reliance Communications and Aircel have each raised Rs.3000 crore through CPs.

Term loans from banks will also account for a bulk of the debt.

Reports say, Bharti Airtel has raised Rs.8,500 crore from a consortium of financial institutions, including the State Bank of India. Additionally, HDFC Bank has agreed to part finance the payment.

Bharti Airtels loan is estimated to spread over six years at an interest of 8-9%.

Tata Teleservices (TTSL) too has raised over Rs.4,500 crore through bonds and loans.

LIC has subscribed to 10-year bonds floated by TTSL for Rs 1,000 crore. It also raised another Rs 1,000 crore through commercial paper with a tenure of one year from various institutions.

Apart from this, TTSL has also raised money directly through banks, which include Rs 1,500 crore for a tenure of five years and Rs 1,135 crore for one year with the yearly interest rates ranging from 7.33 % to 8.3% %, say reports.

source:: http://telecomtiger.com/3G_fullstory.aspx?storyid=9234&section=S208

Edited by kesav

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Reliance Communications today announced that it has made a payment of Rs 8585.04 crores towards 3G spectrum fees to Department of Telecommunications.

RCOM was amongst the only three private telecom operators who won 3G spectrum in 13 circles including the most lucrative Circles Mumbai and Delhi. The win for RCOM maximizes circle coverage on a more conservative spend.

RCOM won 3G spectrum in all circles where it has 900 MHz spectrum. The 13 circles where it has obtained 3G spectrum includes all high growth ‘C’ circles for less than Rs 500 crores.

This makes RCOM the only operator that has pan India 3G capability in CDMA and among the top 3 with highest coverage in WCDMA.The Circle-wise break-up of the Rs 8585.04 crore 3G spectrum fees paid by RCOM to Department of Telecommunications is

Circle==========3G Spectrum Fee=========Circle==============3G Spectrum Fee

Delhi===========Rs 3316.93 crore========West Bengal=========Rs 123.63 crore

Mumbai==========Rs 3247.07 crore========Himachal Pradesh====Rs 37.23 crore

Kolkata=========Rs 544.26 crore=========Bihar===============Rs 203.46 crore

Punjab==========Rs 322.01 crore=========Orissa==============Rs 96.98 crore

Rajasthan=======Rs 321.03 crore=========Assam===============Rs 41.48 crore

Madhya Pradesh==Rs 258.36 crore=========Jammu & Kashmir=====Rs 30.3 crore

North East==================================================Rs 42.3 crore

RCOM will have minimal 3G network capex investment due to its nationwide state-of-the-art 3G ready GSM network. RCOM will strongly leverage its media, gaming, cinema and broadcasting capabilities to offer its customers a unique “true 3G experience”.

RCOM’s nationwide 3G-Ready network offers a number of innovations to its over 102 million customers. These include:

o Next-gen electronics for super digital voice clarity

o Seamless coverage on major railway routes, national and state highways through dedicated mobile towers

o Access to a Reliance owned fibre network for unlimited capacity – both in India and overseas, resulting in unmatched quality on local, STD or ISD calls

o Nationwide enhanced capabilities for fastest internet access speeds

o Stutter-free video capability including numerous TV channels, sports updates as well as access to popular video sharing websites like Youtube

o Widest R-World mobile content offering entertainment, music, news, cricket, Bollywood, maps and search

o One-click set-up and access to email and social networking offering convenience of a PC

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^^^Awesome "innovations" RCom, we are thrilled, but just one li'l query - when do you plan to give your GSM customers the small added benefit of decent voice calling?? huh.gif

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3G is here. so why cry over such old unimportant issues like voice calls ;):angry:

Edited by commonman

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Here is the rank of circles as per earnings yielded by them to Government through 3G auctions.

All figures in Crore INR.

1) Delhi --> 13267.72

2) Mumbai --> 12988.28

3) Karnataka --> 6319.64

4) TamilNadu --> 5859.76

5) AndhraPradesh --> 5492.56

6) Maharastra --> 5031.28

7) Gujarat --> 4304.24

8) Kolkata --> 2177.04

9) UP(W) --> 2056.16

10) Punjab --> 1610.05

11) UP(E) --> 1458.28

12) Rajasthan --> 1284.12

13) Kerala --> 1249.92

14) Madhya Pradesh --> 1033.44

15) Bihar --> 1017.3

16) Haryana --> 890.32

17) West Bengal --> 618.15

18) Orissa --> 387.92

19) Himachal Pradesh --> 186.15

20) North East --> 169.2

21) Assam --> 165.92

22) Jammu&Kashmir --> 151.5

Edited by kesav

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Govt kitty swells by $15 bn as telcos pay 3G fee in full

NEW DELHI: The government recieved Rs 67,719 crore ($15 billion) on Monday with all nine telecom companies, including MTNL and BSNL, making “full”

payment to the exchequer for third-generation (3G) spectrum.

“The seven private telecom companies have already made their payments. No company asked for extension and relaxation. BSNL and MTNL have also made full payments as per the deadline of May 31,” said a senior official of the Department of Telecommunications (DoT).

Nine companies- Bharti Airtel, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel, Etisalat, S Tel and Videocon Telecommunications participated in the 3G spectrum auction which concluded May 19. Etisalat and Videocon did not win a single circle in the auction. 71 slots were put on the block for 22 circles across India for 3G services.

India’s leading telecom operator Bharti Airtel, which won 3G spectrum in 13 circles, paid Rs 12,295.5 crore ($2.73 billion) to DoT. Earlier in the day, an Aircel official said the company had paid Rs 6,499.5 crore ($1.44 billion) for 3G spectrum in 13 circles on Friday.

Anil Ambani-led Reliance Communications (RCom) paid Rs 8,585 crore ($1.91 billion) towards spectrum fees to the government. The amount paid by these three private companies is a little over 40% of the total Rs 67,719 crore ($15 billion) that the government received.

Vodafone Essar, which won spectrum in nine circles, paid Rs 11,617 crore. Idea Cellular, Tata Teleservices and S Tel also made payments.

source:: http://economictimes.indiatimes.com/news/news-by-industry/telecom/Govt-kitty-swells-by-15-bn-as-telcos-pay-3G-fee-in-full/articleshow/5996298.cms

:clap: :clap: :clap:

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Telecom the most earning department of India

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Centre rejects 3G refund plea from BSNL and MTNL

The telecom ministry has turned down the demand by state-run operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) for refund of payments made towards spectrum fee for third generation (3G) telecom services. However, the two state-run telecom behemoths may be compensated but not against the 3G payments.

"There was a clear understanding between DoT (department of telecommunications), BSNL and MTNL that they would have to match the auctioning price of 3G offered to private operators.

The government may now decide to support them so that they can build infrastructure for 3G. But this should not be linked to refunds against 3G spectrum fee," a top DoT official told Mail Today. " They have already paid the spectrum fee. There is no way they can claim refunds in this regard. All revenues received, including funds raised through payments of 3G spectrum fee are credited to the Consolidated Funds of India and all expenditures of the government are incurred from this Fund through clearance from parliament. There is no way the demand of BSNL and MTNL for 3G fee refunds would be met," the official said requesting anonymity.

However, the state- run telecom companies argue that they were forced to take spectrum across service areas for 3G as well as the recently concluded auction for broadband wireless access ( BWA) without being given any choice. " We have a social responsibility as well unlike private operators. No private telecom operator opted for pan- India spectrum in 3G. We work in the rural remote corners of the country, where you would not find a private operator," a top BSNL official argued.

BSNL and MTNL have made a similar demand to the government for refund of fee to be paid for BWA spectrum. The fees have to be paid by June 22. The state-run telecom companies would have to shell out over Rs 28,000 crore.

MTNL has already paid Rs 6,564 crore for 3G spectrum, while BSNL paid Rs 10,186.58 crore on May 31. The 3G auction had fetched the exchequer Rs 67,718.95 crore.

During the 3G auctions the state-run telecom companies discovered that it had surpassed expectations. Earlier, DoT had estimated to rake in Rs 55,000 crore from both the 3G and BWA auctions. However, it skyrocketed to Rs 1,06,000 crore.

Since then these public sector undertakings (PSUs) have been trying to get the money paid refunded. But according to the auction policy, based on the New Telecom Policy 1999 (NTP 99), both state-run telecom companies are required to pay the price discovered at the end of the bidding process.

The issue is now expected to be taken up by the Union Cabinet sometime next week. But the finance ministry official said it is unlikely that the telecom PSUs would get a good deal.

BSNL and MTNL got 3G and BWA spectrum more than a year ago, while private operators would get it only in September this year. Thus, BSNL and MTNL stand to benefit from the first-mover advantage.

This was done despite the fact that the Telecom Regulatory Authority of India (Trai) recommending otherwise.

"Both BSNL and MTNL need funds to create infrastructure for 3G as well as BWA. If they do not get support from the government how could they carry on these services and compete with private operators," said S. D. Saxena, a telecom expert who also served as director (finance), BSNL.

Ringing in trouble:

State-run telcos argue that they were forced to take spectrum across service areas for 3G & BWA

BSNL & MTNL have also demanded refund of fee to be paid for the BWA spectrum

MTNL has paid Rs 6,564 cr for 3G spectrum while BSNL paid Rs 10,186.58 cr

Policy says both the state- run telcos have to pay the top bid prices

The issue may be taken up by the Union Cabinet sometime next week

source :: http://indiatoday.intoday.in/site/Story/102350/Business/centre-rejects-3g-refund-plea-from-bsnl-and-mtnl.html

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MTNL invites pvt telcos to bid for 3G spectrum sharing

Mahanagar Telephone Nigam Ltd (MTNL) on Thursday invited bids from those private operators who either did not get 3G spectrum or did not participate in the 3G bids and also for providing roaming facility to their 3G subscribers on its network.

"This gives a business opportunity of earning up to Rs 300 crore revenue annually, which is also necessary to make the 3G operations commercially viable.

We have to make judicious use of the spectrum available to us and this is one of the revenue streams available,"chairman and managing director (CMD), MTNL, Kuldeep Singh said.

MTNL has debts of over Rs 7,000 crore to pay towards both 3G and broadband wireless access (BWA) spectrum license fee. It would be difficult for MTNL to service such a huge loan without making its operations profitable.

"We are looking at a huge business opportunity in this and have invited bids from two operators, to begin with, each in Delhi and Mumbai to tie up for one- way roaming. We are asking for fixed cost as well as network usage charges," said Singh.

MTNL does not need two- way roaming as it enjoys an exclusive roaming agreement with BSNL.

source :: http://indiatoday.intoday.in/site/Story/102967/Business/mtnl-invites-pvt-telcos-to-bid-for-3g-spectrum-sale.html

:clap: :clap: :clap:

Good move by PSU. BSNL can also do the same.

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3G auction model to be showcased to states

New Delhi: The Centre wants to showcase the success of 3G (third generation) telecom spectrum auction to the state governments, it is learnt.

The cabinet secretariat has asked the Department of Telecommunications (DoT) to prepare a presentation on how 3G auction was conducted in the country and list the reasons behind its success, a source said.

DoT’s 3G presentation will be shown to the various state governments so that the auction procedure could be replicated across other sectors, it is learnt.

The 3G and BWA (broadband wireless access) spectrum auction is being seen as a hugely successful model as the government was able to raise Rs 1,06,000 crore worth of revenue from the process, against the finance ministry’s budget target of just Rs 35,000 crore.

While Rs 68,000 crore came from 3G auction, the remaining Rs 38,000 crore was the revenue generated from BWA bidding. The revenue generated is more than three times of the finance ministry target and five times that of the reserve price.

The UPA government, faced with a steep fiscal deficit, is looking at the 3G auction model as a formula for future revenue generation in sectors other than telecom as well.

As for the next round of 3G auction, one would have to wait until 2013 at least. According to DoT officials, the next tranche of 3G spectrum would be vacated only in December 2012.

For the recently held auction, spectrum will be made available for 3G only in September, while that for BWA this week.

When asked whether price of telecom services would be unaffordable because of the huge revenue outgo from the industry on 3G and BWA, a DoT official argued that most telcos would use the 3G spectrum to offer 'voice’ services and therefore prices cannot go too high.

“As there are telecom companies, which have not bid for 3G, offering cheap tariffs, others can’t raise the prices either,” the official explained. “Competition will make it affordable,” he said.

Affordable 3G and BWA services would hold the key to improve the rural teledensity in the country and boost broadband connectivity. Even with over 600 million phone connections in India, the rural teledensity is just about 20 per cent. And the next wave of telecom growth is expected in rural areas.

Besides the high revenue generated from the spectrum process, DoT is showcasing other aspects of 3G and BWA bidding including 'fair and transparent process’, 'unique auction design’, and 'e-auction’.

Elaborating on the fair and transparent process, DoT has said in a statement that “the true market value of the spectrum was determined through an efficient and transparent process.”

On unique auction design, DoT stressed that “an innovative design incorporating the best practices from global auctions was used”.

As for e-auction, this was the first time that an e-auction of such magnitude was conducted by the government.

source:: http://www.dnaindia.com/money/report_3g-auction-model-to-be-showcased-to-states_1402167

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Raja seeks refund of Rs.29,598 crore 3G and BWA spectrum fee paid by BSNL and MTNL

Union Communications Minister, A Raja has asked the Finance Minister, Pranab Mukherjee to refund Rs.29,598 crore paid by BSNL and MTNL collectively towards 3G and BWA spectrum fee.

"BSNL is the only service provider giving connectivity to the far-flung rural areas. The service rendered by BSNL in the rural areas of the country cannot be replicated," Raja said in a letter to the Finance Minister.

The Minister, emphasised that in terms of the New Telecom Policy, 1999, BSNL (then DoT) was not required to pay an entry fee for Cellular Mobile Licences, which were bundled with initial spectrum of 4.4 MHz. BSNL was also exempted from payment of 2G spectrum charges of Rs 1,650 crore in view of its immense social and rural obligations, he added.

"Both BSNL and MTNL have made a desperate request for reimbursement of the charges paid," said Raja.

source:: http://telecomtiger.com/PolicyNRegulation_fullstory.aspx?storyid=9577&section=S174

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Raja seeks refund of Rs.29,598 crore 3G and BWA spectrum fee paid by BSNL and MTNL

Union Communications Minister, A Raja has asked the Finance Minister, Pranab Mukherjee to refund Rs.29,598 crore paid by BSNL and MTNL collectively towards 3G and BWA spectrum fee.

"BSNL is the only service provider giving connectivity to the far-flung rural areas. The service rendered by BSNL in the rural areas of the country cannot be replicated," Raja said in a letter to the Finance Minister.

The Minister, emphasised that in terms of the New Telecom Policy, 1999, BSNL (then DoT) was not required to pay an entry fee for Cellular Mobile Licences, which were bundled with initial spectrum of 4.4 MHz. BSNL was also exempted from payment of 2G spectrum charges of Rs 1,650 crore in view of its immense social and rural obligations, he added.

"Both BSNL and MTNL have made a desperate request for reimbursement of the charges paid," said Raja.

source:: http://telecomtiger.com/PolicyNRegulation_fullstory.aspx?storyid=9577&section=S174

Greatest Joke

Edited by pasumark

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DoT to allocate 3G spectrum tomorrow

August 31, 2010 - Press Trust of India

The government will allocate 3G spectrum to Bharti Airtel, Reliance Communications, Vodafone and others tomorrow, as the Defence has agreed to handover required quantity of radio airwaves.

This would pave way for launch of high-speed mobile broadband services in the country.

Senior official from the Department of Telecom said the deck has been cleared and the department will handover the spectrum to the operators on Wednesday.

DoT had set September 1 as the deadline for allocating spectrum, as per the schedule of auction, which fetched the government over Rs 67,000 crore for selling 3G frequency.

There were, however, apprehensions in the industry as the, alternate network for defence was yet to be completed.

The government had raised over Rs 1.06 lakh crore from sale of spectrum for both 3G and Broadband Wireless Access (BWA) services.

As many as seven operators, including Bharti Airtel, Vodafone, Tata Teleservices, Reliance Communications and others had bagged 3G spectrum in select circles. Operators are confident if the spectrum is handed over to them by September, they can roll out services by the end of 2010 or early 2011.

If the spectrum is handed over tomorrow, then operators will be able to launch the much-awaited 3G services by the year-end.

The 3G technology, or the third generation mobile communications, will allow telecom operators, including Bharti, Vodafone, RCom and Tata which are in fray to acquire radio waves, to offer better quality of voice calls under 3G, compared to 2G services.

Moreover, through 3G technology users can download music files, full movie and other files at high speed.

3G users can access through handsets high-speed Internet anytime anywhere and can also make video calls. TV programmes can also be watched on mobile handsets with a 3G connection.

Two leading operators Bharti Airtel and Reliance Communications had recently announced that they are ready with their 3G infrastructure and are waiting for the government to release spectrum.

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yay. at last some good news on 3G front. now hoping for good news on MNP on 31st OCT. :cheer:

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3G spectrum allotment after UASL amendment

The Defence department has cleared the deck for allocating 3G spectrum to the service providers who won the airwaves through auction but these frequencies will be allocated to the telecom companies after amendment in present Unified Access Service License.

“We have the spectrum with us now and will give it to the operators after amendment in UASL condition,” said a senior DoT official who did not want to be named.

The present UASL condition is tuned as per 2G spectrum and allows telecom service providers to provide service in frequency band of 800 Mhz, 900 Mhz and 1800 Mhz. DoT will have to add the clause for 3G services which is to be provided in 2.1 Ghz band which will allow TSP to provide 3G services.

According to another senior DoT official this change will be made by this evening. After this the telecom operators will be allowed to use 3G airwaves for commercial services.

DoT had concluded 3G auction in May. Seven out of nine players won the bid in various circles which included Bharti Airtel, Reliance Telecom, Tata Teleservices, Idea Cellular, Aircel, Vodafone and S TEL. BSNL and MTNL were already allocated 3G spectrum in the circles where they have their operation. Government earned revenue of more than Rs 67,700 from the auction.

source :: http://www.ciol.com/News/News/News-Reports/3G-spectrum-allotment-after-UASL-amendment/140684/0/

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DoT allocates 3G with amended licence rules

The Department of Telecommunications (DoT) on Wednesday started allocating 3G spectrum to telecom operators, giving relief to all the seven companies that emerged successful in the intense bidding process that took place in May this year. But DoT has made some changes in the licence terms to ensure speedy roll-out of 3G networks and also efficient use of scarce spectrum. DoT has said that operators were authorised to use the spectrum for 20 years from September 1, 2010, even if their telecom licences expired before that period.

DoT has also imposed roll-out obligation under which the operators will have to cover at least 90 per cent of the service areas in the metro circles and at least 50 per cent in most of the other circles within the next five years. If the operators failed to achieve the roll-out obligations, they would be given extension for one more year after paying 2.5 per cent of the spectrum acquisition charge per quarter.

Similarly, each licensee will also have to pay the annual licence fee as share of adjusted gross revenue (AGR) from the services using 3G spectrum. In the case of two companies merging, only one slot of spectrum can be retained, according to the amended rules. The operators will also have to pay the upward revised spectrum usage charges ranging between 3 per cent and 8 per cent depending on the quantum of spectrum held by them.

Besides State-owned BSNL and MTNL, seven private operators — Bharti Airtel, Vodafone Essar, Reliance Communications, Tata Teleservices, Idea Cellular, Aircel and STel — have got 3G spectrum. The Centre had got Rs.67,000 crore through the 3G spectrum auction — Rs.51,000 crore from private operators and Rs.16,000 crore from the two telecom PSUs.

In the two metros — Delhi and Mumbai — three operators — Bharti Airtel, Vodafone and Reliance Communications — had emerged winners, while no operator could bag pan-India spectrum in the auction.

source :: http://www.thehindu.com/business/Industry/article607725.ece

Breaking News! The Centre has allotted 3G spectrum to the telecom operators today. All telecom operators, including Bharti Airtel, Reliance Communications and Vodafone Essar got the rights to use 3G spectrum from the DoT.

Bharti Airtel and Reliance Communications had won 3G spectrum in 13 out of the 22 telecom zones. Aircel also won in 13 zones, while Idea Cellular won in 11 zones.

Vodafone Essar and Tata Teleservice won in nine zones each

source :: http://www.breakingnewsonline.net/technology/3674-centre-allots-3g-spectrum-to-telco-operators.html

http://dot.gov.in/as/Auction%20of%20Spectrum%20for3G%20&%20BWA/UASCMTS_01.09.2010.pdf

http://dot.gov.in/as/Auction%20of%20Spectrum%20for3G%20&%20BWA/FormatCMTS_31.08.2010.doc

http://dot.gov.in/as/Auction%20of%20Spectrum%20for3G%20&%20BWA/FormatUAS_31.08.2010-2003.doc

:clap: :clap: :clap: :clap:

Now it's time to focus fully on MNP

Edited by kesav

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RCom, Tata talk metro 3G alliance with MTNL, BSNL

Early winners of 3G spectrum — Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) — have found a novel way to make money from the next-gen telecommunications play.

The public-sector telcos are in talks for infrastructure sharing deals with private peers. They will share their 3G base stations in circles where other telcos do not have 3G spectrum.

MTNL and BSNL together have over 14 lakh 3G subscribers. While the former has 3G spectrum in Delhi and Mumbai, the latter has it in the remaining circles.

J Gopal, executive director, Mumbai telecom circle, MTNL, said private operators such as Tata Teleservices in Delhi, Reliance Communications (RCom) in Mumbai want to avail of the company’s base stations to offer 3G service. “For the subscriber it would make no difference as the arrangement is at the back end.

For us it is exciting as it is a good revenue source,” he said.

Gopal said the arrangement will mean an upfront payment of `100 crore per operator per circle, in addition to revenue share for each subscriber of the operator.

Similarly, operators are in talks with BSNL for base station sharing in most other telecom circles.

A source in RCom confirmed that the company is in talks with MTNL. “We do not have 3G spectrum in Mumbai. So we look to share MTNL base stations to enable our subscribers with roaming 3G services,” said the source who did not wish to be named.

MTNL was the first telecom operator in India to launch 3G mobile services when it launched Jadoo in Delhi in February 2009. It launched the service in Mumbai a few months later. Though it

had targeted to have 2 lakh 3G subscribers in two years, MTNL has already amassed more than 4 lakh 3G subscribers in the two metros.

“Events such as IPL (Indian Premier League) cricket helped in rapid subscriber generation. For instance, we saw about 3,000 subscriber additions per day when the IPL was on. In Mumbai, video streaming has been a hit. We have seen our average revenue per user going up by about `30 to close to `200 owing to the 3G uptake,” said Gopal.

On the other hand, BSNL, which operates in all circles except Delhi and Mumbai, has amassed over 10 lakh subscribers for its 3G services, after first launching the service in March 2009.

However, some observers say that both MTNL and BSNL would have generated at least three times the current 3G subscriber base had they focused on providing relevant application-based services to users.

source :: http://www.dnaindia.com/money/report_rcom-tata-talk-metro-3g-alliance-with-mtnl-bsnl_1443851

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A source in RCom confirmed that the company is in talks with MTNL. “We do not have 3G spectrum in Mumbai. So we look to share MTNL base stations to enable our subscribers with roaming 3G services,” said the source who did not wish to be named.

WHAT??? RCom doesn't have 3G spectrum in MUMBAI???? I have read in this same thread that Airtel, Vodafone and RCom has won 3G spectrum in Mumbai and Delhi circles along with MTNL :Equivocado:

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Aircel to invest $500 mn in 3G, targets 7.5 mn users

To spearhead 3G roll out, Aircel has said that it will invest $500 million in the first year.

"We will be making an investment of $500 million on 3G in the first year of launch and we will start offering the services in the first quarter of next year. Initially the company will target the top 10 cities of each circle where we operate." Gurdeep Singh, chief operating officer, Aircel, said to reporters.

The company is also in the final stages of evaluating 3G equipment vendors, and will make the announcement next week.

Singh said that the company is targeting about 7.5 million of its subscribers on 3G network by the end of next year.

He added, "We are expecting 50 million subscribers by this year end, and by 2011 end we hope to have 75 million subscribers, out of which we expect 10 per cent (7.5 million) to be on 3G."

source :: http://telecomyatra.afaqs.com/news/index.html?sid=2055_Aircel+to+invest+$500+mn+in+3G+targets+7.5+mn+users

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