1. Good Coverage: Reason for service provider selection.
Good coverage tops the list for customer preferences for a service provider. The above finding was from a survey conducted by OPSBUDS.
The survey was conducted in the 4 metros, and an overwhelming 80% have responded that the network connectivity is a major factor in deciding which operator is to be selected.
So bundling the new handsets with free talk time from a service provider doesn’t influence customers to buy such products.
The survey results do make some sense in a way that if there is good connectivity and network, the calls can be made and received at any time and place thereby driving usage and directly impacting the revenues of the operators. So in a way the price wars, which are affecting the ARPU’s, don’t make any sense for the operators.
2. Mobile OS making news almost every day.
For quite some time mobile operating systems are making headline news. The most basic of mobile phones are also embedded with dual core processors, music play back etc.
a) The big news was that Google announced that it would acquire the handset division of Motorola. So the customers feel that the Android experience will be better with Motorola phones.
b) Android v 4.0 (Ice Cream Sandwich) is going to be launched this November. As Google prefers to name its new Android OS with confectionaries in alphabetical order, the name doing rounds is Jelly Beans.
c) Intel has joined hands with Google to provide atom sized chips to Android devices. This after the failure with MeeGo venture with Nokia.
d) Nokia has joined hands with Microsoft for its Window phone 7.
e) HTC is also planning to do a Google. It has plans to acquire webOS from HP.
f) Microsoft showed off its Windows 8 preview for smart phones in a conference recently.
g) Two Android based OS – Baidu Yi and Aliyun are introduced by Baidu & Alibaba respectively.
3. Samsung to triple the phone capacity.
Samsung, leading mobile phone provider, has announced that it will triple its existing capacity at its Noida plant. It plans to invest $70 million for the same.
Samsung India is operating two R&D Centers at Noida and Bangalore to support its business operations in the country. Samsung India Software Operations, the Bangalore R&D Center develops Protocol and Platform software for Mobiles.
4. One circle: Telecom policy 2011.
The new telecom policy that is to be unveiled this November, envisages at making a one circle policy for the entire country.
According to Economic Times, the new policy proposes to extend MNP during roaming (both when in a different circle and country). Currently MNP is restricted with a circle.
The policy also focuses on domestic manufacturing of telephone equipment to prevent the huge foreign exchange outflow and to ensure national security. The country currently depends on a large-scale import from China.
5. Nokia’s market share under pressure.
Even though Nokia is the market leader with 39% in Indian Mobile phone market, its dominance is under threat from other MNCs like Samsung and Indian companies like Micromax, Karbonn, Lava etc. Nokia had 49.3% market share in 2010.
The Korean mobile phone company Samsung is quickly growing its market share during the last few years. It reported a revenue growth of 21.7% during last year as against Nokia’s flat revenue growth. Nokia’s revenue during 2011 was Rs 12929 Crores against Rs 12900 Crores during the previous year.
The major reason for this low growth is due to absence of product ranges like dual SIMs, which are very popular in India. It is estimated that nearly 50% of the handsets sold in India are dual SIMs phones, which were not produced by Nokia till recently.
6. Encrypted mobiles to top Government officials.
Government is planning to provide encrypted mobile phones to its top leaders and officials to ensure uninterrupted communications during crisis situations. Currently during natural disasters and terrorists’ attack, it has increasingly become very difficult to communicate due to huge surge in number of calls, which leads to clogging of lines.
These encrypted phones will work on reserved radio frequency. Government is preparing a list of officials who will be given these mobile phones. This may require approvals from various ministries, as these phones will be working on a different frequency.
Apart from ensuring smooth communication, these phones will be secured in the forms of end-to-end encryption, mutual authentication of the calling parties and protection from interception.
7. Telecom Ministry clears spectrum allocation plan.
Telecom Ministry has given its nod to National Frequency Allocation Plan (NFAP) 2011 for making available required spectrum. It also set aside some chunk of spectrum for trial testing by local equipment manufacturers.
Despite opposition from Information and Broadcasting Ministry and Department of space, Telecom Ministry has decided to free up 700 MHz frequency and S band for broad band services.
This move will be come as a welcome relief for the operators who are facing spectrum crunch leading to network congestion. The government has set the target of 100 million broad band subscribers by 2014.
NFAP 2011 was prepared by Wireless Planning Commission (WPC). WPC is the custodian of airwaves.
8. Zen mobile to consolidate operations in Africa.
The Delhi-headquartered mobile handset maker Zen Mobile plans to consolidate its operations in the African nations of Kenya and Nigeria. The company has already started “test marketing” its operations in these nations.
Zen on Tuesday launched its touch and type dual SIM phone – M72 priced at Rs 1,999. Industry sources say that the dual SIM portfolio currently accounts for nearly 28 per cent of the handset market.
According to Mr. Gupta, the company is aimed at doubling its monthly sales from 50,000 to one lakh units in West Bengal by this fiscal. Zen is also targeting a 25 per cent jump in sales to nearly Rs 500 crore this fiscal.
9. Telecom Ministry proposes new body to manage spectrum.
The Ministry of Communication and IT has proposed to set up a new entity to manage and regulate spectrum allocation.
To be called the Spectrum Management Commission, the new body will be set up through the proposed Spectrum Act. The Commission will subsume Wireless Planning Coordination wing of the Department of Telecom and will get wider powers including dispute settlement, pricing and regulations related to spectrum.
Dos
· Powers to punish operators hoarding spectrum.
· Adjudicate disputes between operators on issues related to spectrum.
· Administer spectrum re-farming fund.
· Monitor, inspect and licence wireless equipment.
· Rules for spectrum sharing and trading.
Donts
· Licencing will continue under DOT.
· Government will have final say on spectrum issues.
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