1. Come September 27th only 100 SMSes per day.
It is time to rethink about the communication modes for high end SMSes users. From September 27th 2011, the mobile operators are ordered to scrap their unlimited SMSes packages (currently maximum is 500/day) and introduce the 100 SMSes/day packages to meet TRAIs regulations.
Telecom Regulatory Authority of India (TRAI) finally announced 27th September 2011 as the date of implementation for Telecom Commercial Communications Customer Preference (Sixth Amendment) Regulations, 2011 to stop the menace of telemarketing SMSes.
As per the stipulations the operators can either introduce 100SMSes/day or 3000 SMSes per month.
If a customer registered under the National Customer Preference Register (NCPR) receives a call or SMS from Telemarketing Company, then the company is liable to pay fines ranging from Rs 25,000 to Rs 2.5 lakh.
2. DOT: Exit policy on the anvil.
Hyper competition with 15 players and each present in almost all circles, tremendous strain on profit margins in the telecom sector. Welcome to India.
In 2008, many new licences were awarded. But either some players have not met the roll out obligations or have not received the spectrum itself. So the Telecom Commission, apex decision making body, has advised DOT to prepare an exit policy for these operators.
Loop Telecom has expressed its desire to leave this hyper competitive market and surrender its licence. In any case, the spectrum reserves with DOT will increase. This will come as a relief to pan India operators who are in desperate need of this natural resource to decongest their networks.
Abundant spectrum will translate into reduced prices of spectrum.
3. Vodafone launches Facebook Phone “Vodafone Blue 555”.
Vodafone, leading mobile operator in India, has launched Vodafone Blue 555 in India at Rs 4950. The handset also comes with unlimited data usage on Facebook Free for 1 year.
This phone is designed to bring the Facebook experience into the very core of the handset.
But the success of Vodafone Blue is not given, as smart phones, with Android OS, have enabled easy access to Facebook via the web.
Features
The device has fully integrated Facebook experience, QWERTY keypad, Optical Track Pad, 2.4″ QVGA screen, Mobile Internet with Email, IM, Opera Mini / Opera 5 Web browser, Integrated Music Player with 3.5mm Jack, 2 MP Camera, Bluetooth, 16 GB expandable memory, 2 Year Warranty. Facebook is built into the handset’s core – it’s running the moment the customer turns on the mobile phone.
4. BSNL hikes 3G Data Tariff.
The operators in India, even though going through a period of turbulence, are having a good time.
In general if a competitor hikes the tariffs, the other stays put and try to increase the market. But of late in the Indian Telecom Industry, things are working the other way round.
BSNL has joined the band in increasing the 3G data tariffs. Now the rate of 3G data will be 4paise/10KB instead of 2paise/10KB.
5. Frost & Sullivan: Future of Mobile Broadband lies in LTE.
With the current 3G networks proving to be incapable of handling the growth in mobile data, mobile operators in India, Saudi Arabia, and the U.A.E. are soon expected to migrate to 4G technologies to accommodate the surge in data traffic.
A Frost & Sullivan Report indicates that LTE is expected to lead the shift toward 4G technologies in Saudi Arabia, the U.A.E, and India, with the developing ecosystem and increasing support from equipment vendors. The Report also recommends commitment and support from equipment manufacturers and mobile operators to drive the growth in the LTE market.
LTE and Worldwide Interoperability for Microwave Access (WIMAX) are the two competing 4G technologies expected to drive the growth in mobile broadband, globally.
6. Microsoft Apps for Symbian Belle Smart phones.
Nokia has announced that the existing smart phones with the Symbian Belle OS will be updated using the Microsoft apps. This will be an add-on to the already present security and other features present in the Symbian.
At the start of 2012, Microsoft plans to introduce MS word, excel, and power point as native applications for mobiles.
7. IMI launches SMS in local languages.
Hyderabad based IMI mobile, mVAS provider, has developed an application that helps to access the SMS in the local language.
The application named “My SMS” helps to access content in local language. The plus point of this application is it is scalable where in more languages can be added. This application is for sure to drive the usage of mobile services in rural areas and also empowering the rural populace.
8. US frown at preferential treatment to Indian firms.
The United States government has raised concerns over some of the telecom related policies in India. The objections include preferential treatment given to telecom and electronic products made in India. These policies have been approved by the Committee of Secretaries and await the Cabinet’s final ratification.
Three points of concern are:
a. Regulating of procurement by private telecom firms by the Government:
The Ministry of IT and Communication has floated a proposal to reserve 30% of all electronic equipment procurement to items manufactured in India.
As per WTO (of which India is a member), the government has the authority to protect local products only when procured for government purchases.
So the US has raised its point that how is that regulating procurement by private firms come under government purchase.
b. Concerns raised over the monopoly of ISRO in DTH services:
The US has questioned the purpose of preventing the foreign telecom firms from selling satellite services directly.
c. The US has also sought an update on TRAI recommendations on giving equal access to cable landing stations in India to foreign companies.
9. Philips mobile enters India again.
Philips mobile phone is entering the Indian market again after a long hiatus of 8 years.
China based Shenzen Sang Fei (SSF), which sells mobiles under the Philips brand has re-entered India after 2003.
SSF is a joint venture between Philips and China Electronic Corporation (CEC). In 2007, Philips exited the joint venture and culminating in the mobile business being acquired by SSF.
10. TCIL refuses to dilute stake in Hexacom.
Telecommunication Consultants India Ltd (TCIL) has rejected a proposal to dilute its stake in Hexacom through an IPO.
Bharti Hexacom, a joint venture between Bharti Airtel (70% stake) and TCIL (30% stake), offers mobiles services in Rajasthan.
TCIL argues that if there is a proposal of issuing fresh stock, then TCIL would have its stake reduced to 24% and thereby losing its ability of enforcing shareholders rights. TCIL has also said that it should Airtel that should dilute its holding as it owns the majority stake.
Other grappling issues between them are the management fee imposed on Hexacom management for using Airtel’s brand and technical know-how. Airtel has also suggested that TCIL exit by shares offloading which was refused by TCIL on grounds that it will get a better evaluation at a latter stage.
11. Indian IT firms need to look at emerging economies for growth momentum.
The Indian IT industry, which is a USD 70 billion industry, might experience some slowdown in its momentum due to its dependence on the U.S economy, which is experiencing a very slow growth rate.
This has prompted fears of a protectionist approach being adopted by the U.S that would ban outsourcing and off shoring and creates jobs at home. However, experts feel that this would not be done as the govt. there has realized the pressures various sectors are under to run their state of affairs on a very tight budget.
However, it would be wise for the Indian IT industry to look at other verticals such as health and transportation. Right now it has a 15-20% of the global market with a potential to grow much bigger by refocusing its efforts on the emerging market, especially Asia, which is where the centre of economic gravity is shifting. The domestic market is witnessing strong demand from sectors such as banking, telecommunications, insurance, government and utilities.
12. Dell launches new generation storage solutions.
Leading computer marketer Dell has announced a new generation storage solutions and supporting software to address data management requirements of virtualized data centers.
The new storage arrays and virtualization tools can help our customers run highly optimized and efficient data centers by automating configuration and improving performance without forcing forklift upgrades. It has introduced the Equal Logic PS6100 and PS4100 family of virtualized, IP-based storage offerings.
Together with its new Equal Logic firmware version 5.1, its storage solutions will seamlessly integrate into existing environments without downtime or a major overhaul. It offers a proactive support that helps all their segments of enterprise customers optimize and automate the management and protection of their data.
13. Tata Consultancy Services bids $500 mn for 80% stake in Lufthansa IT Systems.
India's largest software services exporter, Tata Consultancy Services, has put in a bid valued at $500 million to acquire a controlling stake in Lufthansa IT systems, the captive information technology unit of the Frankfurt-based airline.
Hewlett Packard-EDS and IBM were also in the fray to buy a stake in the unit but TCS may be able to propose a structure that would make it compelling for Lufthansa to consider them as a favored partner. If TCS emerges as a successful bidder for the unit it is likely to fund the acquisition entirely through internal accruals.
14. Department of Information Technology expects 11 states to adopt e-payment gateway by March, 2012.
The government will throw open a single payment gateway for e-governance services in 11 states by March, 2012, which will facilitate collection of fees for licences and other chargeable services over the internet. Around 20 services, including those provided by both the central and state governments, will be linked to the payment platform in the next two to three months, enabling citizens to make online payments and doing away with the need to visit government offices.
Chhattisgarh, Maharashtra and Goa will be among the early adopters of this platform. The technology provider for this platform, National Securities Depository Limited (NSDL), will be paid on the basis of each transaction made.
Assuring NSDL that a minimum of one crore transactions will take place every year through this platform the government has signed a revenue gap funding agreement with it. Under the agreement, if the numbers of transactions in a year are less than a crore, the government will compensate NSDL for the lower volumes on the basis of the commission promised. However, if the number of transactions through the platform touches the one crore-mark, the government will not have to pay any amount to NSDL.
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