Mobile Number Portability and its after effects

“MNP has been implemented – now its time for a reality check for all CSPs. Good boys will be rewarded and bad boys will be punished. And, for a change, the verdict would come from none other than the king (the subscriber!) himself.”

 “Mobile Number Portability” means the facility which allows a subscriber to retain his mobile telephone number when he moves from one Service Provider to another irrespective of the mobile technology or from one cellular mobile technology to another of the same service Provider. Hence one can port a CDMA number to GSM and vice-versa.  
The world’s first country to adopt MNP was Singapore in 1997, followed by UK ,Hongkong and Netherlands in 1999. The MNP service was launched across India by Jan 20, 2011 as per the timeline decided by DoT.

In India, it is currently available for intra-circle only. However due to the configuration of each Telecom circle porting can also happen between Madhya Pradesh & Chhattisgarh; Bihar & Jharkhand; Rest of West Bengal & Andaman and Nicobar; within the states of the North East excluding Assam.

The major changes that MNP brought in the telecom domain for the CSPs as well as the subscribers are discussed in the following paragraphs. Firstly, MNP has created a level-playing field for the CSPs and a competitive environment. With the introduction of MNP, customers are empowered to change their operator at the smallest problem they encounter with the services provided. This has led to an increase in the Quality of Service offered by the CSPs. Apart from the QoS, the CSPs have also started to concentrate on improving other services like Customer care,Tariff plans and so on.

MNP has had a few significant implications, both for the subscribers and the Cellular Service Providers(CSPs), but still it has not acted as a game-changer. It has been noticed that the first consumers to switch their mobile operators were the unsatisfied post-paid customers. Post-paid customers are only 4% against a 96% of the pre-paid segment- where number retention is not a priority.Pre-Paid customers usually buy a new connection from a different CSP, if they are not satisfied with their current provider, instead of going through the rigorous procedure of MNP. Even if the Pre-paid customers port-out from an operator they have very low ARPUs and the cost of servicing each customer is quite high, in terms of the revenue losses. Hence, operators expect MNP impact not be quite huge.Also, post-paid customers are those who do not want to change their phone numbers very frequently due to minor reasons. Therefore, if given a chance to walk out on an operator, while still keeping the previous mobile number, post-paid customers would be more than happy to port-in to a better service provider and hence contributing to a major part of the churn caused by MNP.

In India, pre-paid customers outnumber the post-paid customers. Also, a major chunk of the pre-paid customers have multiple SIM cards of different operators. Brand loyalty,thus, is not the reason why customers stay with a particular operator. It is the optimum Quality of Service that a customer desires from a CSP.

Industry sources say, on an average around 200,000 porting requests were received from across the country. "As of now porting request numbers are insignificant in the overall scheme of things," said an industry source. India has around 860 million wireless subscribers, according to the latest numbers by Telecom Regulatory Authority of India (TRAI).This data signifies that MNP has not been able to cause a major churn for the operators.

The rules of MNP say a network cannot refuse a customer coming into the network, and hence cannot control the quality of subscribers that could enter their networks. Experts say the direction of migration could be towards incumbents. Operational costs will go up as a large number of subscribers add into the network. Analysts say this would put pressure on the network causing congestion, and reducing service quality to the high ARPU customers, who are present in larger numbers in incumbent operators' networks.

An IBN survey finding provides that Airtel was the most preferred operator with 26% respondents voting in its favor, followed closely by Vodafone (21%) and Idea (13%). Idea came at a distant 3rd position despite having launched a big advertising campaign – “No Idea? Get Idea”

An important aspect that has been ignored in enforcement of MNP is that consumers are no more able to distinguish between different networks when placing a call. Due to this, the tariff transparency has been lost. That is , if there are different rates applicable for calling to a different network , a subscriber might end up being unaware of the charges that he is paying for a particular call.

One more fact which deters users to go for MNP is the inconvenience caused during the whole process , when the subscriber has to apply for porting out of an operator and moving on to a new one. Also, quite a few documents need to be submitted along with a few more formalities and a fee of Rs. 19. A normal pre-paid customer would find it easier to buy a new SIM instead of porting his existing number to a different operator.

Even after being aware of the fact that MNP is not going to cause a major churn for the telcos, Mobile phone companies are under constant pressure to improve their services so that their subscribers not only stay with them but they are also able to attract subscribers from other networks. Better services mean the companies are setting up more mobile phone towers, upgrading their equipment and providing instant rectification of problems so that the subscribers are always able to get connected, surf the Internet and make full use of their mobile telephones.

Written by :    Ankita Agarwal

                        MBA TM (I)

                            SITM

Is India Ready for 4G?

In the highly competitive Indian telecom market the survival of service providers depends on their ability to come up with innovative and good quality services at regular time intervals. Today the customer wants more customized services at a faster rate, with low latency and at a much cheaper rate. Telecom companies are continuously upgrading themselves with the latest technologies in order to match the ever changing expectations of the consumers. From 1G to 2G, 2G to 2.5G, 2.5G to 2.75 and now from 2.75 G to 3G several changes have been made in the network architecture and air interface technologies.

But in a nutshell the biggest question is whether the telecom companies are getting sufficient rewards for their actions. On the recently held 3G auction telcos spent almost 67,000 Cr to acquire 3G licenses which act as chokers to their balance sheet. It is expected that it will take at least 4-5 years to start making profits out of 3G. Even after almost one year of allocation of 3G spectrum the subscriber base count has just reached 11 million and the overall situation is looking very scary from the service provider’s point of view.

Allocating the BWA spectrum along with the 3G spectrum has lead to another debate in the market i.e. whether 4G will also be deployed soon and, if it happens then how will the operator recover their money out of the 3G, since consumers would prefer to switch directly to 4G from 2G. BWA spectrum has already cost around $5.5 billion to the telecom players and it is expected that telecom operators will need to invest $1 billion further in order to deploy the 4G infrastructure. So how will the operators survive in the future?

Some Analysts believe that 3G and 4G can go hand in hand as 3G is primarily for the voice services whereas 4G will be used for data services. Once 4G will be deployed then it may help the service providers to increase their declining ARPU’s with the help of data services.

There are many other factors too that are driving the operators for adoption of 4G technology such as-

         1.    Need for Converged Networks and Converged Services

         2.  Software Independency

         3.  Low latency Services

         4.  More Customized applications & Application Ecosystem

         5.  Interoperability of Network elements

Analysts believe that these factors will lead to Capex reduction (infrastructure sharing , leasing etc) and will optimize network operation cost with better utilization of spectrum and increased monetization of end to end service and with the help of these two factors operators will get healthy return on their investment.

So Even if operators show readiness in adoption of 4G services, question lies whether the entire Telecom Ecosystem is ready for that?

Early adoption of 4G will lead to several risk factors that may hamper the success of 4G in Indian context. Some key factors are:

1. Availability of Infrastructure – Most of the operators are still doubtful whether they should go for Wimax or LTE. If operators go for LTE, as is expected, then there could be a possibility of demand supply mismatch since the Equipment Manufacturers are not yet ready with the desired infrastructure requirements.
2. Availability of 4G Devices/Handset – It took almost one year for the market to mature in terms of 3G handsets. It is highly expected that the same will happen in case of 4G. Thus in semi urban and rural areas high price of 4G devices in the initial stages could hinge the success of 4G technology.
3. Content Availability – Success of 4G will depend upon the data services and availability of high quality content. Therefore it is highly required for the content providers, content aggregator and technology enabler to start work in advance to leverage the full opportunities that will open up due to 4G. As the present content is not sufficient to fulfill the demands of bandwidth hungry 4G applications.

Thus it can be said that the success of 4G is not just dependent on service providers but also on the entire ecosystem that includes customers, infrastructure manufacturers, device manufacturers, content providers etc and until all of them are not ready there is no point in offering 4G services. The Success of 4G will depend upon how ecosystem challenges and faces the problem in front of them. An effective strategy backed with sufficient planning and proper implementation would lead to effective deployment of 4G technology.

Written by : PIYUSH GUPTA

                     MBA - TM (II)

                               SITM

Latest Telecom News (22nd September - 30th September)

1.    2G: Finance Ministry note casts a shadow.

A document brought out by Department of Economic Affairs (DEA), dated 25^th March, 2011 and submitted to the Supreme Court recently, states that the MoF had implicitly agreed to impose the same entry fees as that which prevailed in 2001 for 2G spectrum licences allotted up to December 31, 2008.

When the 2G licences were allocated, the Finance Minister was Mr. Chidambaram.

The above document was submitted by Janata Party President, Dr. Subramanian Swamy.

MoF raised the issue of updating the entry fee albeit only for the licences allotted after January 1, 2009.

2.    Reliance-Siemens to offer homeland security.

Pan India BWA spectrum winner Reliance Infotel plans to offer fourth generation wireless networking services for safety, security and other advanced applications.

Reliance Security Solutions Limited, a subsidiary of Reliance Industries Ltd. (RIL) and Siemens Ltd have signed a Memorandum of Understanding to jointly develop Homeland Security Solutions for Safe, Secure and Smart Cities and Highways in India.

Reliance and Siemens will combine to leverage the launch Long Term Evolution (LTE) based 4G network (BWA) for the low latency and assured Quality of Service (QoS) required for video and security applications.

According to our sources, Reliance – Infotel plans to launch BWA Data service in approx 700 cities in the first phase of its BWA launch with data speeds from 50 Mbps to 100 Mbps.

Presently RIL is finalizing vendors who would supply broadband equipment based on the so- long term evolution (LTE) technology so as to roll out wireless broadband services by the end of 2011.

3.    Video calling ISD Booths in Kerala.

Idea cellular today inaugurated Kerala’s first Video Calling ISD booth in Malapuram Kerala.

4.    Nokia Siemens launches Liquid Net.

Nokia Siemens Networks announced the launch of Liquid Net a new way to deliver broadband.

Liquid Net will now allow operator to set up its network to self-adapt to meet capacity and coverage requirements based on demand.

Nokia Siemens Networks has created Liquid Net2, to free-up unused capacity and allocate it instantly across the whole network wherever and whenever it is needed.

Liquid Net uses automated, self-adapting broadband optimization to deliver services.

In addition, Liquid Net channels traffic in the transport network along the path of least resistance and lowest cost between operator sites.

5.    BSNL launches mobile Apps Store.

Pan India 3G Mobile Service operator Bharat Sanchar Nigam Ltd (BSNL) officially announced the launch of mobile applications store – BSNL Apps Store.

Now, BSNL mobile (2G and 3G) customers in all telecom circles across India can transform their basic phone into a Smart Phone by accessing over 4500 Apps across 25 categories for their business, games, books, social networking and other needs.

Some applications are available for Free and would display only a “Download” option with Zero price point and Premium apps starting as low as just Rs. 8, BSNL Apps Store will offer local and regional Apps for customers across the country.

6.    Indian Telecom Industry Restructuring.

The telecom industry does not use the word ‘Job cuts’, instead it resorts to ‘organization restructure’ whenever its profits is under pressure.

During June 2011, India’s largest mobile company, Airtel announced its restructuring plan to reduce excesses and drive efficiencies. Even though the company expected ‘minimal impact’ on the jobs, according to the industry observers, the company will reduce nearly 2000 jobs out of its total 11500 employees by the year end.

Approximately 20 days later, Tata Teleservices merged its CDMA and GSM divisions.  It is estimated that this unification will result in the reduction of 15% of its employees.

In September 2011, RCom merged its three business divisions, a move that will make about 10% of its 7,000 executives redundant and result in redeployment of another 2,000 employees to ‘field functions’. The company merged its existing three business regions into a single entity reporting to a chief operating officer. Earlier these three regions were headed by Regional Heads.

Indian Telcos resort to restructuring to ‘drive efficiencies’ which is the need of the hour as the industry is facing dwindling profits, lowest rates in tariff and cut throat competition. 

The other reason for the restructuring is because of the transformation from mobility to data business. The businesses are transforming from being distribution driven to content driven.

7.    GSM subscriber additions continue to dip.

The slowdown in the telecom industry in India does not seem to abate with only 5.33 million users added in August (GSM).

GSM subscriber base thus stood at 611.75 million at the end of last month.

For the fourth month in a row, subscriber additions continued to decline. In May for the first time since October 2009, the subscriber additions were below the 10 million mark when 9.53 million GSM users were added.

8.    Mobile phone shipments into India fall 3%.

Mobile handset shipments to India declined by 3 per cent in the April-June period compared to the previous quarter due to inventory build-up and reworking on product line-up by vendors, says research firm IDC.

However, on a year-on-year basis, the shipments were higher by 6 per cent in the period under review.

Shipments cooled down a bit in the April-June quarter of 2011, partly due to an inventory build-up from the preceding quarters and partly because vendors apparently paused to take a re-look at their product portfolio strategies.

 India-based vendors have particularly been busy planning their debuts in the smart phone category.

9.    Brown labeled ATMs from Hughes Comm.

Hughes Communications India, a broadband satellite service provider, today said it will set up 5,000 brown label ATMs in the country.

In a ‘brown label' ATM, the hardware as well as lease is under the ownership of the service provider, while connectivity and cash handling and management is the responsibility of the sponsor bank.

There are twin benefits here. One is that the capex is associated with the service provider. Second is that since the vendor gets a fee for every transaction from the bank whose ATM card is being used, there is an incentive to ensure efficiency in terms of usage.

Out of a total base of 75,000 ATMs in India, 18,500 have been installed by Hughes.

^{10.  Deutsche Bank looks to TCS for IT solutions}

^{Deutsche Bank has asked TCS to provide IT solutions for its financial services firm's capital markets business unit. Deutsche Bank has taken the decision to align itself with ITIL (IT infrastructure Library) standards.}

^{Deutsche Bank has taken this decision so as to achieve an improved service delivery through the best practice framework provided by ITIL. The improved service delivery will also help in the bank become cost effective. TCS has the enviable task of delivering a global application service desk ITIL services besides deploying its software solutions in all the seven locations of the bank spread across the US, UK, Germany, Hungary, Philippines, Singapore and India.}

Latest Telecom News (13th September - 21th September)

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.

Latest Telecom News (6th September- 12th September)

1.    Come September 27^th only 100 SMSes per day.

It is time to rethink about the communication modes for high end SMSes users. From September 27^th 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.