GSM spectrum priotity list – Ridiculous Government
According to DoT, Videocon’s Datacom is at the front of spectrum priority list. Yes, Idea Cellular, Swan by RCom are all trailing Datacom. [Yes this is how Indian Government works] 
In the chart above it is very clear that Datacom leads in 19 circles and Unitech in 12 circles at the second slot. Both of these companies are starting to go bust very soon 
How Ridiculous the Indian Government and its functioning is ?
DoT decided the spectrum priority queue based on first-come, first-serve basis. This was based on the timing of fee submissions, after the receipt of LoI. The queue was decided based on just a few minutes’ gap between the fee submissions by various players after fist to fist fight outside the DoT head-office in Delhi.
We believe that Idea Cellular and other existing GSM operators are likely to challenge every decision by DoT in TDSAT , High Court of Delhi and appeal in the Supreme Court. Not a bad idea when such ridiculous bureaucrats and ministers occupy the highest decision making chairs.
Update – Feb-29: TDSAT and the High Court of Delhi have ordered – The date of application should be the basis of spectrum.
Telcos oppose TRAI’s National Integrated Directory
TRAI had released a consultation paper seeking recommendation on setting up an all operator National Integrated Directory Enquiry Service. Leading Telcos have opposed the move citing it having disastrous environmental affects. Bharti Airtel said,
Printing a telephone directory consumes enormous resources especially paper, which is extremely critical from environment’s perspective and thus, it would be imperative that for taking any decision to this effect.
Instead, Telcos have recommended a call center or an online solution or a CD/DVD media. I had personally written to TRAI Advisor, Mr. Chaube requesting to start the list with zero entries and add only those who wish to be enrolled. BSNL has expressed similar opinion.
A toll free SMS based query could be another way to get Directory Information for the consumer. Another problem with directory is the huge churn in mobile subscriber base every quarter.
You still have time to protect your privacy and share your thoughts with TRAI – chaubemc AT trai.gov.in
Bharti Airtel’s Online Bill Pay Sucks
Bharti Airtel no doubt has good wireless service and better customer care, however, they have miserably failed to realize and embrace the power of Web. Their online bill pay is down for the past two days, at least whenever I have tried [customer care claims working intermittently]. Finally, after the complaint someone tried to fix it but have a look at this screen shot. After authentication this new window pops-up and the developer has pointed it to a private IP which will fail with page not found error. I have now lodged a third complaint to fix it.
Why the F*ck am I wearing a FREE tester’s cap for Airtel ? To avoid bad roads and traffic so that I can pay the bill online 
Sunil Mittal echoes our views on new wireless operators in India
Mr. Sunil Mittal, Chairman of Bharti Airtel, speaking at the mobile world congress in Barcelona, echoed our words about the business viability of new GSM players in India. Mr. Mittal said,
All new players will collapse within 36 months. These firms will take at least 12 months to build their network and 24 months after that they will struggle to survive in the market. I feel it does not make a viable position. Who buys them or not, after 36 months is not clear…our position is that please don’t give spectrum to anybody at the cost of our (existing players) growth path.
At the same conference, Mr. Arun Sarin earlier said that he is willing to BUY wireless spectrum at additional cost. Just to clarify, new entrants will not include Reliance GSM nor Tata GSM [if at all Tata comes out of the flip-flop state]. Mr. Mittal was also conferred upon the GSMA Chairman’s Award 2008. Mr. Mittal had another feather in his cap today as Bharti Airtel reached the 60 million customers milestone. Congratulations to Mr. Mittal!
Tags: Mobile India, Telecom,Wireless India, Mobile World Congress
Disclosure: Through various means we hold and have interest in Reliance Communications stock.
Wireless operators laugh at slowdown
If there is one sector in India that is unlikely to witness slowdown in the next few quarters, it should be Mobile services. As usual GSM subscribers have released their numbers and Bharti Airtel continued to top the charts with 57.41 mn subscribers. Bharti Airtel added 2.25 mn subscribers in Jan, a 4.1% growth MoM.
Vodafone India added 1.28 mn subscribers in Jan [1.3 mn in Dec-07], a 5th consecutive decline in net additions despite strong promotions. The company now has 41.14 mn subscribers and is the second largest GSM operator in India.
BSNL managed to arrest its declining trend and added 1.03 mn subscribers in Jan taking the total number of subscribers to 33.74 mn. Idea Cellular added an impressive 0.9 mn customers taking its tally to 21.95 mn.
Telecom is no IT/BPO or Retail Business – Look before you leap
This article should have been posted long time ago, sorry for the procrastination. India already has close to 250 million wireless subscribers. At a growth rate of mere 26% YoY by 2010 we will have 500 million subscribers. I really fail to understand the entry of new Telecom operators – Unitech Ltd, Videocon backed Datacom Ltd, Essar group backed ShippingStop Dot Com Ltd and Shyam-JSFC Sistema. What do these operators think of Wireless Business ? Is it like Setting up an NBFC or IT/BPO company and make announcements to drive the stock prices higher ? Coincidently Videocon and Essar belong to this category. Unitech Ltd is the new kid on the block which has made couple of billions by luck is all set to burn it in few months
Existing Wireless Service providers with PAN India presence:
- Aircel [Will launch operations in remaining circles]
- Bharti Airtel Ltd
- BSNL
- Idea Cellular [Will launch operations in remaining circles]
- Reliance Communications [GSM - launch in 12 months + CDMA]
- Tata Indicom [GSM - likely to launch + CDMA]
- Vodafone India
So we already have at least 6 service providers in each circle which will go to 9 for sure. Now I really don’t understand what kind of infrastructure these new companies will build and compete with these 9 players.
Wireless is no more 2.0/2.5G voice service in few chosen circles. Reliance is already offering FREE calls between Reliance to Reliance phones anywhere in India between 23:00 to 06:00 hours [Remember those days of concessional STD rates at night?] I can scare you guys by telling you that the cost involved in deploying a PAN India wireless network with spectrum is anywhere between $12-$15 bn by cost replacement method. However, even if the new incumbents were ready to fully leverage on sharing passive infrastructure they have to invest tremendous capital in running the operations.
By the time these new incumbents are ready to deploy services, Voice rates would have hit between Rs 0.25 – Rs 0.50. On Dec-27th-2005, I had anticipated a Fruit seller will offer FREE Talk Time deal. I am sure this Dec-28th, on the birth anniversary of Dhirubhai Ambani, RCom which is on a GSM Jihad will help the fruit seller’s dream come true Does Essar, Videocon and Unitech have such deep pockets to bleed and continue ? Forget it!!!
For instance, a brave new soul may end up surviving the battle and make me eat my post [I will print and eat this article and post a video if any new incumbent will make it to the Top-5 by 2010] The 3G spectrum auction will dig holes worth Billions of Dollars [Only if Telcos have or someone is willing to lend ] Former, VSNL Chairman Amitabh Kumar in a comment on 3G on this blog, is positive about the auction later this year.
Establishing service is full of hurdles unless you are there for charity. Being an integrated telecom player offering entire bouquet of services is a must to sustain and grow. Adding to new incumbent woes is, TRAI and DoT recommendations don’t allow operators to sell out for few years and hence I believe 9 operators / circle is a sufficient number to encourage and preserve competition or allow lenient mergers and acquisitions for consolidation. Time is ripe for letting MVNOs and disruptive technology players such as VaVasi Telegance or someone on Mobile Wimax
Tags:Telecom, Wireless, 3G India, Mobile India
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