3G Auction – Videocon + S Tel Not Serious Contenders
The DoT has released the list of qualified bidders along with the eligible points. As per section 4.2.4 of the section inviting applications for 3G and BWA Spectrum Auction Document, every bidder had to submit Earnest Money Deposit [EMD] in the telecom circles they are interested in for 3G / BWA spectrum. The Initial Eligibility points corresponding to the EMD will permit the Applicant to participate in the auction in those specified circles only. According to the list, the Maximum EMD to participate in all Circles for 3G Spectrum is INR 505 Cr and Read more
Awareness + Demand for 3G Services in India
3G is the buzzword for folks reading this blog. But bear in Mind that there are over 558 mn 2G Wireless SIMs out in India and not everybody is aware of what 3G is nor the demand for it. Here is a finding of a survey by RBS,
- 48% of respondents are aware of 3G services, of which 65% are postpaid.
- None willing to pay extra for better voice quality on 3G above the existing rates
- Half of the respondents not interested in Video Calling and those who are interested are unwilling to pay more than Rs 2 / minute. 33% have monthly usage below Rs500, 22% between Rs500 and 1,000 and 33% between Rs1,000 and Read more
3G + Broadband Wireless Spectrum Auction – List of applicants
The list of Applicants for 3G Spectrum Auction is out and as expected foreign Telcos have stayed out. No surprises in the list of contenders for 3G Wireless spectrum and the list is as follows,
- Bharti Airtel
- Aircel
- Etisalat DB [ Rumored to have bid understanding with Reliance]
- Idea Cellular
3G Spectrum Auction – Circle Wise Bidding Expectations
The traditional press is silent about 3G spectrum auction, however, my channel checks indicate of a Telecom cabal. Early reports with Insiders have varying expectations for incumbents, mainly Reliance Communications and Idea Cellular. One section believes that Reliance Communications will throw its bid for all the circles while the other demonstrated a business case for RCom to bid aggressively in only 9 circles and stick to it and wait for more clarity on 3G spectrum for CDMA operators. I first wrote about Idea Cellular and Aircel bidding in coherence and is confirmed again by a top Foreign Financial Institution. This is how the scene so far looks like with no Foreign Operator likely to join the race.
- Bharti Airtel – Likely to bid for all the 22 circles independently
Vodafone India / Essar – ARPU Drops 10% – Facing the Heat
In line with other GSM operators, Vodafone India reported its numbers for the quarter ending Sept-2009. ARPU has dropped to INR 222, a 10% decline compared to previous quarter [INR 247]. ARPM drop was rather sharp at 7% [from INR 0.75 to 0.70] on a QoQ basis compared to Airtel and Idea which have seen it fall by 3.6%. Vodafone has the best ARPM compared to other operators in India. MoU also down to 319 from 330.
Absolute EBITDA too fell 2% due to sharp tariff cuts and new launches. It witnessed higher churn this quarter at 2.8%. Vodafone’s capex is also in-line with peers. 1H capex stood at Rs41bn (Rs56 in 2H09), higher than Bharti Airtel though. Read more
Google WiMax / BWA Spectrum bid in India + Strategy for NextGen services
Business Standard set fire the speculation that Google may bid for Wireless Broadband Access / WiMax Spectrum in India. The reason why Google is considering this bid is that it does not want to be an ISP for sure. Google is more concerned about delivering Data Services / Apps on Mobile / PC and other emerging convergence devices.
Going forward, VoIP Long Distance Calling would have been one of the most sought after app, however with 50 paise / minute this may not make much sense as I’ll definitely opt for a dedicated connection. But Google looks at it differently, they’ll offer bouquet of services using VoIP -[Google Voice] Read more
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