Page 2 - Telecom Sector In India

Call rates in India among lowest in world: Telecom minister Scindia

India now has 117 crore mobile connections and 93 crore internet connections, Telecom Minister Jyotiraditya Scindia said in the Lok Sabha on Wednesday while noting that call rates in the country are one of the lowest in the world. Scindia said the cost of call for every minute was 53 paisa and it has come down to just 3 paisa now, which is a 93 per cent reduction, one of the lowest rates in the world. At present, India has 117 crore mobile connectivity and 93 crore internet connections, he said. He said the cost of one GB data is Rs 9.12, which is cheapest in the world. The minister said under the Digital India Initiative, various technology-led startups and innovation schemes like Technology Incubation and Development of Entrepreneurs (TIDE 2.0), Gen-Next Support for Innovative Startups (GENESIS), domain specific Centres of Excellence (CoEs) and Next Generation Incubation Scheme (NGIS) have been undertaken with a total funding outlay of around Rs 800 crore in tier-2 and tier-3 ...

HFCL Q1 result: Net profit up 46.4% at Rs 111 cr as internet demand rises

Domestic telecom equipment maker HFCL Ltd on Tuesday reported a 46.4 per cent year-on-year rise in consolidated net profit for the June quarter to Rs 111 crore. Its revenue rose 16.4 per cent to Rs 1,158 crore in the just-ended quarter, compared to a year ago. HFCL Managing Director Mahendra Nahata noted that amid geo-political challenges, India stands out with its political stability and resilient economy, positioning itself as a prime investment destination. "The technology and telecom sectors are going to play a vital role in achieving the country's vision of 'Viksit Bharat@2047'," he said. The growing demand for high-speed internet, the expansion of 5G networks, FTTH (Fibre To The Home) implementation, hyper-scaling of data centres, advancements in Artificial Intelligence and Machine Learning, the PLI (production-linked incentive) scheme and the thrust on indigenous development and procurement of defence equipment, present substantial opportunities for the company both in domes

Bharti Airtel bags multi-yr contract from CBDT to provide network solutions

The Central Board of Direct Taxes (CBDT) on Thursday signed a multi-year contract with telecom major Bharti Airtel, under which the latter will provide network and connectivity solutions for CBDT's Taxnet-2.0 programme. This contract is an extension as Airtel has been the network partner to CBDT since 2008 in Taxnet-1.0. "The formal Letter of Award was handed over to Bharti Airtel by the Central Board of Direct Taxes (CBDT) and the Letter of Acceptance has been given by Bharti Airtel to CBDT. The occasion was graced by Mr. Sunil Bharti Mittal, Founder and Chairman, Bharti Enterprises, and Mr Ravi Agarwal, Chairman, CBDT," Airtel said in a statement. Airtel will provide robust dual connectivity with Software Defined Network for WAN, and Secure LAN amongst other technology solutions for CBDT's Taxnet-2.0 programme, which aims to modernise the current system for collection, processing, monitoring and accounting of direct taxes, it said.

Telecom ministry to work on actionable plan on identified issues: Scindia

The telecom ministry will work on actionable plan with defined timelines on issues that have been discussed with telecom operators and other players in the sector, Union minister Jyotiraditya Scindia said on Tuesday. The minister held meetings with three of the six committees set by his ministry. The meeting with the committee on telecom operators was attended by telecom chiefs including Reliance Jio Chairman Akash Ambani, Bharti Airtel Founder and Chairman Sunil Bharti Mittal, and Vodafone Idea MD and CEO Akshaya Moondra. "We've identified a rather deep agenda for these committees. Now the members of these committees and us will be working together," Scindia said. Industry body Cellular Operators Association of India (COAI) Director General S P Kochhar was also part of the meeting. Scindia said there are varied schedule for the first presentation of these committees that will be over the next couple of weeks. "Then we will be taking on each individual issue, delving into the det

SAR Televenture looking to raise Rs 450 cr through rights issue and FPO

Telecommunication infrastructure provider SAR Televenture is looking to raise Rs 450 crore through rights issue and follow-on public offer (FPO). This comprises a rights issue of shares worth up to Rs 300 crore and a follow-on public offering (FPO) of up to Rs 150 crore, according to the draft papers. The company proposes to utilise the proceeds to the tune of Rs 273 crore to set up fibre-to-the-home (FTTH) network solutions, Rs 42.5 crore for setting up an additional 1,000 4G/5G telecom towers, Rs 30 crore for incremental working capital requirements and the balance amount for general corporate purposes in FY 2025. The rights issue consists of 1.50 crore equity shares of Rs 2 each at an issue price of Rs 200 per rights share. The issue opens on July 15 and will close on July 22. "Existing shareholders will get one rights share for one equity share held as on record date July 9, 2024," the company announced. Meanwhile, the price band of the FPO has been fixed at Rs 200-Rs 210 per

Survey finds 89% people facing call drops, 9 in 10 calling through OTT

Around 89 per cent of people surveyed have experienced call drops in the last three months and nine in 10 have used Wi-Fi networks to make calls through calling and messaging apps, online survey firm Localcircles said on Monday. The survey conducted between March and June claims to have received a total of 32,000 responses across different questions from 362 districts. The number of responses differed from question to question. "89 per cent of subscribers surveyed face call connection and drop issues, Out of this 89 per cent, 38 per cent of them face it with over 20 per cent of their calls," the survey said. In response to the question on call drop experience, 17 per cent indicated they face issues in more than half of their total phone calls while 21 per cent said that 20-50 per cent of their calls get dropped or disconnected. With most mobile subscribers facing call connection and drop issues, nine in 10 are using OTT (internet calls and messaging apps like WhatsApp) platforms to

Govt likely to pay bond interest dues of MTNL, assuring no default

The government will pay the bond dues of ailing Mahanagar Telephone Nigam Ltd (MTNL), a DoT source said assuring that there will be no default, and that the amount will be paid before the due date of July 20. The move assumes significance as it would avert a looming crisis for the telecom corporation which is being seen teetering on the brink with regard to its debt obligations that are becoming due. All eyes are on MTNL, ever since the debt-laden firm last week expressed its inability to make interest payments to certain bondholders due to paucity of funds. Telecom Department sources said that the government will step in and pay the said dues, and asserted that there won't be any default on the same. In this particular case, where the second semi-annual interest (7.59 per cent) on certain bonds is falling due on July 20, 2024, DoT sources said that "the dues will be paid before the date". Amid mounting financial woes, MTNL last week informed in a statutory filing that it is unable

Vodafone Idea reaches out to DoT for waiver of Rs 24,700 cr bank guarantee

Debt-ridden Vodafone Idea has reached out to the Department of Telecom to seek waiver on a financial bank guarantee worth Rs 24,747 crore for spectrum payment due in September 2025, according to sources. Vodafone Idea (VIL) needs to securitize the annual instalment one year before the due date of the payment. "Vodafone Idea has reached out to DoT seeking waiver for financial bank guarantee (FBG) worth Rs 24,747 crore which it has to pay in September 2025. The FBG needs to be deposited one year before the due date as per spectrum auction rules," a source, who did not wish to be identified, told PTI. An email query sent to Vodafone Idea elicited no response. The payments are for frequencies that VIL purchased in auctions that were conducted before 2022. VIL in 2022 opted for a four-year moratorium to pay for the spectrum allowed under a government relief package. The moratorium period for the spectrum payment obligations related to spectrum auctions conducted until 2016 ends between

'BSNL unable to compete with pvt telcos without 4G, 5G, check tariff hike'

State-run BSNL is unable to compete with private telecom operators in the absence of 4G and 5G services due to which there is no restraint on mobile service providers from raising tariff, BSNL Employees Union said on Tuesday. BSNL Employees Union in a letter to the union communications minister Jyotiraditya Scindia said that the recent tariff hike by the private telecom operators Reliance Jio and Bharti Airtel is unwarranted as they are profitable companies. "Earlier, due to the competition from BSNL, the private telecom service providers were restrained from increasing their tariffs capriciously. However, the scenario has changed now. BSNL has not been able to launch its 4G and 5G services till date, as a result of which it is handicapped from competing with the private operators and thereby restraining their arbitrary tariff hikes," the letter said. Recently, all three private operators announced an increase in mobile service rates in the range of 10-27 per cent. While new tariff

Nomura raises Bharti Airtel target price post tariff hike, sees 14% upside

In the post-paid segment, tariff adjustments range from 10-20 per cent, with popular plans seeing increases of 10-13 per cent

Bharti Airtel announces 10-21% hike in mobile tariffs from July 3

Bharti Airtel on Friday announced between 10-21 per cent hike in mobile tariffs, a day after larger rival Reliance Jio announced an increase in rates. Airtel, in a release, said that the revision in mobile tariffs will be effective from July 3. "We have ensured that there is a very modest price increase (less than 70 paise per day) on entry-level plans, in order to eliminate any burden on budget challenged consumers," the Sunil Mittal-led telecom firm said announcing the revision in mobile tariffs. Bharti Airtel said it has maintained that the mobile Average Revenue Per User (ARPU) needs to be upwards of Rs 300, to enable a financially healthy business model for telcos in India. "We believe that this level of ARPU will enable the substantial investments required in network technology and spectrum and offer a modest return on capital," the telco said. Among the unlimited voice plans, Airtel has raised tariffs in the ballpark range of about 11 per cent, and accordingly rates are rev

Tata Group retains top spot as India's most valuable brand at $28.6 billion

India's most valuable brands 2024: Tata Group nears $30 billion mark, Taj remains India's strongest brand, while HDFC's merger boosts brand to third position

Govt likely to take 6 months for notifying new rules for Telecom Act

The DoT is also working on notifying many of the provisions of the Act which haven't come into effect as of yet

New telecom law to come into effect from June 26: What are the changes?

The Telecommunications Act of 2023 was approved by both Houses during the Winter Session in December last year and received presidential assent in the same month

Telecom Act 2023 based on inclusion, growth, security for developed India

The Telecommunications Act 2023, which will be implemented partially from June 26, is based on principles of inclusion, security, growth and responsiveness to achieve the vision of developed India, an official statement said on Saturday. The Telecommunications Act, 2023, was passed by Parliament in December 2023. It received the President's assent on December 24, 2023 and was notified the same day. "Guided by the principles of Samavesh (Inclusion), Suraksha (Security), Vriddhi (Growth), and Tvarit (Responsiveness), the Act aims to achieve the vision of Viksit Bharat (Developed India)," the statement said. The rules that will be effective from June 26, will allow the government to take over the control and management of any or all of any telecommunication services or network, in the interest of national security, friendly relations with foreign states, or in the event of war. With these new rules in place, the universal service obligation fund will become Digital Bharat Nidhi, which

Govt conducts successful trial of 5G connectivity by balloons; drones next

Project aims to ease communication during disasters

Telecom cos reiterate demands over fair share charge, 6 GHz spectrum

COAI said OTTs not paying any charge for data, cost the government Rs 10,000 crore in taxes

Expect govt to allocate 6 GHz band spectrum for 5G network expansion: COAI

Telecom industry body COAI on Wednesday said it expects the government to allocate the 6 GHz band spectrum for 5G network expansion and roll out a fair share data network usage policy to make big apps pay for the excessive traffic generated by them. COAI, whose members include Reliance Jio, Bharti Airtel, Vodafone Idea and others, released its priority wishlist for the newly formed government at the Centre on Wednesday. The body wants the government to increase the number of test labs for accelerating the process of clearing network gear to enable expeditious rollout of telecom networks. Quoting a report from the global telecom industry body GSMA, the Cellular Operators Association of India said India can save as much as USD 10 billion annually in 5G network deployment through the use of the 6 GHz spectrum. "India has made a giant leap in 6G innovations through initiatives, such as Bharat 6G Alliance and Bharat 6G Vision which envisage India to be a leader in 6G innovations and ...

Trai explores penal option for hoarding unutilised fixed line numbers

Telecom regulator Trai is exploring an option to penalise telecom operators for hoarding utilised fixed line phone numbers as it seeks to address the crunch of numbering resources inhibiting growth of new connections, according to a consultation paper issued on Thursday. In the consultation paper on "revision of national numbering plan", the Telecom Regulatory Authority of India (Trai) is exploring options to change the fixed line numbers in line with the method used for mobile numbers so as to address the shortage of numbering resources in the segment. The consultation paper follows request from the Department of Telecom to the Trai d to address present and possible future constraints related to availability of adequate fixed line numbering resources arising out of rapid growth. "Should a financial disincentive be imposed upon TSPs for retaining X per cent or more of the allocated TIs remaining as unutilized beyond a certain timeframe? If yes, please specify the X per cent with ...

Bharti Airtel appoints Sharat Sinha as Airtel Business CEO, effective Jun 3

Telecom operator Bharti Airtel has appointed Sharat Sinha as the CEO of Airtel Business with effect from June 3, 2024. In this role, Sinha will report to Gopal Vittal and will be a part of the Airtel Management Board, according to a release. Sinha joins Airtel Business from Checkpoint Software Technologies, where he served as President of Asia Pacific. A seasoned technology professional, he has also worked with Palo Alto Networks, Cisco, and VMWare in various leadership roles. His early experiences in Ericsson and VSNL have also given him a sound telecom background, the release added. Gopal Vittal, CEO and MD of Bharti Airtel exuded confidence that Sinha's broad global experience in product management and business leadership across many global technology companies will provide tremendous firepower to Airtel's ambitions in rapidly growing the company's portfolio across connectivity and adjacencies. In June last year, Airtel announced the exit of the Chief Executive Officer of Bhart