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IDEA Cellular Launches 3G Mobile Service In Haryana

Posted: 31 Mar 2011 06:56 AM PDT


India’s 3rd largest GSM Mobile Service operator IDEA Cellular today launched its 3G Mobile and Data services in Haryana Telecom Circle.

With this launch of 3G services, IDEA subscribers in Ambala, Hisar, Rewari, Rohtak, Panipat, Bhiwani, Jhajjar and Hansi of Haryana circle now can enjoy rich multimedia application such as Video conferencing, Idea mall application store, Mobile TV,Video on demand and High speed Mobile Broadband with ease.

The operator said that, Idea’s 3G services will be available in 24 towns by April 2011, and over 230 towns by the end of 2012.

To activate the 3G service, IDEA Mobile subscribers need to send SMS ACT3G to 12345 (toll free) or by dialing *147# (toll free) after sending the SMS the confirmation SMS will come and 2G Data Plan will be de-activated after the confirmation by subscriber 3G Data Plan "Pay As You Go" will be activated.he 3G local, STD and Roaming Video Call cost will be 5 paisa/sec (Rs.3/minute).

Note : Postpaid and Prepaid Recharge Vale/Rent may differ (+/- Rs.5) in some circles.

MTNL Launches Fun Day Offer – FREE 2 Mbps Broadband on Every Sunday

Posted: 31 Mar 2011 06:08 AM PDT


Mumbai's number one Broadband and telecom service provider Mahanagar Telephone Nigam Ltd (MTNL) today announced "Free 2 Mbps Broadband Bonanza" dubbed as Sunday is Fun Day! and Double Upload Speed for its Broadband subscribers.

Free 2 Mbps Speed on Sunday !

With the “Sunday is Fun Day! Offer, MTNL will provide Free 2 Mbps Downloading Speed to all Unlimited Broadband (Triband) Plan subscribers in Mumbai telecom circle. The “Sunday is Fun Day offer” will be valid or available for all Sunday in the Month of April i.e. 3rd April, 10th April, 17th April and 24th April 2011.

Double Upload Speed (512 Kbps) for all Subscribers:

Keeping plan charges same, MTNL also increased Upload Speed for its broadband subscribers in any tariff plan (Limited and Unlimited). Earlier broadband upload speed was 256 Kbps which is now doubled to 512 Kbps. This will enable faster upload and High Speed data sharing on Internet. So Now Double Upload Speed at Same Price for all. The Free double upload speed will be valid up to 3 months form 1 April 2011.

MTNL is only Broadband service provider in Mumbai circle which offers Truly Unlimited Broadband Plans without any Fair Usage Policy (FUP) starting from Rs.395.

Tata Docomo SmartPicks – Samsung Smartphones

Posted: 31 Mar 2011 04:14 AM PDT


Tata Docomo SmartPicks Samsung SmartphonesWhenever the Word "Delight" come's to our mind, what is the Brand that hits your mind. There is only one brand we always think of Yes, Its correct Its Tata Docomo , Reason, as its always know for the delighting the customers whether its VAS or New STV or Any new services.

To Keep the Word alive in the market, TATA DOCOMO in association with market leaders in mobile phone Samsung launched the Second TATA DOCOMO Smart Picks Offers for its customers with some cool offers.

Under Tata Docomo SmartPicks – Samsung smartphones, customer can choose from a range of Five popular Samsung 3G smartphones along with very attractive offers on both new Post Pay and Prepay , available Exclusively on TATA DOCOMO.

· Samsung Galaxy ACE: Runs on Android 2.2; More than 150000 applications available for download from Android Market.

· Samsung 551: Runs on Android 2.2; Touch + Qwerty keypad; Enjoy constant communication with your loved ones ; Android Market.

· Samsung Monte: Samsung's largest selling 3G phone with Dual Camera for Video Calling.

· Samsung Wave 723: Runs on Bada OS. Bada is a fully integrated platform designed specifically to support cutting-edge applications and services. This gives unmatched support for social networking, device synchronization, content management and location-based services.

· Samsung Star Duos: Samsung's Dual SIM GSM + 3G phone

TATA DOCOMO Smart Picks – Samsung Offer
Benefits 3G Circles 2G Circles
1 3 GB data with 90 days validity (1GB data per month for 3 months) 3 GB data with 90 days validity (2G data)( 1GB data per month for 3 months)
2

30mins video calling valid for 90 days*(10 video mins free per month for 3 months)

300 Local On-net mins for 3 months(100 TATA to TATA local mins per month for 3 months)
3 3 Hours of Mobile TV including data access charges valid for 90 days

b. Postpaid:

TATA DOCOMO SmartPicks – Samsung Offer
Benefits 3G Circles 2G Circles
1 1GB data per month for 3 months  (3G data) 1GB data per month for 3 months  (2G data)
2

10mins video calling per month for 3 months*

100 -net min per month for 3 months
3

3 Hours of Mobile TV including data access charges valid for 90 days(Data access charges(DAC) not applicable for 3 hours of mobile TV)

Video Calling has Handset dependency and may not work if your handset does not support it. Samsung Galaxy Ace and Samsung Galaxy 551 do not support video calling.

3G services – handset compatibility matrix:

Samsung Models supporting 3G Smart Picks Offer
Brand Model Video Calling Mobile TV 3GB Data
Samsung Monte Yes Yes Yes
Samsung Star Duos Yes Yes Yes
Samsung Galaxy Ace No Yes Yes
Samsung Galaxy551 No Yes Yes
Samsung wave 723 * Yes Yes Yes

*Video Calling feature is available. Customer needs to use the Rear Camera for the same.

Tata Photon Plus Awarded As the Mobile Broadband Product of the Year 2011

Posted: 31 Mar 2011 03:16 AM PDT


Tata Teleservices Limited (TTL) has added yet another feather to its cap as Tata Photon Plus, high speed mobile broadband services has been awarded the coveted 'Product of the Year 2011' award for the best innovation under Wireless Mobile Broadband Category, post a rigorous survey conducted by A C Neilsen.

Renowned Ad Guru Alaque Padamse presented the prestigious award to Mr Shashank Pore, Head, Brand Communications & VAS, Tata Teleservices Limited at the award function held in Mumbai.

On receiving the award, Mr Shashank Pore, Head Marketing Communication & VAS, Tata Teleservices Limited said "It is indeed an honor to receive this award and be recognized as the best amongst our peers in the industry. This survey which was conducted across 30 cities and 30,000 target audience has further helped us in evaluating how successful we have been in consistently evolving the product parallel to the changing demands of the customers

Airtel 3G Service Now In Bihar

Posted: 31 Mar 2011 02:56 AM PDT


Bharti airtel today launched its most awaited 3G Mobile and Data services in Patna (Bihar and Jharkhand circle)

After Karnataka, Chennai and Coimbatore (Tamilnadu) Jaipur (Rajasthan), Delhi and Mumbai; Bihar – Jharkhand is the 6th telecom circle to get Airtel 3G services.

To activate the 3G service on Airtel subscribers need to send a SMS 3G to 121. After sending the SMS the confirmation SMS will come and 2G Data Plan will be de-activated.

After the confirmation by subscriber 3G Data Plan "Pay As You Go" will be activated and all data access will be charged at 30p / 20kb.

airtel also announced the national launch of a suite of video Interactive Voice Response (IVR) products, which will help even non-internet users to use video streaming to enjoy the power of 3G services on their mobile phones. With this, airtel 3G customers can now also make calls to video IVR to access various video products like live darshan, video talkies and video portal.

Mr. Raghunath Mandava, Operations Director – East, Mobile Services, Bharti airtel said, "Having won the trust of over 1.5 crore customers, airtel is the leading mobile services provider across Bihar and Jharkhand. Today, we are delighted to announce the availability of airtel 3G services in Patna. With this, our mobile customers in the state will experience the exciting internet world through their mobile devices – anywhere, anytime. We believe airtel 3G will lead the revolution of internet in Bihar, bringing our customers closer to an all new world of possibilities."

Vodafone and RIM Organizing Free BlackBerry Service Camp in Mumbai

Posted: 31 Mar 2011 12:03 AM PDT


After Bangalore, BlackBerry Smartphone maker, Research In Motion and Vodafone Essar, one of India’s leading telecom operators, is now organizing a unique "BlackBerry India FREE Service Camp" cum on-ground customer engagement initiative in Mumbai.

In the BlackBerry Service Camp an BlackBerry subscriber/users from Vodafone as well as any other network will get Exclusive device upgrade offers,Free servicing & device trackball replacement, Complimentary paid apps, Free goodies, Daily BlackBerry giveaways & lots more.

To avail the offer you can visit any of the Vodafone Stores in Mumbai (listed below) and participate or get free service of your BlackBerry smartphone. The service camp is open for all BlackBerry devices users, irrespective of the Network or Mobile Service Provider you're on!

List of Vodafone Stores for BlackBerry India Free Service Camp – Mumbai (Till  16th April, 2011)

Voafone Store Address Working hours Holiday
Shop No 7, Sahar Plaza Complex,Bonanza Bldg Andheri Kurla Road, Next To Kohinoor Hotel, Andheri East, Mumbai 400059 10 AM to 7 PM Sunday closed
Shop No 3/4.Raj Grith Apt.Opp Kamdenu Shoping Center, Four Bunglow,Andheri West, Mumbai- 400058 10 AM to 7 PM Open All Days
Shop No 9, Guruvidya Hs, A-624, Opp Bandra Police St. Hill Road, Bandra, Mumbai 400050 10 AM to 7 PM Open All Days
Raichuria House, Shop No 1/2, Opp Dwarka Hotel Next To Om Jewellers, Borivali West, Mumbai-400092 10am – 8.30 pm Open All Days
Bhoj Mahal, Building No C, Plot No 18 V N Purav Marg, Chembur, Mumbai 400071 10 AM to 7 PM Open All Days
Shop No 3, Asiatic, Indian Merchant Chambers, 76 Veer Nariman Road, Churgate, Mum.20 10 AM to 7 PM Sunday closed
23/B, Sir P M Road, Next To Hero Music House, Opp Citibank, D N Road, Fort, Mum.01 10 AM to 7 PM Sunday closed
Shop No 1, Rajshree Complex, Opp Shreeyas Cinema Lbs Marg, Ghatkopar West, Mumbai 400086 10 AM to 7 PM Open All Days
10/11 Ashok Bldg: S. V. Road. Below Singh Hospital. Goregaon (West) Mumbai 400062 10 AM to 7 PM Open All Days
Peninsula Corp Park, Ganpat Rao Kadam Marg Lower Parel, Mumbai 400013 10 AM to 7 PM Sunday closed
Aangar Bldg..Thakur Village Next To Thakur Cinema Kandivali ( E ) Mumbai 4000101 10 AM to 7 PM Thursday closed
Raghuleela Mall, Off S. V. Road, Next To Poisar Bus Depot, Kandivali W Mumbai 400067 10 AM to 7 PM Open All Days
Ground floor, Lakha building, BJ Patel road, Near S.N.D.T college, Malad West, Mumbai-400064 10 AM to 7 PM Sunday closed
Shop No 15, Hallmark, Near Niraml Life Style Lbs Marg, Mulund West, Mumbai 400082 10 AM to 7 PM Open All Days
Shop no 1, Hyde Park , Opp Ansa Industiral estate, Sakivihar Road, Andher East, Mumbai 10 AM to 7 PM Sunday closed
Mamta Apt, (A-Wing) Grd Floor Opp Maratha Udyog Bhavan Prabhadevi Rd Worli, Mumbai 400025 10 AM to 7 PM Open All Days
Shivkrupa Chs, Nr Malhar Theatre Naupada, Thane W, Thane 400602 10:00 am to 08:30 pm Open All Days
Orchid Pride G/101, Corner Of Convent Avenue Next To St Theresa Convent, Santacruz West, Mumbai 10 am to 8:30 pm Open All Days
Ground Flt, Sashwat Bulding, Subhash & Jain Mandir Rd. Near Shaan Talkies, Vile Parle (East) Mumbai 400057 10 AM to 7 PM Sunday closed
Shop No 9, Bsel Tech Park Opp Vashi Railway Station, Vashi, Navi Mumbai 400705 10 AM to 7 PM Open All Days

Economics of Telecom Business in India

Posted: 30 Mar 2011 11:48 PM PDT


Economics of Telecom Business in IndiaNext 24-36 months will be most difficult for Indian Telecom companies but best for subscribers. Most of the Fund managers are now stating to take a cautious call or a ‘Warning’ messages to investors.

Normally when any business which is great for consumers is best for the Company, but Indian Telecom Operators are different here.

What happened suddenly which changed the Market dynamics & impacted Balance Sheets and P&L of the companies?

Most telecom companies will now be adding significant amount of debts to their Balance sheets. Debt to Equity ratio for leading Telco is increasing. Bharti only had 75 paisa as debt which will now be almost Rs.3 for a Rupee of Equity. Obviously this skewed ratio is also because of purchase of Zain's Africa assets few months ago, but not only because of this.

In case of Idea its debt to equity ratio will go from 0.67 to 0.96 in just year’s time. Reliance Communications Balance sheet is already highly stressed and has not improved after paying the 3G spectrum amount. Same applies to all 3G spectrum winners.

Interesting part is all the leverages coming to Telco's are at a time when there revenues are steadily declining Quarter on Quarter (QoQ). Indian Telecom Operators says they are in Business of “Manufacturing Minutes” and it will increase as more and more operators launch their services that have been granted license to provide Unified Access Service (UAS) to consumers.

‘Minute’ Statistics:

Quick recap – In year 2008 Indian Telecom Industry Manufactured 250 Billion minutes. Currently it is manufacturing 600 Billion.In year 2008 it sold each minute for 60 Paise today it sells it for about 35 paise.The running cost of Manufacturing this minutes without taking sunk cost into account is stuck at around 25 paise per minute.Above stated is the case of Airtel, which has the lowest cost, because of its completely outsourced Business model. For rest it is even higher.

In coming months there will be much 'free cash' flowing out of the balance sheet to battle in the market for all the operators and here Bharti is also no exception.

What is changing Business Dynamics:

All 4 parameters which define the Industry have turned adverse now:

1. Customers

2. Competitiveness

3. Regulations

4. Raw Materials

Population (Potential Customers) was one the biggest pain reliever for Telecom Company, but now customers have changed behaving like they use to a decade ago. One cant even blame them, as telecom operators manufacture minutes and customer buy those minutes and cycle goes on. As per Telecom Operators there are around 30% of customers today using more than one SIM card.

As per the Research there is class of the people who owns 17-18 Active SIM cards, this means customer keeps one Primary SIM card which gives him constant connectivity (prime purpose) and they uses other SIM cards for cheaper phone calls (outgoing), SMS & Data usage base on the tariffs of secondary operator.

This can be equated through ARPU (Average Revenue per User) as Airtel having ARPU of Rs.220 is mostly a primary SIM whereas Uninor with ARPU of Rs.92 can be Secondary, tertiary or even quaternary SIM in the market where there are as many as 12 operators.
Either you cut prices directly with complicated plans or device an Intelligent tariff plan which does the “Perception Management” in mind of Consumers – Same way Tata DoCoMo did it with its per second billing last year. Bharti responded by cutting prices on various plans, but soon each operator had to jump into the mud-bath. Results were not good for any. Telecom earnings started dropping sharply even though subscriber's additions were creating new bench marks every month.

All the top operators revenue dropped from around 7-10% in each quarter of last fiscal year. At the same point of time Revenue per Minute also saw a continuous decline of around 6-7%. And this is what is putting the pressure on financials as the cost of manufacturing minutes is not declining too much.

This pressures has now given birth to a new concept of calculating “Profitability Per Minute” (PPM) and now this has become one of the most critical criteria's of delivery which earlier used to be only “Subscribers Addition”.

Another Bad news is that cost of Manufacturing minutes will zoom up in short time – primarily because Telcos have paid 9 times the base price in Mumbai and Delhi & 5.7 times in Bihar in recently concluded 3G auctions. Nobody expected such higher prices not even Telecom consultants, Analysts, Fund managers, not even the operator themselves & not even Government who hosted the auctions. Basic expectations were 2-2.5 times the auction price, but now the operators have given full stress to their balance sheets.

One important Strategic aspect here is, Operators have used Voice revenues they earned for the auctions as Data revolution is yet to arrive in India and 3G will be the door for that. Another strategic move is, over last 7 years this is the biggest chunk of spectrum Govt has released. Although Govt. failed in creating spectrum capacity as all the 12 operators wanted to have it and that is the prime reason why spectrum is being sold at premium price. Telecom operators are clear that subscriber Acquisition is the only thing till 2012-2013 as there is still lot of potential untapped (India has only ~ 51% wireless Teledensity) and then to convert the same customer base from Voice driven market to Data Driven Market.

Capital Expenditure to upgrade infrastructure to support 3G will cost between $500 million to $1.5 Billion depending on the operator and hence profitability will decline. As per the global trends, over next 18-20 Months EBITDA for most of the companies may get down by 2-3% from their current position. For Eg. – Reliance Communications has seen EBITDA slide from 41% to 31% in last 6 quarters.

Even a decade ago such turmoil affected the Indian Telecom Industry, but it handled all four critical parameters in strategic way. This time also for Industry this is the Road less travelled but Vision & Goals are clear to achieve it.

About the Author:

Tejas Dave is Regional Telecom Research/Business Analyst associated with one of the leading Telecom Operator in India. Previously he has worked with other Telecom operators and Worlds Largest Tower company. His role primarily gives him an opportunity to closely work with senior leaders of the Company,Industry and Government. He is also associated with Academic and professional organisations like WB India & AMA.

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