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Category: Telecom

  • MTNL dials into debt: telecom giant defaults on Rs 8,346 crore in bank loans

    MTNL dials into debt: telecom giant defaults on Rs 8,346 crore in bank loans

    MUMBAI: A telecom Goliath has tripped on its own cables. Mahanagar Telephone Nigam Limited (MTNL) has rung the wrong number with its bankers. The state-owned telco has officially defaulted on a jaw-dropping Rs 8,346 crore worth of loans—putting the “broke” in “dial tone broke”.

    While the rest of the world streams 4K videos and binge-watches on blazing fast connections, MTNL seems to be buffering… financially.

    On 19 April, MTNL told the bourses that it has failed to cough up both the principal and interest on loans taken from not one, not two, but seven state-run banks. Talk about spreading the love—and the liability.

    The missed payments include overdue interest worth Rs 551.90 crore and unpaid principal of Rs 1,635.39 crore. In total, it owes Rs 8,346.24 crore to the likes of Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank. Every bank gets a slice of the default pie.

    The financial plot thickened with MTNL’s relationship with Union Bank of India turning sour on 12 August 2024, where a hefty Rs 3,334.57 crore in principal remained unpaid, and Rs 298.85 crore in interest hung in the air.

    Things didn’t improve—by 4 September 2024, Bank of India found itself on the default roster too, owed Rs 999.54 crore in principal and Rs 77.80 crore in interest.

    A few days later, on 9 September, Punjab National Bank’s dues followed suit, with Rs 432.16 crore in principal and Rs 32.10 crore interest unpaid.

    Come 28 September, State Bank of India and UCO Bank were both ghosted by MTNL, left with mounting dues and no callbacks. Then, on 8 October, Punjab & Sind Bank got stood up.

    Eventually, Indian Overseas Bank met the same fate on 3 February 2025, sealing MTNL’s full-blown debt drama.

    The situation isn’t just a few late EMIs. MTNL’s total financial baggage weighs in at a staggering Rs 33,568 crore, including Rs 8,346 crore in bank loans, Rs 24,071 crore in sovereign-guaranteed bonds, and a Rs 1,151 crore loan from the Department of Telecommunications just to pay interest on those bonds.

    That’s like borrowing money to pay the interest on money you borrowed to pay interest.

    Shakespeare would call this tragedy.

    Accountants call it Thursday.

    Despite this financial sinkhole, the company has maintained a straight face in its compliance filing with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), stating only that it’s defaulted, and here’s the Excel sheet to prove it. Bureaucratic honesty, if nothing else.

    The question now is: what next? Will the Department of Telecommunications come riding in with a fresh bailout cheque and a stern frown? Or is MTNL setting the stage for another round of disinvestment drama?

    For now, shareholders are left listening to static, and taxpayers are once again left wondering whether the “public” in public sector means “publicly funded bailouts” on loop.

  • Global smartphone shipments increase in first quarter amidst trade concerns

    Global smartphone shipments increase in first quarter amidst trade concerns

    MUMBAI: According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global smartphone1 shipments experienced a 1.5 per cent year-over-year increase in the first quarter of 2025, reaching 304.9 million units. This performance aligned with IDC forecasts, attributed to manufacturers increasing production in anticipation of potential US tariffs on imports from China.

    IDC vice-president Francisco Jeronimo noted that geopolitical uncertainty and the threat of US tariff hikes on Chinese goods led vendors to accelerate production and pull forward significant shipment volumes, particularly into the US market, during the first quarter. This supply-side action resulted in shipment figures exceeding levels expected based on underlying consumer demand.

    IDC group vice president  Ryan Reith highlighted that while the US government’s recent pause on smartphone import tariffs from China provides temporary relief, the continued reliance on China’s supply chain and ongoing tariff volatility create challenges for future planning and decision-making for many companies. He suggested that US smartphone brands should leverage the tariff exemption to maximize building and shipping. Additionally, he cautioned that economic uncertainty could potentially dampen consumer demand in the coming months.

    The US smartphone market saw growth of over five per cent in the first quarter, despite the impact of tariffs and trade tensions on disposable income. IDC research director Anthony Scarsella attributed this growth to increased consumer interest in new models from leading manufacturers and a sense of urgency to purchase before potential price increases. He also suggested that the 90-day tariff pause could further boost sales in the second quarter.

    marketshare of phones

    Globally, the first quarter saw growth among major smartphone vendors, particularly Chinese companies in their domestic market, supported by government subsidies extended to smartphones in January 2025. This subsidy program aims to stimulate consumption for products priced below yuan 6,000 ($820).

    Among the top vendors:
    * Samsung regained market leadership, driven by the continued success of its Galaxy S25 premium devices and the mid-range Galaxy A series, including the latest Galaxy A36 and A56 featuring more affordable AI capabilities.

    * Apple achieved its highest first-quarter shipments ever, attributed to stockpiling to mitigate potential US ariffs and to address potential supply chain disruptions in other regions. However, its performance in China declined as its Pro models were not included in the Chinese government subsidy program.

    * Xiaomi’s performance was primarily driven by growth in China due to the government subsidies, positively impacting sales of its mid-range products.

    * Oppo regained the fourth position despite a decline in shipments due to weaker performance in international markets, which was not fully offset by growth in China.

    * Vivo experienced substantial year-on-year growth of 6.3 per cent, supported by subsidies in China and growth in international markets, with strong performance in low-end devices and the V series.

    In conclusion, while the global smartphone market showed positive shipment growth in the first quarter of 2025, the ongoing US-China trade war and tariff volatility continue to present significant concerns for the remainder of the year.

  • Indian households embrace the telecom multiplay game

    Indian households embrace the telecom multiplay game

    MUMBAI: India’s appetite for bundled telecoms services shows no signs of slowing, with multiplay service revenue expected to waltz from $2.4bn in 2024 to a handsome $3bn by 2029, growing at a steady 4.2 per cent annually, according to analytics firm GlobalData.

    The country’s telecoms operators are engaged in a fierce tango for customers, laying fibre-optic cables faster than monsoon flooding as they tempt households with bundled services that promise both convenience and cost savings.

    Double-play packages—typically pairing broadband with unlimited voice calls—currently dominate the landscape, accounting for a hefty 78.4 per cent of multiplay subscriptions. Triple-play bundles trail at 12.2 per cent, with the premium quad-play offerings taking a modest 9.4 per cent slice of the pie.

    “Double-play services is currently the largest multiplay service category,” notes Sarwat Zeeshan, telecom analyst at GlobalData. “All major operators—Airtel, Jio and BSNL—are bundling unlimited telephony along with their basic fibre broadband plans.”

    Reliance Jio, for instance, offers unlimited calls along with unlimited data at speeds up to 30Mbps for a mere Rs 399 monthly—a proposition that has helped it shimmy into market leadership.

    While double-play will maintain its dominant position through 2029, triple-play subscriptions are expected to fox-trot ahead at a sprightly 16.6 per cent annually. Operators are wooing India’s vast pay-TV audience with packages that marry television, broadband and voice services, often throwing in access to streaming platforms as a  bonus.

    Bharti Airtel’s Rs 699 “Black” plan exemplifies this trend, bundling fibre broadband with television channels worth Rs 260, subscriptions to more than 18 streaming apps, and unlimited landline calls—a veritable smorgasbord of digital delights.

    In this high-stakes dance of telecommunications, Reliance Jio currently leads the pack, with Bharti Airtel following closely behind. Jio’s dominance stems largely from its extensive fibre network, which allows it to transition customers to bundled services with the smoothness of a well-rehearsed ballroom routine.

    As India’s digital transformation continues its merry jig, the multiplay market appears poised for a lively performance in the years ahead.

  • Punit Garg exits Reliance Comms board as part of clean corporate break

    Punit Garg exits Reliance Comms board as part of clean corporate break

    MUMBAI: It’s curtains for Punit Garg at Reliance Communications. The seasoned executive has officially stepped down from the board of the beleaguered telecom firm, marking yet another departure from the company’s vanishing leadership deck. The resignation, effective 1 April 2025, was submitted in a formal letter dated the same day, with Garg citing, “in line with his resignation from all the board positions in all the companies.”

    While the exit lacked fireworks or drama, it signals a final unplugging from a company that once aimed to be the crown jewel of Indian telecom but is now knee-deep in insolvency proceedings.

    Reliance Communications, under the corporate insolvency resolution process since June 2019, confirmed the development in a filing with the BSE and NSE. Company secretary Rakesh Gupta signed off on the disclosure, attaching Garg’s resignation letter and noting compliance under Regulation 30 of SEBI’s listing obligations.

    Garg’s exit adds to the list of top-level resignations over the years as RCom continues its struggle to stay afloat under the oversight of resolution professional Anish Niranjan Nanavaty, appointed by the NCLT Mumbai Bench.

    The resignation itself doesn’t raise eyebrows, but in an industry known for boardroom battles and opaque exits, a clean-cut ‘no other reason’ departure is almost… refreshing.

    Garg, who has held prominent roles across the Reliance Group over the years, exits at a time when Reliance Communications is more of a cautionary tale than a market mover. The company has not been in active telecom operations since it shut down its wireless business in 2017 and has been tangled in debt and legal knots since.

    With his board seat now vacated and no lingering drama in sight, this might just be one of the quieter exits in India Inc. But in the telecom saga that is RCom, even silence speaks volumes.

  • Indian government to take nearly half of Vodafone Idea as debt converts to equity

    Indian government to take nearly half of Vodafone Idea as debt converts to equity

    MUMBAI: India’s beleaguered mobile operator Vodafone Idea is about to get a new sugar daddy—the government itself. The ministry of communications has decided to convert the firm’s towering spectrum auction dues of Rs 36,950 crore into equity shares, catapulting the state’s ownership from 22.6 per cent to a whopping 48.99 per cent, according to a company regulatory filing with the BSE.

    The move, communicated via an order dated 29 March and received by the company on Sunday, follows the Modi government’s 2021 telecom sector bailout package. Vodafone Idea, which has been gasping for financial breath against rivals Reliance Jio and Bharti Airtel, will issue 3,695 crore equity shares at Rs 10 each within 30 days after securing regulatory approvals.

    Despite the government now holding the largest slice of the pie, the existing promoters will remain at the controls—suggesting New Delhi prefers to play sleeping partner rather than backseat driver in this marriage of convenience.

    The pricing methodology wasn’t plucked from thin air but follows regulatory guidelines—taking the higher of the volume-weighted price over either 90 or 10 trading days preceding 26 February 2025.

    This fiscal lifeline throws Vodafone Idea a much-needed oxygen tank as it struggles to keep up in India’s brutally competitive telecom market, where rock-bottom tariffs have made profitability as rare as an uncapped data plan.

  • Airtel rings loud in Kerala, leaves rivals dialling up network upgrades

    Airtel rings loud in Kerala, leaves rivals dialling up network upgrades

    MUMBAI: Kerala’s telecom battlefield just got a lot more interesting—Bharti Airtel didn’t just up the ante, they’ve thrown down the gauntlet with a signal so strong, competitors are scrambling for a better connection. In a dramatic twist worthy of a telecom thriller, Airtel has rolled out an impressive 2,500 additional network sites across Kerala, cementing its position as the top telecom player in ‘God’s Own Country’. It seems Airtel knows that when it comes to connectivity, second place just doesn’t cut it.

    Deployed swiftly across all 14 districts, Airtel now boasts over 11,000 network sites, the most by any telecom operator in Kerala. Whether you’re chilling on the serene beaches of Varkala, exploring the tea-drenched hills of Munnar, or cruising on the Kochi water metro—Airtel’s got you covered. With such a dense network, it’s almost as if Airtel is personally ensuring your TikTok uploads never buffer.

    Bharti Airtel COO – Kerala, Gokul J proudly stated, “Kerala remains a critical market for Airtel, and we are committed to offering our customers the best network experience. In the last two years, we have made significant investments in the state in network densification across all the 14 districts. This has resulted in delivering a ubiquitous voice and data experience for our customers, no matter where they are in the state. We remain committed to Kerala and will continue to invest in technologies that will help elevate service experience for our customers.”

    These enhancements aren’t just marketing fluff—Opensignal recently handed Airtel multiple awards, crowning them the king of Kerala’s telecom jungle. Airtel emerged as number one in several categories, including seamless 5G video streaming, unbeatable live video experiences, exceptional gaming performance, and the fastest upload speeds around. Let’s just say, Airtel users now have bragging rights when it comes to flawless video chats and lag-free gaming sessions.

    With Airtel’s supercharged connectivity, Kerala’s beautiful landscapes are more than just Instagram-worthy—they’re reliably Insta-uploadable. So go ahead, snap, game, stream, and upload without a care; Airtel’s got your back. And your signal.

  • Vi finally gets its 5G groove on in Mumbai

    Vi finally gets its 5G groove on in Mumbai

    MUMBAI: After watching rivals race ahead, beleaguered telecom operator Vodafone Idea (Vi) has finally unleashed its 5G services in Mumbai. The struggling carrier is betting its fashionably late entry will turn heads with unlimited data packages starting at a wallet-friendly Rs 299.

    Vi’s arrival to the 5G party comes after the company raised a whopping Rs 26,000 crore in the past year, including India’s largest follow-on public offer worth Rs 18,000 crore and Rs 4,000 crore coughed up by its increasingly patient promoters.

    The cash injection has enabled Vi to dust off ambitious expansion plans, with Rs 50,000-55,000 crore earmarked for network upgrades over the next three years. The company aims to blanket roughly 90 per cent of Indians with 4G coverage while rolling out 5G in “key geographies”—corporate speak for “where the money is”.

    “Our focus is on introducing 5G meaningfully for our users,” said Vi  chief technology officer Jagbir Singh. The firm has partnered with Nokia to deploy energy-efficient equipment that’s supposedly both leaner and greener.

    Not content with merely catching up to competitors Reliance Jio and Bharti Airtel, Vi claims to have embraced artificial intelligence with an AI-based self-organising networks system. This whizzy bit of tech reportedly optimises network performance continuously, though sceptics might suggest the carrier focus on basics like keeping calls connected first.

    The move comes as welcome news for Vi’s dwindling subscriber base, who have watched their chosen network struggle with debt while rivals hoovered up market share. OpenSignal reportedly ranks Vi’s 4G network as Mumbai’s best, though this will come as news to many of the city’s residents.

    For videogamers, binge-watchers, and those who simply enjoy browsing the internet without mysterious disconnections, Vi promises its unlimited 5G data will enhance experiences across streaming, gaming and real-time cloud access. The company has yet to announce when other Indian cities might join Mumbai in the 5G fast lane, saying only that expansion will happen “in a phased manner.”

    Mumbai’s mobile users can check whether their devices are compatible with Vi’s newfound speed at myvi.in/5g-networK.

  • TCS veteran N . Ganapathy Subramaniam takes chairman’s position at Tata Communications

    TCS veteran N . Ganapathy Subramaniam takes chairman’s position at Tata Communications

    MUMBAI: Tata Communications has handed the keys to its chairman’s office to N. Ganapathy Subramaniam, the tech wizard who spent four decades cutting code and climbing ladders at Tata Consultancy Services.

    The appointment, which took immediate effect today, adds another feather to NGS’s already well-plumed cap, as the seasoned executive continues his post-retirement tour of Tata boardrooms.

    Having hung up his boots as chief operating officer and executive director at TCS last May, the Bangalore-based tech veteran is chairman at  Tata Elxsi and Tejas Networks, making this latest appointment something of a hat-trick for the self-described “software engineer at heart.”

    Subramaniam’s elevation comes as Tata Communications—formerly the state-owned behemoth VSNL—continues its transformation from stodgy telecom operator to nimble digital services provider. With revenues nudging Rs 17,000 crore, the company has been aggressively courting enterprise clients with cloud and IoT offerings that bear little resemblance to its public sector ancestor.

    The company informed the bourses of the appointment through a  regulatory filing.

    For NGS, whose four-decade tech odyssey has seen him shepherd TCS through banking, telecom and public service transformations worldwide, the new role adds to an already bulging portfolio of responsibilities. 

    Beyond his corporate entanglements, he chairs the governing council of Bharat6G Alliance and serves on the institute body at Sree Chitra Tirunal Institute for Medical Sciences and Technology. To ease off from all his hectic engagements, NGS  enjoys nature walks around his Bangalore home.

  • Jio hops onto SpaceX’s StarLink bandwagon close on the heels of Airtel

    Jio hops onto SpaceX’s StarLink bandwagon close on the heels of Airtel

    MUMBAI:  In a strategic move that follows arch-rival Airtel’s recent partnership, Jio Platforms has entered into an agreement with SpaceX to offer Starlink’s satellite internet services to Indian customers.

    The agreement, announced Wednesday, will see India’s data traffic heavyweight join forces with the world’s leading low Earth orbit satellite operator in a partnership that promises to reach even the most remote corners of the subcontinent.

    “This deal isn’t just about connecting the unconnected—it’s about transforming digital access,” says an industry analyst. “With Airtel and now Jio partnering with Starlink, SpaceX has strategically orchestrated its entry into one of the world’s most competitive telecom, internet and data delivery markets.”

    Jio’s retail network will soon showcase Starlink equipment alongside installation and activation support, creating a significant expansion of connectivity options that complement existing JioAirFiber and JioFiber services.

    Mathew Oommen, group chief executive at Reliance Jio, emphasized the company’s mission to provide “affordable and high-speed broadband” to all Indians, while Gwynne Shotwell, president and chief operating officer of SpaceX, expressed enthusiasm about the partnership—pending government authorisation. “We are looking forward to  to provide more people, organisations and businesses with access to Starlink’s high-speed internet services.”

    The satellite internet competition has intensified in India, with both telecom giants now aligning with Elon Musk’s constellation. Industry watchers suggest this competition could revolutionise connectivity across rural India, where terrestrial infrastructure has traditionally been inadequate.

    Beyond immediate internet provisions, both companies are exploring additional collaborative ventures to boost India’s digital ecosystem in what Oommen described as “this AI-driven era.”

    For millions of Indians lacking reliable internet access, these satellite partnerships promise to be a significant breakthrough—one that now has not just one, but two major telecom providers driving forward.

  • Airtel signs up with SpaceX to bring Starlink services to India

    Airtel signs up with SpaceX to bring Starlink services to India

    MUMBAI; In a dramatic move set to shake up India’s telecommunications landscape, Airtel has today inked an agreement with Elon Musk’s SpaceX to bring Starlink’s lightning-fast internet services to the subcontinent.
    The landmark deal—the first of its kind in India—hinges on SpaceX securing regulatory approvals  to peddle Starlink services in the country. Once green-lit, the partnership promises to dramatically expand high-speed connectivity to even the most far-flung corners of India.

    Under the ambitious arrangement, Airtel shops could soon display Starlink equipment, whilst the telecom giant will offer Starlink services to its business customers. The collaboration aims to connect remote communities, schools and health centres currently languishing in digital darkness.

    Airtel and SpaceX will also explore how Starlink could help expand and enhance the Airtel network, as well as SpaceX’s ability to utilise and benefit from Airtel’s ground network infrastructure and other capabilities in India.

    Airtel managing director Gopal Vittal  hailed the partnership as a “significant milestone” in the company’s quest to deliver “world-class high-speed broadband to even the most remote parts of India.”

    “This collaboration enhances our ability to ensure that every individual, business, and community has reliable internet,” Vittal declared. “Starlink will complement and enhance Airtel’s suite of products to ensure reliable and affordable broadband for our Indian customers—wherever they live and work.”

    “Technology is always evolving and we’re committed to staying at the forefront of innovation so that we can continue to bring the best connectivity experience for our customers. This includes collaborating with global leaders like SpaceX to extend our reach and add new coverage to customers throughout all of India.”

    SpaceX’s President Gwynne Shotwell matched Vittal’s enthusiasm, stating: “We are excited to work with Airtel and unlock the transformative impact Starlink can bring to the people of India. We are constantly amazed by the incredible and inspiring things that people, businesses and organizations do when they are connected via Starlink. The team at Airtel has played a pivotal role in India’s telecom story, so working with them to complement our direct offering makes great sense for our business.”

    The deal represents a clever strategic move for Airtel, which already boasts over 550 million customers across 15 countries. By adding Starlink to its portfolio alongside existing partner Eutelsat OneWeb, Airtel strengthens its position as India’s largest integrated communications solutions provider.

    Starlink, which operates the world’s first and largest low Earth orbit satellite constellation, delivers broadband internet capable of supporting streaming, gaming and video calls to users worldwide. The service is engineered and operated by SpaceX, the world’s leading rocket launch provider.

    The collaboration signals a new chapter in India’s digital transformation saga, potentially bridging the stubborn digital divide that has long hampered the nation’s development ambition