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Tag: Vodafone

  • Rs 30k cr to enhance Jio coverage; A-G clears DoT’s power to penalise telcos

    Rs 30k cr to enhance Jio coverage; A-G clears DoT’s power to penalise telcos

    MUMBAI: Even as India’s attorney-general cleared a Rs 3,050 crore penal action against the leading telcos, Reliance CMD Mukesh Ambani is planning to infuse Rs 30,000 crore in Reliance Jio telecom venture which has caused a major disruption in India’s fiercely-competitive mobile market.

    The attorney-general is understood to have opined that the Department of Telecom (DoT) has the power to impose penalty on grounds of poor quality of service of telecom operators Vodafone, Bharti Airtel and Idea Cellular, sources told PTI.

    Reliance Jio, which reportedly had a subscriber base of 72.4 million at 2016-end, plans to collect funds via a rights issue that was approved at a recent board meeting, the Times of India reported.

    In view of the unprecedented customer response and to address the anticipated growth in demand for digital services, Jio stated, additional investments were proposed to be made into the network to enhance its capacity and coverage. The new funds will come on top of the Rs 1.7 lakh crore that Reliance Jio has already invested.

    The rights issue has been planned to be for six billion nine per cent non-cumulative optionally convertible preference shares (OCPS) of Rs 10 each for cash, at a premium of Rs 40 per OCPS. The amount subscribed/paid on each OCPS will be either redeemed at Rs 50 or converted into five equity shares of Rs 10 each at any time at the option of the company, but not later than 10 years from the date of allotment.

    The new entrant Jio caused a considerable disruption in the space. In broadband services, with 35.94 million (3.594 crore), Jio had, in October 2016, joined the top five subscribers list. No matter it is working out to the benefit of the consumer and helping the industry expand albeit at a much lower cost to the end-user, well-entrenched rivals now are on a slippery wicket. Meanwhile, other telecom operators in the country are scrambling to catch up.

    Telecom tribunal TDSAT has ordered the Telecom Regulatory Authority of India (TRAI) to take a stand on Reliance Jio’s free 4G offer in reasonable time. A tribunal bench heard arguments of both sides — TRAI and Airtel — and posted the matter for 1 February.

    Reliance Jio earlier chose not to respond to queries regarding its reply to TRAI in connection with questions raised against alleged violations in extending its free offer till 31 March 2017 much beyond its introductory offer. Airtel had filed a petition before TDSAT accusing TRAI of being ‘sleeping trustee’ and a ‘mute spectator’ to the violations carried out by Jio.

    Also Read:

    Darwin effect: 3-4 telcos may Jio after potential M&As

    Jio HNY: TDSAT raps TRAI as contest deepens

    Respond to Vodafone’s TRAI challenge in two weeks, govt directed

     

  • Rs 30k cr to enhance Jio coverage; A-G clears DoT’s power to penalise telcos

    Rs 30k cr to enhance Jio coverage; A-G clears DoT’s power to penalise telcos

    MUMBAI: Even as India’s attorney-general cleared a Rs 3,050 crore penal action against the leading telcos, Reliance CMD Mukesh Ambani is planning to infuse Rs 30,000 crore in Reliance Jio telecom venture which has caused a major disruption in India’s fiercely-competitive mobile market.

    The attorney-general is understood to have opined that the Department of Telecom (DoT) has the power to impose penalty on grounds of poor quality of service of telecom operators Vodafone, Bharti Airtel and Idea Cellular, sources told PTI.

    Reliance Jio, which reportedly had a subscriber base of 72.4 million at 2016-end, plans to collect funds via a rights issue that was approved at a recent board meeting, the Times of India reported.

    In view of the unprecedented customer response and to address the anticipated growth in demand for digital services, Jio stated, additional investments were proposed to be made into the network to enhance its capacity and coverage. The new funds will come on top of the Rs 1.7 lakh crore that Reliance Jio has already invested.

    The rights issue has been planned to be for six billion nine per cent non-cumulative optionally convertible preference shares (OCPS) of Rs 10 each for cash, at a premium of Rs 40 per OCPS. The amount subscribed/paid on each OCPS will be either redeemed at Rs 50 or converted into five equity shares of Rs 10 each at any time at the option of the company, but not later than 10 years from the date of allotment.

    The new entrant Jio caused a considerable disruption in the space. In broadband services, with 35.94 million (3.594 crore), Jio had, in October 2016, joined the top five subscribers list. No matter it is working out to the benefit of the consumer and helping the industry expand albeit at a much lower cost to the end-user, well-entrenched rivals now are on a slippery wicket. Meanwhile, other telecom operators in the country are scrambling to catch up.

    Telecom tribunal TDSAT has ordered the Telecom Regulatory Authority of India (TRAI) to take a stand on Reliance Jio’s free 4G offer in reasonable time. A tribunal bench heard arguments of both sides — TRAI and Airtel — and posted the matter for 1 February.

    Reliance Jio earlier chose not to respond to queries regarding its reply to TRAI in connection with questions raised against alleged violations in extending its free offer till 31 March 2017 much beyond its introductory offer. Airtel had filed a petition before TDSAT accusing TRAI of being ‘sleeping trustee’ and a ‘mute spectator’ to the violations carried out by Jio.

    Also Read:

    Darwin effect: 3-4 telcos may Jio after potential M&As

    Jio HNY: TDSAT raps TRAI as contest deepens

    Respond to Vodafone’s TRAI challenge in two weeks, govt directed

     

  • Darwin effect: 3-4 telcos may Jio after potential M&As

    Darwin effect: 3-4 telcos may Jio after potential M&As

    MUMBAI: When you can’t fight them, join them. Discretion is the best part of valor — are some of the quotable quotes that one has heard. They seem to be proving right in the context of the neck-and-neck race among the existing rivals and a new entrant in the Indian telecom space.

    The new entrant Reliance Jio has caused a considerable disruption in the space. No matter it is working out to the benefit of the consumer and helping the industry expand albeit at a much lower cost to the end-user, well-entrenched rivals now are on a slippery wicket.

    Vodafone India for example is considering its options of a possible merger with one of the existing rivals. Or, the things could take such a turn that it may be inclined to join the tough new entrant — Jio.

    On the other hand, the leading telco Bharti Airtel too launched a number of schemes to face competition. Meanwhile, Airtel is reportedly in discussion to buy Telenor’s India business in a deal that will involve taking on debt of Rs 1,500 crore to take on Reliance Jio. Telenor operates in six of the 22 telecom circles in India and offers 2G services to its 45 million users.

    Although, there were reports that Vodafone may be seeking merger with Idea or Jio, experts believe a merger with the former was a possibility. Vodafone had launched several tariffs to browbeat competition from Airtel and Jio. The Indian unit is reportedly seeking a merger with one of the top telecom companies following intensified competition. Vodafone may be keen for a possible tie-up with Idea, Jio or another of the top three providers. Jio’s aggressive tariffs and heavy investments started impacting competitor a few weeks after it entered.

    Experts opine that the industry is prepared for a major consolidation with smaller companies such as Telenor likely to be bought over and middle-level companies such as Reliance Communication and Aircel seeking mergers. The exercise will eventually leave space for some 3-4 players.

    But, there is some apprehension. With two decades of existence, it may be a bit early to expect merger for Idea or Vodafone. Vodafone may rather go for a buyout.

    In September 2016, Vodafone invested Rs 47,700 crore in the Indian unit, most of which was used to reduce debt to Rs 35,430 crore by the end of second quarter of 2016-17. By September, the Indian company had 200 million mobile customers. In November, Vodafone cut the valuation of its Indian unit by GBP 5 billion owing to stiff competition.

  • Darwin effect: 3-4 telcos may Jio after potential M&As

    Darwin effect: 3-4 telcos may Jio after potential M&As

    MUMBAI: When you can’t fight them, join them. Discretion is the best part of valor — are some of the quotable quotes that one has heard. They seem to be proving right in the context of the neck-and-neck race among the existing rivals and a new entrant in the Indian telecom space.

    The new entrant Reliance Jio has caused a considerable disruption in the space. No matter it is working out to the benefit of the consumer and helping the industry expand albeit at a much lower cost to the end-user, well-entrenched rivals now are on a slippery wicket.

    Vodafone India for example is considering its options of a possible merger with one of the existing rivals. Or, the things could take such a turn that it may be inclined to join the tough new entrant — Jio.

    On the other hand, the leading telco Bharti Airtel too launched a number of schemes to face competition. Meanwhile, Airtel is reportedly in discussion to buy Telenor’s India business in a deal that will involve taking on debt of Rs 1,500 crore to take on Reliance Jio. Telenor operates in six of the 22 telecom circles in India and offers 2G services to its 45 million users.

    Although, there were reports that Vodafone may be seeking merger with Idea or Jio, experts believe a merger with the former was a possibility. Vodafone had launched several tariffs to browbeat competition from Airtel and Jio. The Indian unit is reportedly seeking a merger with one of the top telecom companies following intensified competition. Vodafone may be keen for a possible tie-up with Idea, Jio or another of the top three providers. Jio’s aggressive tariffs and heavy investments started impacting competitor a few weeks after it entered.

    Experts opine that the industry is prepared for a major consolidation with smaller companies such as Telenor likely to be bought over and middle-level companies such as Reliance Communication and Aircel seeking mergers. The exercise will eventually leave space for some 3-4 players.

    But, there is some apprehension. With two decades of existence, it may be a bit early to expect merger for Idea or Vodafone. Vodafone may rather go for a buyout.

    In September 2016, Vodafone invested Rs 47,700 crore in the Indian unit, most of which was used to reduce debt to Rs 35,430 crore by the end of second quarter of 2016-17. By September, the Indian company had 200 million mobile customers. In November, Vodafone cut the valuation of its Indian unit by GBP 5 billion owing to stiff competition.

  • TRAI to meet b’casters, MSOs, DTH ops, telcos on ’17 roadmap

    TRAI to meet b’casters, MSOs, DTH ops, telcos on ’17 roadmap

    NEW DELHI: As promised by TRAI chairman RS Sharma, the regulator is getting pro-active. It has scheduled meetings with top executives of telecom, broadcasting, DTH and MSO companies over the next one week starting 6 January, 2017 to seek their opinion on issues to be taken up during 2017.

    The first of these high-level meetings would take place Friday when TRAI Chairman and other officials would interact with CEOs of all telecom companies, including Bharti, Vodafone and Reliance Jio, to discuss and identify important issues that need to be taken up during the year, PTI reported.

    A similar meeting is slated with top executives of cable, broadcasting, MSO and DTH companies on January 10, 2017, PTI quoted TRAI sources as saying.

    “We have invited the CEOs of all telecom companies, including Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio and others for a discussion on January 6. Similarly, we have invited top executives of broadcasting companies, MSOs, and DTH companies on January 10,” the PTI report quoted sources as saying.

    TRAI’s latest initiatives are in line with what Chairman RS Sharma had told indiantelevision.com in a year-end interview middle of December 2016 on charting a roadmap for 2017.

    “What we plan to do in 2017 is something interesting. While there will be always issues that will need TRAI’s urgent attention — for example, the government may ask for advice on spectrum prices — we are trying to create a calendar for the next year…. highlighting the works that need to be taken up in 2017 and which will act as a roadmap,” Sharma had told indiantelevision.com.

    Asked about the issues likely to be taken up by TRAI in2017, in consultation with the industry, Sharma had indicated it could involve data and consumer protection, Internet of Things (IoT), digital terrestrial broadcasting and other issues related to emerging technologies.

    ALSO READ

    “There would be a lot on TRAI’s plate in 2017” – RS Sharma

  • TRAI to meet b’casters, MSOs, DTH ops, telcos on ’17 roadmap

    TRAI to meet b’casters, MSOs, DTH ops, telcos on ’17 roadmap

    NEW DELHI: As promised by TRAI chairman RS Sharma, the regulator is getting pro-active. It has scheduled meetings with top executives of telecom, broadcasting, DTH and MSO companies over the next one week starting 6 January, 2017 to seek their opinion on issues to be taken up during 2017.

    The first of these high-level meetings would take place Friday when TRAI Chairman and other officials would interact with CEOs of all telecom companies, including Bharti, Vodafone and Reliance Jio, to discuss and identify important issues that need to be taken up during the year, PTI reported.

    A similar meeting is slated with top executives of cable, broadcasting, MSO and DTH companies on January 10, 2017, PTI quoted TRAI sources as saying.

    “We have invited the CEOs of all telecom companies, including Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio and others for a discussion on January 6. Similarly, we have invited top executives of broadcasting companies, MSOs, and DTH companies on January 10,” the PTI report quoted sources as saying.

    TRAI’s latest initiatives are in line with what Chairman RS Sharma had told indiantelevision.com in a year-end interview middle of December 2016 on charting a roadmap for 2017.

    “What we plan to do in 2017 is something interesting. While there will be always issues that will need TRAI’s urgent attention — for example, the government may ask for advice on spectrum prices — we are trying to create a calendar for the next year…. highlighting the works that need to be taken up in 2017 and which will act as a roadmap,” Sharma had told indiantelevision.com.

    Asked about the issues likely to be taken up by TRAI in2017, in consultation with the industry, Sharma had indicated it could involve data and consumer protection, Internet of Things (IoT), digital terrestrial broadcasting and other issues related to emerging technologies.

    ALSO READ

    “There would be a lot on TRAI’s plate in 2017” – RS Sharma

  • Respond to Vodafone’s TRAI challenge in two weeks, govt directed

    Respond to Vodafone’s TRAI challenge in two weeks, govt directed

    MUMBAI: Terming it as “premature”, the central government has opposed a plea by the telecom major Vodafone Mobile Services challenging TRAI’s recommendation to impose Rs 1,050 crore penalty for not providing interconnectivity to Reliance Jio.

    The government rejected the plea by Vodafone, which operates in 21 circles, against a penalty of Rs 50 crore per telecom circle recommended by TRAI. The Telecom Regulatory Authority of India had suggested the penalty on grounds that Vodafone had violated terms and conditions relating to points of interconnection among service providers.

    Additional solicitor-general Sanjay Jain, appearing on behalf of the Centre, said that since the role of TRAI was advisory, what material did the telecom company had to show that the Centre’s decision would be clouded by the recommendation.

    Justice Sanjeev Sachdeva, who was hearing the matter, directed the Centre to file a short affidavit within two weeks and limit it to the question of maintainability of the suit.

    TRAI recommendation was made to DoT (department of telecommunications), and is based on a complaint by Reliance Jio Infocomm Ltd, which alleged that Vodafone had refused to comply with interconnection norms. TRAI had also recommended a similar penalty on Bharti Airtel and Idea Cellular Ltd.

    Senior advocate Rajiv Nayar, appearing for Vodafone, urged the court to decide whether TRAI exceeded its jurisdiction by giving the recommendation. The telecom argued that TRAI has the power to impose “financial disincentives” for breach of Quality of Service regulations and to ensure compliance of terms and conditions of licence.

    The ASG opposed the maintainability of the petition, saying once DoT took a decision, then it was an appealable order.

    The court gave the telecom ministry and TRAI two weeks to file their reply on the issue of maintainability and listed it for hearing on 6 February.

  • Respond to Vodafone’s TRAI challenge in two weeks, govt directed

    Respond to Vodafone’s TRAI challenge in two weeks, govt directed

    MUMBAI: Terming it as “premature”, the central government has opposed a plea by the telecom major Vodafone Mobile Services challenging TRAI’s recommendation to impose Rs 1,050 crore penalty for not providing interconnectivity to Reliance Jio.

    The government rejected the plea by Vodafone, which operates in 21 circles, against a penalty of Rs 50 crore per telecom circle recommended by TRAI. The Telecom Regulatory Authority of India had suggested the penalty on grounds that Vodafone had violated terms and conditions relating to points of interconnection among service providers.

    Additional solicitor-general Sanjay Jain, appearing on behalf of the Centre, said that since the role of TRAI was advisory, what material did the telecom company had to show that the Centre’s decision would be clouded by the recommendation.

    Justice Sanjeev Sachdeva, who was hearing the matter, directed the Centre to file a short affidavit within two weeks and limit it to the question of maintainability of the suit.

    TRAI recommendation was made to DoT (department of telecommunications), and is based on a complaint by Reliance Jio Infocomm Ltd, which alleged that Vodafone had refused to comply with interconnection norms. TRAI had also recommended a similar penalty on Bharti Airtel and Idea Cellular Ltd.

    Senior advocate Rajiv Nayar, appearing for Vodafone, urged the court to decide whether TRAI exceeded its jurisdiction by giving the recommendation. The telecom argued that TRAI has the power to impose “financial disincentives” for breach of Quality of Service regulations and to ensure compliance of terms and conditions of licence.

    The ASG opposed the maintainability of the petition, saying once DoT took a decision, then it was an appealable order.

    The court gave the telecom ministry and TRAI two weeks to file their reply on the issue of maintainability and listed it for hearing on 6 February.

  • Airtel, Vodafone lead market; UP East adds max subs

    Airtel, Vodafone lead market; UP East adds max subs

    MUMBAI: Witnessing a healthy growth in telecom penetration, the GSM subscriber base in the country grew to 801.81 million in November 2016. COAI, the association of mobile telephony service providers in the country, which released the November GSM subscriber base numbers, has said the number of GSM subscribers witnessed a jump of 10.18 million as compared to the previous month.

    Telecom industry’s steady growth was recorded in net subscriber additions from 2.09 million in August to 10.18 million in November.

    Amongst the telecom companies, Bharti Airtel continued to hold on to the pole position in November, adding another 1.08 million additional subscribers during the month to take its total subscriber base to 263.35 million mobile subscribers. Closely followed by Vodafone with 202.79 million subscribers and Idea Cellular with 187.68 million subscribers. With 32.84%, Bharti Airtel owns the maximum market share in the industry.

    The report, which also assesses the growth of mobile subscribers across various circles in India said, UP East added the maximum number of subscribers (73.82 million) in November and Idea added the maximum number of subscribers (7.43 million) in November.

    Talking about the growth in the subscriber base, COAI director-general Rajan S Mathews said, “The telecommunication industry has again posted a good growth for the month of November 2016. It is heartening to see that the industry is showing signs of a robust growth and we have again moved ahead in ensuring complete connectivity at all levels. Telecom companies have been contributing towards fulfilling the government’s vision of Digital India since beginning and we will continue bridge the digital divide for a fully connected and digitally empowered India.”

    Speaking about the impact made by the telecom industry, he added, “We are an enabler of comprehensive growth. The industry has also ensured that the government’s plans reach even the farthest corners of the country and everyone is equally benefitted from the digital revolution.”

  • Airtel, Vodafone lead market; UP East adds max subs

    Airtel, Vodafone lead market; UP East adds max subs

    MUMBAI: Witnessing a healthy growth in telecom penetration, the GSM subscriber base in the country grew to 801.81 million in November 2016. COAI, the association of mobile telephony service providers in the country, which released the November GSM subscriber base numbers, has said the number of GSM subscribers witnessed a jump of 10.18 million as compared to the previous month.

    Telecom industry’s steady growth was recorded in net subscriber additions from 2.09 million in August to 10.18 million in November.

    Amongst the telecom companies, Bharti Airtel continued to hold on to the pole position in November, adding another 1.08 million additional subscribers during the month to take its total subscriber base to 263.35 million mobile subscribers. Closely followed by Vodafone with 202.79 million subscribers and Idea Cellular with 187.68 million subscribers. With 32.84%, Bharti Airtel owns the maximum market share in the industry.

    The report, which also assesses the growth of mobile subscribers across various circles in India said, UP East added the maximum number of subscribers (73.82 million) in November and Idea added the maximum number of subscribers (7.43 million) in November.

    Talking about the growth in the subscriber base, COAI director-general Rajan S Mathews said, “The telecommunication industry has again posted a good growth for the month of November 2016. It is heartening to see that the industry is showing signs of a robust growth and we have again moved ahead in ensuring complete connectivity at all levels. Telecom companies have been contributing towards fulfilling the government’s vision of Digital India since beginning and we will continue bridge the digital divide for a fully connected and digitally empowered India.”

    Speaking about the impact made by the telecom industry, he added, “We are an enabler of comprehensive growth. The industry has also ensured that the government’s plans reach even the farthest corners of the country and everyone is equally benefitted from the digital revolution.”