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Tag: Bharti Airtel

  • Cabinet approves aid bundle for telecom sector: Key factors to notice

    In a bid to offer aid to the harassed telecom sector, the federal government on Wednesday introduced an important aid bundle with a string of reforms which is anticipated to assist the struggling incumbent operators reminiscent of Vodafone Idea (Vi) and Bharti Airtel.
    The transfer comes simply weeks after billionaire Kumar Mangalam Birla resigned as chairman of Vodafone Idea (Vi) on August 4.
    Addressing the media after the Cabinet assembly, Telecom Minister Ashwini Vaishnaw mentioned that 9 structural reforms of the harassed sector had been authorized within the assembly. These are geared toward fostering wholesome competitors within the sector to offer option to prospects and pave the best way for the entry of recent gamers.
    We check out all the important thing aid measures introduced in as we speak’s briefing:
    1. Four-year moratorium on cost of statutory dues by telcos
    The Cabinet authorized a four-year moratorium on cost of the spectrum dues of telecom service suppliers (TSPs). However, these TSPs choosing the moratorium will likely be required to pay curiosity on the quantity availed below the profit.
    “The telecom relief package is revenue neutral for the government,” the minister mentioned.
    2. Rationalisation of Adjusted Gross Revenue (AGR)
    The authorities has excluded non-telecom revenues from the definition of AGR prospectively. Telecom firms need to pay a pre-fixed proportion of AGR to the federal government as statutory levies however this may apply prospectively.
    “All non-telecom revenue will be removed from the AGR,” the minister mentioned whereas addressing the media.
    3. 100% FDI by way of automated route authorized
    The Cabinet allowed 100 per cent international direct funding (FDI) with safeguards within the telecom sector below the automated route.
    Till now, solely 49 per cent was allowed by way of automated route and something above that needed to essentially undergo the federal government route.
    These measures are prone to ease the money stream considerations being confronted by some telecom gamers within the business.
    4. Interest charges rationalized/ penalties eliminated
    The curiosity which is compounded month-to-month on the spectrum utilization costs (SUC) will now be compounded yearly and in addition the rate of interest will likely be lowed, based mostly on SBI’s MCLR + 2 per cent as a substitute of MCLR plus 4 per cent. Additionally, the penalty and curiosity on penalty stand eliminated.
    5. Spectrum tenure hiked to 30 years
    The future spectrum auctions will likely be performed for a interval of 30 years as a substitute of the present 20 years. Apart from this, a telco will likely be allowed to give up its spectrum after finishing a 10-year lock-in interval from the date of buy.
    6. Spectrum sharing made free
    Spectrum sharing is being inspired and the extra SUC of 0.5 per cent for spectrum sharing is eliminated.
    7. Fixed calendar for spectrum public sale
    Spectrum auctions will likely be usually held within the final quarter of each monetary yr.
    8. KYC reforms
    App-based self-KYC will likely be permitted and the e-KYC charge revised to solely Re 1. Switching from pay as you go to postpaid and vice-versa is not going to require a recent KYC.
    9. Customer Acquisition Forms to be saved digitally
    Paper Customer Acquisition Forms (CAF) will likely be changed by digital storage of knowledge. Nearly 300-400 crore paper CAFs mendacity in numerous warehouses of TSPs is not going to be required. Warehouse audit of CAF is not going to be required.

  • Viability of telecom sector: Govt prone to push for flooring worth

    TO ENSURE sectoral viability, the federal government is prone to push for a flooring worth for companies offered by telecom firms and in addition contemplate different choices similar to curiosity free moratorium on spectrum funds and encashment of financial institution ensures.
    Officials within the Department of Telecommunications (DoT) stated a flooring worth, which can even be set informally, will act like a help mechanism akin to the FRP (honest and remunerative worth) for the sugarcane business. “The floor price could be hiked by up to Rs 30 per user,” the official stated.
    The DoT and the Finance Ministry are stated to have the same opinion on the ground worth proposal, however they might want to carry the telecom regulator on board. The Telecom Regulatory Authority of India (Trai) has up to now not entertained the thought of a flooring worth for telecom companies.
    Officials stated the proposal to permit moratorium on spectrum funds and encashment of ensures are, nevertheless, being opposed inside sections of the federal government.
    Spectrum utilization prices for telecom firms are vital — in 2020-21, the DoT obtained Rs 5,205 crore and a further Rs 2,500 crore following the Supreme Court judgement on Adjusted Gross Revenues. Bharti Airtel and Vodafone India (Vi) present financial institution ensures of about Rs 6,000 crore a yr to the DoT.
    The DoT has, in discussions with the Finance Ministry and different departments, proposed that loss-making Vi be allowed to transform its debt to fairness, senior authorities officers stated. Banks are stated to be on board with the plan, they stated.

    “Even if we allow a moratorium on spectrum payments, or say the company’s (Vi’s) debt is converted into equity, the fact remains that its net worth is negative. The company needs liquid cash to run operations and survive. This is possible only when it generates money from users,” the official stated.
    Vi had a mean income per consumer (ARPU) of Rs 107, which is considerably decrease than Bharti Airtel’s Rs 145 and Reliance Jio Infocomm’s Rs 138 as of March 2021. The firm has misplaced practically 13 crore prospects over the past three years. At the tip of March 2021, Vi had roughly 27 crore prospects. Reliance Jio and Bharti Airtel have 43.1 crore and 34.8 crore prospects, respectively, as on May 31 this yr.

    ExplainedFloor worth, why and why notA flooring worth basically prevents firms from undercutting one another throughout varied companies. While the federal government might contemplate it as a method to make sure viability of the sector, the regulator sees it by means of a unique lens — of whether or not such synthetic props inhibit competitors.

    On the chance of changing Vi’s debt into fairness, a DoT official stated, “No options are off the table right now. There will not be much hit for the customers (even if Vi were to close down) as they can easily shift (to other networks). The government’s dues are at stake. We are looking at what best we can do to take care of all stakeholders,” a senior DoT official stated.
    The complete dues owed by Vi simply to the DoT are in extra of Rs 1.5 lakh crore — Rs 58,000 crore in adjusted gross revenues and Rs 96,000 crore in deferred spectrum funds. The firm individually owes Rs 23,000 crore to banks and different lenders.
    Several telecom analysts are of the view the federal government has no choice however to “save the company if it wants to ever recover its dues”.
    “They can not just let the company slip to insolvency because of the huge dues. Ideally, they should have been more vigilant about it, but with the Supreme Court judgment coming in 2019 when the sector’s health was already poor, not much could have been done,” an analyst stated.
    The discussions for aid to the telecom sector have gained tempo after Kumar Mangalam Birla, former non-executive Chairman and Director of Vodafone Idea (Vi), wrote to the Central authorities in June providing to “hand over” his 27 per cent stake within the firm to any public sector, authorities, or home monetary entity or to some other agency that the federal government might imagine match, to maintain Vi going.
    The June letter, nevertheless, was not the primary time Birla had raised the request for a bundle from the federal government. In December 2019, he had, following the Supreme Court’s AGR judgment, stated Vodafone Idea must “shut shop” if no aid was forthcoming from the federal government.
    In a bid to stay aggressive, telecom gamers have progressively undercut one another by slashing tariffs. The tariff wars intensified since 2016, after the entry of Reliance Jio Infocomm in to the telecom market, which first eliminated knowledge prices after which turned voice calls free.

    After a bruising three years, it was solely in December 2019 that the foremost telecom gamers, Vi, Bharti Airtel and Reliance Jio, raised tariffs concurrently with out days of one another. There have, nevertheless, not been any main tariff hikes by the telcos since then.
    For some time, Vi has been unsuccessfully making an attempt to boost funds of as much as Rs 25,000 crore or usher in a strategic companion. In his June 7 letter, Birla made a point out of the corporate’s efforts to boost funds and stated all non-Chinese traders they’d talked to up to now had requested to be assured that the Indian authorities needed to “have a three-player telecom market”.

  • US hails India’s determination to not permit Chinese firms to conduct 5G trials

    Top US lawmakers have applauded India’s determination to not permit Chinese telecom firms to conduct 5G trials within the nation.
    The Department of Telecom in India on Tuesday had accredited purposes of telecom firms Reliance Jio, Bharti Airtel, Vodafone Idea and MTNL to conduct 5G trials however none of them could be utilizing applied sciences of Chinese entities.
    “India’s decision to exclude Huawei and ZTE from its 5G trials is good news for the people of India and the world,” House Foreign Affairs Committee Lead Republican and China Task Force Chairman Michael McCaul stated in an announcement on Wednesday.

    “People’s Republic of China law requires any Chinese company, including Huawei and ZTE, to work for the Chinese Communist Party if asked,” McCaul stated.
    The earlier Trump administration had designated Chinese tech firms as posing a nationwide safety threat.

    The US can be asking its buddies and allies to not go for a know-how that’s managed by the Communist Party of China.
    “It’s a risk that can’t be mitigated unless these companies are excluded from our networks, and I’m glad that India has recognized this threat. India has once again proven why it is a global leader in the fight against security threats posed by CCP-controlled technology,” McCaul stated.
    Congressman Mike Waltz additionally thanked India for its determination.
    “Thank you to India for denying the inclusion of CCP-run Huawei in their telecommunications,” he stated.
    “As the world’s largest democracy, India will be a critical ally in confronting China and securing our supply chains,” Waltz stated.

  • Chinese corporations saved out of 5G trials, China expresses concern

    CHINA HAS expressed “concern and regret” on the Indian authorities’s resolution to maintain Chinese telecom corporations reminiscent of Huawei out of the 5G trials.
    On Wednesday, a Chinese embassy spokesperson mentioned, “We noted relevant notification, and express concern and regret that Chinese telecommunications companies have not been permitted to conduct 5G trials with Indian Telecom Service Providers in India.”
    “Relevant Chinese companies have been operating in India for years, providing mass job opportunities and making contribution to India’s infrastructure construction in telecommunications. To exclude Chinese telecommunications companies from the trials will not only harm their legitimate rights and interests, but also hinder the improvement of the Indian business environment, which is not conducive to the innovation and development of related Indian industries.”
    “The Chinese side hopes that India could do more to enhance mutual trust and cooperation between the two countries, and provide an open, fair, just, and non-discriminatory investment and business environment for market entities from all countries, including China, to operate and invest in India,” the spokesperson mentioned in a press release.

    The Department of Telecommunications on Tuesday allowed three personal telcos, Bharti Airtel, Reliance Jio Infocomm and Vi (previously Vodafone Idea) in addition to state-run Mahanagar Telephone Nigam Limited (MTNL) to begin 5G trials within the nation. The preliminary length of the trial will likely be six months, which incorporates two months for procurement and establishing of kit.
    The two main Chinese telecom tools and know-how distributors, Huawei and ZTE, have been absent from the associate listing of the three personal telcos and MTNL. While there isn’t any official bar on the deployment of kit and know-how from these two distributors, they’ve successfully been neglected of the trials as no telcos requested permission to make use of their tools.

    Though Huawei is the world’s largest maker of telecom tools and the second-largest maker of cell phone elements, the corporate’s alleged relationship with the Chinese Communist Party and China’s navy equipment landed it in hassle greater than as soon as and ultimately led to a ban on utilization in a number of international locations such because the US and UK.
    In December 2019, Telecom Minister Ravi Shankar Prasad had mentioned all firms, together with Huawei and ZTE, could be permitted to take part within the trials for 5G providers. A border skirmish in June 2020, which left over 20 Indian troopers lifeless, nonetheless, solid shadow on the 2 firms’ means to take part in any telecom tenders.

  • DoT approves telcos’ functions for 5G trials; no Chinese tech for trials

    The Department of Telecommunications (DoT) Tuesday allowed the three non-public telcos, Bharti Airtel, Reliance Jio Infocomm and Vi (previously Vodafone Idea) in addition to state-run telco Mahanagar Telephone Nigam Limited (MTNL) to begin 5G trials within the nation. The preliminary length of the trial can be 6 months, which incorporates 2 months for procurement and establishing of kit.
    “The trials are important because they reduce the time gap between 5G spectrum auction and roll out. On earlier occasions, trials happened after auctions. Now we are gaining time,” DoT Secretary Anshu Prakash advised The Indian Express. The significance of 5G, Prakash mentioned, is usually within the utility of expertise and the federal government would need it to be put to make use of in telemedicine, schooling, agriculture, and public security, amongst others.
    For the trials this time, the telecom service suppliers (TSPs) must conduct assessments within the rural and semi-urban settings along with their typical city settings, the DoT mentioned, in order that check circumstances could be developed and examined for all customers. 5G or fifth era is the newest improve within the long-term evolution cellular broadband networks. 5G primarily works in 3 bands, particularly low, mid and high-frequency spectrum — all of which have their makes use of and limitations.
    During the trial section over the following 6 months, the 4 telcos will get frequencies for testing within the 3.2 GHz to three.67 GHz or the millimetre wave band and 24.25 GHz to twenty-eight.5 GHz band, amongst others. Apart from this, telcos may even be allowed to make use of their present spectrum within the 800 MHz, 900 MHz, 1800 MHz and 2500 MHz band frequencies for the trials.
    “Trials will be on a non-commercial basis. The data generated during the trials shall be stored in India. TSPs are also expected to facilitate the testing of the indigenously developed use cases and equipment as part of the trials,” the DoT mentioned, urging the telcos to additionally conduct trials utilizing 5Gi tech.

    Of the 4 telcos which were given the go-ahead to conduct the trials, the non-public telcos, Bharti Airtel, Jio and Vi, have tied up with Ericsson, Nokia, and Samsung, respectively. State-run MTNL alternatively has partnered the Centre for Development of Telematics for unique tools and expertise for use in 5G trials, the DoT mentioned. “TSPs have a chance to choose vendors, their technology, and equipment by the conduct of trials. 5Gi, which has been advocated by India is also likely to be tested,” Prakash mentioned.
    The two main Chinese telecom tools and expertise distributors, Huawei and ZTE are conspicuous by their absence from the companion checklist of the three non-public telcos or the state-run telco MTNL. While there is no such thing as a official bar on the deployment of kit and expertise from these two distributors, they’ve successfully been omitted of the trials as no telcos requested permission to make use of their tools. “We can only give permissions based on what the telco asked. No telcos asked to use their (Huawei and ZTE) equipment,” a senior DoT official mentioned.

    Though Huawei is the world’s largest maker of telecom tools and the second-largest maker of cell phone components, the corporate’s alleged relationship with the Chinese Communist Party and China’s army equipment had landed it in bother greater than as soon as and finally led to a ban on utilization in a number of international locations such because the US and the UK. In India, Telecom Minister Ravi Shankar Prasad had in December 2019 mentioned all firms, together with Huawei and ZTE, can be permitted to take part within the trials for 5G companies. A border skirmish in April 2020, which left over 20 Indian troopers useless, nonetheless, solid shadows on the 2 firms’ means to take part in any telecom tenders.

  • Jio inks take care of Airtel to purchase some 800 MHz spectrum for Rs 1,497 cr

    Reliance Jio Infocomm on Tuesday mentioned it had entered right into a definitive settlement with its market rival Bharti Airtel to accumulate some spectrum within the 800 MHz band within the Andhra Pradesh, Delhi, and Mumbai for an combination worth of Rs 1,497 crore.
    The spectrum buying and selling settlement, which is the primary such deal between the main telcos, will assist Reliance Jio develop its footprint in these three circles and increase its community capability in these areas.
    “The trading agreement is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications and is subject to the requisite regulatory and statutory approvals,” Reliance Jio mentioned in a press release.
    Of the entire worth of the deal, Bharti Airtel will obtain Rs 1,037.6 crore from Reliance Jio for the proposed switch, whereas Reliance Jio will assume future liabilities of Bharti Airtel, associated to the spectrum, price Rs 459 crore.
    “The sale of the 800 MHz blocks in these three circles has enabled us to unlock value from the spectrum that was un-utilised. This is aligned to our overall network strategy,” mentioned Gopal Vittal, Bharti Airtel’s managing director and chief govt officer for India and South Asia.

  • Bharti Airtel sells 800 MHz spectrum in three circles to Reliance Jio for Rs 1,037.6 crore

    Bharti Airtel and Reliance Jio signed an settlement on Tuesday whereby the previous will switch spectrum in 800 MHz band in Andhra Pradesh, Delhi and Mumbai circles to Jio for Rs 1037.6 crore, in line with the statements by the 2 telecom firms.
    Through this settlement, Bharti Airtel will obtain a consideration of Rs 1037.6 crores from Reliance Jio for the proposed switch. In addition, Jio will assume future liabilities of Rs 459 crores regarding the spectrum, an announcement by Bharti Airtel stated.
    The spectrum switch contains 800 MHz band in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz).

    The buying and selling settlement is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications (DoT) and is topic to the requisite regulatory and statutory approvals, an announcement from Reliance Industries stated.
    “The sale of the 800 MHz blocks in these three circles has enabled us to unlock value from spectrum that was unutilised. This is aligned to our overall network strategy,” Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel stated within the firm assertion.

    The combination worth for the best to make use of this spectrum is Rs 1,497 crore, inclusive of the current worth of related deferred fee legal responsibility of Rs 459 crore, topic to any transaction-related changes.
    With this buying and selling of proper to make use of spectrum, Jio can have 2X15MHz of spectrum within the 800MHz band in Mumbai circle and 2X10MHz of spectrum within the 800MHz band in Andhra Pradesh and Delhi circles, thereby additional consolidating its spectrum footprint in these circles, the Mukesh Ambani-led telco stated.

  • Spectrum sale: Higher than DoT estimate, however 20% of base worth

    The authorities mopped up a further Rs 668 crore on day two of the spectrum public sale for 4G, bringing the full to Rs 77,814 crore, Telecom Secretary Anshu Prakash stated on Tuesday.
    Though the full quantity — at greater than Rs 77,800 — is way increased than the federal government expectations of Rs 45,000-Rs 50,000 crore, it is just about 20 per cent of the bottom worth of Rs 3.97 lakh crore that was set by the Department of Telecommunications (DoT) for the spectrum public sale. Of the full 2,308 megahertz (MHz) spectrum that was up for grabs, the DoT managed to promote 855.60 MHz spectrum during the last two days.
    Mukesh Ambani-owned Reliance Jio Infocomm emerged as the very best bidder within the 4G auctions concluded on Tuesday, having bid for 488.35 MHz of the full 855.60 MHz spectrum that was offered over the 2 days.
    Its rival Bharti Airtel was not far behind and acquired a complete of 335.45 MHz of the full accessible spectrum offered over the 2 days.
    On the opposite hand, Vodafone Idea — which had a gross debt of roughly Rs 1.18 lakh crore as of June 2020 — purchased solely 11.8 MHz spectrum, Prakash stated.
    As anticipated, there have been two extra rounds of bidding on Tuesday, along with the 4 that had been carried out on Monday. There had been no bids for the 700 MHz and the two,500 MHz bands even on day two, he added.
    Among the telcos, Reliance Jio spent Rs 57,122.65 crore and Bharti Airtel purchased Rs 18,698.75 crore, whereas Vi spent Rs 1,993.40 crore to purchase spectrum.
    All the spectrum auctioned off over the 2 days was offered on base worth, with the utmost bidding seen within the 800 MHz frequency band. Of the full 230 MHz spectrum accessible within the 800 MHz band, about 150 MHz or 65 per cent was offered.
    On Tuesday, the DoT additionally revised its estimates of upfront cost receipts for this monetary yr. The Department now expects cost of as much as Rs 20,000 crore from the three telecom operators by March 31.
    Prakash stated an interministerial committee of the telecom ministry and the Finance Ministry will meet over the subsequent 10 days and provides its remaining approval for the auctions carried out during the last two days.
    “Most of the operators have consolidated their positions in the existing spectrum bands in which they were operating and taken spectrum in the bands,” he added.

    For the auctions this time, the federal government has placed on provide frequencies within the 700, 800, 900, 1,800, 2,100, 2,300, and a pair of,500 MHz bands. A complete 2,251 MHz of spectrum for a reserve worth of Rs 3.92 lakh crore are up for bids.
    On Monday, the Centre had obtained bids within the 800,900, 1,800, 2,100 and a pair of,300 MHz bands, whereas no bids had been obtained within the 700 MHz and a pair of,500 MHz bands. Government officers, nevertheless, stated that the worth of excessive base worth 700 MHz band and the truth that it may also be utilized in 5G companies could possibly be one of many causes the spectrum in that band remained unsold.
     
     

  • Elon Musk’s Starlink satellite tv for pc web service anticipated in India in 2022

    Billionaire Elon Musk-led SpaceX goals to launch its satellite tv for pc web service, Starlink, in India a while in 2022. The aerospace firm’s web site has listed a number of Indian places the place the providers will probably be accessible on a first- come-first-serve foundation. The choice to pre-book Starlink providers is on the market to Indian customers on the web site at a refundable quantity of $99 (round ₹7,265). Starlink is a set of small web satellites that orbit nearer to the earth’s floor (at an altitude of 550km) in comparison with massive navigation and communication satellites which function from medium earth orbit of two,000 km to 35,000 km or the satellites in geosynchronous orbit, which function from past 35,000 km. Due to their nearer proximity to earth’s floor Starlink and different comparable satellites honest higher when it comes to latency and interference, leading to higher web providers. According to stories, present satellite tv for pc broadband providers have median latencies of 594 to 612ms. SpaceX claims Starlink will scale back latency down to twenty to 40ms. The beta testing of Starkink’s web providers has already began in US with assured knowledge speeds of as much as 150Mbps. To entry the providers, customers require the Starlink equipment, which features a consumer terminal, router and mounting tripod to connect with satellites. SpaceX claims that knowledge pace, latency and uptime will enhance additional with the launch of extra satellites, set up of extra floor stations and upgrading of networking software program. The firm plans to launch 12,000 Starlink satellites and has already positioned over 1,000 of them in house. Satellite web has numerous potential in India as it will probably transcend geographical limitations and allow entry to web providers in remotest of areas the place offering protection by way of on-ground cellular tower is troublesome. According to World Economic Forum (WEF), as of August 2020, 50% of individuals in India don’t have web entry. In comparability, solely 14% of the inhabitants in US are disconnected from web. However, India has additionally been one of many quickest rising markets when it comes to new adoption with variety of web customers rising by 23% between 2019 and 2020, as per WEF. SpaceX isn’t the one satellite tv for pc web supplier that’s eying India market. Hughes India, a subsidiary of Hughes Network Systems, lately tied up with Indian Space Research Organisation (ISRO) to supply web providers to five,000 distant villages in Eastern Ladakh, Arunachal Pradesh, Mizoram, Tripura and Manipur. The firm will use Indian house company’s communications satellites, GSAT-19 and GSAT-11. Bharti Airtel can be planning to launch a excessive pace satellite tv for pc web service by 2022 utilizing OneWeb’s LEO constellation of web satellites. The telco is in talks with ISRO to construct price efficient entry terminals. Subscribe to Mint Newsletters * Enter a sound electronic mail * Thank you for subscribing to our e-newsletter.