Telecom (Service Providers)

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44. 8 Million Telephone Subscribers Added In April

2 June, 2008

 

As many as 8 million telephone connections, including both wireline and wireless, were added in April this year against 10.4 million in March, taking the total number of subscriptions to 308.51 million.

 

According to the data released by the telecom regulator TRAI, the total number of telephone connections reached 308.51 million at April-end compared to 300.51 million in March.

 

India surpassed the US to to have the world's second largest wireless network in the world after China with the addition of 10.16 million wireless subscribers at March-end.

 

The total number of wireless subscribers, including GSM, CDMA & WLL(F) base, witnessed an addition of 8.21 million subscribers with the total bases standing at 269.30 million at the end of April, Trai said .

 

A total of 10.16 million wireless subscribers was added in March.

 

The overall tele-density is 26.89 per cent at the end of April 2008 against 26.22 per cent in March.

 

In the wireline segment, the subscriber base has slightly decreased to 39.21 million in April against 39.42 million subscribers in March.
 

The total broadband subscribers base has reached 4.01 million by the end of April compared to 3.90 million by the end of March.

 

 

 

45. GSM Subscriber Base Climbs To 205 Million

12 June, 2008

 

With an addition of 6.27 million subscribers in the month of May, the total GSM subscriber base climbed up to 205 million users. However, there was a decline in the total number of subscribers added in comparison to April, with a decline of 177,000. Bharti Airtel Ltd, the country's largest mobile service provider leads the pack with the highest number of additions of 2.4 million subscribers, taking the company's subscriber base up-to 66.8 million. With these figures the company has a market share of 32.52%. Vodafone Essar with a market share of 23.10% added 1.68 million subscribers to its kitty, with which the company's user base increased to 47.4 million at the end of May. However, BPL mobile and Spice Communication were the only GSM players, who despite an absolute hike in the total number of additions, experienced a decline in the number of subscribers added in comparison to the previous month.

 

BPL mobile, which currently operates only in Mumbai, added 17,000 mobile subscribers in May, almost 1,500 less than what it added in April. With this, BPL mobile's subscriber base has increased to 1.33 million. Spice Communication, which has once again been in talks with Idea Cellular for a possible merger for the past one week, added 134,000 subscribers for the month. This is approximately 2,000 subscribers less than the company's addition for the month of April. BK Modi, chairman, Idea Cellular has been in talks with Idea Cellular for selling his stake of 40.8% in the company. Spice currently operates in two circles of Karnataka and Punjab, and has been allotted a license for operations in four more circles. The AV Birla Group company Idea Cellular, which has a 12.72% of the market, added 1.1 million customers, 62,000 more than what the company added in April. The total subscriber base of the company went up to 26 million at the month-end. The third largest GSM telco, state-run BSNL, added over 314,000 subscribers for the month, taking its total user base count up to over 36 million in May.  

 

 

 

46. Airtel Launches Kannada Mobile Services To Tap Rural Market

4 June, 2008

 

In a unique venture that will help tap the potential among the 2.2-million farmers associated with cooperative societies, Bharti Airtel on Tuesday announced the launch of its joint marketing campaign in association with Indian Farmers Fertiliser Cooperative Ltd (IFFCO) to popularise mobile telephone service in the rural areas of Karnataka.

 

Airtel has partnered with Nokia to come up with two handsets that would have the menu and SMS facilities in Kannada to promote the scheme. The Nokia monochrome 1200 model would be available at Rs 1,272, while the Nokia 1208 colour handset would be available at Rs 1,560.

 

The handsets would come along with a free Airtel mobile connection and recharge of Rs 295, lifetime validity and local calling rates at Re 1 a minute and STD charges at Rs 1.50 a minute, he said. Addressing a joint press conference here on Tuesday, Mr Venkatesh V., CEO, Mobile Services, Bharti Airtel Ltd, Karnataka, and Mr Govindarajan, Head South India, said that IKSL will harness the power of telecommunication to add value to the farm sector.

 

The Kannada mobile service will also give free of cost vital information such as mandi prices, farming techniques, weather forecasts, dairy farming and fertiliser availability through the value added service platform. The strategic alliance will enable Airtel to install its cell sites in locations provided by IFFCO with its outlets serving as service facility for distributing SIM cards and recharge cards. Mr Govindarajan said with farmers being stakeholders in IFFCO, which has 2,500 societies in Karnataka, the Grameena Mobile Kranthi campaign will get a phenomenal boost in achieving telecom penetration in the rural areas.  

 

 

 

47. Idea Buys Spice For Rs 2,176 Crore

26 June, 2008

 

In one of the biggest deals in the Indian telecom sector, Aditya Birla group’s Idea Cellular on Wednesday said it would acquire BK Modi’s Spice Communications to strengthen its position in the growing telecom market. The deal consists of four related, but distinct transactions.

 

To begin with, Idea will acquire the Modis’ 40.8% stake in Spice. Subsequently, Idea will launch the mandatory 20% open offer for the Spice shareholders, jointly with Telekom Malaysia International (TMI).
Idea will merge Spice with itself and offer a 14.99% stake to TMI through a preferential allotment. Idea will earn Rs 7,294 crore ($1.7 billion, assuming an exchange rate of Rs 43) by selling this stake to TMI. This would make it one of the largest infusions of FDI into India.
Idea has agreed to buy the Modis’ 28.14 crore shares for Rs 77.30 each, totalling Rs 2,176 crore. In addition, it will shell out Rs 544 crore, or over Rs 19 a share, to the Modis as a non-compete fee. This is under the 25% limit (with reference to the open offer price to non-promoter investors) prescribed by Sebi for any such payment.
The 14.99% preferential allotment to TMI will ensure that Idea, despite being the purchaser, ends up as a net gainer in the transaction. The net income for Idea, after making payment to the Modis, will be Rs 4,574 crore.
The Idea-TM combine will launch the open offer at Rs 77.30 jointly with TMI, which now holds 39.2%in Spice. At this stage it is not clear who will pick up how much. Idea will earn Rs 7,294 crore by selling 46.47 crore preferential shares to TMI for Rs 156.96 apiece.
According to the merger formula, Spice shareholders will get 49 Idea shares for every 100 shares they held. The payment to the Modis is being funded through internal accruals. After completion of the deal, which is expected to be done in next six months, Idea’s equity base will be expanded due to issue of fresh shares to TMI, and also because of the share swap.
On Wednesday, Idea scrip closed at Rs 102.05, up 2.9% while Spice scrip touched an all-time high of Rs 73.40, before closing at Rs 72.35, a 33% gain over the previous day’s close.
ET first reported on June 10 that Spice shares will be acquired by Idea at between Rs 77 and Rs 78 per share. On June 12, we reported that TMI will buy just under 15% stake in Idea through preferential offer and will hold around 20% in the merged entity. “Spice will be delisted and TMI’s holding in the new Idea (post-merger) will be a maximum of 20% (depending on the response to the open offer) and one non-executive board seat,” AV Birla group chairman Kumar Mangalam Birla told ET.

 

The Spice

 

How does the deal change the telecom landscape? India will now have 11 telecom operators instead of 12 & the pecking order will change. Idea set to become the fifth-largest operator with over 31 million users. It is now just 5 million subscribers away from BSNL.

 

What does it mean for Idea cellular? AV Birla Group co gets a foothold in Punjab and Karnataka, 4.4 million subscribers, a strategic investor in Telekom Malaysia and a net income of Rs 4,500 crore. Idea turns a debt-free company.

 

What have Modis and Spice shareholders gained? Modis made a cool Rs 2,720 crore by selling stake in the loss-making venture. This includes a non-compete fee of Rs 544 crore. Spice shareholders get 49 shares in Idea for every 100 shares held.

 

How does Telekom Malaysia International benefit? It becomes a strategic investor in the 5th-largest operator in India. TM has 44 m users across 10 countries; Idea adds 31m to that. TM will have one member on the new Idea board.  

 

 

 

48. Vodafone Launches New Service In Kerala

12 June, 2008

 

Vodafone Essar has launched a new Missed Call Information Service (MCIS) in Kerala. Subscribers of MCIS will receive a personalised SMS from the number of the person whose call was missed. Vodafone Essar is one of India's leading cellular service providers. 

 

 

 

49. BSNL’s “Phone Back-Up” service

12 June, 2008

 

The Bharat Sanchar Nigam Limited (BSNL) will launch a new value added service, called “Phone Back-Up”, for its mobile subscribers with effect from June 12.

 

Subscribers can copy their mobile phone data in a secured manner under the new system as a back-up.

 

The new service enables the customer to restore data stored in the mobile phone in the event of theft, loss, damage and phone upgrades.

 

Monthly subscription

 

The customer will have to pay Rs.30 as monthly subscription to avail the service. General Packet Radio Service (GPRS) subscribers can register for this service online at http://pb.bsnl.onmobile.com/bsnlwap. Non-GPRS subscribers can register by sending SMS “SUB” to 58989 free of cost, a BSNL press release said.

 

 

 

50. Airtel Launches Services In Lakshadweep

22 May, 2008

 

Airtel has launched mobile services in the Lakshadweep Islands, thereby becoming the first private mobile service operator to start functioning in the islands.

The formal inauguration of Lakshadweep Service was done by the Administrator of Lakshadweep, Mr B.V. Selvaraj, by switching on the first tower at Kavaratti on Tuesday. The first call was made by Mr Selvaraj to Mr Sanjay Kapoor, President (Mobile Services), Bharti Airtel Ltd.

 

Initially, Airtel will provide both prepaid and post-paid services in three Islands of Kavaratti, Agatti and Bangaram.

 

Sets up 2 towers

 

The company has set up two towers in Kavaratti and one each in Agatti and Bangaram.

 

Mr Vikas Singh, Chief Operating Officer, Bharti Airtel Ltd (Mobile Services), Kerala Circle, said “We are delighted at providing mobile services in the Lakshadweep Islands. Bharti has been at the forefront of the telecom growth story in India, which is one of the fastest growing mobile markets in the world. We are committed to providing world-class telecom services to our customers in Lakshadweep.”

 

The launch of Airtel’s services include: customer care services available on 121; uniform tariffs for local (Re 1/minute), STD (Rs 1.50/minute) calls as in all the 23 Airtel circles on home & roaming Airtel networks; and anytime, anywhere recharge with Airtel Easy Charge available at over 50 retail outlets across Lakshadweep.  

 

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