From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address effective May 25, 2007 : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: II

May 25, 2007

Telecom (Service Providers)

Share Prices

NSE share prices as on May 15, 2007

 

Sales and Market Share

 

Source: Voicendata

 

 

224. Riding On India, Hutch Posts Profit – May 09

Hutch posts profits and aims to perform well in India

Hutchison Telecommunications International Ltd, earned a net profit of $28.14 million in Q1’07 (January-March), due to the growth of subscriber base in India and Israel. Its subscriber numbers in India increased by more than 72% to 26.44 million in the quarter.

 

Source: The Times Of India

 

225. RCom To Invest Rs 10,000 Cr In 2007- 08 –  April 30

Reliance Communications net profit increases by 612%

For the fiscal 2007, Reliance Communications registered a 612% hike in net profit at Rs 3,163 crores while revenues went up by 34% at Rs 14,468 crores. The company has announced capital expenditure of Rs.10,000 crores in 2007– 08.

 

Source: The Economic Times

 

226. Bharti Airtel Net Up 98% At Rs 1,353 Cr –  April 27

Net Profit for Q4 of Bharti Airtel rises by 98%

Bharti Airtel, India's leading private sector telecom services provider, has reported an increase of 98%t net profit at Rs 1,353 crore for the fourth quarter ended March 31. The company Bharti Airtel added the highest ever net addition of 53 lakh customers in a single quarter.

 

Source: The Economic Times

 

227. Idea Cellular Net Profit At Rs 503.26 Cr –  April 26

Net Profit for Idea Celluar for 2007 is Rs 503. 26 Cr

Idea Cellular, an Aditya Birla group company, after getting listed for the first time on the exchanges has reported a profit a Rs 503.26 Cr for the year ended March 31, 2007,  an increase of 134.6% compared to Rs 211.77 crores in 2006.

 

Source: Financial Express

 

228. Highest Ever Subscriber Addition In The Financial Year – April 23         

Telephone services continue to grow in 2007

 

The subscriber base for telephony services continues its growth during March 2007, with 3.93 million subscribers being added during the month. A total of 66.51 millions subscribers have been added during the FY 2006-’07, compared to 41.91 millions in 2005-‘06, registering an increase of 58% in annual growth. This is highest ever increase in subscribers base during a financial year, after the opening up of the telecom sector for competition.

 

Source: India Telecom News

 

  

229. Booth Capturing: Fewer PCOs Taking PSU Telco Calls – April 20

Private players enjoy 56% market share of PCO market

The monopoly that the government telecom players enjoyed in the PCO’s has been reduced by the entry of private players in the category. Private players have managed to capture 56% of market share of the Rs 7,000-crore PCO market. According to a survey conducted by the telecom regulator TRAI, Bharat Sanchar Nigam Limited (BSNL) has seen a reduction of 10,518 PCOs during the quarter ended December 31, 2006. However, the number for Mahanagar Telephone Nigam Limited (MTNL) was 1,543. Private operators Tata TeleServices (TTSL) added 81,239 and Reliance Communications added 1, 20,855 PCOs during the period.

 

Source: The Economic Times

 

230. GSM Cos Outtalk CDMA Players In ARPU Game – April 18

GSM operators ahead of CDMA counterparts

In terms of cellular usage and average revenue per user (ARPU), Global System for Mobile Communications (GSM) operators are ahead of the Code Division Multiple Access (CDMA) players, according to the TRAI’s performance indicator report for the quarter ended December 2006. The ARPU for GSM operators is 61% higher at Rs 316 per month, compared to Rs 196 for the CDMA players. While an average GSM subscriber uses the phone for 454 minutes and sends 48 SMSs a months, a CDMA subscriber uses phone for 424 minutes and sends only 19 SMSs.

 

Source: The Economic Times

 

 

231. TRAI Releases Quarterly Performance Indicators Of Telecom Services For The Quarter Ending Dec 2006 – April 17

Quarterly performance indicator of telecom services released by TRAI

According to the quarterly results released by TRAI for the quarter ending December 2006, by adding 20.08 million subscribers, the wireless market grew by15.5%. The internet subscriber base reached 85.47 lakh by registering a growth of 5.9%, while the broadband subscriber base reached 20.19 lakh by registering a growth of 11.12%.

 

Source: Telecom Regulatory Authority of India

 

Trends, Marketing Initiatives and Others

232. Vodafone Ready To Start India Operations –  May 09

Vodafone to start operations in India

According to the company, after completing the acquisition of the controlling stake in Hutchisson- Essar Ltd by paying $10.9 billion, Vodafone is ready to start its operations in India. Hutch- Essar will also become Vodafone-Essar over a period of time.

 

Source: Express India

 

 

233. Telecom Majors' Growth Doubles In Two Years – May 08

Revenues of top six Indian telecom players witness growth

The total revenues and net profit of the top six Indian telecom players (Bharti Airtel, Reliance Communications, BSNL, Hutchison Essar, MTNL and Idea Cellular), more than doubled during the last two years. This growth is attributable to the increasing demand for mobile phones, a fall in the handset prices, favourable revenue-sharing regime and drastic reduction in technology costs, besides infrastructure sharing and outsourcing.

 

Source: Agency Faqs

 

 

234. Reliance Communications: Wider Access Points – May 06

Reliance Communication plans to launch news services

Reliance is contemplating an aggressive expansion plan by investing into network infrastructure and pricing plans. The company launched a handset priced at Rs 777 only. With the expansion of network infrastructure, it is planning to launch an array of services such as 2G, 2.5G, 3G and even 4G. However, the launch of 3G and 4G services (the third and fourth generation of mobile telephony, which enables high-speed data transfer) will depend on the allocation of additional spectrum by the government.

 

Source: Business Standard

 

 

235. DoT Bars Pvt Operators From Carrying Intra-circle Calls – May 03

Private players barred from carrying intra-circle calls

The Department of Telecom (DoT) has barred private national long distance operators from carrying intra-circle telephone calls meant for the government-owned BSNL's subscribers. The DoT has said that BSNL can continue to exercise monopoly and recover charges from private access providers for carrying the calls within a circle.

 

Source: The Hindu Business Line

 

 

236. VSNL Ties Up With Starhub For International Roaming – May 01

VSNL and Starhub partner for international roaming

Along with Singapore-based company StarHub, Videsh Sanchar Nigam Ltd (VSNL) has launched international wireless broadband (Wi-Fi) roaming services. The company is tapping the international high-value business travellers' segment by providing roaming wireless broadband service during their stay in India. VSNL is the first Indian service provider to enter into a wireless broadband roaming alliance with an international operator.

 

Source: The Hindu Business Line

 

 

237. Hutch FDI Gets Govt Nod –  April 28

Hutch gets Govt approval for FDI

The Foreign Investment Promotion Board (FIPB) has approved Vodafone’s $11.1– billion proposal to buy a majority stake in mobile carrier Hutchison Essar. However, FIPB has put certain conditions such as the compliance with the Press Note 3 of 2007 and a 74% FDI limit. The 15% held by the Indian shareholders must remain with them and not be transferred without government approval.

 

Source: The Economic Times

 

 

238. Bharti's Towering $3.5b Expenditure To Push Growth –  April 27

Bharti to invest $3.5b for growth

Bharti Airtel, which plans to be a one-stop-shop for all communications and media needs, has announced that it would invest $3.5 billion for various growth initiatives. The company plans to set up 30,000 towers by 2008. The company is also planning to introduce IPTV and DTH services.     

 

Source: Economic Times

 

 

239. New FDI Norms Notified, Telcos Get Three Months To Fall In Line – April 20

New FDI norm for telecom sector

The government has notified the enhancement of foreign direct investment (FDI) in the telecom sector from 49 to 74%. All companies have been given three months time to comply with the revised norms.

 

Source: The Economic Times

 

 

240. TRAI Asks Cell Cos To Speed Up Verification – April 20

Telecom companies to expedite the verification process

On April 19, TRAI instructed all telecom operators to expedite the verification process of documents submitted by the subscribers, whose connections were deactivated, despite submitting the requisite document. It was reported that mobile connections of approximately 10 million subscribers were deactivated during the recently concluded verification drive. In 2006, following the concerns expressed by security agencies that terrorists and anti-social elements were misusing mobile phones; the department of telecommunication (DoT) had directed all service providers to perform 100% verification of identity proofs of all existing subscribers by March 31, 2007.

 

Source: The Economic Times

 

 

241. BSNL Broadband For 1.1 Lakh Schools – April 19

Government school children to get internet by BSNL

The state-owned telecom company BSNL is planning to provide broadband connections to 1.1 lakh schools in the country. The public sector unit is also looking at roping in the Ministry of Human Research and Development (MHRD) for the project.  The company will be offering both wireless and wired broadband connectivity, and the project will be completed in phases. In the first phase, to be completed by December 2007, it will provide connectivity to 15,000 schools in 1,500 towns. Under the second phase, it will cover 20,000 schools in rural areas. In the last phase, the remaining 65,000 schools across 5,000 blocks will be covered.

 

Source: Business Standard

 

 

242. Reliance Comm Braces For Vodafone Entry Into VAS – April 19

Reliance gears to meet competition from Vodafone in VAS 

Reliance Communications, one of the major players in the Rs 2,850-crore mobile value-added services (VAS), is preparing for competition from Vodafone, one of the world's largest telecom companies. Reliance, which offers community applications and user-generated content on its phones through Reliance World, will now focus on content sharing, collaborating and connecting, bulk online bookings and m-commerce, apart from other innovations on the mobile. Reliance Communications has also partnered with Reliance Energy to offer electricity bill payments in Mumbai.

 

Source: Financial Express

 

 

243. Tel Cos Ring Teeny-Boppers A New Tinkle For Bigtime Moolah – April 16

Number of children in 10 to 15 age-group using VAS increases

The number of teenagers using wireless services in India is increasing by the day. The mobile VAS industry, whose focus is mainly on the youth in the age group of 15 to 30 years, is witnessing a new trend. Kids in the age group of 10 to 15 years are getting hooked to mobile content downloads. According to Rajiv Hiranandani, country head, Mobile2win, “We have noticed that from past one year, the activity of downloading content has increased among kids in the age group of 10 to 15 years. The maximum content downloaded by this segment is mobile games”.

 

Source: Financial Express

 

 

244. BK Modi's Convergence To Spice Up Hot Spot –  April 16

BK Modi Group to market its ICS products retail chain under Spice banner

The BK Modi Group, which is in the mobile telephony business, markets its cellular services under the Spice brand. It has now proposed to utilise the strengths of the mother brand, i.e., Spice and market its information, communications & entertainment (ICE) products retail chain under the Spice Hot Spot banner. The objective is to bring the personality of Hot Spot mobile stores within the ambit of its existing Spice mother brand and evolve a definite congruence in their values.

 

Source: The Economic Times

 

 

245. Undeterred, Hutch Set To Float $2 Bn Expansion Tender – April 16

Hutch to expand with 35 to 40 million GSM lines

Hutchison Essar Limited (HEL) has planned to expand its operations by floating a tender for around 35 to 40 million GSM lines to increase its presence. The tender, for which Ericsson, Nokia and Motorola are expected to bid, is likely to be for nearly $2 billion. The company will launch new lines in the existing 16 circles and also work towards the proposed launch of operations in six Spacetel circles, acquired from the Essar Group last year.

 

Source: The Economic Times

 

Product Launches

 

246. Airtel Offers FM Radio Service – May 02

Airtel has introduced Airtel FM, a new service that allows its customers to turn their mobile handsets into radios. A customer can listen to music of choice from the featured list on-the-go. This comes with Rs 30 per month charge.

 

 

247. Airtel IPTV Launch By Year- End – April 24

By the end of 2007, Bharti Airtel will launch its first full– fledged IPTV applications on its broadband fixed line telecom services at Gurgaon in Haryana.

 

 

248. Get Airtel Prepaid Card With Zero Processing – April 20

India's largest private mobile service operator Bharti Airtel Ltd has launched a new set of prepaid cards waiving processing fees on April 19. Named Airtel Happy Recharge, it is available in three denominations of Rs 299, 399 and 499 with a validity of 30 days.

 

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