Category: Telecom

Ericsson exec says company believed in cutting-edge India well before the world saw its potential

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In an exclusive interview at the Mobile World Congress 2024 in Barcelona, Nunzio Mirtillo, Head of Market Area South East Asia, Oceania, and India at Ericsson, shared insights into India’s remarkable strides in 5G deployment and the burgeoning conversations surrounding 6G technology.

Addressing the question of whether India’s transition from 4G to 5G — and Ericsson’s role in it — was a calculated risk or a gamble, Mirtillo asserted that it was a natural progression driven by India’s exponential growth in mobile broadband adoption. He highlighted Ericsson’s early recognition of India’s potential and proactive efforts to capitalise on it. “It was very, very obvious to us,” he said

Mirtillo also addressed the ongoing discourse on 6G, acknowledging its premature nature juxtaposed with the nascent stage of 5G. He emphasised the relentless drive for innovation, stating, “Research never stops.” Mirtillo commended India’s swift adoption of 5G, highlighting the country’s ability to deploy a state-of-the-art infrastructure within just 15 months. With over 70 million 5G subscribers and a projected 200 million in the near future, India stands as a global leader in 5G innovation.

India’s demand for connectivity mandates cutting-edge solutions, emphasised Mirtillo. He lauded the country’s significant strides in connectivity, attributing it to India’s potential for fostering innovation and societal advancement. Mirtillo stressed Ericsson’s unwavering commitment to India’s technological growth, mentioning the establishment of a 6G research centre in Chennai and collaborations with esteemed institutions like IIT Madras and ISI.

Also read: AT&T chooses Ericsson for new US telecom network, will drop Nokia

Reflecting on India’s rapid 5G deployment, Mirtillo attributed its success to meticulous planning and execution. He underscored the importance of ensuring consistent, high-quality coverage across major cities like Delhi and Mumbai. “This focus on quality sets India’s 5G rollout apart from regions where coverage may be sporadic,” he added.

When queried about the most compelling use cases for 5G in India, Mirtillo highlighted enhanced mobile broadband and fixed wireless access as pivotal for meeting the country’s burgeoning connectivity needs. He emphasised the transformative potential of network slicing, enabling tailored services for sectors such as healthcare and journalism.

In elucidating Ericsson’s role in India’s 5G journey, Mirtillo emphasised the company’s longstanding commitment to the Indian market. “We have been the market leader in 5G, delivering more sites and more technology than everyone else,” he stated. Mirtillo attributed this success to Ericsson’s foresight and unwavering dedication to India’s technological advancement.

Looking ahead, Mirtillo emphasised the importance of continuous innovation and collaboration in India. With over 31,000 employees in India, Ericsson is deeply invested in driving technological advancements and fostering talent within the country. He expressed confidence in India’s ability to not only lead the 5G revolution but also serve as a global innovation hub.

As India continues its journey towards digital transformation, Ericsson remains steadfast in its commitment to empowering the nation with cutting-edge technology. With 5G laying the foundation for unprecedented connectivity and innovation, India stands poised to embrace the future with confidence and resilience.

Also read: Ericsson’s top exec on India’s 5G success and transition to 6G

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DoT unveils guidelines for spectrum regulatory sandbox

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Telecom, Rail and IT Minister Ashiwni Vaishnaw on Monday, March 11, unveiled the guidelines for spectrum regulatory sandbox, with an aim to support innovation by colleges, and researchers. He made the announcement while speaking at the curtain raiser for 2024’s India Mobile Congress.

Guidelines have been introduced for Spectrum Regulatory Sandbox (SRS) and Wireless Test Zones (WiTe Zones). A key feature of these guidelines are ease in seeking the DOT nod. The guidelines envision a college or a researcher making an application for available spectrum through the Saral Sanchar Portal.

While speaking at the launch, Ashiwini Vaishnaw noted that the policy was aimed at supporting innovation. The guidelines are aimed at new technology that would ensure improvement in utilisation of available spectrum.

Meanwhile, WiTe Zones will be categorised into two, allowing experimentation in unassigned and assigned spectrum bands.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Why telcos might show limited interest in the upcoming spectrum auction

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The upcoming spectrum auction, scheduled for May 20, 2024, might see muted participation from telecom majors, say experts.

They cite two key reasons for the likely low participation–one, the completion of 5G rollout by two key players, Bharti Airtel and Reliance Jio, and two, the excess of unutilised spectrum with telcos.

The government plans to auction nearly 10,000 megahertz (10 gigahertz) of spectrum worth nearly ₹96,300 crore ($11.5 billion) this May. This is spread across eight different bands with no sub-gigahertz bands like 700 or 600 megahertz.

The reserve price, which is the minimum bid amount, remains largely unchanged, except for a minor increase in some bands like 2,100 megahertz.

India’s leading telcos spent nearly ₹1.5 lakh crore at the last auction held in August 2022.

However, limited competition is expected this time with telcos only bidding in circles where their licences are expiring.

For Bharti Airtel, around 42 megahertz of spectrum will be expiring soon, while for Vodafone Idea, it’s only about 12 megahertz. For Jio, there are no licences coming up for renewal.

Also Read | Cabinet greenlights telecom spectrum auction across multiple bands at base price of Rs 96,317.65 crore

While there is no pressing need for telcos to bid for fresh spectrum, if they bid only in circles where their licenses are going to expire, then Kotak Institutional Equities expects Bharti to spend roughly ₹3,800 crore, and Vodafone Idea to spend ₹1,500 crore.

Also Read | Telecom outlook 2024: Experts weigh in on key sector drivers, Vodafone’s debt woes

Jefferies expects the demand to be limited to $0.5-2 billion, or a maximum of  ₹16,000 crore.

The absence of 700 megahertz should allay concerns about overspending by Bharti Airtel, which the brokerage firm believes could spend a little over $0.5-1.5 billion.

Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

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No hike in 5G tariff plans, says Sunil Mittal as Airtel pushes for ₹300 per user revenue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sunil Mittal, the Chairman of Bharti Enterprises, has set an ambitious target of achieving a ₹300 average revenue per user (ARPU) by the end of the fiscal year 2024-25 (FY25). Despite the prevailing scepticism surrounding potential tariff hikes in the wake of 5G deployment, Mittal remains steadfast in his vision, saying users will not pay anything extra for 5G.

Mittal reiterated the importance of the ₹300 ARPU target, which, despite inflationary pressures over the years, remains essential for funding crucial network infrastructure enhancements. “I mentioned ₹300 many years back. And a lot of inflation has taken place in the last 5-7 years where electricity prices are up, employee costs are up, almost every touchpoint is up in terms of costs. Yet, we are still talking about ₹300,” he told CNBC-TV18.

For the December-ending quarter, Bharti Airtel reported an ARPU of ₹208, for context, an improvement against ₹193 in the corresponding quarter of 2022.

Regarding the prospects of 5G deployment, Mittal stressed the limited willingness of consumers to pay extra for 5G services, particularly in the absence of substantial industrial applications. He remarked, “People are not going to pay you anything extra for 5G unless you’re going to do industrial applications.” Mittal also highlighted the potential for monetisation in industrial settings through AI and 5G integration, stating, “You can see early signs of AI and 5G combined networks running for the industries, especially industrial units.”

Mittal highlighted the necessity for a robust ARPU framework to offset the substantial investments made in spectrum and network infrastructure. He said, “There is going to be (no hike in tariff) for the millions that have been spent on the spectrum as a network and that’s why the need to have ₹300 become even more acute.”

Also Read: Mobile World Congress 2024: Tech Mahindra remains hopeful amid telecom sector downturn

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Trai seeks view on enabling virtual network operators tie-up with multiple telcos

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom regulator Trai on Friday invited views on enabling virtual network operators to tie up with more than one telecom operator to provide wireless and wireline services.

At present, a virtual network operator (VNO) is allowed to partner with only one telecom operator for providing services which need numbering and unique identity of the customers like mobile connection etc.

The Telecom Regulatory Authority of India has issued a consultation paper on “Connectivity to Access Service VNOs From More Than one NSO (network service operator)” following reference made by the Department of Telecom based on representation made by VNOs.

“The Authority is issuing this consultation paper for soliciting comments of stakeholders on the issues related to connectivity to access service VNOs from more than one NSO,” Trai said in the paper.

The VNOs have requested the DoT to allow them to take connectivity from a telecom operator for wireline services and wireless services from others.

The VNO cited that they face problems in cases where the VNO takes connectivity from a telecom operator who is providing only wireline services in that area then such a VNO has no option for providing wireless services in that area due to existing restrictions.

The VNOs have requested that their peers who intend to provide wireline services only may be required to take connectivity from more than one telecom operator because in some cases partner telecom operators may not have services in some areas where the VNO wants to provide its services.

Trai has invited comments from interested parties by March 22 and counter comments by April 5.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Telecom licence fee collection rises 8.23% to ₹5,326 cr in September 2023 quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government’s licence fee collection from telecom service providers increased 8.23% year-on-year (YoY) to ₹5,326 crore, while spectrum usage charge mop up declined about 40% to ₹836 crore in the September 2023 quarter, according to the latest Trai report.

According to the performance indicator report released by regulator Telecom Regulatory Authority of India (Trai), operators’ gross revenue (GR) declined by 1.22% to ₹82,741 crore, but adjusted gross revenue (AGR) increased by 7.43% (YoY) to ₹66,583 crore during the reported quarter.

“On a YoY basis, GR decreased by 1.22%, ApGR (applicable gross revenue) increased by 6.74%, and AGR increased by 7.43% in the quarter ended September 2023,” the report released on Friday said.

Reliance Jio recorded the highest AGR of ₹24,217.13 crore with a 9.12% YoY rise.

Bharti Airtel posted the highest AGR growth rate of 10.88% at ₹19,840.84 crore during the quarter.

The AGR of debt-ridden Vodafone Idea remained almost flat at  ₹7,507.65 crore during the reported quarter.

State-owned BSNL’s AGR grew 1.93% to ₹1,966.44 crore, while MTNL’s AGR declined 16.35% on a YoY basis to ₹168.69 crore.

The government calculates its share of the revenue from the telecom sector in the form of licence fees and spectrum usage charges (SUC).

Access service providers or mobile operators like Reliance Jio, Bharti Airtel, and Vodafone Idea accounted for 81.67% of the total AGR.

“The License Fee (LF) increased from ₹5,246 crore for the QE (quarter ended) June 2023 to ₹5,326 crore for the QE September 2023. The quarterly and the Y-O-Y rates of growth in license fees are 1.53 and 8.23%, respectively, in this quarter,” the report said.

Mobile operators paid ₹4,350.67 crore as license fees and ₹831.49 as SUC.

As part of telecom reforms, the government has removed SUC on all spectrum procured through auctions conducted after September 15, 2021.

The total SUC declined to ₹836 crore in the September 2023 quarter from ₹1,403 crore a year ago.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cabinet greenlights telecom spectrum auction across multiple bands at base price of ₹96,317.65 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Why this analyst is bullish on Bharti Airtel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Balaji Subramanian, Vice President at IIFL Securities, has given a ‘Buy’ recommendation on Bharti Airtel after the telecommunications service provider released its third quarter earnings on February 5. In an interaction with CNBC-TV18, Subramanian listed several reasons for his optimism on the company’s future.

Subramanian predicts an increase in tariffs after elections potentially improving the Average Revenue Per User (ARPU).

Additionally, the company’s rollout of 4G services in rural areas and plans for 5G deployment over the current (FY24) and next financial year (FY25) are expected to boost earnings.

Despite challenges such as a stiff competition and minimal tariff hikes, Bharti Airtel’s numbers have exceeded expectations, said Subramanian.

Subramanian also shared his view on Vodafone Idea (Vi), While the company saw subscriber declines earlier, the situation has improved in the recent quarters, and the focus is now on improving ARPUs, he noted, adding there may be some limitations to growth due to financial constraints, hindering its ability to invest in network expansion.

Bharti’s market capitalisation is currently at ₹6,54,286 crore, while that of Vodafone Idea is ₹68,346 crore.

Also Read | Bharti Airtel, Bank of India and more: Tuesday’s top brokerage calls

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jio cements market lead, adds 34.5 lakh mobile subscribers in November: TRAI data

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reliance Jio moved to a higher gear adding 34.5 lakh mobile subscribers in November, improving on its October gains, as rival Bharti Airtel garnered about 17.5 lakh new wireless users, according to the Telecom Regulatory Authority of India (TRAI) data released on Monday, January 29.

Vodafone Idea, however, slipped further, losing 10.7 lakh subscribers in November, the monthly subscriber data by the TRAI showed. The ailing telco’s wireless subscriber base shrank to 22.44 crore in November.

Reliance Jio’s addition of 34.47 lakh mobile subscribers pushed up its wireless subscriber tally to 45.58 crore as on November.

Mobile subscribers added by the country’s largest telecom services provider Jio in November were higher than its user gains in October (about 31.6 lakh).

After garnering mobile subscriber additions of 17.47 lakh, the subscriber count of Bharti Airtel in the wireless category stood at 37.98 crore.

Also Read: Former Railway Board CEO Anil Kumar Lahoti appointed TRAI chairperson

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Former Railway Board CEO Anil Kumar Lahoti appointed TRAI chairperson

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government on January 29 appointed former chairman and chief executive officer of the Railway Board chairman, Anil Kumar Lahoti, as the new chairperson of the Telecom Regulatory Authority of India (TRAI).

The post had been vacant for the past four months after PD Vaghela retired on September 30.

As per the government order, the 1984 batch Indian Railway Service of Engineers (IRSE) officer has been appointed as TRAI chief for three years or until he attains the age of 65 years or until further orders, whichever is earlier.

Before his appointment to TRAI, Lohati had a career span of more than 36 years in railways, having served in Central, Northern, North Central, Western and West Central Railways and on the Railway Board.

Lahoti is a civil engineer who graduated with a gold medal from Madhav Institute of Technology and Science, Gwalior. He also holds a Master of Engineering in Structures from the University of Roorkee (IIT, Roorkee).

The Ministry of Railways says that when Lahoti was the General Manager of Central Railway, he oversaw remarkable achievements in freight and parcel traffic, alongside substantial revenue growth through innovative non-fare avenues.

He underwent training in Strategic Management and Leadership programs at Carnegie Mellon University, Pittsburgh, USA; Bocconi School of Management, Milan, Italy; and the Indian School of Business, Hyderabad.

Starting from 2018, the TRAI chief’s position is accompanied by a consolidated monthly salary of ₹4.50 lakh. The TRAI Act of 1997, which regulates appointments to the position, has been amended in the Telecom Bill to enable the appointment of senior executives from the private sector for the role.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow