Tag: Vodafone-Idea

Telcos inform DoT on proof of concept sites for alternate digital KYC process

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

Listen to the Article (6 Minutes)

Telecom operators, including Bharti Airtel, Reliance Jio and Vodafone Idea Ltd, have informed the telecom department about their readiness to conduct proof of concept for the new ‘alternate digital KYC process’ at two locations, as stipulated.

The Department of Telecom (DoT) has also issued the details of the procedure and modalities to be followed by telecom operators for issuing new mobile connections using the alternate digital KYC process.

According to a DoT circular dated November 6, Bharti Airtel has ensured “readiness to conduct PoC (proof of concept)” in Delhi and Meerut, while Bharat Sanchar Nigam Ltd (BSNL) has identified two locations in Telangana for the same.

“The proof of concept of the….alternate digital KYC process is to be done at two locations (rural and urban) by each licencee,” DoT said.

Reliance Jio Infocomm has ensured its readiness to conduct PoC at two locations in Navi Mumbai, while Vodafone Idea Ltd has listed Delhi and Baramati in Pune District, according to the DoT. Other operators like Mahanagar Telephone Nigam Ltd (MTNL) and Tata Teleservices have also identified locations for the POC.

As per the alternate digital KYC process proposed by the telecom industry for issuing new mobile connections, the customer acquisition form is to be embedded with live photograph of subscriber along with original proof of identification (PoI) and proof of address (PoA) document — digitising the end-to-end process for on-boarding of new mobile subscribers by making it completely paperless.

Spelling out the nuances of the alternate digital KYC procedure to be followed by telecom service providers, DoT said only two mobile connections will be provided per day per PoI, PoA document to a customer by the operator using the alternate digital KYC process.

“… Digital KYC process is an alternative process to the existing process of issuance of mobile connections to subscribers and shall also be applicable for outstation and foreign customers,” DoT said.

It said that additional safeguards in the prevailing guidelines regarding outstation and foreign customers will also be followed in the new digital KYC process.

The Supreme Court in September restricted the use of Aadhaar authentication by private entities in the absence of a legal provision. On October 26, the telecom department asked operators to stop using Aadhaar for electronic verification of existing mobile phone customers as well as for issuing new connections to comply with order of the apex court.

Aadhaar-issuing body Unique Identification Authority of India (UIDAI) has, however, has clarified that service providers can use offline verification tools like eAadhaar and QR (Quick Response) code that leverage the unique identifier without authentication or any access to biometrics.

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

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

Vodafone Idea to merge Aditya Birla Telecom

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

Listen to the Article (6 Minutes)

Telecom operator Vodafone Idea Limited will merge Aditya Birla Telecom Ltd, which holds 11.15 percent stake in telecom infrastructure firm Indus Towers, with it. “The Board of Directors of Vodafone Idea Limited (VIL) … has considered and approved a scheme of amalgamation of Aditya Birla Telecom Limited (ABTL), a wholly-owned subsidiary of the company, with the company,” Vodafone Idea said in a regulatory filing.

With this amalgamation, Vodafone Idea will directly have shareholding in Indus Towers and take call on monetisation of the stake held by ABTL following simplification in the corporate structure.

The scheme is subject to approval of the National Company Law Tribunal, Ahmedabad.

Indus Towers, on the other hand, is in process of merging with Bharti Airtel’s tower subsidiary Bharti Infratel and the deal has given Aditya Birla group option to sell its full shareholding in Indus Towers for cash.

VIL said that the amalgamation will give it efficient and economical management and control over running of businesses of the subsidiaries, eliminate duplication in administrative cost and strengthen its financial position and ability to raise resources against the assets owned by ABTL such as investments in mutual funds, Indus Towers stake “including monetisation of such assets”.

The networth of ABTL as on March 31, 2018, stood at Rs 6,188.91 crore and that of VIL was Rs 25,669.5 crore.

There will be no change in shareholding pattern of VIL after completion of the amalgamation, according to the filing.

Vodafone and Idea Cellular had kept stake in Indus Towers out of their merger agreement.

Airtel through Bharti Infratel and British telecom firm Vodafone hold around 42 per cent stake each in Indus Towers and ABTL holds 11.15 per cent.

Vodafone had earlier said it would look at monetising its stake in Indus Towers if it requires to make additional investment in India in case Aditya Birla group decides to put in additional fund in Vodafone Idea Limited.

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

Airtel receives demand notices towards penalties for March quarter

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

Listen to the Article (6 Minutes)

Telecom operator Bharti Airtel on Tuesday confirmed that it has received demand notices towards penalties totalling Rs 11 lakh for six circles for the quarter ended March 2018.

These penalties are on parameters such as accessibility of call centre, percentage of calls answered by the operators and metering and billing credibility, Airtel said in a regulatory filing.

“We confirm that Bharti Airtel Limited (the Company) has received demand notices towards penalties totaling to a sum of Rs. 11 lakh in respect of 6 circles namely, Maharashtra, Assam, West Bengal, Tamil Nadu, Kolkata and Gujarat for the quarter ending March 2018,” it said.

The Company will deal appropriately with such demand notices, it added.

PTI earlier reported that the Telecom Regulatory Authority of Indian (TRAI) has imposed penalties on major telecom operators, including Bharti Airtel, for slipping on various service quality benchmarks for the March 2018 quarter.

Besides Airtel, Trai has also imposed fines on other operators, including Reliance Jio as well as Vodafone and Idea Cellular (now merged).

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

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

Bharti Infratel to take annual hit of Rs 780 crore from Vodafone Idea exit

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

Listen to the Article (6 Minutes)

Telecom infrastructure firm Bharti Infratel said on Wednesday its consolidated revenue, including that from Indus Towers, is expected to take around Rs 780 crore hit on annual basis, due to exit of Vodafone and Idea Cellular from co-located mobile towers.

Following completion of Vodafone-Idea merger, the companies have served exit notices to Bharti Infratel and its subsidiary Indus Towers from 27,447 co-located mobile towers on a consolidated basis.

“The aforesaid co-locations contribute to 13.7 per cent of the total co-locations basis as on June 30, 2018. This is likely to result in a net reduction of consolidated service revenue of approximately Rs 60-65 crores per month with effect from September 1, 2018,” Bharti Infratel said in a regulatory filing.

It added that the adverse impact on revenue will be mitigated by exit charges and incremental revenues on account of anticipated new network rollouts by the operators going forward.

Bharti Infratel and Vodafone own around 42 per cent stake each in Indus Towers and rest of the stake is held by Aditya Birla group firm Idea Cellular.

Vodafone and Idea have merged their mobile businesses and now they are in process of consolidating assets to trim operational and capital expenses.

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

Vodafone Idea raises Rs 1,500 crore via debt

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

Listen to the Article (6 Minutes)

Telecom major Vodafone Idea Limited Monday raised Rs 1,500 crore fund through non-convertible debentures on private placement basis — first debt after its incorporation. “the Securities Allotment Committee have at their meeting held today i.e. on September 3, 2018, allotted 15,000 unsecured redeemable non-convertible debentures aggregating to Rs 1,500 crore on private placement basis,” Vodafone Idea said in a regulatory filing.

The NCDs have maturity period of 5 years and have been offered at interest rate of 10.9 percent per annum.

Idea Cellular Ltd and Vodafone Plc on last Friday announced completion of the $23.2 billion (approximately Rs 1.6 lakh crore) merger of their India operations to create the country’s largest telecom operator to take on competition from Reliance Jio.

The merged entity, called Vodafone Idea Ltd, will has a subscriber base of over 40.8 crore and a market share of over 35 per cent, overtaking Bharti Airtel to take numero uno spot. The merger puts Vodafone India and Idea in a strong position to cut costs and thus compete effectively with Reliance Jio. Savings from the deal are estimated at Rs 14,000 crore.

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

Vodafone Idea likely to begin operations next week, says report

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

Listen to the Article (6 Minutes)

The emerging Vodafone-Idea merged entity is likely to start its operations next week with cost-cutting measures and prioritising profitability, reported The Economic Times quoting sources.

The cost-cutting measures include rationalisation of its distributors and tower networks, in advertising and marketing spending, a hiring freeze and letting go of redundant offices, the report said.

When both the companies announced their merger in March 2017, they had projected about Rs 8,400 crore in annual cost savings by the fourth full year of operations, the daily said.

“Hiring will only happen when it is absolutely critical,” people aware of the development was quoted in the daily, adding that the workforces will operate from one office space instead of separate units.

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

Idea Cellular falls 6% in trade as Vodafone merger likely to be delayed

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

Listen to the Article (6 Minutes)

The Idea Cellular stock has fallen more than six percent in intraday trade on Monday after PTI reported that the merger deal with Vodafone India may not meet the expected June 30 deadline as the telecom department is looking to raise a fresh demand of around Rs 4,700 crore.

The stock has fallen more than six percent as of 11:30 am post the buzz.

The demand will be raised from Vodafone India before its merger with Idea Cellular.

“Vodafone India had merged its all arm into one company and there are dues of around Rs 4,700 crore related to one-time spectrum charges (OTSC) on the company. DoT will ask Vodafone to either clear dues or furnish bank guarantee before merger with Idea,” an official source told PTI.

In 2015, Vodafone had merged its four subsidiaries Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink with Vodafone Mobile Services, which is now called Vodafone India.

DoT at that time had asked Vodafone to clear OTSC dues worth Rs 6,678 core but the company challenged it in court. Following Supreme Court order, Vodafone had paid only Rs 2,000 crore to get the deal cleared.

The telecom minister Manoj Sinha is learnt to have asked DoT (Department of Telecommunications) to take legal opinion whether a demand regarding OTSC dues can be sought from Vodafone India.

“The DoT has received legal opinion which affirms that a demand can be raised from Vodafone,” the source said.

The official said that final amount is still being worked out, which may involve interest as well and it is likely to be raised next week.

“DoT is working on fresh demand expeditiously and may issue it next week. The demand note will have to be drafted meticulously and there are lot of complexity involved. Therefore, DoT needs some time,” the officer said.

The demand will be in addition to bank guarantee of around Rs 2,100 crore that DoT will seek from Idea for OTSC dues.

Both Idea and Vodafone were expecting the merger deal to create India’s largest telecom company to be completed by June 30, 2018.

The merged entity is proposed to be named as Vodafone Idea Limited if approved by shareholders of Idea Cellular. It is estimated to have over 40 crore mobile customers from day 1 and 41 per cent revenue market share.

Vodafone Group and existing promoters of Idea will hold 45.1 and 26 per cent of the equity share capital of the merged company, respectively and the balance 28.9 per cent will be held by the public shareholders.

(The copy has been modified with Idea Cellular’s stock trend on Monday)

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

Telecom department seeking legal opinion on Vodafone-Idea merger

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

Listen to the Article (6 Minutes)

The Department of Telecommunications (DoT) is seeking legal opinion on the Vodafone-Idea Cellular merger in respect to Vodafone’s administratively allocated spectrum holdings, according to industry sources.

As per merger and acquisition (M&A) guidelines, for such spectrum holdings of acquired entity, acquirer has to pay differential between the market determined price and the entry fee.

Such payments have to be made for 4.4 MHz of spectrum on a pro-rata basis for the remaining period of licence validity and DoT raised such demands to Vodafone at the time of the merger of Vodafone group companies in 2015, sources said.

Vodafone had challenged these demands with the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), but part of the demand (Rs 2,000 crore out of the Rs 6,700 crore) had been paid on the directions of the Supreme Court.

Industry sources said the issue now is that, with Vodafone being acquired by Idea, whether DoT should raise the demand on Idea Cellular of the differential amount.

The DoT is seeking legal opinion on whether a fresh demand can be raised on Idea for the differential amount between the market determined price and the entry fee paid for 4.4 MHz of administratively allocated spectrum of Vodafone.

It is also seeking legal opinion on whether this would be wilful disobedience of the court.

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