Telecom News
OTTs refuse telcos' call for regulation, claim existing laws are sufficient
OTT communication providers, including WhatsApp and Telegram, opposed telcos' call for a licensing regime, emphasizing existing regulation under the Information Technology Act. Industry bodies argued against such regulation, asserting it would impose unnecessary burdens, limit consumer options, and hinder market expansion, while highlighting the distinct nature of OTT and telecom services.
DoT may ask Trai to take a call on backhaul spectrum based on usage
The Department of Telecommunications (DoT) is urging the Telecom Regulatory Authority of India (Trai) to adopt a comprehensive approach to backhaul spectrum allocation, given advancements in 5G and 6G technologies. Reliance Jio advocates for auctioning backhaul spectrum for access services, while rivals Bharti Airtel and Vodafone Idea oppose this. Satcom players like Starlink and Project Kuiper prefer non-exclusive administrative allocation for their needs. The DoT is preparing to respond to Trai’s consultation on spectrum assignment, emphasizing the need for clarity on spectrum usage for backhaul versus mobility.
Telcos go slow on content spends; investment towards buying content falls 12% in FY24
In the last few years, telecom operators have been heavily focused on acquiring content from TV broadcasters, besides partnering with streaming platforms, to build stickiness and drive data consumption.
Telecom operators seek to bring call, messaging apps under licence
Indian telecom operators requested Trai to bring OTT apps like WhatsApp, Signal, and Telegram under the new Telecommunication Act's licensing framework. Reliance Jio, Bharti Airtel, and Vodafone Idea stressed that monitoring these services is crucial for security and consumer protection, citing the broad definition of 'telecommunications' under the Act.
Vodafone Idea sees user churn dropping from Q4
Vodafone Idea (Vi) anticipates a reduction in its monthly subscriber churn rate, currently at 4%, starting from the fiscal fourth quarter. This improvement is expected as the company begins addressing 4G coverage gaps with its ongoing capital expenditure (capex) plans.
Bharti raises USD 1.8 billion from Barclays for BT stake buy
Bharti is buying the stake from BT’s largest shareholder, Altice UK. The BT stock has surged more than 10% this week to a market capitalisation of $18.55 billion following the stake purchase announcement. Depending on the valuation for the acquisition, the group will look to put in a mix of cash and debt for the rest of the deal, which could take some time, said the people cited, adding that a final decision on the additional debt amount will be taken then.
Jio, Airtel SG&A costs rise signals cut-throat competition for acquiring high-value customers
As per company data and ICICI Securities estimates, Jio and Airtel's SG&A costs have risen 4.2% and 3.2% on-quarter to ₹1,455 crore and ₹2,805.6 crore, respectively, in the April-June period. Vi's quarterly SG&A expenses, in turn, have declined 3.2% sequentially to ₹1,135.4 crore, company data and IIFL Securities estimates showed.
Telcos AGR rises 8% to Rs 2.7 lakh cr; govt SUC collection drop 32% in FY24
In 2023-24, telecom operators' adjusted gross revenue saw an increase of 8.24%, amounting to Rs 2.7 lakh crore. Reliance Jio led with the highest AGR, followed by Bharti Airtel. Government revenue from licence fees rose while spectrum usage charges decreased. Public Sector Undertakings' share in the AGR witnessed a minor decline compared to the previous year.
Accenture get CCI's nod to acquire stake in Vodafone's arm
Accenture's acquisition of a stake in Vodafone Shared Operations received clearance from the Competition Commission of India. VSOL offers shared services to Vodafone. Mitsui & Co (Asia Pacific) also gained approval for acquiring equity in MTC Business Pvt Ltd. These approvals aimed at promoting fair competition and curbing unfair business practices.
MTNL board approves 10-year service pact with BSNL
The board "accorded its approval to enter into a service agreement between BSNL and MTNL for a period of 10 years or unless it is revoked earlier by giving a notice of six months or extended by mutual consent between the parties, subject to approval of the said service agreement by Department of Telecom / Ministry of Company Affairs ," it said.
Must Watch
Vi may diverge from rivals on 5G, likely to price it cheaper
Vodafone Idea may offer lower 5G service prices than rivals Jio and Airtel, according to CEO Akshaya Moondra. While exact launch dates remain undisclosed, the company is finalizing 5G rollout plans. Vi expects some revenue boost from recent tariff hikes, even as some users migrate to BSNL due to increased prepaid rates.
Vodafone Idea sees rise in subscribers port-outs after tariff hikes: CEO Akshaya Moondra
Vodafone Idea (VIL) is experiencing a rise in subscribers porting out to Bharat Sanchar Nigam Ltd (BSNL) following recent tariff hikes. VIL CEO Akshaya Moondra believes that quick decisions to port out purely based on tariff action may not sustain, given the 4G coverage offered by VIL. The recent tariff hikes have led to a fair amount of arbitrage, and VIL is closely monitoring the situation.
Govt selling stake in Vodafone Idea? Here's what the telco has to say
Vodafone Idea (VIL) has denied that it has received any communication from the government regarding its stake in the telco, despite reports suggesting that sovereign funds may be interested in offloading its stake. CEO Akshaya Moondra stated that the company has seen port-outs by users to BSNL increase since tariff hikes were imposed, and is closely monitoring the situation.
Trai orders telcos to stop promotional calls from unregistered senders
The Telecom Regulatory Authority of India asked telecom operators to discontinue voice calls from unregistered telemarketers to mitigate spam issues. Violators will face resource disconnection for up to two years. Telcos must regularly report their compliance. Additionally, unregistered telemarketers are required to transition to distributed ledger technology within a month, improving transparency.
Bharti ups global play with big stake in UK's BT Group
The purchase will be made by Bharti Global, which is the international arm of Bharti Enterprises, through Bharti Televentures. As per the terms of the deal, Bharti Televentures has acquired a 9.99% stake in BT Group's issued capital via open market trade. It will buy the remaining 14.51% after getting regulatory clearances. Mittal expects the deal to close in the coming months.
Stake in British Telecom adds flavour to our international investment: Shravin Mittal, MD, Bharti Global
Bharti Enterprises has acquired a 24.5% stake in British Telecom as highlighted by Shravin Mittal, Managing Director of Bharti Global. Mittal expressed confidence in BT's new management and strategic execution plan. Bharti Global, which has invested heavily in various sectors, views this as a long-term investment aligned with their strategy.
