Eight telcos to bid for spectrum, Videocon, Sistema opts out
Tuesday, 17 February 2015 - 6:20am IST | Place: New Delhi | Agency: dna | From the print edition
The spectrum of March 4 envinced active interest with eight of the 10 private telecom operators having submitted their applications on Monday, the last date for expressing intent.
The spectrum of March 4 envinced active interest with eight of the 10 private telecom operators having submitted their applications on Monday, the last date for expressing intent.
The auction will generate revenues close to around Rs 80,000 crore for the government which will help meeting its fiscal deficit target of 4.1% of the GDP.
All major players including Airtel, Vodafone, Idea, RCom, Reliance Jio, Uninor, Aircel and Tata Teleservices have submitted their forms. Sistema Shyam Teleservices Ltd (SSTL) and Videocon, however, have decided to opt out of it.
The combined market share of the two players would be less than 2% of the total mobile services market. G Krishna Kumar, telecom professional based in Bangalore, said their absence in the auction would not be of much consequence. "While, ideally, we would expect all the existing providers to participate in the auction process, it is perfectly fine for a few to drop out. In the current scenario, Videocon and Sistema together account for only about 1.5% of the wireless subscribers in the country," he said,
SSTL, which operates its services in the 800 megahertz (MHz) band, has decided to keep out of bidding because of steep reserve price fixed and its pending complaint against Department of Telecom (DoT) with the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) for making the spectrum allocated to it in the 2013 auction contiguous.
"SSTL has consistently maintained that the pricing of 800 MHz spectrum at Rs 3646 crore per MHz, is way out of line and does not merit a strong business case for buying additional spectrum. The company continues to maintain that such pricing does not take into account the realities of the prevailing ecosystem within the band," said the statement issued by the company.
The company currently holds 3.75 MHz spectrum in nine circles including Delhi, Rajasthan, Gujarat, Karnataka, Kerala, Tamil Nadu, Uttar Pradesh (west), West Bengal and Kolkata. A company spokesperson said the company was waiting for the issue of non-contiguous spectrum to be resolved in TDSAT, whose next hearing was on February 18.
In the auction held in 2013, SSTL was the only bidder for the CDMA spectrum.
"Since SSTL was the sole bidder during the said (2013) auction and there is no other successful operator for rearrangement of frequencies, it is incumbent upon DoT to rearrange/reassign the frequency to make the spectrum allotted to SSTL contiguous," it noted in its statement.
The government is offering 385.75 MHz spectrum in four bands including 800, 900, 1800 and 2100.
Airtel, Vodafone, Idea Cellular and Reliance Telecom, whose licenses will be expiring in the current fiscal, are expected to be aggressively bidding for spectrum to win it back
February 2, 2015 12:36 am Financial Express FE-Reflect FE Columnist
The union minister of state (independent charge) for skill development, Rajiv Pratap Rudy, recently said that India’s skilled workforce is 2%, compared to over 75% in all major economies. In this backdrop, the government us working on a new skill development policy to address shortcomings of the existing policy. Although skill development can improve “employment-readiness”, a sustainable job creation platform is urgently needed.
The job market is a factor of demand and supply. Demand-supply mismatch here is one of the biggest challenges India faces. A report indicates that there is demand in the job market, but unavailability of the right talent is costing the economy R53,000 crore.
Although India produces lakhs of graduates, the National Employability Report 2014 states that employability is a challenge with only 18.09% of this pool getting jobs. People taking up jobs for which they are overqualified amplifies the demand-supply mismatch.
The lack of skilled people is an overarching challenge, prevalent across industries, be it manufacturing or IT. We need a three-pronged approach to address the demand-supply challenge.
We need a strong vocational education and training system, the foundation of which must be set at the primary school level. We should, perhaps, adopt the German Duales Ausbildungssystem or dual system of vocational education and training (DSVET). In fact, China too has developed its own vocational education is introduced at the primary school with students in the age group of 12-14 years. In India, in addition to specific skills, communication, logical reasoning and, most importantly, cognitive skills must be taught to the students.
The prime minister’s idea of using railway stations for imparting skill development training in rural areas must be lauded. Perhaps, this should be extended and existing infrastructure in government offices like post offices, BSNL, and even colleges and schools should be used for vocational training. The Digital India campaign can help in using ICT as an enabler for skill development, evaluation and monitoring of students. With advancement in ICT, Massive Open Online Courses (MOOC) platform can be used effectively to impart vocational training.
Vocational school teachers in China are mandated to spend one month in the industry every year. This is an excellent mechanism to ensure the teachers are up-to-speed in terms of industry and technology. Can we implement this in India across disciplines/courses? This can be achieved only if we have a strong industry-academia relationship. How about getting experienced professionals from different sectors to train the teachers? Perhaps, the companies can utilise their CSR spend to provide experienced manpower for training .
Also, industry bodies should drive the syllabus (both theory and practical training). The government could invite experienced and retired professionals to contribute in developing and updating the syllabus. Introducing mandatory industrial training as part of curriculum will certainly help students’ employability prospects.
The government’s plan to start an university for skilling can wait. There are quite a few disparate skill development efforts carried out in the country. We already have thousands of ITIs, engineering and diploma colleges. In addition, we have the National Skill Development Corporation (NSDC) and the National Vocational Education Qualifications Framework (NVEQF) addressing some of the skill gaps. There are quite a few NGOs and private players offering skill development/ entrepreneurship training. Instead of creating new organisations/systems, it makes sense to streamline and rationalise existing systems. The autonomous body NSDA (National Skill Development Authority) in the Skill Development ministry should embark on rationalisation drive.
Finally, the government should work with the Industry bodies and identify top 5 sectors and provide the necessary push for implementation. Based on the outcome of these skill development programs, additional sectors can be added. Can the government publish quarterly data on the exact number of people reskilled, job positions filled and a view of the demand for at least 12-18 months?
An AICTE report has identified about 30 different skill areas and possible requirement by 2022. This can be a good starting point to prioritise the areas/sectors where the government’s attention is needed. As per the report, automotive, healthcare, organised retail and IT/electronics are expected to generate millions of jobs.
How about focusing on agriculture for skill development, productivity improvements and innovation? President Obama during his speech in New Delhi highlighted the importance of agricultural productivity and the cascading positive effect on India’s economy.
It is intriguing that 60% of India’s population depends of agriculture, but accounts for only 14% of the GDP. India’s premier technical institutions should be accountable for providing solutions to this sector.
Although prime minister’s Make-in-India initiative can certainly spur new jobs and also in reskilling, we need a balanced approach between manufacturing and agriculture. We don’t want all our farmers to take up non-farm jobs.
Summing up, the success of skill development will be measured based on jobs created. Prioritising sectors for skill development and rationalising existing systems to create a robust demand-supply matching and monitoring system is urgently needed. Although the new skill development policy is welcome, implementation will hold the key.
By G Krishna Kumar
The author is adviser, Centre for Educational and Social Studies, Bangalore. Views are personal
Some online adult toys and adult lifestyle stores have come under the scanner of the Department of Telecom (DoT), which wants to regulate such webstores under section 67, 67A and 67B of the Information Technology (IT) Act, 2008 for "selling and promoting alleged objectionable products illegally".
A telecom department note mentions online stores like flipkart, Imbesharam.com, thatspersonal.com and OhMySecret.com, which, it feels, are violating rules under the IT Act.
It also refers the names of the CEOs of these portal including Sachin Bansal (flipkart), Raj Armani (IMbesharam), Samir Saraiya (thatspersonal.com) and Vinodh Reddy (OhMySecrets.com).
There are "few online selling websites, which are openly promoting and selling alleged objectionable products illegally," says the note referring to these websites.
The DoT said this was brought to its notice through a letter from the ministry of information and broadcasting and a complaint by one Harit Kumar to the Delhi police, alleging objectionable content being shown on websites.
The other two portals are also explicitly adult stores but it is not clear why flipkart has been mentioned along with them. None of the CEOs were available for comments. G Krishna Kumar, an IT professional from Bengaluru, said they could have come to the government's notice as they don't have checks and balances that such sites require for their access. He said measures such as giving access to only those who register their age as 18 years and above would probably satisfy the regulating agencies. "For adult content sites, it must be mandatory to have a login (assuming that the individual will provide the correct details). It finally depends on how truthful the individual is," said Krishna Kumar.
Incidentally, Facebook requires a person creating a login ID to be at least 13 years old while Google has age requirements as defined by individual countries. Youtube, for example, displays a warning screen when adult content appears, saying "only users who are 18 or older can watch it".
Sunday, 11 January 2015 - 7:20am IST | Place: New Delhi | Agency: dna
A letter written by India's only authorised lab and certifier of specified absorption rate (SAR) of radiation in a mobile handset to the customs chief in New Delhi brings out rampant misuse and violation of government rules on the same.
Bharat B Jain, chief executive officer (CEO) of BNNSPEAG Test and Calibration Laboratory India Pvt Ltd, told dna he has come across some instances of fake SAR conformance certificates being issued by a Delhi-based entity AB Mobile Standards India Pvt Ltd and has brought it to the notice of the customs.
"This forging of SAR compliance certificate is not only causing a revenue loss to the test lab but also resulting in unchecked mobile phone radiation to general public," Jain wrote in his letter to the Commissioner of Customs Bhushan Kumar Bansal.
What has surprised Jain is that the customs has cleared mobile handsets imports on production of these forged documents. As evidence, he has provided a copy of SAR conformance certificate issued to Maxx MobilE Communications Limited's MX425e model by AB Mobile. The model was made manufactured by United Creation Technology Co Ltd.
"It has come to our notice that under-mentioned organisation (AB Mobile Standards India Pvt Ltd) is giving forged SAR certificates to various mobile manufacturers and importers, who are submitting these to customs for clearance of these phone by illegally using ILAC (International Lab Accreditation) symbol," he states in the letter.
And while Jain is still awaiting response from the customs authority, ILAC – the international body of which his company is a signatory – has already addressed his concerns.
An e-mail sent to him by Sharon Kelly of ILAC has verified that AB Mobile was not an ILAC signatory.
"AB Mobile Standards India is not authorised to use the ILAC MRA Mark as shown on the SAR conformance certificate provided (to us)," she wrote to Jain.
ILAC, which is a global mobile testing and certification body, has taken the matter further and will be carrying out a probe to check whether testing by AB Mobile was done at an accredited laboratory.
"However, this would need to be confirmed with AB Mobile Standards and CNAS (China National Accreditation Service for Conformity Assessment), the accreditation body in China that is a signatory to the ILAC MRA because the conformance certificate indicates the laboratory used was based in China," she assured Jain in her email.
ILAC has said it will use the evidence given by Jain to contact AB Mobile Standards and advise them against inappropriate use of the ILAC MRA Mark. G Krishna Kumar, telecom professional from Bangalore, said even though India has set guidelines on acceptable SAR level for mobile phones sold in the country, its implementation was a challenge. "It is worthwhile to note that SAR value by itself does not guarantee that the phone is safe to be used continuously for hours. Data suggests that a SAR value of 1.6 W/kg (watt per kilogram) means that the phone can safely be used for about 18-20 minutes of continuous talking (with phone held against the ear) in a day," he said. According to him, the government or the phone makers or the telcos needs to educate general public on these aspects. He said the government should mandate the over 150 mobile phone makers to provide the radiation details for all phone models launched in India over the last one year. "This should be available both online and in all the retail outlets," said Krishna Kumar.
Monday, 5 January 2015 - 7:10am IST | Place: New Delhi | Agency: dna Praveena Sharma
Aircel and Tata Teleservices Ltd (TTL) may find it challenging to bid for airwaves in the coming auction with the inter-ministerial committee (IMC) on spectrum auction reiterating its decision on net worth eligibility of bidders.
The committee has retained its earlier decision, where it had made it clear that only those with net worth of over Rs 100 crore, irrespective of whether they were holding spectrum or license or were new entrants in a band or a circle, could participate in the upcoming airwave auction. For the North East region and J&K service area, the net worth requirement for companies has been fixed at Rs 50 crore.
The telecom panel is of the view that strong balance sheets of those bidding for airwaves would ensure efficient roll out of quality telecom services.
Bengaluru-based telecom professional G Krishna Kumar said while IMC was justified in wanting to invite financially strong players, it should have also taken into consideration how the current competitive market had eroded the net worth of many of them. "The criteria of having companies with healthy balance sheets to participate is good as it can help in maintaining requisite quality of service. However, due to the highly competitive market, telecom companies have paid exorbitant prices," he said. Citing example of state-owned telecom company BSNL, he said positive net worth wasn't always necessarily an assurance on quality of service; "BSNL has positive net worth but their quality of service has been wanting". Kumar said to make the telecom sector healthier, the government needed to address the areas: One, to make available more spectrum and two, reduce the intense of competition that currently exists in the market. "There has to be more spectrum availability. Currently, Indian telcos have less than 20% spectrum compared to their peers in other country. Secondly, we still have 8-12 players in each circle. I think government needs to help with easy M&A (merger and acquisition) guidelines, which will help the overall industry and also the general public," said Kumar.
A note on the minutes of IMC meeting, held late last month, says the committee had decided to hold on to its earlier view on the net worth as it felt lower availability of funds with a bidder would lower its capacity to raise funds, which in turn could hamper smooth running of its operation, expansion plans and quality of service.
It also felt that it was in line with the existing principle related to net worth requirement in the Unified License conditions for authorisation of additional services. However, it has clarified that the criteria did not "preclude" bidders with negative net worth: "Bidders have option of getting the net worth of such promoters of the company counted for participation in the auction for allotment of spectrum, who have directly in their name at least 10% equity share in the total equity of the company".
One of the reasons put forth by the panel was that in view of the government's Digital India initiative it was crucial to ensure the financial strength of bidder for faster roll out of services. Kumar said Digital India was already gaining traction with reports suggesting that there will be 10-15 million 4G (fourth generation) subscribers in India by next year.
Thursday, 1 January 2015 - 7:30am IST | Place: New Delhi | Agency: dna
The latest to come under its scanner are 32 websites, which have been ordered by the department of information technology to be blocked under Section 69A of the Information Technology (IT) Act, 2000 and the IT (Procedure and safeguards for blocking of access of information by public) Rules, 2009.
Arvind Gupta, the head of Bharatiya Janata Party’s national IT cell, tweeted that these sites on the Net, including vimeo, github, sourceforge and others, have been found carrying “objectionable content” and so directed to be blocked by the Anti-Terrorism Squad (ATS) on security grounds.
An IT department’s note sent out to the Internet Service Providers (ISPs) orders them to “immediately block the access” to all 32 URLs.
Its dictate is reminiscence of the previous government’s similar move where it blocked over 200 websites in a day last year. It led to massive outcry against “censorship of the Internet” and resulted in the UPA government backtracking on it.
Though, after the Bangalore incident, the sentiment on the Net governance is different today.
Som Mittal, former president of IT lobby body National Association of Software and Services Companies (NASSCOM), believes Internet needs to be governed to a certain extend if it is being used for “unintended purposes”.
“You saw what happened recently on the Twitter (referring to Bangalore case). Internet is a powerful (internet) tool and can be misused to spread sentiments that could be harmful for impressionable users. We should censor only when the freedom (on the Net) is misused (for such purposes). The government should then step in,” he said.
However, he feels that what happened in China during the Hong Kong protest was “clearly censorship”. “What we are advocating is self-governance of the Net,” said the former Nasscom chief. G Krishna Kumar, a senior IT professional based in Bangalore, is also of the view that government has all the right to block websites. “In fact, countries like US, Germany and Japan have clear Internet censorship guidelines. India is much better than China where thousands of websites are blocked including most popular ones like Facebook, Youtube, etc,” he said. In the current context of blocking 32 websites, however, he said it was not clear why websites like github or sourceforge, which are sites meant for open source based collaborative software development, have been blocked. “Instead of blocking a website, can the government enforce strict checks and balances to these website or content providers so that only specific accounts can be blocked?” asked Krishna.
Thursday, 6 November 2014 - 6:10am IST | Place: New Delhi | Agency: DNA
Faced with severe crunched for spectrum, telecom operators are eyeing close to 116.5 megahertz (MHz) airwaves held by the defense sector, broadcasters and state-owned BSNL to expand their network and improve the quality of their service.
These spectrum, which are in the 2,100 MHz, 900 MHz, 700 MHz and 800 MHz bands, have been lying idle with their present owners or will be rendered idle once they shift to new technology.
Rajan Mathew, director general of Cellular Operators Association of India (COAI), said while telecom companies were struggling to maintain and improve the quality of their service with the current quantity of spectrum available with them, there were many who were sitting on spectrum that are not being utilised.
"There is ample spectrum that can be freed but nobody is ready to vacate. There is a need to look at whether there was a way to reconfigure their (those agencies where airwaves are lying idle) holding for optimal use and globally harmonise the frequencies," he said.
According to him, defense had close to 15MHz in the 2,100 MHz that could be vacated while another 100 MHz in the 700 MHz could be freed from broadcasting firms which were moving to digitisation and 1.5 MHz of unused spectrum in the 900 MHz could come from BSNL.
The Telecom Regulatory Authority of India (TRAI) has also recommended in its report submitted to the Department of Telecom to free up idle spectrum for the commercial usage by telecom service providers from these sectors. Individual operators in India gets allocated roughly 15-20% of spectrum compared with that allocated to their peers in advanced countries. India has about 265MHz of spectrum across all the bands, while the US, Europe and Brazil have between 450 to 600 MHz allocated. In the 1800 MHz, Europe has at least 2 to 2.5 times more spectrum allocated compared to India. G Krishna Kumar, vice president in the Mobile and Connected Devices Division at Bangalore-based Symphony Teleca, said better spectrum availability with telecom operators will improve the quality of service that can be offered to the consumers. Simply put, it would mean there would be lesser call drops and better internet connection. He believes the government would do well to consider the License Shared Access ( LSA) technology that helps in efficient use of unused spectrum between license holders. This system has already been piloted in Europe.
