Microsoft opens new R&D facility in Bangalore

BD Narayankar

Press Trust of India

Bangalore, July 26 (PTI) Microsoft today announced the opening of its new state-of-the-art R&D facility in the city.

"The availability of world class talent, advanced infrastructure and proximity to the booming emerging markets of the world prompted us to set up Microsoft R&D facility in Bangalore," Microsoft Corp (Online Services Division) President Qi Lu said after inaugurating the facility here.

The 1,54,000 sq ft building will house the Microsoft India Development Center (MSIDC) team that contributes to Microsoft Corp’s adCenter technologies and researchers from Microsoft Research India.

“Bangalore has been our home ever since we established the Microsoft Research India lab, and moving to the new, larger lab space is indicative of the increasing interest in research in the country," Microsoft Research India scientist and MD P Anandan said.

Last April, Microsoft announced the extension of its engineering efforts to Bangalore as part of the Search alliance between the company and Yahoo Inc.

"With the combined strength of Yahoo and Microsoft Corp’s Search marketplace, we are ready to deliver greater and improved innovation for consumers, better volume and efficiency for advertisers and better monetization opportunities for web publishers. The Bangalore team has a charter to make significant engineering contributions to Microsoft Corp’s adCenter product,” Qi said.

Microsoft’s first R&D center was set up in Hyderabad in 1998 with about 20 people. At present, it has 3900 people contributing to global and internal product engineering for Microsoft Corp and its Global Technology Support Center at Bangalore.

"Apart from ensuring that the Yahoo India employees who joined Microsoft India R&D have a smooth transition, we worked hard on designing our new home," adCenter team General Manager Sanjay Anand said.

Microsoft India R&D plays an important role in contributing to innovation at Microsoft. The centre's development teams work closely with the key product families of Microsoft Corp and makes it one of the software giant’s largest research and development centers outside Redmond.

US bank cancels multi-million dollar deal of Finacle with Infosys

BD Narayankar

Press Trust of India

New Delhi, July 22: Union Bank of California has cancelled the multi-million dollar deal for core banking solution Finacle with Indian IT major Infosys.

"While the parties have made good progress, Union Bank's changed business priorities have led the bank to discontinue the program. Union Bank and Infosys have parted on amicable terms, and Union Bank wishes Infosys all the best in the US market," Infosys said in a statement today.

However, the company did not disclose the contract value. Finacle is one of the major core banking solution in the Indian and the Asian banking domains, contributing nearly 5 per cent to Infosys' overall sales.

Infosys and Union Bank of California have been working together on an integrated banking platform for the last two years, the company said.

Finacle has presence in 72 countries with over 148 clients and rolled out few new products including mobile banking solution.

Finacle universal banking products are designed to address the core banking, e-banking, Islamic banking, treasury, wealth management and CRM requirements of retail, corporate and universal banks.

Links

http://economictimes.indiatimes.com/tech/ites/us-bank-cancels-multi-million-dollar-deal-of-finacle-with-infosys/articleshow/9325068.cms

http://www.moneycontrol.com/news/business/us-bank-cancels-it-contractfinacle_568148.html

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2285266.ece

Telecom Ministry mulls corporatisation of Postal Dept

BD Narayankar & Anmol Khurana

Press Trust of India

New Delhi, July 20: In an effort to streamline revenue of the Department of Post (DoP) and to make it more competitive, the telecom ministry plans to corporatise its operations by tying up with private retailers, banks and educational institutions.

By corporatising over 1.5 lakh post offices across the country, the Ministry is expecting to improve the quality of services, increase profitability and reduce prices.

"Ministry is looking to corporatise post offices to make each one of them accountable and a profitable venture," a Department of Telecom official said.

For quite some time, the DoP has been trudging the down road of irrelevance and mounting losses with about 90 percent of its expenses going towards salaries of its 475,000 employees in 155,000 branches.

An important component of corporatisation of the DoP is that the DoT is mulling to make it mandatory for all the 22 zonal heads to generate 20 percent revenue on year-on-year basis, the official added.

Though DoP will be corporatised, it will be under the control of the government. "IT and Telecom Minister Kapil Sibal will conduct monthly performance review of DoP circles and make it mandatory for all the 22 zonal heads to give 20 percent revenue year-on-year basis."

Out of the 22 DoP circles, some of them like Chhattisgarh have reported a negative growth of 19 percent, Jharkhand (18 percent) and North East (15.9 percent), whereas Assam (23.7 percent), Haryana (19.5 percent), Karnataka (13.5 percent) and Tamil Nadu (13.9 percent), recorded positive growth.

Even as DoP has mopped up a revenue of Rs 6,954.09 crore in 2010-2011, a growth of 11 percent from Rs 6,266.70 crore in 2009-2010, the negative growth rate in some circles has forced them to focus on out-of-the-box solution to script revival story.

The DoP is looking to forge tie-up with banks, insurance agencies, educational institutions and retailers like Hindustan Lever and Reliance Fresh to streamline its delivery services. "The tie-up with banks and retailers will facilitate the organisation (DoP) to garner good revenues," the official said.

Telecom Ministry is also looking to direct DoP to actively use its wide network coverage to offer government schemes such as NREGA, Unique ID project and educational schemes to percolate down to the intended beneficiaries," the official added.

"Our aim is to provide efficient postal services to the rural poor who still do not have modern banking and retailing facilities and still depend on informal sector for their financial requirements," the official said.

Taking cue from the improved results of some of the BSNL circles after implementation of monthly review, Telecom Ministry, has extended the same strategy for DoP.

Recently, DoT had started reviewing the performance of two state-run loss making telecom services providers – BSNL and MTNL -- directing them to achieve a growth of 25 percent year-on-year or else face the music.

Links

http://zeenews.india.com/business/news/news_content.aspx?newscatid=3&newsid=27379

http://www.business-standard.com/india/news/telecom-ministry-mulls-corporatisationpostal-dept/141865/on

http://newspolitan.com/forum/art/india/karnataka/GM2DQN3QGE5UCVCU

http://www.indiareport.com/India-usa-uk-news/latest-news/1055514/state/4/30/4

http://www.kashmirimagesjammu.com/bizdet.aspx?q=20665

Telenor hopes to resolve dispute over Uninor rights issue soon

BD Narayankar & Anmol Khurana

Press Trust of India

New Delhi, July 19: Unable to secure long-term loans from Indian banks , Norway's Telenor hopes to reach a consensus on a Rs 6,500 rights issue with its Indian partner in joint venture Unitech Wireless, which offers telecom services under the brand name Uninor, within a month.

Uninor, the brand name of the joint venture between Norway's Telenor Group (which owns 67.25 per cent) and Unitech Group (which owns 32.75 per cent), operates in 13 circles.

"Right now, we are funding the company with short-term loans. These loans are coming from international banks and the reason for this is that there is no Indian bank that is willing to lend us money. I hope that the issue between Telenor and Unitech Group on Rs 6,500 crore right issue will be resolved in the coming month," Uninor South Asian Head Sigve Brekke said.

Brekke further added, "We are currently working on a long-term solution to bring in more equity to strengthen our financial position."

Refusing to divulge the names of the international banks giving loans to Uninor, he added the company has already raised around Rs 5,000 crore from them.

The company recently approached Telecom Ministry seeking an additional 1.8 Mhz of radio waves in eight circles, based on subscriber-linked criteria. The company currently has 4.4 MhZ of spectrum.

Uninor has brought to the notice of the government the problems faced by telecom companies in availing loans.

"We have spoken to several ministers about this problem. It becomes difficult for us to operate because of shortage of funds," he added.

Uninor has 27 million subscribers and is adding around 16 lakh customers every month. The company hopes to take its customer base to 30 million-plus users by the year-end and up to 50 million next year.

Though Uninor has been raising loans to strengthen its cash position, the company exuded confidence about breaking even in the next three years. "We should break even by first half of 2013," Brekke said.

"As the market in coming months will be more rational, we are hopeful of tiding over the present scenario, provided we have ample clarity on TRAI recommendations (on spectrum) and funding issues," he added.

Uninor holds a pan-India UAS license to offer mobile telephony services in each of India's 22 circles. It is yet to receive spectrum in some circles, including Delhi, J&K, Rajasthan, Assam and the North-East.

"We still believe in Indian market. We are confident that the new telecom policy will come out during second half of this year and will clear up doubts confounding licencing, spectrum and M&A issues," he added.

Uninor services are available in the 13 circles of UP (West), UP (East), Bihar, Orissa, Kolkata, West Bengal, Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Mumbai, Maharashtra and Gujarat.

Links

http://economictimes.indiatimes.com/news/news-by-industry/telecom/telenor-hopes-to-resolve-dispute-over-uninor-rights-issue-soon/articleshow/9285074.cms

http://www.livemint.com/2011/07/19160735/Telenor-hopes-to-resolve-dispu.html

http://www.moneycontrol.com/news/business/hope-to-solve-dispute-over-uninor-rights-issue-soontelenor_566853.html

http://www.mydigitalfc.com/article-comments/90338

http://www.mydigitalfc.com/telecommunication/telenor-hopes-resolve-dispute-over-uninor-rights-issue-soon-338?utm_source=Twitterfeed&utm_medium=Facebook&utm_campaign=SMO+FB

BSNL launches voice and video telephony over IP

Anmol Khurana & BD Narayankar

Press Trust of India

New Delhi, July 18: State-run BSNL along with Information and Communication Technologies (ICTs) provider Sai Infosystem has launched voice and video telephony over Internet Protocol to its customers.

Now any customer can make audio video calls at will on any landline, mobile or Internet Protocol phone anywhere in the world, provided that both the ends have requisite video phone equipment, BSNL said in a statement here today.

“To start with, video communication is highly affordable compared to conventional video conferencing services. We are also making special arrangements with leading international carriers to ensure that consumers always reach their international destinations easily and at most affordable rates,” BSNL CMD, Mr R.K. Upadhyay, said.

The Voice and Video Over Internet Protocol (VVOIP) service will cost 40 paise per minute for audio calls and Rs 2 per minute for video calls within the country.

International call charges using VVOIP service are very affordable like a call to US will cost Rs 1.20 paise per minute, to UK it will cost Rs 1.20 paise on landline, Rs 7.20 paise to mobile, and Rs 1.20 paise per minute to China. Monthly charges for VVOIP will be Rs 150 only, the release added.

The services will tart from Ahmadabad and later on in will be made available to Gujarat by the end of this month, then to Maharashtra and Chhattisgarh likewise.

Links

http://www.rediff.com/business/report/tech-bsnl-launches-voice-video-telephony-over-ip/20110718.htm

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2247711.ece

Rs 30k cr needed to take broadband to villages: Pitroda

Press Trust of India

New Delhi, July 18: In order to provide broadband connectivity to over 2,50,000 village, the government will probably have to spend upto Rs 30,000 crore, Sam Pitroda , Advisor to Prime Minister , said today.

"... We need 30,000-40,000 km more of optical fibre and we are discussing whether it should be laid over the powerline or underground. We also need to get GPS applications ... We probably need Rs 25,000-Rs 30,000 crore for all this," Pitroda told reporters on the sidelines of BSNL's VOIP services launch here.

However, the government is taking steps to reduce the project costs and expedite connectivity.

"We held a high-level meeting last month and will hold it again tomorrow. We are working on reducing the cost of the project and expedite connectivity to panchayats," Pitroda added.

The government is planning to provide high speed internet broadband connectivity to all villages under its National Optical Fibre Network (NOFN) scheme.

Asked about the timeline for completion of the project, Pitroda said, "We would like to get it done in the next two years."

The connectivity will not only improve delivery of government schemes, but will also empower rural people, he said.

"We have a plan in collaboration for this with BSNL, RAILTEL, department of telecommunications, information technology ministry and with private companies," Pitroda said.

Links

http://smartinvestor.in/market/story-81207-storydet-Rs_30K_cr_needed_to_take_broadband_to_villages_Pitroda.htm

http://economictimes.indiatimes.com/tech/internet/rs-30k-cr-needed-to-take-broadband-to-villages-pms-advisor-sam-pitroda/articleshow/9273171.cms

http://soccernews.bigsoccer.com/article/0bpy8UOaxU7h9?q=New+Delhi

Sibal sets up committee on delays in mobile service roll-outs

Press Trust of India

BD Narayankar & Anmol Khurana

New Delhi, July 16: Against the backdrop of allegations of favouring Reliance Communications by reducing penalty on the company, Telecom Minister Kapil Sibal on Friday set up an enquiry committee under Telecom Secretary to look into cases of delay in the rolling out of mobile services as provisioned under the USOF scheme.

"I therefore consider to set-up a committee under chairmanship of Secretary, Telecom, including members of USOF, Finance and legal advisor. The committee may consider all aspects and suggest appropriate action that may be required in the facts and circumstances of the cases of delays," according to an internal note by Sibal.

He has asked the committee to submit its report within eight weeks.

In 2007, a scheme was launched under Universal Service Obligation Fund (USOF) to provide subsidy support for setting up and managing 7,871 number of infrastructure site (telecom towers) in 500 districts in specified rural and remote area.

Telecom companies, Bharti Airtel, BSNL, Aircel, Idea Cellular, Reliance and Vodafone participated in the scheme.

However, DoT found that Anil Ambani owned RComm violated terms and conditions of the scheme by switching off mobile services in an unauthorised way in 13 circles.

DoT proposed penalty of Rs 650 crore on RComm which Sibal reduced to Rs 5 crore.

He later clarified that the Rs 5 crore penalty on the ADAG firm was as per the agreement between the USOF and Reliance.

"The DoT has nothing to do with the penalty as the company had not violated the rules of license conditions," Sibal said.

The minister added that the file reached him on February 18 this year, and RCom had already restored the services two days prior to that.

He said he gave instructions to impose the penalty as per the provisions of the agreement and did not himself decide the amount.

An NGO, Centre for Public Interest Litigation (CPIL) has filed the application in the Supreme Court seeking CBI probe against Sibal for allegedly favouring private firm by abusing his position to over-rule the unanimous view of senior DoT officials.

The Apex court bench hearing the litigation did not pass any order on it.

Links

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2235733.ece

http://zeenews.india.com/business/news/news_content.aspx?newscatid=4&newsid=27164

http://www.moneycontrol.com/news/current-affairs/sibal-setsprobedelaysmobile-service-rollouts-_566070.html

http://articles.timesofindia.indiatimes.com/2011-07-15/india-business/29777143_1_kapil-sibal-telecom-towers-usof

http://billionaires.forbes.com/article/0dFK13paq7fJl

http://www.livemint.com/2011/07/17180816/Sibal-forms-panel-to-probe-del.html?h=B

http://www.money-guru.co.in/money/content/sibal-sets-probe-delays-mobile-service-rollouts

Uninor seeks additional 2G spectrum in 8 circles

BD Narayankar & Anmol Khurana

Press Trust of India

New Delhi, July 17: In the thick of controversy surrounding the 2G spectrum allocation, Uninor, a JV between Unitech Wireless and Norway's Telenor, has approached Telecom Ministry seeking additional 1.8 Mhz radio waves in eight circles, based on subscriber-linked criteria.

"We have submitted application to DoT seeking additional 1.8 Mhz spectrum on the basis of enhanced subscriber-linked criteria for our GSM-based services in eight circles," Uninor South Asian Head Sigve Brekke said.

Uninor, the brand of the joint venture between the Norwegian Telenor Group and Indian real estate player Unitech, operates in 13 circles and claims to have reached a subscriber base to get 6.2 Mhz of 2G spectrum.

The company has start-up spectrum of 4.4 Mhz allotted at the time of licence in 2008.

Last year, DoT had accepted the recommendation made by telecom regulator Trai to allot additional spectrum on subscriber-base linked criteria.

Uninor has 27 million subscribers and is adding around 16 lakh customers every month. By the year end, it expects to take its base to 30 million plus users and up to 50 million next year, Brekke added.

Uninor is confident of telecom ministry processing its additional spectrum request, saying that it qualifies for the same. "Our eight circles now stand qualified for additional spectrum. We have just pipped one more competitor in West Bengal," Brekke said.

Though Uninor does not see any consolidation in the Indian market, it has plans to grow organically - that is enhancing the company's scale of operations. "We want to grow organically and are catching up with our competitors," he said.

Brekke, however, did not rule out acquisition. "We are open for acquisitions, but that's not mandatory to make our business profitable. We will look at it if it makes financial sense. For now, our focus is on organic growth or scaling up our operations."

On profitability, he said, Uninor is eyeing to break even by the first half of 2013.

Uninor holds a pan-India UAS license to offer mobile telephony services in each of India's 22 circles. It is yet to receive spectrum in some circles including Delhi, J&K, Rajasthan, Assam and North East.

Uninor services are available in the 13 circles of UP (West), UP (East), Bihar, Orissa, Kolkata, West Bengal, Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Mumbai, Maharashtra and Gujarat.

Links

http://www.moneycontrol.com/news/advertising/uninor-seeks-additional-2g-spectrum8-circles_566160.html

http://economictimes.indiatimes.com/news/news-by-industry/telecom/uninor-seeks-additional-2g-spectrum-in-8-circles/articleshow/9257886.cms

http://smartinvestor.in/market/story-81075-storydet-Uninor_seeks_additional_2G_spectrum_in_8_circles.htm

http://www.caclubindia.com/reader/uninor-seeks-additional-2g-spectrum-in-8-circles-7888.asp

BJP kicks off 'Cash for Spam' campaign against pesky calls‎

BD Narayankar & Abhishek

Press Trust of India

New Delhi, July 15: The BJP today announced launch of a campaign demanding telecom operators to pay subscribers for pesky SMSes and automated calls from telemarketers.

The BJP, through its "Cash for Spam" campaign, will seek implementation of a system that makes mandatory for telecom operators to pay subscribers for unsolicited text messages and automated voice calls on their mobile phones.

"Instead of the government levying penalty on telecom operators, it should ask them to pay Rs 5 and Rs 10 for unsolicited SMSes and automated calls respectively to the subscribers," BJP Telecom Consumer Cell National Convener Sanjay Bhalla said.

"Telemarketers should pay to the telecom operators and the amount will get credited into the account of the subscriber through the operator," Bhalla added.

Asked about the feasibility of meeting the demand within the parameters of the law, Bhalla said, "By law, the cell phone is the private property of the telecom users and hence it is subscribers' right to get paid for pesky calls and SMSes."

Tagged as 'Cash for Spam', the campaign will use the social media to create awareness among the youth. "The youth are conscious of cell phone bills and privacy issues," Bhalla said. The party is targeting support people on facebook and other social networking sites before submitting a memorandum on their demand to TRAI.

In a month, "we will also organise regional conferences with telecom users across the country as part of this campaign," besides meeting college and university students on this matter, he said.

The BJP also plans to set up a special number where consumers could register their support, besides using the medium of chain mails, digital campaigns to put pressure on the government and telecom operators to pay for unsolicited SMSes and automated calls.

"We will also enlist celebrity support and consumer groups," Bhalla said, adding he had earlier met TRAI chairman and submitted the party's demands on the matter, but telecom regulator is still to take any action in this regard.

Links


http://timesofindia.indiatimes.com/india/Cash-for-Spam-BJP-kicks-off-campaign-against-pesky-calls-SMSes/articleshow/9237199.cms

http://www.indiacompanynews.com/post/view/6761/BJP-TELECOM-CONSUMER-CELL-TO-LAUNCH----CASH-FOR-SPAM----CAMPAIGN/

http://www.centralchronicle.com/viewnews.asp?articleID=63970

http://www.moneycontrol.com/news/current-affairs/bjp-kicks-off-campaign-against-pesky-calls-smses_565956.html

http://www.deccanherald.com/content/176510/bjp-kicks-off-campaign-against.html

http://www.ndtv.com/article/india/bjp-kicks-off-cash-for-spam-campaign-against-pesky-calls-119544

http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=565956

Bharti may list tower unit to raise $1bn

BD Narayankar & Anmol Khurana

Press Trust of India

New Delhi, July 12: Telecom services provider Bharti Airtel is mulling to list its tower unit, Bharti Infratel, by selling 10% stake to raise around USD 1 billion (nearly Rs 4,500 crore) to fund expansion.

According to industry sources, "Since the company had raised USD 1.25 billion in 2007-08 from PE firms, it needs to give them (investors) an exit option."

They said the proposed Initial Public Offer (IPO) is likely to value the company at about USD 10 billion.

When contacted Bharti's spokesperson declined to comment and termed the reports as "speculative".

Bharti Infratel deploys, owns and manages passive infrastructure in 11 telecom circles in India. It also holds 42% share in Indus Towers (a joint venture between Bharti, Vodafone and Idea).

It is also learnt that Bharti Infratel has informally appointed Standard Chartered Bank and Morgan Stanley as merchant bankers and is also in discussion with two other investment banks.

International investors Temasek Holdings, Investment Corporation of Dubai (ICD), Goldman Sachs , Macquarie, AIF Capital, Citigroup & India Equity Partners (IEP) had in December 2007 invested USD 1 billion in Bharti Infratel. This was followed by KKR's investment in February 2008.

So far, no tower company is listed in India, although two other companies had drawn up plans to do so and even filed draft prospectuses with the markets regulator.

Anil Ambani controlled Reliance Infratel intended to list the company in 2008-09, and last year, Viom Networks, a joint venture between
Tata Teleservies and Kolkata-based Quippo Infrastructure, had planned an IPO.

Bharti Infratel has 32,792 towers in 11 circles, excluding the 35,254 towers in 11 circles for which the right of use has been assigned to Indus with effect from January 1, 2009.

India's telecom sector, popular among investors for almost a decade since 2000, has witnessed a value ersosion due to stiff competition and the recent 2G spectrum allocation scam, sources said.

Apart from a partial stake sale by private equity firms, the company would also issue fresh shares for the IPO to fund its planned expansion.

Last fiscal, the tower company reported an operating profit of Rs 3,159 crore on a turnover of Rs 8,515 crore, which includes proportionate share of its revenues in Indus Towers.

Links

http://www.moneycontrol.com/news/business/bharti-may-list-tower-unit-to-raise-361bn_564923.html

http://ibnlive.in.com/generalnewsfeed/news/bharti-may-list-tower-unit-to-raise-1-bn/755093.html

http://articles.economictimes.indiatimes.com/2011-07-12/news/29765534_1_bharti-infratel-indus-towers-aif-capital

http://www.indiainfoline.com/Markets/News/Bharti-Airtel-plans-to-list-its-tower-unitBharti-Infratel-report/5195479289

Banning e-services may do more harm than good

BD Narayankar

New Delhi: Few countries face the kind of challenges that India’s security agencies face. Virtually all of India’s borders have seen subversive activities. Hence India arguably needs extraordinary measures to address its unique security concerns.

But this cannot justify arbitrary measures, especially if there is a cost associated with them. Banning of 14 telecom services – from the ubiquitous Gmail to video chats, push mail, Skype, BlackBerry messaging and son on – is a case in point.

The home ministry has given the telecom ministry a list of 14 telecom services that should be banned if their data is not made available to the security agencies in “readable, understandable, printable and audible format”.

The government can argue, with justification, that its security agenda must take precedence over commercial consequences to BlackBerry. But it is worth keeping in mind that countries like the US which have equally pressing national security concerns allow such services.

Agencies in the US have put their own 240-bit encryption on the BlackBerry server covering Barrack Obama and 14 key people in his administration.

Moreover in China, all BlackBerry handsets shipped in have been inserted with software by the government, which ensures that all communication on the devices also goes to the government.

Hence it is for the Indian sleuths to raise their game and get capabilities to decrypt information sent out at higher levels of encryption.

The telecom ministry has been right to point out that, should telecom services like Gmail, video chats, push mail, Skype and BlackBerry messaging are banned, it will seriously affect e-commerce, BPO and banking services in India as encryption is almost a way of life now, right from the time you access a bank account on the Internet to applying for a passport online.

At the end of the day, the issue is how much level of encryption should be allowed. A lower level of encryption makes it easier for intelligence agencies to decipher the communication.

India does not legally allow encryptions beyond 40 bits on the grounds that its security agencies lacked the technological capabilities to monitor data transfers on the internet when the coding is beyond this limit.

India should raise its encryption levels from the present 40 bits to 256 bits as is the standard in Europe and the US. A higher encryption level will ensure more secure financial transactions on personal computers and cell phones.

Most western countries do not allow financial transactions on the internet through computers and mobile handsets, if the encryption level is less than 128 bits. Lower encryption levels make hackers job easier.

However, to build better decryption capacities, security agencies will need some time and in the interim, it does not absolve telecom operators of their responsibilities to provide a solution. They can either locate their servers in the country or share encryption keys with security agencies and assist security agencies in monitoring these services.

Mphasis plunges over 6 pc on BSE

B D Narayankar & Anmol Khurana

Press Trust of India

New Delhi, July 12: IT firm Mphasis plunged by over 6 per cent on the BSE to an intra-day low of Rs 426 after one of its UK-based clients, Santander, started the process of moving the operations of all of its Indian call centres back to its home country due to customer dissatisfaction.
Shares of Mphasis fell by 6.44 per cent to an intra-day low of Rs 426 on the Bombay Stock Exchange.
Santander UK is moving its retail-banking-related call centre services, which were earlier being outsourced to MphasiS, to the UK from India following customer complaints.
"The move is part of Santander''s programme to further improve the service it offers and follows feedback from customers who say dealing with an offshore call centre is a frustration that can lead to dissatisfaction," the company said in a statement.
On the National Stock Exchange, the stock plunged 6.59 per cent to an intra-day low of Rs 425.55.
"The company''s decision to move back jobs comes at a time when Indian software companies are fending off an anti-outsourcing backlash from developed markets like the US and Europe. UK-based companies are the second largest contributors to revenue for Indian IT firms, after those in the US," a stock market expert said.
MphasiS confirmed that Santander was its customer, but declined to comment further.
"All calls handled by these centres will now be dealt with by staff based in Glasgow, Leicester and Liverpool," the UK-based firm added.
Santander has hired an additional 500 UK staff to handle the estimated 1.5 million calls each month. The new staff are fully trained and are now available to take calls. In total, Santander''s UK call centres employ 2,500 staff.
Shares of MphasiS made a marginal recovery later in the day and were trading at Rs 433.60 apiece at 1413 hours on the BSE, down 4.78 per cent.
Santander UK is a full-service retail and commercial bank providing services to 25 million customers in more than 1,400 branches and around 4,200 cash machines. It is a wholly owned subsidiary of Banco Santander.

Links

http://news.in.msn.com/business/article.aspx?cp-documentid=5283875

http://www.indianexpress.com/news/Mphasis-plunges-over-6-pc-on-BSE/816449/

http://www.financialexpress.com/news/mphasis-plunges-over-6-pc-on-bse/816449/

http://www.expressindia.com/latest-news/Mphasis-plunges-over-6-pc-on-BSE/816449/

http://www.silobreaker.com/mphasis-plunges-over-6-pc-on-bse-5_2264704516446224532

Bharti may list tower unit to raise $1 bn

BD Narayankar & Anmol Khurana

Press Trust of India

New Delhi, July 12: Telecom services provider Bharti Airtel is mulling to list its tower unit, Bharti Infratel, by selling 10% stake to raise around USD 1 billion (nearly Rs 4,500 crore) to fund expansion.
According to industry sources, "Since the company had raised USD 1.25 billion in 2007-08 from PE firms, it needs to give them (investors) an exit option."
They said the proposed Initial Public Offer (IPO) is likely to value the company at about USD 10 billion.
When contacted Bharti's spokesperson declined to comment and termed the reports as "speculative".
Bharti Infratel deploys, owns and manages passive infrastructure in 11 telecom circles in India. It also holds 42% share in Indus Towers (a joint venture between Bharti, Vodafone and Idea).
It is also learnt that Bharti Infratel has informally appointed Standard Chartered Bank and Morgan Stanley as merchant bankers and is also in discussion with two other investment banks.
International investors Temasek Holdings, Investment Corporation of Dubai (ICD), Goldman Sachs , Macquarie, AIF Capital, Citigroup & India Equity Partners (IEP) had in December 2007 invested USD 1 billion in Bharti Infratel. This was followed by KKR's investment in February 2008.
So far, no tower company is listed in India, although two other companies had drawn up plans to do so and even filed draft prospectuses with the markets regulator.
Anil Ambani controlled Reliance Infratel intended to list the company in 2008-09, and last year, Viom Networks, a joint venture between
Tata Teleservies and Kolkata-based Quippo Infrastructure, had planned an IPO.
Bharti Infratel has 32,792 towers in 11 circles, excluding the 35,254 towers in 11 circles for which the right of use has been assigned to Indus with effect from January 1, 2009.
India's telecom sector, popular among investors for almost a decade since 2000, has witnessed a value ersosion due to stiff competition and the recent 2G spectrum allocation scam, sources said.
Apart from a partial stake sale by private equity firms, the company would also issue fresh shares for the IPO to fund its planned expansion.
Last fiscal, the tower company reported an operating profit of Rs 3,159 crore on a turnover of Rs 8,515 crore, which includes proportionate share of its revenues in Indus Towers.

Links:

http://www.moneycontrol.com/news/business/bharti-may-list-tower-unit-to-raise-361bn_564923.html

Nokia still a hot brand among Indian customers: Survey‎

B D Narayankar

NEW DELHI: Even as the Finnish handset maker Nokia is facing tough competition, it is still the most trusted and popular brand among Indian customers as it topped 'The Handset Hotlist' for July 2011, according to a survey.

As many as 12 handsets of Nokia made it to the list of 25 most exciting mobile phones , that were searched and viewed the most by consumers online, the survey by 'The Mobile Indian' website said.

Samsung was second with six of its models, including one CDMA phone, making it to the list.

While Micromax and Sony Ericsson stood at the third position with two of their models figuring in the list, a model each from Dell, HTC and iPhone completed the list of 25 most exciting handsets, the survey added.

"The Handset Hotlist' will give marketers a monthly insight into changing consumer preferences," The Mobile Indian Director Sreekant Khandekar said.

Nokia C5-03, priced at Rs 8,600, was the most searched for and viewed handset, followed by Nokia C6 (Rs 12,200) at the second spot, the survey revealed. It was followed by another stablemate Nokia X7 priced at Rs 18,000.

Samsung Galaxy Ace S5830 priced at Rs 14,700 was at number four, followed by Nokia X3-02 (Rs 7,500).

Interestingly, the list is dominated by international brands and barring Micromax none of the popular Indian brands features in the top 25, the survey revealed.

Apart from Nokia and Samsung, the only other brand to feature in the top 10 is Micromax whose models A70 and X560 figure at eighth position and tenth positions respectively, the survey added.

"Presumably, buyers of handsets marketed by Indian players, who usually make low-cost mobile phones, tend to seek information from the dealer rather than surf for information online," Khandekar said.

Interestingly, consumer interest is not dictated by price, though Nokia Oro and iPhone priced at Rs 50,000 and Rs 34,000 respectively, they rub shoulders with Nokia X2-01 which costs a mere Rs 3,500, As many as 17 of the handsets are priced below Rs 10,000, the survey said.

"Blackberry is a notable absentee too, probably because the models are few and potential buyers of the brand know what they want. Also, many get a Blackberry on office account and have a lower need to check for it online," Khandekar added.

Links:

http://economictimes.indiatimes.com/tech/hardware/nokia-still-a-hot-brand-among-indian-customers-survey/articleshow/9171808.cms

http://www.siliconindia.com/shownews/Nokia_still_a_hot_brand_among_Indian_customers_Survey-nid-85971.html

http://www.hindustantimes.com/tabloid-news/corporatenews/Nokia-still-a-hot-brand-among-Indian-customers-Survey/Article1-719502.aspx

http://www.financialexpress.com/news/nokia-still-a-hot-brand-in-india-survey/815464/

http://zeenews.india.com/business/gadgets/featurednews.aspx?newsid=331

http://article.wn.com/view/2011/07/10/Nokia_still_a_hot_brand_among_Indian_customers_Survey_q/

http://techdudes.in/?p=1727

DoT awaits Trai's reply on licence cancellation issue

B D Narayankar

Press Trust of India

New Delhi, June 30: Telecom Minister Kapil Sibal today said the telecom department is waiting for a reply from the regulator Trai on cancellation of telecom licences for not meeting the rollout obligations.

Earlier, the Department of Telecom (DoT) had sought explanation from Trai as to how it arrived at the decision of recommending cancellation of 69 licences, whereas it had recommended cancellation of 15 licences for not meeting the rollout obligations by telecom operators.

"We are waiting for a reply from Trai on the issue of cancellation of licences for not meeting rollout obligations by telecom operators," Sibal told reporters.

The cancellations pertain to licences issued in 2007-08 by former telecom minister A Raja, who was sacked last year as he was accused of selling licences and spectrum cheaply.

As of now the DoT have sent 10 notices for delay in network rollout and the remaining five are in the process.

Cancellation comes even as the Telecom Ministry has levied and collected over Rs 300 crore as liquidated damages from all the new telecom operators.

Among the 69 cases identified by Trai, some of the players had not rolled out any network while some had done it partially.

DoT and Trai have differed in view of the former saying that only date of allocation of spectrum should be considered as zero-date and only after a lapse of 104 weeks from that date a licence can be cancelled for not meeting the roll-out obligations.

According to licence terms and conditions, an operator is required to cover 10% of a circle covered in the first year.

Links:

http://www.moneycontrol.com/news/business/dot-awaits-trais-replylicence-cancellation-issue_561706.html

http://www.deccanherald.com/content/172749/dot-awaits-trais-reply-licence.html

http://m.mydigitalfc.com/telecommunication/dot-awaits-trais-reply-licence-cancellation-issue-942

http://www.business-standard.com/india/news/dot-awaits-trais-replylicence-cancellation-issue/139920/on

http://www.governancenow.com/gov-next/egov/dot-awaits-trais-reply-licence-cancellation-issue

http://www.smartinvestor.in/market/story-78972-storydet-DoT_awaits_Trais_reply_on_licence_cancellation_issue.htm

http://zeenews.india.com/business/news/news_content.aspx?newsid=26535

http://article.wn.com/view/2011/06/30/DoT_awaits_Trais_reply_on_licence_cancellation_issue/

http://businews365.blogspot.com/2011/07/dot-awaits-trais-reply-on-licence.html

Telecom Commission to meet to consider one-time charge for extra spectrum

B D Narayankar & Anmol Khurana

Press Trust of India

New Delhi, July 3: Amid differences in the industry over major issues, including charges for extra spectrum held by incumbent operators and other related matters, the Telecom Commission, the decision-making arm of the DoT, will meet this week to consider the report of an internal committee.

According to sources, the internal committee has accepted the various recommendations made by TRAI in its report on “spectrum management and pricing”, but on crucial matters like charging for extra spectrum held by old operators and re-farming of spectrum, the committee has either sought additional information or deferred the matter.

The issue of charging for extra spectrum beyond the contracted limit of 6.2 Mhz by operators like Bharti, Vodafone and Idea in several circles and re-farming of spectrum, especially in the 900 Mhz band, has huge financial implications for the exchequer.

As per a CAG’s report as well, the extra spectrum held by old cellular operators may have caused a loss of about Rs 37,000 crore. TRAI has given recommendations on the basis on which these service providers should be charged.

Sources said the Telecom Commission would take a decision, which may subsequently be placed before the Cabinet.

Re-farming of spectrum may be part of the New Telecom Policy, 2011, but a decision has to be taken now as this requires a separate fund to accommodate various agencies vacating spectrum by other means of communication like optical fibre.

“Even telecom regulator TRAI had recommended laying out a framework for re-farming of spectrum without any further delay and to create of separate funds for the same,” according to an internal DoT communication.

This would, however, require detailed guidelines in place immediately, as many licences will be due for renewal in the next 3-4 years and TRAI has recommended that it (re-farming) should be carried out at the time of renewal of licences. Some of the old operators like Bharti and Vodafone have spectrum in 900 Mhz and need to be converted into 1800 MHz.

TRAI in its recommendations had said this is the time to look forward and plan spectrum re-farming to rationalise and release large chunks of more useful spectrum for 3G and future technologies.

Similarly, another important issue of higher spectrum usage charges for spectrum beyond the contracted limit of 6.2 Mhz is being deferred time and again on the ground that the issue is sub judice.

Any delay in this is causing a huge financial loss to the exchequer, sources said, adding that the DoT can implement the spectrum usage charge subject to the outcome of court cases.

The Telecom Commission is also likely to discuss other recommendations of TRAI on matters relating to spectrum and its management, sources said.

Links:

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2155740.ece

http://ibnlive.in.com/news/tc-to-consider-onetime-charge-for-extra-spectrum/164622-3.html

http://www.governancenow.com/gov-next/egov/tc-meet-consider-one-time-charge-extra-spectrum

After BSNL, DoT mulls monthly review of MTNL performance

B D Narayankar

Press Trust of India

New Delhi, July 5: After BSNL, the telecom ministry is now mulling reviewing the performance of top MTNL officials on monthly basis to script a turnaround story.

"Yes we have decided to assess the performance of top MTNL officials on monthly basis as we had decided to do it on BSNL officials," a top DoT source said.

"The main idea to adopt monthly review policy is to galvanise non-performing officials. We believe this will keep officials on their toes to produce results," he added.

The company in financial year 2010-11 showed improvement in its revenue. In FY'11, its total income rose to Rs 3,841.2 crore as against Rs 3,781 reported in FY 2009-10.

However, the company posted a net loss of Rs 2,826 crore, up 8.27 per cent from Rs 2,610.9 crore in the same period previous year.

Keeping in mind the losses faced by MTNL, the Department of Telecom (DoT) has decided to transfer officials who fail to achieve revenue targets.

"We will shift non-performing officials to DoT or transfer Mumbai officials to Delhi and vice versa," the top DoT source said.

Profit from the cellular service of MTNL has also been declining drastically. In FY'11, loss of the company in this segment increased more than 10-fold from a profit margin of Rs 34.73 crore to Rs 346.47 crore loss.

The latest report of TRAI on telecom subscription shows that the company added only 367 new mobile subscribers in the month of April.

The company had been facing cash crunch and hence decided to restructure its Rs 7,000 crore loan taken for buying 3G and BWA spectrum last year.

The company is learnt to have restructured Rs 3,500 crore of debt, repaying Rs 500 crore and tying up with two state-run banks for the rest Rs 3,000 crore.

The company, however, got a income tax refund of Rs 177 crore for the last fiscal.

Links:

http://m.thehindu.com/business/companies/article2161451.ece/?page=1

http://economictimes.indiatimes.com/news/news-by-industry/telecom/after-bsnl-dot-mulls-monthly-review-of-mtnl-performance/articleshow/9112193.cms

http://www.livemint.com/2011/07/05161624/After-BSNL-DoT-mulls-monthly.html

http://smartinvestor.in/market/story-79558-storydet-After_BSNL_DoT_mulls_monthly_review_of_MTNL_performance.htm

http://www.psuindia.in/component/content/article/5283

http://www.telecompaper.com/news/indias-dot-to-review-mtnl-monthly-performance

UIDAI ties up with DoP to expedite enrollment process

BD Narayankar

Press Trust of India

New Delhi, July 3: In a bid to achieve the Aadhaar's enrollment target of 60 crore citizens by 2014, UIDAI is joining hands with Department of Posts (DoP) to launch its ambitious enrollment project with the help of over 5,000 post offices across the country.

"The enrollment project will be launched on July 19. We have an opportunity to use post offices for inclusive growth through this partnership. If we understand the road ahead, the post offices will be the centre for empowering people," a top telecom ministry official said.

The new partnership will add to the existing infrastructure of the Unique Identification Authority of India (UIDAI), which has over one million enrollment centres in nine states.

UIDAI aims to leverage DoP's existing infrastructure to reach out to masses for providing 'Aadhaar' numbers. "DoP doesn't have to adopt camp-based model (setting up enrolment units in urban or rural areas), which otherwise is expensive. It can use DoP's infrastructure," the official added.

The tardy pace of implementing 'Aadhaar' enrollment project prompted UIDAI to forge partnership with DoP. Many vendors complained of state governments awarding bids to the lowest bidders.

The low bidding led to the pullout of many firms in the government's multi-crore citizen service centres scheme. "This delayed the process of Aadhaar enrollment," he said.

Another reason for UIDAI tying up with DoP is the problem of duplication of enrollments as multiple agencies were hired in one district or a block. One more glitch is the wrong entry of demographic data as was done in election card, he added.

"No enrollment agency is interested in correcting data entered wrongfully because they don't get money to correct the information," the source said.

The UIDAI aims at allotting the unique identification number to one billion people. Three crore people have been enrolled so far. A further one crore unique identification numbers are ready to be assigned.

As many as 18 lakh cards had already been issued. The UIDAI will issue 10 lakh unique identification numbers daily from this October.

For enrollment in Aadhaar, personal details such as name, address, date of birth and gender will be sought. Besides, applicant's photograph, impression of retina and thumb will also be recorded.

Links:

http://www.livemint.com/2011/07/03112213/UIDAI-ties-up-with-Post-to-exp.html

http://zeenews.india.com/news/nation/uidai-ties-with-post-for-speedy-enrollment-process_717004.html

http://www.business-standard.com/india/news/uidai-ties-uppost-to-expedite-enrollment-process/140129/on

http://www.facebook.com/pages/Nandan-Nilekani/140895259296

http://economictimes.indiatimes.com/tech/software/uidai-ties-up-with-dept-of-post-to-expedite-enrollment-process/articleshow/9085944.cms

http://post.jagran.com/uidai-ties-up-with-department-of-posts-to-expedite-enrollment-process-1309700706

http://in.news.yahoo.com/uidai-ties-post-expedite-enrollment-process-051800841.html

http://www.livemint.com/2011/07/03112213/UIDAI-ties-up-with-Post-to-exp.html

DoT mulls monthly review of BSNL performance

BD Narayankar
Press Trust Of India
New Delhi, July 03: In a bid to turn around loss-making PSU BSNL within six months, the telecom ministry has decided to review the performance of all circle heads of the service provider on monthly basis. "There will be a monthly review of all the 24 zonal directors. It is necessary as quarterly monitoring is a very long period for assessing the performance of a commercial organisation like BSNL," a DoT source said.

BSNL, once the country's flagship telecom company, posted a net loss of Rs 1,823 crore on revenue of Rs 32,046 crore in 2009-2010. It is also likely to post losses for the financial year ended March 2011. The company had a net profit of over Rs 10,000 crore in 2005-06.

Further, the source said that since it is a difficult task to monitor a large-sized PSU on profitable platform, department of telecom (DoT) has decided to adopt revenue--monitoring criteria for reviewing a commercial organisation like BSNL.

"Profitability clause should not be the criteria for reviewing performance of large-sized PSU like BSNL as it is the profitability of telecom industry (which )is falling. Hence we have decided on adopting revenue-monitoring criteria for reviewing a commercial organisation like BSNL," a source from DoT said.

In terms of mobile subscribers, BSNL has been relegated to the fifth position from the second rank it held just a few years ago since the company has failed to match the competition from private players like Bharti, Vodafone, Idea and Tatas.

Earlier, DoT had instructed BSNL directors in all the 22 territorial circles to mop up monthly revenues by 25%, failing which strict action will be taken against them.

"If any any circle fails to achieve the revenue target, we will transfer people on large scale. The idea is to make higher officials accountable.

"The biggest challenge before us is to bring BSNL into the positive zone. For an organisation to grow zonal directors should be made accountable. We have done this in the first phase and have been tracking this for last two months," he added.

Even telecom minister Kapil Sibal had said that the organisation must have targets for circles, according to which if the officials don't perform they will be transferred out while those who meet the targets will be rewarded, like given a posting of their choice.

Under the revenue maximisation strategy, BSNL's circles have been divided into three-revenue wise categories, including those with less than Rs 10 billion revenue, those with Rs 10 billion-Rs 20 billion revenue and circles with revenues in excess of Rs 20 billion.

Links:

http://www.hindustantimes.com/DoT-mulls-monthly-review-of-BSNL-performance/Article1-716718.aspx

http://www.mydigitalfc.com/telecommunication/dot-mulls-monthly-review-bsnl-performance-073

http://in.news.yahoo.com/dot-mulls-monthly-review-bsnl-performance-051300905.html

http://www.silobreaker.com/dot-mulls-monthly-review-of-bsnl-performance-5_2264684260306714703

http://www.dayandnightnews.com/2011/07/dot-mulls-monthly-review-of-bsnl-performance/

http://www.indiareport.com/India-usa-uk-news/latest-news/1051147/Business/4/30/4

http://snattakrishnagarwb.blogspot.com/2011/07/04-07-2011dot-mulls-monthly-review-of.html

http://www.financialexpress.com/news/Monthly-review-of-BSNL-circle-heads-on-anvil/812459/