Wireless wars of India
Large Incumbent 2G Gsm telcos - Bharti , Vodafone, Idea etc
Bharti and Vodafone with pan-india licenses form the spine of Cellular Operators Association of India COAI, the body created to protect and lobby for the interests of GSM operators. They have lobbied & consequently benefitted from the DoT (Governments telecom arm) policy of Allocation more 2G spectrum linked to subscriber norms in return for a nominal percentage(~6%) for their Aggregate gross revenues AGR.
It is akin to as government saying, ok so you bought off a small plot of land off me for commercial purpose last year. But the more you grow your business, we give you extra land for expansion in return for a small percentage of your revenues. New operators and the fact that the Govt has only so much of land to give away, not withstanding.
Bloody steal, if you ask me.
Strengths
- Established players with depreciated pan-india networks, reach, economy of operations and subsequent cost advantages
- Have indulged and bnefitted imensely by spectrum hoarding due to DoT's liberal(corrupt!) policy of leniant (to say the least) subscriber-linked spectrum allocation norms
- All three have outsourced their IT operations to IBM and Network management to the likes of Ericsson, Siemens and Nokia to focus of Customer acquisition & service
Weaknesses
- Infighting amongst themselves.
Opportunities
- Get as much 2G spectrum as possible
- Create barriers for new entrants in Wireless play
Threats
- CDMA operators armed with Dual technology licences are the biggest threat. Reliance telecom already licence and spectrum to launch nationwide gsm services(2)
- Auctions for new 2g spectrum
- Someone to question 2G spectrum already allocated to them allegedly without any fair pricing built in causing massive losses to exchequer
- Dot going by New TEC's subscriber-linked spectrum allocation norms are far more stringent then TRAI's norms
- Favour auction of 3G spectrum but would like to restrict it only to existing players. Read-Keep out big international telcos or otherwise with deep pockets
Regional incumbent 2g gsm telcos - Spice, aircel, shyam telecom, BPL mobile, Reliance Telecom
Idea was placed with big incumbent GSM operators as they have licences in 11 circles and customer base of 17 million subscribers(1). These are regional operators who have applied for licences in additonal circles to get more of most covetted resource, the scarce 2G spectrrum which adds value to them as an enterprise along with the obvious use of helping them to launch services in more circles.
Strengths
- Regional like BPL in Mumbai, Aircel in Chennai (although with with presence in 9 telecom circles)
Weakness
- Awaiting either letter of Intent LoI's from DoT to start telecom services, followed by license and then spectrum.
- Lack the economies of numbers to compete with bigger players
Opportunities
- Would like to get as much spectrum to increase their valuation as serve as launching ground by getting bought by international telco's
Threats
They fiercely oppose and dread the entry of real-estate and other sector behemoths in telecom spectrum fray because of increased competition
CDMA/Dual Technology license operators -Reliance, Tata, HFCL, Shyam - Reliance and Tata have PAN India presence in CDMA platform. Reliance has become the first operator to get Dual technology license which means they will be able to acquire & service customers on both the dominant wireless technology platforms. As expected, COAI is crying wolf. Tatas's aplication for gsm license has also been cleared(4)
Strengths
- Big and growing subscriber base. Tatas with 19 million in 20 circles(3) and reliance with 40 million(2)
- Backing of ADAG and Tata each
Weakness
- CDMA handsets perceived as low quality(cheap) with fewer services in big metros
- Natioanwide and worldwide roaming only supported with other CDMA operators (doesnt work in europe)
Opportunities
- Reliance telecomnow armed with Dual technology license. Reliance to target existing GSM subscribers to switch to them.
- Reliance to launch dual CDMA/GSM handsets
- CDMA operators known for extremely low priced offers
Threats
- Lower ARPU than GSM operators
- Voice still contributing to major source of revenue. Uptake of data services not as successful
Cellular operators Association of India COAI
The umbrella body for GSM operator of India. Has admitted Reliance Telecom in its ranks which is part of ADAG which also owns and operates Reliance communications, india's biggest CDMA operator.
AUSPI
Association of Unified Telecom Service Providers of India (AUSPI) is the representative industry body of Unified Access Service Licensees providing telecom services in the country with CDMA technology.
New (and some old) 2g aspirants(those who submitted their applications before 25 September 2007) - Unitech, HFCL, ShippingStop Dot Com, Datacom Solutions and Swan(5). LoI's have been issued and the firms have also deposited the licence fees of 1651 crore INR(for pan india license). When will the spectrum be allocated is anybody's guess.
New 2g aspirants - (Those who submitted their applicatiosn between 26 Sep - 1 october 2007)- 24 companies including Parsvnath et all(7)
TRAI
The mission of Telecom Regulatory Authority of India (TRAI) is to ensure that the interests of consumers are protected and at the same time to nurture conditions for growth of telecommunications, broadcasting and cable services in a manner and at a pace which will enable India to play a leading role in the emerging global information society.
TEC
WPC
DoT
Public sector Telcos - BSNL, MTNL
International 3g aspirants - AT&T, Verozon, singapore telecom, BT etc
TDSAT,
Telecom Minister - A Raja
NGO's - Telecom watchdog
Media
eGoM - Empowered Group of Ministers
Strengths
Weakness
Opportunities
Threats
References
1)http://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea
2)http://www.rcom.co.in/webapp/Communications/rcom/Media/press_release_detail.jsp?id=284
3)http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx
4)http://economictimes.indiatimes.com/articleshow/2690885.cms
5)http://www.dnaindia.com/report.asp?newsid=1143853
6)http://timesofindia.indiatimes.com/Business/India_Business/Babu_adds_fresh_twist_to_licence_row/articleshow/2673197.cms
7)