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Vol.17 Jan-Mar 2016 Covering developments on policy responses, policy implementation and policy distortions on a quarterly basis. PPoolicyWatchlicyWatch Comments are welcome. Volume 17, No. 1 January-March 2016 The Telecom Overhaul couple of months back came the government’s ‘eureka’ moment when Ait agreed on spectrum sharing and trading between telecom operators. The Department of Telecommunications (DoT) is planning a massive spectrum auction in June 2016 and has even gone beyond, urging the International Telecommunications Union (ITU) to identify additional usable spectrum bands for 3G and 4G services. INSIDE THIS ISSUE For mobile services New Aviation Policy ............... 3 with persistent issues of call drops, poor Internet Boosting Cashless and bad reception, the Payments.............................. 6 operators had always put M&A Activity Shrinks ............. 10 the blame on spectrum scarcity. Not any more! Corruption Delays Additional spectrum at Startups............................... 12 auction, and an option to Separate Poverty share/trade spectrum, is Indicators ............................ 16 www.static.indianexpress.com likely to optimise spectrum utilisation and, Focus on ‘Values’ ............... 18 in the process, raise the quality of service (QoS) for mobile services. Some government enterprises, sitting on the bulk of unutilised spectrum, HIGHLIGHTS have started pondering over its release to help addressing the spectrum UDAY is a Game Changer: scarcity. The Ministry of Defence is thus expected to release 150 Mhz of Piyush Goyal .................... 7 spectrum in the second quarter of 2016. India has 10 mobile operators with Reliance Jio joining soon. Free Modi Moves to Plug India’s competition is considered beneficial for consumers, but in the case of mobile Biggest Data Hole services it might not be so. With 11 players competing for a limited resources, – Sandrine Rastello and each will get an inadequate spectrum, resulting in poor services. Bibhudatta Pradhan ........13 With another big spectrum auction on the horizon, the operators are caught in a dilemma to share/trade spectrum or to buy spectrum in the Vijay Mallya’s USL Exit coming auction. The spectrum on auction, valued around M5 lakh crore, A Wakeup Call for might land a devastating blow to the already-indebted telecom operators. Independent Directors How the operators would deal with this, while combating the stiff competition, – Devina Sengupta and would be intriguing. Sachin Dav ..................... 14 All sharing/trading deals would earn the government one percent of the deal value, which becomes the buyer’s liability and two-fold earning for the CCI Finds Reasons to government. Intimating the government 45-day beforehand on deals and Probe Mahyco-Monsanto restricting operators holding more than 25 percent of spectrum in a circle – Shreeja Sen and and 50 percent in specific band again amounts to over-regulation. Sayantan Bera .................22 Another factor that needs to be addressed is the harmonisation of spectrum. Featuring on ITU’s global agenda, harmonisation means uniform allocation of radio frequency bands across entire regions and not just individual “The reformer has enemies in countries. This would minimise radio interference along borders, facilitate all those who profit by the old international roaming and reduce the cost of mobile devices. order and only lukewarm Spectrum and infrastructure were claimed to be the biggest culprits for defenders in all those who call drops. Now that one has been eliminated and the other is being addressed, would profit by the new”. services should definitely improve soon. If that does not happen, the telecom Machiavelli in The Prince operators should be warned that consumers’ faith will dwindle. Published by Consumer Unity & Trust Society (CUTS), D-217, Bhaskar Marg, Bani Park, Jaipur 302 016, India Phone: 91.141.228 2821, Fax: 91.141.228 2485 Email: [email protected], Website: www.cuts-ccier.org Printed by: Jaipur Printers P. Ltd., M.I. Road, Jaipur 302 001, India. INFRASTRUCTURE devices, mobile and fixed line phones, (CMD) will conduct a drive test in Delhi COMMUNICATION with each other to send and receive to directly monitor call drops. calls, call forwarding etc. on any of TRAI conducted a drive test of call Radio Rating these devices. BSNL has announced drops, in December-January period that it will install 21,000 additional and found most of the telecom Agenda mobile towers across country for operators, including state-run roadcasting regulator Telecom mobile network upgradation. Mahanagar Telephone Nigam Limited. BRegulatory Authority of India (ET, 17.03.16) (MTNL), failed random drive tests to (TRAI) has initiated a consultation check quality of their network and process for creation of credible radio Market Access Policy services as part of its efforts to rein in audience measurement framework Domestic telecom equipment call drop menace. that is conducive, growth-oriented makers are seeking inclusion of In Indore, the telecom regulator and protects the interests of the private telecom operators under the found 2G network ofAirtel, Vodafone, stakeholders. government’s Preferential Market RCom Code Division MultipleAccess Access (PMA) policy, indicating that (CDMA) and Tata CDMA complied the move will help push sales. with call drop norms while others PMA policy mandates all state failed. (ET, 17.03.16) departments, organisations and agencies to procure at least 30 percent Pushing Internet Services of their equipment from domestic www.bgr.in The DoT is chalking out a strategy market. to promote internet services, Domestic manufacturers complain especially in small towns and areas, that they have not been able to through state-run BSNL to bridge the increase market access despite having digital divide. This will be in line with cheaper products. They claim that government’s vision of ‘Digital India’. some government-run organisations Internet services would cover TRAI intends to ensure a forward- are reluctant to buy their portfolio, access to the net via mobile phones looking, transparent and credible forcing their production facilities go as well as through broadband – radio rating framework with a underutilised. To try and level the wireline – connections. The plan could ‘minimal regulatory intervention’ in playing field, they want PMA policy be to offer internet services free for the rating process. to be extended to private operators first two months or free internet usage Advertisement revenue of the as well. (ET, 16.03.15) during night, though with a specified radio broadcasting sector is directly data limit to get people onto internet linked to listenership of radio Employable Human Resources boat. channels. Advertisers and advertising The Department of BSNL is setting up Wi-Fi hotspots agencies require audience Telecommunication (DoT), has in partnerships with other players. measurement, which indicates the recently asked all telecom service This would give users free access to popularity of a channel or a providers to train students across the internet for the first 30 minutes, programme, it added. (ET, 15.03.16) industrial training institutes (ITIs) in after which they would have to buy line with the industry’s operational vouchers. (BS, 09.02.16) Landlines via Mobiles requirements. Bharat Sanchar Nigam Limited Students will be trained, typically, Policy for Digital Lockers (BSNL) has unveiled an app through to handle the gamut of technical work In an another move to promote the which its customers travelling abroad relating to rollout and maintenance of ‘Digital India’ initiative in India, Ravi will be able to connect their landlines mobile networks. Shankar Prasad said that the through mobile and make calls The DoT directive stems from the government is working on a draft through them without attracting priority being accorded by the policy on ‘digital lockers’. International Subscriber Dialing (ISD) Narendra Modi government in Digital lockers are cloud-based charges. involving the private sector for spaces in government cloud that could The Fixed Mobile Telephony revamping technical institutes, such be used by both government and service, to be operational from April as ITIs for skill building and private users. Prasad said that around 02, 2016 will however, attract monthly developing employable human a million digital lockers have been charges. Under this technology, resources for key industry sectors, opened, and 1.5 million documents BSNL has plans to introduce Short including telecoms. (ET, 16.03.16) have been uploaded to these cloud- Message Service (SMS) facility on based lockers. landline phones. Drive Test for Call Drops “We are already having BSNL’s another facility – fixed Ravi Shankar Prasad along with consultation on draft policy on digital mobile convergence will enable Telecom Secretary and BSNL lockers and rules for participation of customers to connect up to four Chairman and Managing Director private players”, Prasad stated. (BS, 31.01.16) 2 January-March 2016 PolicyWatch INFRASTRUCTURE TRANSPORT waterways was a priority for the actually part of an ambitious agenda National Defence Alliance (NDA) to make the department, the biggest Scrapping Old Vehicles government. He said that one run by the federal government, In the union budget of 2016, the development of waterways would more financially accountable. government might announce cash and reduce the logistics cost, enabling Accrual accounting is an tax benefits to owners of old vehicles India to effectively compete in
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