Tag Archive for 'Indian Telecom'

TRAI: Filed for RTI application regarding Broadband

Here is the text of the email, fax and the registered post sent to TRAI regarding various issues related to Broadband.

To,
The Central Public Information Officer
Telecom Regulatory Authority of India
Mahanagar Doorsanchar Bhawan,
Jawaharlal Nehru Marg, Old Minto Road,
New Delhi-110 002
Tele: 011-23211622
Fax: 011-23213294

E-mail: ap@trai.gov.in

Sub: Application under the Right to Information Act, 2005 for information relating to Broadband Internet, Fair Usage Policies and pricing mechanism.

Dear Sir,

I am a citizen of India, and I request you to kindly provide me with the following information under the Right to Information Act, 2005 with regards to information relating to Broadband Internet, Fair Usage Policies and pricing mechanism.

1)Why the definition of “broadband” has been kept at 256kbps and not subject to revision for higher speeds? Is there a proposal to re-define the speed of broadband access? If yes, kindly provide the details of the file, notings and objections if any received from Internet Service Providers. The same to be provided in writing by way of certified photocopies.

2)What is the meaning of the term “unlimited internet”?

3)What is the meaning of the term FAIR USAGE POLICY? Has this been put up or suggested by TRAI? If yes, what is the basis for the introducing such a policy? Has the cross section of the user base been consulted before implementing such a policy?

4)Does fair usage policy violate any of the provisions of TRAI?

5)If it does, what action can be taken against errant Internet Service Provider?

6)Has any Internet Service Provider been ever penalised for violating for introducing “fair usage policy”?

7)Do the Internet Service Providers provide details to TRAI about their various broadband plans?

8)If yes, has TRAI suggested reducing the price for various plan combinations? If yes, what is the base price fixed for an unlimited Internet Connection by any Internet Service Provider? If no, is there any provision whereby TRAI can act on behalf of the customer to reduce the prices?

9) How has the tariff on unlimited broadband (1Mbps unlimited) being offered by Bharti Airtel fixed line been calculated?

I would be highly grateful if the above-mentioned information could be provided to me at my postal address within the statutory period of 30 days from the date of receipt of this application.

The requisite fee is being paid along with this application by way of postal order in favour of the accounts officer.

Should there be any additional fees chargeable as per the Act; the same may be communicated to me by e-mail or postal address with the required work up of the details as to how the increased charges are justified and how you have arrived at the calculation of the same.

Please rush the information to me by speed/registered post. If the information is not with you, please forward this application to appropriate PIO, under intimation to me. Please also provide me file notings and action taken report on this application along with your reply.

I sent them today with “Acknowledgement Due” from a post office with the requisite proof of having sent them the postal order. To my knowledge, they cannot feign ignorance; I would be following this up on a regular basis.

Here’s to the power of the people! I am bracing up for a big fight for sure.

3G India: Who needs it?

The following is the text of the email sent and an edited version appeared in Business Standard on 06/11/2009.

Dear Sir,

This refers to Shyam Ponnapa’s write up on BS dated 05/110/2009 (Managing Spectrum Efficiently).

The big question. Why do we need 3G? Why not focus on the land line business alone for broadband access? Or better still. Community Wifi?

The arguments for doing away with this are many. Community Wifi is deemed to be a security risk but then countries like Singapore have implemented this on a large scale nationwide. The mobile phones required to access 3G invariably have Wifi access too. Unless, the telecom companies are expecting surefire hits like Apple iPhones or flood of other smart phones to access the Internet, it is not happening.

We don’t have accurate numbers about the likes of Reliance and Tata who are offering their 3G access. If initial reports are to be believed, they are plagued by “line of sight” hassles, ‘network congestion’ and lackluster customer support. To top it all, it has the access limitations which means that broadband access, even on the 3G spectrum would be capped for very obvious reasons.

We have enough bandwidth in the country but as anyone would testify, we have problems in implementing the “last mile access”; having a contentious set of issues like 3G is not going to solve the persistent problem of “last mile access” because no one is interested in sinking money for a long term.

We can have a fair idea from the existing companies like Airtel or Vodafone who charge exorbitant rates under the present implementation of “mobile internet”. What is the guarantee that they would lower down the prices once they pay fancy sticker prices in 3G auction?

3G, would most likely be used for carrying more voice traffic because none of the players harbours any disillusionment about the “mobile broadband” across the length and breadth of the country.
The market for value added services is locked up within the “walled garden” of the existing players; it is unlikely that 3G access would “revolutionize” the content.

This pretty much sums up what I have always alluded here and my opposition to 3G remains.

Indian Telecom: End of the boom?

This is what the headlines in Business Standard say. Let me highlight the relevant portions of the report for your eyes only:

Rising competition (13 licences for each circle), falling tariffs (lowest in the world, falling further because of per-second billing), rapidly declining average revenue per user (ARPU) because the newer subscribers are the low spenders in semi-urban and rural areas, and high taxes (about 30 per cent in all) ……….have put paid to the aspirations of not only the new entrants but also incumbents……..deleted.

Forget about fancy valuations. I have always contested the claim about the “lowest tariff in the world” because it is not in consonance with the actual “gini coefficient”; which means that we pay more than we can actually spend. It is a bitter truth but then the newspapers need a lifeline of their advertising spends, so rest assured, this truth will NEVER be out.

……Nearly 15 million more users came on board in September….. It has also brought into focus the phenomenon of dual SIMs — existing subscribers are acquiring additional connections, resulting in a seeming increase in subscribers but in fact merely leading to a bill being split between two or more service providers….Deleted.

For the first time, to my knowledge, a newspaper daily has mentioned this in black and white. Let me also repeat. The operators keep the discarded number for a period of atleast 3 months before it is “terminated”. So even though, a customer has left in the middle of month, the disconnection would not be reported for another 3 months (which, I believe is an industry practise). The same customer may acquire multiple connections or dual SIMS; so it is the growth of the SIM cards and perhaps not the customers which is reported. In any case, the simple headcount may not be feasible.

Industry executives blamed much of the ills on the government and the regulator. With falling tariffs, they need to cut costs, but their hands are tied because 35-40 per cent of their costs are taxes and other regulatory expenses. They have to pay 5 per cent of their revenue even from rural areas towards the universal service obligation fund which is meant to promote rural telephony. They said there was no need for the regulator to push for pay-per-second billing by all…… Deleted.

Now this is something that industry officials would always bleat about. Let them come out openly against the said “policies”…shadow fighting the Government wouldn’t help. For one simple reason. If these morons had any iota of service towards customers, I would have sympathized with them. But, they treat their customers like dirt; more so like crap cash cows who feeds in their kitties with little change so that likes of Mittal and his ilk can reap in obscene profits. In any case, let them prove their worth with their commitment to service, their willingness to be transparent, their approachability and customer care in the true sense of the term. People need their money’s worth but alas! My countrymen are basically lazy bastards who wish to have everything on platter without fighting for it.

…….the incumbents said they remain committed and focused on growth. “We will continue to enhance our market leadership and simultaneously open new revenue streams like m-commerce, m-entertainment, digital media and many other products……Deleted.

They have no real option but to focus on Value Added Services which is “babes, bikinis and bollywood”. Unless these people want to “focus” on phone sex services which would be a “high revenue earner” for them.

Rest of the write up seems to sum up the gloom and “brave words” just to reassure the shareholders that “we are up to it”. That we would weave our small little web of deceit, of lies and pull wool over the regulators and leave no stone unturned to defraud our customers because they are basically bunch of idiots and nincompoops. No one knows how much unaccounted for wealth flows in and out of system or whether this elaborate system allows them to launder their money in more effective way. There is no accountability to the customers because they are using a PUBLIC resource and merely by adding value to it doesn’t entitle them to the ownership of it.

Sadly, this isn’t mentioned anywhere. This of course, would be mentioned at all.

Airtel Fair Usage Policy :”SUCKS”!

There has been a flurry of activity in the blogosphere and a lot of people have bandied together to protest against the assinine policy of Airtel which seeks to limit our choice and control the access to Internet. Screwheads have totally lost out any imagination to spur the Internet access and in this day and age of recession, see no merit in upgrading the existing infrastructure.

Hence, they have bandied together to implement their “fair usage policy”.

Surprisingly and happily, it has found a mention in the mainstream media. Mint has taken up the cudgels on behalf of the existing customers and I truly laud their efforts.

There is no other way except to show a middle finger to the likes of Tatas (are they not always on the wrong end of the stick?), Airtel boffins (why are you screwing up a fantastic service) and Sify (the original buggers who have bastardised the broadband access in India). There are other smaller players who source their bandwidth (in effect work as re-sellers) and would be glad to limit the access accordingly.

Surprisingly, Internet and Mobile Association of India ( a bealagured body that is a rag tag association of the service providers) has spoken out against it’s members. It’s president (or whoever the self proclaimed titular head) has gone on record to say,

“If the service is provided under ‘broadband’ to the customers when they signed in, it cannot be reduced to 128 (kbps) since the government of India definition of broadband is minimum 256 (kbps). This is a violation of government policy as well as short-changing customers if they had signed in for a broadband service.”

Violation of government policy? Really? Which one dude?

For all practical purposes, I request the readers to sign up the petition to protest against the restrictive access. It can be found here.

We are already having a pathetic state of affairs. The frigging morons expect the users to broadband to check email alone. Thats the state of majority of the users.

Who has given them the right to limit our access? Beats me.

Tatas: Selling their soul

Poor idiots! They had to sell to DoCoMo, a leader in the 3G services. With the policy as announced, the duds had it in them. They had to sell out to the highest bidder. Very soon, the whole landscape of the Indian telecom would change. We would not have homegrown company like Airtel but instead this would be a battle ground for the big global majors to fight it out for customers.

The size of the deal is pegged at $1.5 billion (about Rs 6,700 crore), translating into a $6-billion (Rs 26,000 crore) valuation for the company that runs networks across the country and is planning to expand into GSM mobile services in the near future. Tata Teleservices is a loss-making company. Between 2005 and 2007, its cumulative losses stood at Rs 5,604 crore

This India story has been done to death many a times. There is no real addition of the 8-9 million customers per month. It is simply not possible. Most of the metros have choked and jammed. It is saturated. In order to expand into tier B and tier C cities, telcos need funds and assured returns. For all practical purposes, I dont forsee the market “hot and happening”; although the 3G services would assure monetised returns and would ride on the value added services.

It is no secret that Tatas claim their superiority of services based on some abstract benchmarks. There are people who would swear to God not to ever think of Tatas as their service provider. Frankly, TRAI has been unable to implement its own customer friendly norms; trying to get anything out of the useless idiots manning the customer service is a herculean task in itself.

Tata is a weathered story. They have lost it and the writing on the wall is as clear as the sunlight illuminating the dark dungeons of their minds. Telecom is a failed venture and they ought to accept defeat and ship out of business.

Spice Telecom: Snapped up by Idea

Birla’s group Idea snapped up Spice, one of the last stand alone players in the market. Idea cellular is no angel in white. Spice isn’t the best thing to have happened to mobile industry ever although, they were among the initial telecom players to have 900 Mhz spectrum and were the only big players having a huge monopoly for over 3 years. The promoters, Modi group, made huge amount of money. I remember my time in Karnataka when Spice was hell bent on promoting itself as “Southern Spice” and pioneered the use of minimalist advertising.

It isnt a bad deal for Idea. For the intellectually inclined, here is a spiel from Business Standard (although the link is guranteed to go dead soon):

At Rs 77 per share that Idea is shelling out for the loss-making Spice, the latter is valued at nearly 20 times forward enterprise value /ebitda (EV/ebitda) while at Rs 157, TMIL is valuing Idea around 15 times FY09 EV/ebitda. That’s possibly because at the end of the day Idea is a gainer from the buyout; it will be left with cash, which for a telco that’s planning to become a pan-Indian player and is now present in 13 out of 22 circles, can come in handy. So while Idea will pay Rs 2,700 crore for the stake in Spice, it will get Rs 7,200 crore from Telekom Malaysia, leaving it with a net Rs 4,500 crore.

I am jittery about the Telekom Malaysia investing here in India because they are known to be thugs in the big league. Remember the Salim Group which cosied up with the Left Government in Bengal? They paid a pittiance and got prime land at throwaway prices in order to set up “housing colonies” and malls.

This marks the formation of oligopolies although I am surprised that no other company offered better money for Spice considering the fact that mobile portability is not feasible in present times; most of the original subscribers are loyal to Spice irrespective of their services. It would have been a ready pool of subscribers with an efficient spectrum. There is something fishy on for sure.

Did anyone make any noise about the regulatory approval? Would we ever see anti competitive clauses?

Virgn India Mobile: Grey areas

Mobile Virtual Network Operator or MVNO is a “backdoor” entry in Indian telecom. Indian laws don’t allow this at all. Yet, Virgin India “tied” up with Tata and leased out their spectrum (? perhaps) and advertised here. Tatas claim that this is just a rebranding exercise. The email from the PR department didn’t sound so.

It has been a fiasco. Tatas feel that they can roughshod over the existing laws and garner a share of suckers who feel that it’s cool to get paid for incoming calls. Bah! How naive can people get? I believe, that one has to pay something upfront to “activate this service”. In any case, this is only product differential they have in an increasingly crowded market. With the eminent launch of newer services, this segment of consumers would surely weigh in gimmicks like these to purchase.

Their offer of handsets sucks. Although, this is good news for those who swear by CDMA. Department of Telecom has referred this matter to TRAI to look in the legal aspects of having Virgin Mobile.