Category Archives: Telecom

Issues connected with telecom matters

New Telecom Policy – ‘One Nation, One Licence’

03 Thursday Aug 2017

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The New Telecom Policy expected to be finalised by the end of this year may change the Licence system for telecom services in the country. This was stated by Miss Aruna Sunderarajan, Secretary DOT. Earlier, the licences were granted on bid for each circles separately. This was the requirement of the private companies since they did not have services in all the circles. But BSNL was compelled to purchase spectrum in all circles at the maximum bid rate in each circle, whether required or not. While private companies paid only Rs. 3000 – 6000 crores for selected circles, BSNL was compelled to pay an amount of Rs. 18,500 crore.

Now the major telcos are providing service in most of the circles. If they have to bid by circle to circle and pay for all circles, it will be a good amount as paid by BSNL earlier. Hence it is to reduce that burden on the private companies that the All India licence is being thought of giving a new slogan ‘One India, One Licence’.

It is exposed that the policy decisions are taken by the government in the telecom sector always giving priority to the private companies. Already the government is in the processing of reducing the ADC, USOF etc. charges to be paid by the private companies as demanded by the them.

120.49 crore telecom subscribers by May 2017

15 Saturday Jul 2017

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The total telecom subscribers in India has crossed 120 crore in May 2017 according to TRAI. From 1,19.89 crores in April, it increased to 120.49 in May 2017.
There was an increase of 66.2 lakh connections in Mobile. Loss of 1.4 lakh in landline subscribers.
Total wireless subscribers increased by 0.53 per cent to 1,180.82 million at the end of May from 1,174.60 million at the end of April.
BSNL increased 13.5 lakhs connection in the period. (output from TRAI).

India’s population is above 130 crores., It will seem that almost everybody has got a phone. It is not so. Many people are having two or more phones. There are still many crores of people who do not have a phone.

Another ‘New Telecom Policy’ to favour corporates?

07 Friday Jul 2017

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Communications Minister Manoj Sinha had stated that the government is preparing a New Telecom Policy which will will be discussed with all stake holders. The report in the press is given below. Every time a New Telecom Policy has been announced, it has been for the benefit of the private companies. The first NTP was to allow the private companies to enter the telecom sector. Every NTP afterwards has been in favour of the private corporates. it is certain that this will also be in the same route.

“New Delhi: A national telecom policy is currently under formulation and will be made public “soon” for stakeholder consultation, telecom minister Manoj Sinha has said.

The upcoming policy will look at areas like technology innovation and security as well as plug “loopholes”, the minister promised but did not elaborate on the specifics.
“We are framing national telecom policy…we have done a lot of work on this. Once it is formulated, we will put in on the website for comments of general public, academia, industry and then we will go to the Parliament,” the minister told PTI in an interview.

He said that at a broad level, the policy will be driven by technology innovations, among other aspects. “There are many things which change with time…we will take all that into consideration,” he said, adding it will also address “loopholes”. He was responding to a question on gaps that the new policy will seek to address over the National Telecom Policy (NTP) 2012.

Asked about the time frame for finalising the new policy, Sinha said he expected it “soon”. “I am hopeful that it will come soon. First, we will initiate a consultation…maybe the implementation will take some time but we will soon put in on the website so we can seek people’s opinion,” he pointed out.

Sinha vowed that reforms, especially consumer-centric ones, will continue in the telecom sector and hinted that some announcements were in the offing. “Reforms will continue…Yes, it will move, and move swiftly…you will soon see some things…In the coming days, there will be some news regarding reforms, and it will be consumer-centric,” he said but declined to divulge details.

The telecom ministry has issued technology-neutral telecom licences under the NTP 2012 which was de-linked from spectrum. Other reforms that have been undertaken include finalisation of spectrum trading and sharing rules, full mobile number portability, increasing spectrum supply for the industry, Right of Way norms and electronic know-your-customer (KYC). However, it is yet to meet certain targets like 2-megabits-per-second broadband speed for consumers and formation of the National Mobile Property Registry.”

DOT asks MTNL to reduce retirement age from 60 to 58

04 Tuesday Jul 2017

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I am giving below a press report in which it is stated that DOT has asked MTNL to reduce the retirement age from 60 to 58, in order to reduce the staff and to reduce the expenditure on VRS. The Modi government, it seems, is determined to finish the MTNL and put its employees on the road. If the experiment is successful, the next target will be BSNL. In this connection it is to be mentioned that the government has no moral right to reduce the retirement age, since the employees have been planning their retirement life with the preparation to retire at 60 years and any pre-retirement will put them in to much difficulties and even may destroy their future life. Strong protest should rise against this arbitrary decision.

Press report
“Mahanagar Telephone Nigam Ltd’s plan to become leaner is unlikely to fructify any time soon as the department of telecommunications has told the state-owned telecom services provider to first bring down the retirement age for its employees to 58 from 60 before seeking any support to fund a planned voluntary retirement scheme, according to an official.

According to the official, the company had sought the department’s support to initiate a VRS for its employees to bring down its staff costs—currently almost neck-to-neck with its revenues. Reduction in the retirement age will automatically bring down the number of people eligible for VRS and hence save the government some cash.

Years of losses, abetted by a lethargic and huge manpower and slow decision-making, have pulled down the MTNL’s networth into negative. Its revenues have little chance of recovering given that the market has matured and at the same time remains competitive. The company’s last annual profit was in 2008-09. Its net loss in March quarter was Rs. 634.78 crores – the lowest among the losses in the four quarters of 2016-17.

MTNL had a staff strength of 28,877 as on December 31, 2016. Of this, 4,027 were executives and 24,850 were non-executives.

At the end of last calendar year, the company had a total of 7.10 million subscribers. Of this, 3.63 million were mobile subscribers while 3.48 million were landline connections.”

Crisis of private telecom companies

02 Friday Jun 2017

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]Inter Ministerial Group to study the crisis of private telecom companies.
The government has setup an Inter Ministerial Group (IMG) to study the financial crisis of the private telecom companies. The first meeting of this IMG begins on 12th June, 2017. As a precursor to this meeting, the DoT officers are holding a series of meetings with Airtel, Vodafone, Idea, Aircel and TATA Tele-Services. When the corporates earn hefty profit, they do not think about the country and the people. But, when the corporates land in crisis, the country and it’s government start worrying about them. Among all the telecom companies today, BSNL is having the least debt burden. Below is the list of loans taken by various private telecom companies.

Reliance Communications Tata Tele-Services Bharati Airtel
₹44,000 cr. ₹30,000 cr. $14.09 billion

Aircel Idea Cellular Vodafone India
₹23,000 cr. ₹50,072 cr. €8.7 billion (Courtesy: BSNLEU website)

Reliance Jio violate TRAI directions on special offers

08 Saturday Apr 2017

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Despite clear direction from the TRAI to stop the summer special offers extended for more than 90 days to customers, Reliance Jio has given advertisements continuing the offer for more than 15 days.

Probably, Reliance Jio will be thinking that Modi government will not take any action against it, since  it was Prime Minister Modi’s photo that they put in their full page advertisements earlier.

TRAI and DOT should take serious action against the violation of rules by Reliance Jio, which has resulted in great loss to the government, in terms of licence fee to the extent of 30% as reported bt DOT to the Minister.

Telecom Subscriber Base in India crosses 112 crore.

04 Saturday Feb 2017

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Telecom subscriber base in India, crossed 1.12 billion (112 crore) in November, in November 2016.
The total number of telecom subscribers in India, has reached 1.12 billion (112 crore) in November,2016. Reliance Jio alone added over 1.62 crore connections in November, taking its total subscriber base to 5.18 crore. Idea Cellular followed Reliance Jio with net addition of 25.2 lakh new customers. Bharti Airtel added 10.8 lakh customers, Vodafone 8.90 lakh subscribers, BSNL 8.31 lakh, Telenor 4. 86 lakh,. Aircel 3.02 lakh, Reliance Communications 1.56 lakh and MTNL 3,364. (Courtesy: BSNLEU website)

Visit the Past (19) – Strike in Telegraph Workshop Calcutta in July 1937

17 Wednesday Aug 2016

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Since  formation of unions in P&T, struggles were organised. Sometimes, the workers have gone on strike action all of a sudden  against gross injustice. It is such a strike that had happened in the Telegraph Work Shop, Calcutta in July 1937.

The strike started in the galvanising section of the workshop by about 100 workers demanding increase in wages for the night shift and also for working on Sundays. Next day, more than 1000 workers of the workshop went on strike in  support of the galvanising workers who are on strike.

A report published in the “Statesman” of 14th July 1937, in this connection is quoted below:

“About 1,000 workmen of the Government Telegraph Workshops, Alipore comprising blacksmith, fitters and laskars, went on strike yesterday morning. These men, it is understood, have not formulated any demand, but have “downed tool” in sympathy with 86 men of the galvanising department, who struck work on Saturday last for an increase in wages, mainly, a day and a half wages for night shift and double wages for Sunday work.”

Two important things are to be noticed. The workers in one section went on strike on their own demands and the other workers in the same workshop went on solidarity strike. Yes the P&T workers have a great tradition of comradeship.

Rs. 45,000 crore telecom scam – spat between Congress and BJP

08 Friday Jul 2016

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Instead of recovering the Rs. 15,000 crore (exactly Rs. 12,488.93) from the private telecom firms which the CAG has found out as the amount of tax due from them for the fraud committed by showing under-valued revenue, the Congress and the BJP are shouting at each other accusing the other for the fraud.

By under valuing the revenues, the six telecom private companies viz. Bharti Airtel, Vodafone, Reliance Communications, Idea Cellular Tata Teleservices and Aircel India had cheated the government of its taxes, as part of the revenue sharing. The CAG had submitted its report to the government that theses companies had shown their revenue less by about Rs. 45,000 crores, resulting in a loss of Rs. 15,000 crore to the government.

The fraud has taken place during the period of Congress, but even after coming in to power, the BJP has not taken any action.

In the meantime, the DOT has stated that the process for the recovery is being initiated.

Whether UPA or NDA, both take a soft stand when it comes to the corporate, MNCs  and big business. Of course, they are the governments of the corporates!