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<keyword id="6354924" type="PERSON" weightage="20" keywordseo="Idea-Cellular">Idea Cellular</keyword> said it will launch a phone to counter <keyword id="6354504" type="UNKNOWN" weightage="20" keywordseo="Reliance-Jio">Reliance Jio</keyword>Phone, raising net neutrality concerns about Reliance Jio's 4G phones. Idea said JioPhone will allow the apps of the operator's choice only. "One of the concerns is about net neutrality. It will not allow most of the apps which a customer prefers and the choice of apps may not work because it is forcing consumers to use an individual operator's apps," Himanshu Kapania, the managing director of Idea Cellular Limited, the third largest telco operator, said in an analyst call. Kapania further said it remains to be seen as to how the proposed Jio phone, which does not have features like a smartphone, serves those wanting to browse the Internet. Meanwhile, he said Idea is working with mobilephone manufacturers to launch its own, slightly expensive phone This new handset will give all the choices to a customer, including to choose the operator of his/her choice, popular applications like <keyword id="6355629" type="CITY" weightage="20" keywordseo="Google">Google</keyword>, Facebook or Whatsapp, Kapania stressed.

Idea to launch own handset to counter Reliance JioPhone

<a href="http://www.businessinsider.in/searchresult.cms?query=telecom+operators">Telecom operators</a> have said they spend quite a lot on <a href="http://www.businessinsider.in/searchresult.cms?query=spectrum">spectrum</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=network">network</a>, and low expenditure on quality equipment is not the reason for call drops. They added that Rs. 1.34 lakh crores were invested during the 2014-2015 fiscal. 
 
Telcos have committed Rs 110,000 crores for spectrum and spent another Rs 24,000 crores on network equipment in the 2014-15 fiscal. They have been demanding the Centre to allow government premises and access to <a href="http://www.businessinsider.in/searchresult.cms?query=defence">defence</a> and cantonment areas to deploy mobile towers to overcome call drops. 
 "<keyword id="6354776" type="COMPANY" weightage="100" keywordseo="Telecom">Telecom</keyword> operators invested 73% of their revenues as compared to nearly 13% global average on spectrum and networks last year and therefore it's wrong to presume that call drops happen due to low investment by telcos," <a href="http://www.businessinsider.in/searchresult.cms?query=Idea+Cellular">Idea Cellular</a> CEO and Managing Director Himanshu Kapania said. 
 
"Despite world's lowest voice and data tariff in India, the telecom industry was able to made huge investments in the last 20 years and the overall sector contributes 3.5% to the country's GDP and facilitates 7.3 lakh direct jobs," Kapania added. 
 Industry analysts say that network congestion is one of the biggest hurdles to seamless <keyword id="117358" type="UNKNOWN" weightage="100" keywordseo="connectivity">connectivity</keyword>. 
 
Image credit: Indiatimes

Call drops are here to stay probably

If you’re an Idea Cellular subscriber in NCR, you’ll pay. The company has raised mobile data rates by up to 100 per cent for its pre-paid customers. It’s the first telecom to raise its tariff after recent spectrum auction in March. 
 
The company has doubled the tariff for some 2G plans, and tripled 3G rates. 
 
According to media reports Idea MD and CEO Himanshu Kapania had said hinted post spectrum action that a data tariff price hike could occur. 
 
The company has changed most of the 2G and 3G recharge vouchers. As per the new rates subscribers would get 1.5 GB of 2G as against 3 GB for Rs. 255 earlier and 3 GB as against 4 GB for Rs. 755. 
 
The 1 GB 3G pack will now come with a 28 days validity of 28 days, but will cost Rs. 295 as against Rs 249. 1 GB of 2G would now set you back for Rs. 195 as against Rs 175 earlier, but will come with 28 days validity. 
 
The company has also reduced validity of some other packs. 
 
Experts predict an overall increase in the Idea’s data tariffs in other circles too. 
 
The new rates came into effect from June 3. 
 
(Image credit: Indiatimes)

Idea ups mobile data rates
in NCR by up to 100%

Indian telcos have committed to invest around Rs 12,000 Crores in the next three months to improve networks which should help check the call drop issue in the country, <keyword id="6354776" type="COMPANY" weightage="80" keywordseo="Telecom">telecom</keyword> secretary <a href="http://www.businessinsider.in/searchresult.cms?query=JS+Deepak&amp;sortorder=effectivedate">JS Deepak</a> has said. 
 
"The mobile phone operators have promised to add 60,000 new cell sites where they need to improve their quality of service," <a href="http://www.businessinsider.in/searchresult.cms?query=JS+Deepak&amp;sortorder=effectivedate">Deepak</a> told reporters on Friday. 
 
"The government believes in the telecom sector. The quality of service must improve and industry has responsibility," he said. Telecom operators present at the meeting included <a href="http://www.businessinsider.in/searchresult.cms?query=Bharti+Airtel&amp;sortorder=effectivedate">Bharti Airtel</a> CEO (India, South Asia) Gopal Vittal, <a href="http://www.businessinsider.in/searchresult.cms?query=Vodafone+India&amp;sortorder=effectivedate">Vodafone India</a> CEO Sunil Sood, Idea Cellular Managing Director Himanshu Kapania and <a href="http://www.businessinsider.in/searchresult.cms?query=Reliance+Jio&amp;sortorder=effectivedate">Reliance Jio</a> Infocomm MD Sanjay Mashruwala. 
 
"We discussed with the telecom secretary how we plan to address the issue and the concerns of the sector," Rajan Mathews, director general of industry body Cellular Operators Association of India (COAI), said after the meet. 
 The meeting comes at a time when ties between the telcos and the Telecom Regulatory Authority of India (<keyword id="6356988" type="PERSON" weightage="80" keywordseo="TRAI">Trai</keyword>) have reached a low with both parties adopting aggressive stance against one another on several issues. 
 
Image credit: Indiatimes

Telcos
will spend Rs. 12,000 Crores in next three months to tackle call drop

Much like the <a href="http://www.businessinsider.in/Reliance-Jio-vs-Telecom-Industry-Jios-Battle-of-Supremacy-so-Far/articleshow/53875879.cms">launch of Reliance Jio’s</a> telecom and internet services, <keyword id="2003276" type="UNKNOWN" weightage="20" keywordseo="Jio">Jio</keyword>’s newly announced ‘smartish’ feature phone too is finding its way to the middle of a controversy. This time around the debate is whether the <keyword id="4289270" type="UNKNOWN" weightage="20" keywordseo="jio-phone">Jio phone</keyword> violates the principles of Net Neutrality. At this point it’s important to mention that not all details of the new Jio Phone are out yet. However, sources in the Telecom Regulatory Authority of India (<keyword id="6356988" type="PERSON" weightage="100" keywordseo="TRAI">TRAI</keyword>) say that, looking at the available details so far, the Jio phone does not violate the principles of Net Neutrality. The Net Neutrality debate saw its peek in India with Facebook's Free Basics and <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword>'s Zero rating offerings both were shut down by TRAI stating they went against the principles of Net neutrality but Jio phone, as of now, seems to be in the clear. 
 The issue got triggered when India’s third largest telecom operator, Idea, recently commented on how the new Jio phone raise concerns about net neutrality, “It will not allow most of the apps which a customer prefers and the choice of apps may not work because it is forcing consumers to use an individual operator’s apps,” <keyword id="510299" type="PERSON" weightage="20" keywordseo="Himanshu-Kapania">Himanshu Kapania</keyword>, the managing director of Idea Cellular had said. Kapania also talked about working with handset makers to launch a new phone to counter Jio, targeting the 2G consumers in India. The company says even if the phone cannot compete with Jio’s pricing it will offer customers the freedom of choice. 
 
Telecom Analyst (doesn’t wish to be named) believes that the consumer has a choice and that nothing can be fully neutral. Consumer has other means/devices for accessing the internet. There are plenty of alternative devices available in the market which he can fall back to (India being predominantly an open market for devices, alternatives will be many). If an operator steers the consumer to its own content by offering a device, it does not seem to violate the principles of "Net Neutrality" as laid out by the TRAI.” 
 TRAI seems to agree with this. Jio has talked about how the Jio phone will come packed with entire set of Jio apps but it’s still unclear if non-Jio apps will find a place in the Jio phone. TRAI believes that if <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword> is providing its services in its intranet then by providing their apps to the consumers, Jio is not doing anything wrong. Source also indicates that consumers will be aware about the product and they can choose not to buy it. TRAI says if Jio is not blocking any particular site then merely providing additional apps with its product do not violate the principles of Net Neutrality. TRAI will be looking into Jio Phone in detail once the company submits its tariff for the new plan/phone to TRAI. 
 
Well with the <a href="http://www.businessinsider.in/Jio-phone-to-be-a-single-sim-feature-phone-and-existing-customers-can-shift-to-it/articleshow/59776367.cms">launch of the Jio Phone</a>, the company has managed to pique our interest but not without setting off yet another controversy. However, TRAI's Feb 8th order of 2016 prevents an operator to offer differentiated rates for accessing different content (by the operator tying up with a content player), but it has not prevented an operator from offering its own content in its intranet at a differentiated rate or even free. While we are still waiting for details that could either douse the ‘controversy’ fire or add fuel to it, it would be fair to say that the proposed phone by Jio will appeal to the predominantly voice usage customers BUT it will be extremely important to see how exactly Jio is planning to cater to consumers wanting to browse the Internet.

TRAI sources: Free Basics was a problem, Zero Rating was a problem, Jio Phone is not a problem

The data services in the National Capital region are already becoming costlier. India's third-largest <keyword id="47689" type="UNKNOWN" weightage="80" keywordseo="Telecom-operator">telecom operator</keyword>, <keyword id="6354924" type="PERSON" weightage="80" keywordseo="Idea-Cellular">Idea Cellular</keyword> was the first company to announce an increase in the data rates. Now the company has announced that it has witnessed growth in its <keyword id="748198" type="UNKNOWN" weightage="80" keywordseo="revenue-market-share">revenue market share</keyword> (RMS) by 1.6% in Q4FY15 and 1.3% in FY15, the company said, citing telecom regulator data. The company is part of <keyword id="44373" type="CITY" weightage="80" keywordseo="Aditya-Birla-Group">Aditya Birla Group</keyword> and maintained its track record of being the fastest growing operator by RMS growth in the world's fastest growing market, reported the Economic Times. 

	The telco further consolidated its position as one of the top 3 operators in India by growing at double the rate of industry growth in terms of gross revenue. 
 

	In Q4FY15, Idea witnessed a growth of 21%, whereas the industry average revenue grew at 10.5% in one year. The company showed gross revenue growth of close to 20% in FY15, as against 10.8% the total industry revenue growth - the highest amongst all pan-India operators. 
 

	"Our commitment to grow both voice and data businesses, by investing in network infrastructure and spectrum acquisition, customer experience management, and brand building, has helped us further consolidate our position in a hyper-competitive market," Himanshu Kapania, Managing Director, Idea Cellular said in the statement. 
 

	Idea Cellular serves over 160 million subscribers. 
 Apart from this, the company has recently announced a roll over plan. Under this, new <keyword id="6378791" type="TECHNOLOGY" weightage="80" keywordseo="3G">3G</keyword> roll over data pack will allow Idea postpaid subscribers to carry forward their unused 3G data balance to next month without any extra charges. 
(Image: Indiatimes)

Idea Cellular gain incremental market revenue

It was one of the most important meetings for the telecom industry where CEOs of top telecom companies in the country met with the newly appointed <keyword id="46149" type="POSITION" weightage="100" keywordseo="Telecom-minister">Telecom Minister</keyword>, <keyword id="6357016" type="PERSON" weightage="100" keywordseo="Manoj-Sinha">Manoj Sinha</keyword>. Hold on, we will tell you what was discussed in the meeting but before that see what the top CEOs were served. 
 
Yes, like in all meetings that the CEOs attend all over the world there are refreshments and there were some in this meeting too. Only difference is it was widely different from the usual hors d’oeuvre of the corporate world. Gopal Vittal of Airtel, Sunil Sood of Vodafone, Himanshu Kapania of Idea along with other telecom CEOs were part of this very crucial meeting but first here’s what they were served. A) Cheap pineapple pastry B) Coleslaw Sandwich wrapped in cellophane sheet, C) Bengal gram, complete with plastic spoons and ketchup in sachets. Now wouldn’t it be a treat to see India’s top CEOs teething open their ketchup packets. 
 
 
 
The corporate world is light-years ahead on the kind of refreshments served in their meetings but situation in these sarkari offices still look like they were serving refreshments at a six year olds birthday party... in the 60s. In the two hour long meeting, the CEOs had no choice but to nibble on the refreshments (if we can call it that) some to satiate their hunger and some just plain out of respect. Most of the CEOs stuck to the Bengal gram, few braved the pastry but no one touched the sandwich, probably too much work to free it from the clutches of the cellophane bags that they came wrapped in. 
 
 
 
Coming to the meeting, it was an extremely crucial meeting between the new telecom minister, telecom department officials and the telecom CEOs. Telecom operators voiced their concern on all the major issues in the sector like telecom being a highly taxed sector, payment method for upcoming spectrum auction, e-KYC norms for acquisition of subscribers and of course call drops. Issue of call drops was discussed in a big way as telecom operators on June 10th this year had committed to setting up 60,000 towers in 100 days in order to deal with the issue of call drops. The new telecom minister said out of the total 60,000 towers, so far telcos have installed 48,000 towers. Telecom minister said “Targets given to the telcos on call drops progress is satisfactory but telcos will have to put more efforts to make the consumers feel the progress made.” The telecom operators also discussed many policy developments like spectrum sharing and trading with the minister. 
 
 
 
Sounds like a very important meeting, so we got on it full swing and decided to get a chef’s opinion in, Chef Saby of Lavaash by Saby says “Corporate world is very particular about the refreshments served during the meetings as they speak volumes about the company. Refreshments vary from bite size Granola with walnuts and cranberries to nut crusted fresh palm fruit. And sandwiches and pastries are a big no. Fresh fruit juices will have to be a part of the spread. Basically the idea is to keep it healthy as these meetings can be very stressful.” 
 
While we are sure this particular meeting was stressful but the snacks were far from healthy. And all these extremely key issues in the industry were discussed over pineapple pastries and sandwiches which were far from the bite size pops these CEOs are used to. Just saying.

This is what CEOs of Airtel, Vodafone and Idea were served at a meeting with the telecom minister

NEW DELHI: <keyword id="6354287" type="CITY" weightage="40" keywordseo="Bharti-Airtel">Bharti Airtel</keyword> could raise basic call rates for the first time in five years as it battles increasing input costs, a move that would make it the second major telco to do so after <keyword id="46907" type="CITY" weightage="40" keywordseo="Reliance-communications">Reliance Communications</keyword> raised them for prepaid users last month. 
 
On the back of a robust earnings performance by Bharti in the March quarter, this would strengthen the notion that the telecom industry is on firmer financial footing after a damaging tariff war in 2009-11. 
 
Analysts, however, said that while India's largest telco needs to raise call tariffs to improve its financial health, the scope of the increase could be limited as its two top rivals - No. 3 Idea Cellular and No. 2 Vodafone India - have clearly said they won't touch the basic rate, or the call rate without discounts, and are happy just cutting freebies offered to users. 
 "The fact is that these levels of voice pricing are absolutely unsustainable" with inputs costs going up, including those for rolling out <keyword id="50752" type="UNKNOWN" weightage="40" keywordseo="Networks">networks</keyword>, optical fibre, spectrum and diesel, Bharti Airtel's CEO for India and South Asia Gopal Vittal told reporters at a press conference. Diesel is needed to run generators at mobile tower sites. 
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"We have hitherto avoided taking headline tariffs (up) but at some point there may be an opportunity to raise headline tariffs," he said, adding however that the priority for the company remained reducing discounted minutes. 
 
Phone bills for postpaid users typically comprise basic call charges, also called headline rates, on which discounts such as free minutes are given to users based on their tariff plans. Prepaid users, who still make up over 95% of the mobile phone user base, typically get discount vouchers for a specific time period. 
 
By decreasing validity on prepaid vouchers, carriers force customers to use up talk time faster. By increasing headline voice tariffs, the minimum charge for a call paid by both prepaid and postpaid customers will rise. 
 
Higher rates allow operators to increase cash flow, thus allowing investments into improving networks and expanding operations. 
 
Several telcos have been quietly cutting discounts over the past three or four quarters, but have been leaving the basic rate untouched for fear of losing subscribers to competitors or smaller operators that offer cheaper tariff plans. However, the fourth-ranked Reliance Communications raised its headline tariffs in mid-April for prepaid customers by up to 20%, although it left postpaid headline rates untouched. 
 
Vittal's comments came a day after India's largest mobile phone company announced strong fourth-quarter results. Net profit jumped 89% from a year earlier on a 13.5% growth in revenue. 
 
While key parameters such as average revenue per user grew, the average realised rate from calls has been largely flat in the past two quarters, a trend seen in the Idea results as well, leaving some worried. 
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Analysts explained that while telcos, especially the major players, had been cutting discounts in circles where they are the leaders or the No. 2, they are loath to do the same, or have in fact given additional discounts, in areas where they aren't strong in a bid to attract or retain subscribers. Thus, the net effect on overall realised rates has been somewhat neutral to slightly lower in recent times. 
 
Realised rate is what a telco actually gets after all discounts and associated costs. 
 
Idea cut discounts last year, but this year in its weaker circles has once again leveraged pricing to acquire customers, CEO Himanshu Kapania said, due to which the overall realised rate was down by 2.5% across the country. 
 
"Over time we expect to fix that," he said, but ruled out raising basic rates. 
 
A Mumbai-based analyst said Bharti will be keeping a close eye on moves by Idea and Vodafone in the event of any move on headline rates. 
 
Vodafone declined comment but has said previously that it will work on discounts, without touching basic rates. 
 
To be sure, given that the industry seems to have put the tariff war behind it and is stabilising, the top telcos will eventually want to go ahead with increasing headline tariffs later this year, analysts said. 
 
The situation could change dramatically if Mukesh Ambani-owned Reliance Jio Infocomm enters the industry with a disruptive pricing offer. It's expected to launch voice and data services later this year. 
 
As things stand, "It's more of a do or die situation (for carriers) because this is the only industry which has seen the continuous downward movement of tariffs to a level that a per-minute call is cheaper than a glass of water," said Prashant Singhal, national telecom leader at Ernst &amp; Young. 
 
He expects headline tariffs to be higher by 15-20% by May 2015, though the increase would be gradual. "If headline tariffs are close to 60 paise per minute, the realised rate is around 30 paise, which is not sustainable," given the rising cost of operations. 
 
Bharti's strategy going forward is clear. It will focus on stripping out low revenue generating users, bringing in more postpaid customers who generate higher revenue and improve voice realisations, apart from investing in better data networks and driving cost efficiency, Vittal said. 
 
"With more rational competition, fewer competitors and rising data volume, I see headline tariffs going up marginally. I don't want to give a timeline to it but I don't see a reason why companies need to wait for a couple of quarters (to raise headline tariffs)," said Jaideep Ghosh, head of telecoms practice at KPMG. 
 Uninor, the Indian unit of Norway's <keyword id="6359476" type="CITY" weightage="40" keywordseo="Telenor">Telenor</keyword>, said it will take note of any changes in industry tariffs and take appropriate steps if needed. 
 <keyword id="6365707" type="CITY" weightage="40" keywordseo="UBS">UBS</keyword> believes Bharti Airtel's stock could be re-rated significantly over the next 12 months if mobile voice rates continue to go up, data consumption and revenue rises thanks to cheaper smartphones and the "regulatory outlook continues to improve".

You Searched For "Himanshu Kapania" and got 8 results

Idea to launch own handset to counter Reliance JioPhone

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Call drops are here to stay probably

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Idea ups mobile data rates in NCR by up to 100%

BI India Bureau

Telcos will spend Rs. 12,000 Crores in next three months to tackle call drop

BI India Bureau

TRAI sources: Free Basics was a problem, Zero Rating was a problem, Jio Phone is not a problem

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Idea Cellular gain incremental market revenue

Tech Radar India Bureau

This is what CEOs of Airtel, Vodafone and Idea were served at a meeting with the telecom minister

Nazia Bijal

Bharti Airtel To Look At Raising Headline Call Rates

Economic Times

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