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Telenor, the Norwegian multinational telecommunications company, which started <a href="http://www.businessinsider.in/8-years-after-its-debut-and-a-year-after-its-re-launch-2G-struck-Telenor-might-exit-India-citing-limited-presence/articleshow/51774606.cms">its India operations</a> in 2009, has said that it would not participate in the upcoming spectrum sale scheduled next month. With this, the Bærum-headquartered company has shown signs of taking an exit from India’s telecom industry. 
 
It is "after thorough consideration, decided not to participate in the upcoming spectrum auction (in India), as we believe the proposed spectrum prices do not give an acceptable level of return," said a statement from Sigve Brekke, President and CEO of Telenor Group. 
 
He added that the decision was not influenced by "the significant operational and financial improvement delivered by our Indian operation". 
 
Earlier, Telenor had reported that it might be <a href="http://www.businessinsider.in/Telenor-operating-loss-India/articleshow/52011481.cms">forced to leave India</a> if it doesn’t secure additional capacity for its networks at a reasonable cost. 
 
The Telenor CEO added that they would, however, continue their efforts to meet the demands of their customer and grow the business here in <a href="http://www.businessinsider.in/Telenor-names-Sharad-Mehrotra-as-new-India-CEO/articleshow/49323002.cms">India</a>. 
 
The reason why Telenor could never attract Indian customers was the <a href="http://www.businessinsider.in/Uninor-is-now-Telenor-No-3G-steamto-roll/articleshow/49075889.cms">lack of 3G</a> or 4G services, because it holds very limited data <a href="http://www.businessinsider.in/Uninor-inks-a-deal-with-Huawei-to-expand-its-network-in-India/articleshow/48449248.cms">spectrum</a>. Other than this, the company operates in just a few circles in the country. 
 
<a href="http://s1.ibtimes.com/sites/www.ibtimes.com/files/2013/07/04/telenoruninorindia.jpg">Image source</a>

Is it the end of Telenor India’s acarpous journey?

<a href="http://www.businessinsider.in/searchresult.cms?query=bharti+airtel&amp;sortorder=effectivedate">Bharti Airtel</a> is going to acquire <a href="http://www.businessinsider.in/searchresult.cms?query=telenor&amp;sortorder=effectivedate">Telenor</a> India, which has operations in seven circles. 
 
These seven circles in Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam represent a high population concentration, which will immensely benefit Airtel. 
 The acquisition will include transfer of all of <keyword id="904833" type="COMPANY" weightage="20" keywordseo="Telenor-India">Telenor India</keyword>’s assets and customers, further augmenting Airtel’s overall customer base and network. It will also enable Airtel to further bolster its strong spectrum foot-print in these seven circles, with the addition of 43.4 MHz spectrum in the 1800 MHz band. 
 
In return, Airtel will ensure quality services to Telenor India’s customers, while offering them the added benefits of its innovative product portfolio, access to superior voice &amp; data services, mobile banking, VAS and domestic/ international roaming facilities. Telenor India’s operations and services will continue as normal until the completion of the transaction. 
 Gopal Vittal, Managing Director and CEO (India and South Asia), <keyword id="6354287" type="CITY" weightage="20" keywordseo="Bharti-Airtel">Bharti Airtel</keyword>, said, “The agreement underlines our commitment to lead India’s digital revolution by offering world-class and affordable telecom services through a robust spectrum portfolio spread across multiple bands..” 
 
“The acquisition of additional spectrum through this transaction, which made an attractive business proposition, has further enhanced our already solid spectrum portfolio. The proposed transaction will also create substantial long term value for our shareholders given the significant synergies.” added Gopal. 
 
Sigve Brekke, Chief Executive Officer of Telenor Group, said, “The decision to exit India has not been taken lightly. After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis will not give an acceptable level of return.”

Bharti Airtel to acquire Telenor India

<keyword id="6359476" type="CITY" weightage="100" keywordseo="Telenor">Telenor</keyword>, the Norwegian multinational telecommunications company, has reported a huge operating loss of around Rs 2,530 crore for its Indian telecom business, because of which it has threatened to exit India if it fails to procure spectrum at reasonable rates. 
 
This has happened almost at the same time when Telenor’s Indian arm is looking forward to expanding its 4G footprint, claiming the lowest tariff for these services as part of its affordable pricing strategy. 
 While announcing financial results in Norway, Telenor global CEO <keyword id="213014" type="PERSON" weightage="100" keywordseo="Sigve-Brekke">Sigve Brekke</keyword> said, "Long terms presence in India is dependent on our ability to secure additional spectrum. We are not able to compete with current spectrum portfolio we have in growing data market." 
 
Brekke added that they are looking at solution to procure spectrum along with "a price that we can justify". 
 
"We are Looking at upcoming auctions and also looking at potential trading options... Need to be pragmatic to consider other alternatives if that turns out not to be a possible to find value focused solutions. We are looking at all sustainable business model option," Brekke said. 
 
"We are in India to make money, if we don't see return then we need to look at other alternatives," Telenor CFO Morten Karlsen Sorby said. 
 
Telenor has already launched 4G services in Varanasi, and is planning to roll out high speed services in 6 to 8 cities across its six circles, namely Andhra Pradesh, Uttar Pradesh East and West, Bihar, Gujarat and Maharashtra, in the coming two months. 
 
<a href="http://e24.vgc.no/drpublish/images/article/2015/11/19/23563896/1/990/2462836.jpg">Image source</a>

Telenor’s huge operating loss might ‘force’ it to exit India

<keyword id="6359476" type="CITY" weightage="100" keywordseo="Telenor">Telenor</keyword>, the Norwegian multinational telecommunications company that started its India operations in 2008, might soon be making an exit from the country, as its India telecom business hasn't been able to find a buyer so far. 
 
With no 3G or 4G services, the Norwegian telco silently stands in a corner, watching its rivals gaining spectrums as days pass, while Telenor has been confined to a few pockets. 
 
 
The Fornebu-headquartered company has spectrum in seven circles but out of 22 zones present in India, it operates in just six, with airwaves only in 1800 Mhz band. As of now, the company is said to be looking for a valuation between $1.6 billion and $1.8 billion (Rs 11,000-12,000 crore); however, experts believe that the best that it may be able to get is around $1 billion (Rs 6,800 crore), and the spectrum would be the main saleable asset. 
 
Ever since its debut, Telenor has invested over $3 billion in India, but to no avail. In fact, in 2012, it had even lost all its India licences, and Supreme Court annulling its licences among the 122 to tackle the 2G scam was a huge setback. 
 
As a ray of hope to survive in the world’s fastest growing mobile market, it has just deployed a technology that allows offering LTE mobile broadband on a narrow band of spectrum in Varanasi. By the end of this year, it plans to expand it to the six circles that it operates in. 
However, analysts are doubtful about the technology, saying that it has come too late for Telenor into the data market. 
 
<a href="http://www.digi.no/incoming/2015/01/28/telenor-fiber.jpg1/alternates/h1080/Telenor%20fiber.jpg">Image source</a>

8 years after its debut, and a year after its re-launch, 2G-struck Telenor might exit India citing limited presence

The cycle of cyberbullying is about more than just bullies and victims. To put a stop to it, everyone else – including the bystanders – need to get involved too. Picture a schoolyard, students standing in a circle around a girl or boy, being mocked for his or her clothes and possibly being shoved by some of the other students. A classic example of bullying, you might think. Now imagine this same behaviour – but happening in the devices in your children’s hands, in their bedrooms and around the clock. This is bullying of the 21st century, more invasive, maybe harder to notice, unless you know where to look. Today, digital skills have become crucial in not only shaping children’s social life but potentially their future professional lives also. While children today need to know how to make the best of the opportunities in the online world, they should also understand and learn to deal with risks, such as online bullying. Our children are the keenest explorers of the online world, and it is up to all of us to help them develop the skills needed to be smart online, to use their heads (and hearts) when interacting in the digital space and to know when they need to involve a parent or an authority. With June 16 marking Stop Cyberbullying Day, I encourage everyone to get educated on the new reality our children are facing, and help them deal with the risks of being online. Social media - the new virtual schoolyard As more children in India are expected to be online in the years to come, the occurrence of cyberbullying is likely to increase. Cyberbullying happens through text messages, e-mails, instant messaging services like Messenger, WhatsApp and Snapchat, in addition to social media networks like Facebook and <keyword id="819905" type="COMPANY" weightage="20" keywordseo="Instagram">Instagram</keyword>. These networks have seen an immense growth in users in India over the last years. India is a young country and has the second largest internet population. As per a WebWise report, in India, a whopping 98.8% of urban children use internet. 83.5% of children between 6 to 18 years are active on social media and hence there is a threat to their digital security. In fact, around 16% of such children have received inappropriate messages. Many children experience cyberbullying in some form; as victim or bully, or often as a bystander. Indeed, one can say that the schoolyard now encompasses social media. Your kids and cyberbullying – consequences and tips Cyberbullying differs from “traditional” bullying in several ways; cyberbullies hide behind screens, and are more likely to say harsher things when not facing the victim in person. This perceived anonymity, combined with the permanence of potentially offensive items like photos or videos online, intensifies the psychological and emotional effects, which victims of cyberbullying may suffer. Being bullied online is also sometimes very public and can be shared with a large audience in only a matter of seconds. And lastly, it’s always there. You can leave the physical schoolyard, but it’s much more difficult to turn off the digital world. With that, here are some of the ways parents can help prevent or mitigate such experiences: Learn about the virtual realities of your child’s world; go online. Think about what values you want to foster in your children and about your own activity on social media.Assure them that they can confide in you and trust and listen to them when they do. Bullying can be hard to talk about.Include them in the solution; this will give them the confidence to handle future situations of cyberbullying.Specify actions to handle the bullying, such as shutting out the online bully. In fact, seven out of ten teens say that this is the most effective method of prevention. We’ve got work to do In recent years, many initiatives on cyberbullying have been formed by partnerships between governments, NGOs and private companies in India. The goals of such programmes are to educate parents and students on cyberbullying and provide them tools to act safely and empathetically online. One very effective example is ‘WebWise’ programme. This is aimed at educating and empowering school children and teachers with digital resilience skills to stay safe on the Internet. The program aims to create awareness on Internet safety for children and to familiarize them with habits that can protect them from cyber harm. In last couple of years, we have trained more than 55,000 children through a school outreach programme. This is a workshop which covers multiple topics like cyber-bulling, safe passwords, cyber-predators, etc. The programme also engages teachers and parents to help them understand how to protect their children online. In the end, it is a shared responsibility to help empower children to reap the benefits of the digital word while staying safe. Empathy is a word that we should all impart on our children, our students and our stakeholders because everyone – whether bully, victim or bystander, whether digital service provider, NGO or government – everyone has a role to play in making sure the online world is a safe place for all. And empathy and awareness are our two strongest tools. (The article is authored by Mai Oldgard, SVP and Head of Sustainability, <keyword id="93456" type="COMPANY" weightage="20" keywordseo="Telenor-group">Telenor Group</keyword>)

The cyberbully’s playground: Open 24/7

<keyword id="6359476" type="CITY" weightage="100" keywordseo="Telenor">Telenor</keyword> and <keyword id="6354924" type="PERSON" weightage="20" keywordseo="Idea-Cellular">Idea Cellular</keyword> have held talks for a cashless sale of Telenor India’s unit to the latter. 
 
"The two companies have held negotiations for a transfer of all liabilities and assets without an actual payout,” a person familiar with the development told ET. 
 
As per reports, Idea is likely to cancel the deal as it does not want to burden itself with debt of over Rs 36,000 crore as it already bought additional spectrum in the October auction for almost Rs 13,000 crore. 
 
Telenor India owes around Rs 1,900 crore to the government in deferred spectrum payments and about Rs 1,800 crore to financial institutions as debt. 
 
However, if Idea buys Telenor, it would help Idea gain 4G spectrum in the 1800 MHz band, especially in some key circles. 
 
UP West, Gujarat and Maharashtra are three of Telenor's seven circles in which Idea is ranked first or second. Telenor has spectrum in UP West, UP East, Bihar &amp; Jharkhand, Maharashtra, Andhra Pradesh, Assam and Gujarat.

Telenor may sell its India unit to Idea in a cashless sale

The ‘sabse sasta’ telecom operator Uninor has renamed itself <a href="http://www.businessinsider.in/searchresult.cms?query=Telenor">Telenor</a> today. It is now a 100% subsidiary of <a href="http://www.businessinsider.in/searchresult.cms?query=Telenor">Telenor</a>, thanks to <a href="http://www.businessinsider.in/searchresult.cms?query=FDI">FDI</a>. 
 
“We continue to focus on the three strategic pillars as a company – best in basic services, mass market distribution and low cost of operation. We’re the #1 operator in terms of price perception”, Vivek Sood, CEO, <a href="http://www.businessinsider.in/searchresult.cms?query=Telenor">Telenor</a> India said. 
 
The brand looks to refresh its identity after the 2012 fiasco and ramp up its India operations. <a href="http://www.businessinsider.in/searchresult.cms?query=Telenor">Telenor</a> India currently contributes 6% to <a href="http://www.businessinsider.in/searchresult.cms?query=Telenor">Telenor</a>’s global revenue and 12% of its Asia revenue. 
 
“As a committed shareholder, <a href="http://www.businessinsider.in/searchresult.cms?query=Telenor">Telenor</a> continues to invest in our business. Even after 2012 when we went through difficult times, they’re still interested to create a long term story”, Sood said. 
 
Speaking at the launch, the Chief Executive was clear about the company’s target consumer base. 
 
“Uninor has typically positioned itself as the one with the lowest ARPU (price per min) operator. Our customers are not necessarily savvy, and need to be treated fairly. That’s our focus. It’s beyond sab se sasta (the cheapest)”, he said. 
 
The company launched its mobile app and is introducing call drop reimbursement across STD, ISD and local tariffs. 
 
“We’re also getting our network ready for the next stage of services. However, since the government guidelines have come very recently, it’s still too early to comment”, Sood affirms. 
 
However, when asked about the possibility of a 3G/4G rollout in a market of slipping call durations and tariffs, not to mention the ongoing smartphone revolution, Sood is dismissive. 
 “There is euphoria around <keyword id="122479" type="COMPANY" weightage="100" keywordseo="4G">4G</keyword> and 3G services. There’s still a lot of work to be done on the basic 2G services. Our internet penetration is around 25%. That’s not too different from what the large operators have. If there is a strong package of basic services customers can afford, they’ll want that. However, there is no urgency from our end”, he says. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Telenor">Telenor</a> India currently has 47.5 million subscribers in the 6 circles they currently operate in.

Uninor is now Telenor. No 3G steam
to roll

<keyword id="6354287" type="CITY" weightage="20" keywordseo="Bharti-Airtel">Bharti Airtel</keyword> is said to be in advanced talks with <keyword id="6359476" type="CITY" weightage="20" keywordseo="Telenor">Telenor</keyword> India as it looks forward to buying Telenor's India business in a deal that will involve taking on debt of Rs 1,500 crore while allowing India's biggest telecom company to add to its 4G spectrum and be better placed to take on <keyword id="1543410" type="UNKNOWN" weightage="20" keywordseo="Reliance-Jio-Infocomm">Reliance Jio Infocomm</keyword>. 
 "The talks are quite advanced. <keyword id="15491" type="COMPANY" weightage="100" keywordseo="Airtel">Airtel</keyword> is just looking at taking over a part of Telenor India's debt while Telenor would need to take care of the balance loans," a person aware of the development told ET. 
 
Sources said the development follows Telenor's inability to strike a deal with its rivals. Reluctant to take on debt, No. 3 Idea is believed to have offered equity but that didn't appeal to Norway's Telenor, which wants a complete exit from India. 
 Before that, Telenor had started talks with various players including <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> and was seeking around $1 billion for its spectrum, which has fallen in value over time. Based on the last spectrum auction, this is now pegged at about Rs 5,519 crore ($810 million). 
 
Airtel, which had consolidated net debt of $12.23 billion (over Rs 83,000 crore) as of September, wouldn't want to increase this burden by too much, but 4G spectrum in seven circles is quite a lure, said the person cited above. 
 As per the annual report by Telenor, the company owes close to 2.4 billion Norwegian krone (Rs 1,900 crore) to the government in deferred spectrum payments, excluding any applicable penalties, and another 2.3 billion krone (Rs 1,800 crore) to financial institutions as debt. It has 4G bandwidth in the 1800 MHz band in the <keyword id="6357713" type="COMPANY" weightage="20" keywordseo="Uttar-Pradesh">Uttar Pradesh</keyword> (West), Uttar Pradesh (East), Bihar, Maharashtra, Andhra Pradesh, <keyword id="6354915" type="CITY" weightage="20" keywordseo="Assam">Assam</keyword> and Gujarat circles, which cumulatively contribute 35% to Airtel's revenue. 
 Incidentally, Idea had in March pulled out of a deal to buy <keyword id="6354248" type="CITY" weightage="20" keywordseo="Videocon">Videocon</keyword>'s spectrum in two circles. A day later, Airtel bought Videocon's airwaves in six circles. Bharti Airtel and Telenor declined to comment while Idea didn't respond to queries. 
 
Telenor has marked down value of its India business by 6.3 billion krone (Rs 5,000) crore since beginning of 2016 - a Rs 4,000 crore writedown of the value of licences alone - and didn't participate in the October spectrum auctions, signaling its intent to exit a market where it has been making losses and struggled to expand operations. 
 Buying Telenor makes sense as spectrum harmonisation has made the smaller telco's airwaves more attractive. The <keyword id="116246" type="ORGANIZATION" weightage="20" keywordseo="Department-of-Telecommunications">Department of Telecommunications</keyword> (DoT) has rejigged allocated frequencies so they are contiguous for operators as part of spectrum harmonisation. 5 Mhz of contiguous spectrum is needed for good quality 4G. Since all of Telenor's spectrum has been bought in auctions, airwaves have long validity and can be used for any technology. If it had been allotted, an acquirer would have to pay separately for the spectrum. Since there is 5 MHz or more in each of the seven circles - Andhra Pradesh, Bihar, Gujarat, Maharashtra, Uttar Pradesh (East and West) and Assam - Airtel can straight away use it all for 4G. 
 
Telenor has nearly 54 million subscribers, and its seven circles account for nearly 45% of subscriber share and nearly 40% of industry revenue. "Telenor records nearly Rs 5,000 crore top line annually. Even if Airtel gets around Rs 4,000 crore top line addition (taking into account some users choosing another operator), it would still net an ebitda of 70-80% of that. Moreover, Telenor has recently upgraded its network, so, it's practically brand new," said an analyst at a foreign brokerage asking not to be named.

Airtel planning to buy the Indian business of Telenor

To expand its network in India, Norway-based <keyword id="6359476" type="CITY" weightage="60" keywordseo="Telenor">Telenor</keyword>'s Indian unit <a href="Uninor">Uninor</a> has signed a contract worth about $300 million with Chinese telecom gear maker <a href="http://www.businessinsider.in/searchresult.cms?query=Huawei">Huawei</a>, giving a three-year 2G network expansion and transformation deal. 
 With the help of this contract, <keyword id="1486742" type="CITY" weightage="100" keywordseo="Uninor">Uninor</keyword> also intends to make its 4G network available in six circles - Uttar Pradesh East, Uttar Pradesh West, <a href="http://www.businessinsider.in/searchresult.cms?query=Bihar+">Bihar</a> (including Jharkhand), <keyword id="37102" type="COMPANY" weightage="60" keywordseo="Andhra-Pradesh">Andhra Pradesh</keyword>, Gujarat and <a href="http://www.businessinsider.in/searchresult.cms?query=Maharashtra">Maharashtra</a>, reported the Economic Times. 
 As per the contract, <keyword id="6357456" type="CITY" weightage="80" keywordseo="Huawei">Huawei</keyword> would transform around 24,000 sites of Uninor in these six major circles in the country. 
 
So far the telco has been working with Finnish telecom gear maker <a href="http://www.businessinsider.in/searchresult.cms?query=Nokia+">Nokia</a> Networks for 2G service deployments in India. <keyword id="2441437" type="COMPANY" weightage="80" keywordseo="Nokia-Networks">Nokia Networks</keyword> currently deploying networks for Uninor's <keyword id="6354915" type="CITY" weightage="60" keywordseo="Assam">Assam</keyword> circle, which is likely to start operations anytime this year. 
 
Moreover, the same equipment from Huawei can further transform into 4G networks with some tweaks, once Uninor finalizes its plans to offers 4G services in India, according to the person familiar with the development. 
 
Earlier, Uninor has said that it will introduce more sophisticated services using 4G LTE technology. 
 
Once its permit is converted into a unified licence, Uninor can offer 4G services without buying more spectrum than what it already has in the 1800 MHz band. A unified licence allows airwaves to be used to offer any technology — 2G, 3G or 4G. 
 
Analysts are of the view that the ecosystem for offering 4G over the 1800 MHz band (FDD-LTE), which Uninor has, is far more developed globally than the 2300 MHz band held by some Indian telcos. 
 
Uninor provided services in more than 46 million subscribers using 2G technology in the country. It added 1.3 million subscribers during the second quarter ended June 30, and said the subscription base was 22% higher than the same quarter last year. 
 
The telco said 26% of the customers were active data users, and is targeting 50% Internet customers by 2017. 
 
Uninor recently posted total revenues at NOK 1,362 million (about Rs 1,064.63 crore) for the second quarter, up from NOK 1,021 million (about Rs 798.05 crore) last year. It also narrowed operating loss to NOK 90 million (about Rs 70.30 crore). 
 
(Image: Reuters)

Uninor inks a deal with Huawei to expand its network in India

Ever since <a href="http://www.businessinsider.in/searchresult.cms?query=reliance+jio&amp;sortorder=effectivedate">Reliance Jio</a> has entered the <a href="http://www.businessinsider.in/searchresult.cms?query=indian+telecom+sector&amp;sortorder=effectivedate">telecom space</a>, the industry went through a total make over- there were tariff battles, infighting, and of course consolidation. 
 
It was expected that the industry will see consolidation and now with major players taking in the smaller ones, the telecom industry is mainly a playground for three plus one major players, <a href="http://www.businessinsider.in/searchresult.cms?query=airtel&amp;sortorder=effectivedate">Airtel</a>, <keyword id="6354504" type="UNKNOWN" weightage="20" keywordseo="Reliance-Jio">Reliance Jio</keyword>, <a href="http://www.businessinsider.in/searchresult.cms?query=vodafone+idea+merger&amp;sortorder=effectivedate">Idea+Voda</a>, and<a href="http://www.businessinsider.in/searchresult.cms?query=bsnl&amp;sortorder=effectivedate"> BSNL</a>. 
 The additional spectrum that <keyword id="15491" type="COMPANY" weightage="100" keywordseo="Airtel">Airtel</keyword> will acquire from <keyword id="6359476" type="CITY" weightage="100" keywordseo="Telenor">Telenor</keyword> will help Airtel to increase its 4G presence across the country. Telenor’s exit from India will leave Bharti Airtel with 1800MHz in some of the most critical telecom circles including Bihar, UP West, and UP east. However the completion of the deal will take 6-9 months as it will have to go through regulatory clearances but it is likely to come through before <keyword id="4210744" type="UNKNOWN" weightage="20" keywordseo="idea-voda">Idea-Voda</keyword> merger due the complexities of the Idea-Voda merger. 
 
It is also expected that with Idea-Voda merger, Airtel will lose its number one position in the industry and buying Telenor will not change that as the Idea-Voda merged entity stands to become India’s largest telecom company with revenues of over Rs. 80,000 crore. 
 Although, all the consolidation is happening after the entry of <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> led Reliance Jio but it is certainly not the reason for the consolidation, or at least the only reason, it was expected that the telecom industry will see consolidation and emergence of bigger players. 
 
With the entry of Jio and the consolidations, the telecom industry of India is expected to have smooth functioning in some time when the dust settles down. 
 
Here’s what Airtel’s deal is all about

Bharti Airtel buys Telenor before Idea-Voda merger, is this the Jio effect?

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".

Bharti Airtel To Look At Raising Headline Call Rates

A merger between <keyword id="105732" type="COMPANY" weightage="20" keywordseo="Vodafone-Group-Plc">Vodafone Group Plc</keyword>.'s India unit and <keyword id="210175" type="COMPANY" weightage="20" keywordseo="Idea-Cellular-Ltd">Idea Cellular Ltd</keyword>. would create a new leader in India but this should not move rival telecom operators <keyword id="15491" type="COMPANY" weightage="100" keywordseo="Airtel">Airtel</keyword> and <keyword id="6354504" type="UNKNOWN" weightage="20" keywordseo="Reliance-Jio">Reliance Jio</keyword> as what they will be getting is far more valuable- cheap bandwidth. 
 
The merger might compel <a href="http://www.businessinsider.in/searchresult.cms?query=Vodafone&amp;sortorder=effectivedate">Vodafone</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Idea&amp;sortorder=effectivedate">Idea</a> to drop some spectrum and subscribers to ensure regulatory approval under India's competition rules. People with knowledge in this matter told <a href="https://www.bloomberg.com/news/articles/2017-01-30/vodafone-in-talks-to-merge-india-unit-with-idea-cellular">Bloomberg </a>that <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> and Idea are weighing options on excess airwaves -- including selling or sharing them. 
 According to <keyword id="192069" type="CITY" weightage="20" keywordseo="Credit-Suisse-Group-AG">Credit Suisse Group AG</keyword> analysts, spectrum worth more than 60 billion rupees ($890 million) could be at stake and the two carriers would probably sell the spectrum at a lower price than originally purchased. 
 India is divided into 22 geographic circles and this means that a carrier needs critical mass in each to maximize pricing power within that circle. Both Idea and Vodafone have airwaves in five such circles that exceed the regulatory limit of 50% per band and 25% across all bands, according to <keyword id="48085" type="CITY" weightage="20" keywordseo="Credit-Suisse">Credit Suisse</keyword>, which estimates the proposed merger has a 60% chance of going through. 
 The carriers that might be benefitted by bandwidth at cheaper prices are <keyword id="117197" type="COMPANY" weightage="20" keywordseo="Bharti-Airtel-Ltd">Bharti Airtel Ltd</keyword>., Telenor ASA's Indian unit, <keyword id="6359475" type="CITY" weightage="20" keywordseo="Tata-Teleservices">Tata Teleservices</keyword>. 
 
India has 11 mobile-phone companies serving more than 1 billion subscriptions.

Here’s why Airtel, Reliance Jio should not worry about Vodafone-Idea merger

(Eds: Adding details) New Delhi, Feb 17 () With the government coming down heavily on telcos after the Supreme Court's rap, Bharti Airtel on Monday said it has paid Rs 10,000 crore to the telecom department towards statutory dues.The company said it will make payment of balance amount after self-assessment exercise."The...amount of Rs 10,000 crore has been paid on behalf of Bharti Airtel, Bharti Hexacom, and Telenor," the Sunil Mittal-led company said in a statement.As much as Rs 9,500 crore has been paid on behalf of Bharti Airtel (including Telenor India which merged with the company), and another Rs 500 crore for Bharti Hexacom.As per the government's assessment, Airtel owes nearly Rs 35,586 crore in statutory dues, including licence fee and spectrum usage charge.After facing the ire of the Supreme Court for putting on hold recovery of dues from telecom companies, the telecom department on February 14 began issuing orders asking firms such as Bharti Airtel and Vodafone Idea to clear past dues immediately.The DoT swung into action and started issuing circle or zone-wise demand notices to firms, asking telcos cough up their liabilities immediately or face action in line with licence terms without any further notice.Some circles like UP (West) insisted that payment be made by Friday 11.59 PM, while others like UP (East) zone said its field office will remain open even on Saturday (February 15) to facilitate payment of liabilities by companies - underlining the telecom department's resolve to collect the unpaid dues at the earliest and indicating its unwillingness to yield further on timelines.On February 14 (Friday), Airtel had said it will pay Rs 10,000 crore to the Department of Telecommunications by February 20 and the remaining before March 17.But on Monday, the company rushed to make part payments and said, "we are in the process of completing the self assessment exercise expeditiously and will duly make the balance payment upon completion of the same, before the next date of hearing in (the) SC".The company said it will also submit supporting details at the time of making balance payment.In all, 15 entities owe the government Rs 1.47 lakh crore -- Rs 92,642 crore in unpaid licence fee and another Rs 55,054 crore in outstanding spectrum usage charges.These dues arose after the Supreme Court, in October last year, had upheld the government's position on including revenue from non-core businesses in calculating the annual Adjusted Gross Revenue (AGR) of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.The apex court last week directed the managing directors and directors of telcos and other firms to explain why contempt action be not taken against them for non-compliance of its order to pay adjusted gross revenue (AGR) dues to the DoT.Taking strong note of the non-compliance of its order, a bench of Justice Arun Mishra, Justice S Abdul Nazeer and Justice M R Shah expressed anguish over the order passed by the DoT's desk officer, staying the effect of its verdict in the AGR matter.Vodafone Idea Ltd is confronted with the dues worth Rs 53,000 crore - its liabilities add up to Rs 24,729 crore of spectrum dues and another Rs 28,309 crore in licence fee.Vodafone Idea, in a regulatory filing on Saturday, had said it is assessing the amount that can be paid towards AGR dues, although it reiterated that continuation of business in India will depend on "a positive outcome" of its modification plea filed before the apex court."The company proposes to pay the amount so assessed in the next few days," VIL had said. MBI BALBAL

Airtel pays Rs 10,000 crore to govt towards statutory dues

<keyword id="6354287" type="CITY" weightage="100" keywordseo="Bharti-Airtel">Bharti Airtel</keyword>, which is all <a href="http://www.businessinsider.in/airtel-to-acquire-tikonas-4g-business-for-rs-1600-crore/articleshow/57794610.cms">set to acquire Tikona Digital</a>'s 4G airwaves for Rs 1,600 crore, has faced a roadblock in the form of legal charges by one of Tikona’s cofounders <keyword id="56383" type="PERSON" weightage="100" keywordseo="Rajesh-Tiwari">Rajesh Tiwari</keyword>. 
 Tiwari has slapped a legal notice against both <keyword id="15491" type="COMPANY" weightage="100" keywordseo="Airtel">Airtel</keyword> and Tikona for not providing details of how the proceeds will be split among shareholders. He said that the deal should be put on hold until his entitlements and interests were protected. 
 
Tiwari holds just over 1% in the Mumbai-based Internet services provider. 
 
Airtel, which is already engaged in a <a href="http://www.businessinsider.in/war-between-airtel-and-reliance-jio-has-intensified-and-this-time-it-is-about-broadband-services/articleshow/56620063.cms">fierce battle with Reliance Jio</a>, also has another problem in the form of a united <a href="http://www.businessinsider.in/idea-vodafone-merger-dips-idea-stocks-by-15/articleshow/57729612.cms">Vodafone-Idea entity</a>, announced a few days earlier. 
 
Also read: <a href="http://www.businessinsider.in/airtel-and-jio-lock-horns-over-alleged-misleading-ads/articleshow/57767720.cms">Airtel and Jio lock horns over alleged misleading ads</a> 
 
The Airtel-Tikona deal includes taking on debt of Rs 500-600 crore, and will see Airtel net 100 MHz of 4G spectrum in the 2300 MHz (4G) band equally split across the five circles. The deal would also take its total 4G holding to close to 880 MHz (including Telenor India); however, it’d still be behind Jio (1,169 MHz) and Vodafone-Idea entity (1,089 MHz). 
 
The deal would be closed in the coming four to six weeks, after which Airtel’s high-speed 4G services will be rolled out on the newly acquired spectrum. 
 
Also read: <a href="http://www.businessinsider.in/reliance-jio-writes-to-asci-against-ooklas-network-speed-test-of-airtel/articleshow/57737170.cms">Reliance Jio writes to ASCI against Ookla's network speed test of Airtel</a> 
 
Tikona was founded in 2008 by former Reliance Communications executives Rajesh Tiwari and Prakash Bajpai, and is backed by investors like Goldman Sachs, Oak Capital, IFC and Everstone Capital. Tiwari, even after having left the company in 2009, holds a direct 1% stake while also being a shareholder of Tikona Trust, which owns a stake in the company as well. 
 
As per his conversation with ET, he took the legal action since he was not provided any information about the split of the share proceeds from the deal. 
 
(Image source: International Business Times)

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