The dramatic week began with panicked preparations to avert damages caused by Hurricane Irene in the US, which included sprucing up base in telecom companies as well. So from reports of Hurricane Irene knocking 6500 cell towers down in the East Coast, and other cell sites being run on back-up power, resulting in mobile network frequency going haywire all over North Carolina and the East Coast, to news of telecom companies like Cox Communications, LightSquared, Immarsat, Nirvanix and Verizon taking precautionary measures against the storm, ranging from tips to customers, business collaborations and physically moving data to other secure parts of the country, the Federal Communications Commission (FCC) said that the damage from Irene caused 132,000 wired voice subscribers to lose service on Sunday, but no major telecom damage had occurred and repair work was going on smoothly. Extending a hand to help victims of the storm, Verizon Wireless also set up stores to help afflicted residents.
The next big headlines came a day later, with reports of the US government trying to block the AT&T and T-Mobile deal. This move received widespread criticism from being a blow to building the US’ largest cell phone carrier and a loss of infrastructure investment to the tune of $8 million, to being perceived as a favoritism of the government towards existing lead 4G carriers like Sprint Nextel and Verizon Wireless, despite the US Department of Justice arguing that such a large-scale merger would violate anti-trust laws, and reduce fair competition among players in the market. With public giving a huge thumbs-down to the government move, it remains to be seen whether the DoJ will withdraw its notice blocking the deal.
Meanwhile, Chinese search engine, Baidu has decided to join the shift to the ever-growing popularity of the mobile broadband network, by launching its own mobile platform, called Yi. Based on Google’s Android mobile operating system, Yi can assist third-party software developers and mobile phone manufacturers in creating applications like games, music and book tools that they can distribute through the platform. According to a report in China Daily, -Baidu plans to cooperate with cell phone makers and produce tailored products with the platform, which will add the company’s cloud-computing services to handsets.’ In other news, China Telecom is planning to launch mobile services in the UK before the start of the 2012 London Olympics. China Telecom will reach out to the 50,000-odd Chinese citizens residing in the UK, as well as tourists arriving for the Olympics.
Google and Apple were also back in the news with Google releasing Gmail Offline, allowing users to check, store and reply to mail without a net connection, which they will be following up with Google Calendar Offline and Google Docs offline in the next week. On the same day, Apple released its iOS 5 Beta 7 for web developers, just two weeks after it released the Beta 6 version for developers.
In India, the 2G scam seems to be falling apart, with telecom regulator, TRAI stating that ex-telecom minister, A Raja, the key accused in the 2G spectrum scam followed the regular policy while allotting spectrum in 2008 and current telecom minister Kapil Sibal arguing that the 2G scam did not cause an alleged loss of Rs 3000 million, as claimed by the CBI. It is also unclear whether 12 or 83 2G licenses will be scrapped for companies like Videocon, Etisalat, Aircel and Uninor, following proof of their involvement in the 2G scam, as DoT and the Supreme Court continue to debate on the same.
The other big story currently in the news is a new scam brewing which could land troubled national telecom operator BSNL in more hit water that of the WiMax spectrum deal, which also occurred in 2008. It is alleged that BSNL was given WiMax franchisee in six circles despite failing to meet industry specifications, and was wrongly favoured by none other than A Raja – pulling the ex-telecom minister into yet another scam. Meanwhile, another former telecom minster, Dayanidhi Maran may be acquitted from the list of 2G scam blacklisters, following the CBI’s statement to the apex court stating that there was no evidence to suggest that Maran forced Aircel key stakeholder, C Sivasankaran to sell his stakes in the telco to Malaysia-based Maxis group.
In other important news, Bharti Airtel chairman and MD, Sunil Mittal said that no decision yet had been taken on the launching of an IPO for the company’s tower unit, Bharti Infratel.
France Telecom, which has made strategic acquisitions in Iraq and Morocco in the past year, is now in exclusive talks to acquire an operator in Congo, as part of its expansion plans in Africa and the Middle East, where it believes sales are growing at 10 times the pace as those in European markets. CEO Stephane Richard has thus, indicated his plans to dispose of the company’s mobile operations in Switzerland, Austria and Portuguese “as soon as possible.” According to reports, the company last year had set a target of doubling its emerging-market revenue by 2015, from $4.7 billion in 2009. The telco is now bidding for a 49 percent stake in Congo Chine Telecom, and is already in talks with Chinese telecom equipment vendor, ZTE to buy out its 51 percent stake in CCT. France Telecom is expected to pay EUR 300 million for the Congo operator.
In the Middle East, while telecom expansion is going on smoothly, Bahrain national telecom carrier, Batelco, appointed its first Bahraini CEO, Sheik Mohammed bin Isa Al Khalifa, a member of the Royal family, who will take office starting October 1. Replacing former CEO, Peter Kaliaropoulos, who has now been assigned the portfolio of Chief Executive, Strategic Assignments, the move was conducted due to recent anti-government agitations, challenging the Royal family’s minority government monarchy rule, which were forcefully suppressed.
Elsewhere in the UAE, lower call tariffs and data rates are soon expected, as top telecom carriers, Etisalat and du seek approval from telecom authority TRA for the same, in a bid to arrest falling ARPUs. Recently, in the UAE, call tariffs to South Asian countries were reduced by 30 fils per minute, while roaming rates across the Gulf were reduced up to 40 percent.
By Beryl M
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