Will it Ever Happen? India May Delay 3G Auction, Raise Prices

Comment

Comment by Alan J Weissberger on June 2, 2009 at 5:14pm

BSNL -India’s largest telecom operator -will invite fresh tenders to run its WiMax operations, after the previous attempt was aborted in light of dubious operators making it to the final shortlist. The state-run firm will now seek fresh bids for franchisees across the country to roll out technology that allows users wireless access to high-speed internet and other data applications over a large area, according to two top executives of the company. BSNL expects WiMax to generate multi-billion dollar revenues over the next 10 years.

ET had reported on February 20 that a string of ‘shell’ companies that exist only on paper had made it to BSNL shortlist for WiMax.

The telco subsequently cancelled the tender after its own investigations revealed that five of the six shortlisted companies — WiExpert Communications, SV Telecom Systems, Digitelco Communications, Spectrus Communications and Technotial Infoways — were acting as ‘fronts’ for certain individuals.

It was found that these companies shared the same corporate details, notaries, auditors and dates of incorporation, and even their last annual general body meeting was shown to be held on the same day.

BSNL came under pressure from its labour unions to scrap the tender following reports of wide-scale corruption in the methodologies adopted to shortlist successful bidders. Doubts were also raised on the disqualification of several companies with proven track record of offering WiMax services including Soma Networks, Cisco-backed Terracom, Unwire India and Welcomm Communications — it had a tie-up Huawei and Aricent — in the earlier shortlist.

This has strengthened the allegations of a possible scandal especially since BSNL had failed to provide valid reasons for the disqualification. During the recent election campaign, opposition BJP had alleged that five of the six shortlisted companies were promoted by telecom minister A Raja’s confidant Sanjay Kapoor and had sought a CBI probe into the issue.

“BJP demands that allotment of BSNL’s WiMax franchise should be suspended immediately and the telecom minister be sacked as reports suggest wholesale loot and corruption in the process,” party spokesperson Prakash Javadekar had said during a press conference in Delhi on May 6.

Earlier this year, the WiMAX Forum, an industry association that has more than 530 member companies globally and 50 members in India had warned BSNL that companies existing only on paper are exploiting lax eligibility criteria for bids invited by the telco for franchisee operators for its WiMax services.

The Forum had also alleged that these newly floated front companies have approached global majors to buy them out quoting BSNL’s spectrum and network assets as valuation criteria. “This is a result of the lax eligibility conditions in the tender which these paper companies are exploiting,” the association had said.

http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/BSNL-set-to-invite-fresh-tenders-to-run-WiMax-ops/articleshow/4610788.cms

Comment: Scandals, corruption and cronyism seem to be a way of life in India. That's on top of the stifling bureaucracy that Indians blame on the British (but India has been independent for almost 62 years!). So delayed auctions, dubious bidders, and bureaucratic bungling have delayed WiMAX in India for over one year now.

Comment by Alan J Weissberger on June 2, 2009 at 4:59pm

Here's the latest from the India Times: Do Over-BSNL aborts WiMAX tender and must redo it

BSNL -India’s largest telecom operator -will invite fresh tenders to run its WiMax operations, after the previous attempt was aborted in light of dubious operators making it to the final shortlist. The state-run firm will now seek fresh bids for franchisees across the country to roll out technology that allows users wireless access to high-speed internet and other data applications over a large area, according to two top executives of the company. BSNL expects WiMax to generate multi-billion dollar revenues over the next 10 years.

ET had reported on February 20 that a string of ‘shell’ companies that exist only on paper had made it to BSNL shortlist for WiMax.

The telco subsequently cancelled the tender after its own investigations revealed that five of the six shortlisted companies — WiExpert Communications, SV Telecom Systems, Digitelco Communications, Spectrus Communications and Technotial Infoways — were acting as ‘fronts’ for certain individuals.

It was found that these companies shared the same corporate details, notaries, auditors and dates of incorporation, and even their last annual general body meeting was shown to be held on the same day.

BSNL came under pressure from its labour unions to scrap the tender following reports of wide-scale corruption in the methodologies adopted to shortlist successful bidders. Doubts were also raised on the disqualification of several companies with proven track record of offering WiMax services including Soma Networks, Cisco-backed Terracom, Unwire India and Welcomm Communications — it had a tie-up Huawei and Aricent — in the earlier shortlist.

This has strengthened the allegations of a possible scandal especially since BSNL had failed to provide valid reasons for the disqualification. During the recent election campaign, opposition BJP had alleged that five of the six shortlisted companies were promoted by telecom minister A Raja’s confidant Sanjay Kapoor and had sought a CBI probe into the issue.

“BJP demands that allotment of BSNL’s WiMax franchise should be suspended immediately and the telecom minister be sacked as reports suggest wholesale loot and corruption in the process,” party spokesperson Prakash Javadekar had said during a press conference in Delhi on May 6.

Earlier this year, the WiMAX Forum, an industry association that has more than 530 member companies globally and 50 members in India had warned BSNL that companies existing only on paper are exploiting lax eligibility criteria for bids invited by the telco for franchisee operators for its WiMax services.

The Forum had also alleged that these newly floated front companies have approached global majors to buy them out quoting BSNL’s spectrum and network assets as valuation criteria. “This is a result of the lax eligibility conditions in the tender which these paper companies are exploiting,” the association had said.

http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/BSNL-set-to-invite-fresh-tenders-to-run-WiMax-ops/articleshow/4610788.cms

Comment: Scandals, corruption and cronyism seem to be a way of life in India. That's on top of the stifling bureaucracy that Indians blame on the British (but India has been independent for almost 62 years!)

Comment by Alan J Weissberger on May 3, 2009 at 1:04pm

Economic Times: Dual mode devices to drive growth of WiMax in India

Mobile handsets offering both 3G (for voice) and WiMax (for high speed wireless broadband access) are likely to gain popularity with the Indian telecom operators and give a fillip to WiMax services in the country.

The dual mode devices which combine both the technology - 3G and WiMax - would help the operators in the country to offer the services in a cost effective manner once the spectrum for the services is auctioned by the government post the elections, WiMax Forum Chairman (India chapter) C S Rao said.

"In India once the spectrum is auctioned, the operators are likely to go for 3G spectrum for voice services as the existing spectrum is saturated and to support the next 200 million subscribers they have to use the third generation spectrum," he said.

However, for data services like video streaming and downloading WiMax could be used, as the technology is more efficient for data download and other applications, he said. Globally, Samsung has already started manufacturing such devices.

More at: http://economictimes.indiatimes.com/Infotech/Dual-mode-sets-to-driv...

Comment by Alan J Weissberger on February 26, 2009 at 2:08pm

India's 3G, WiMax rollout may be pushed to 2010

Although Telecommunication Minister A. Raja this week said it is possible to hold auctions for India's 3G spectrum by Mar. 31, experts doubt the current government will proceed with haste in this realm.

http://www.zdnetasia.com/news/communications/0,39044192,62051318,00.htm

Comment by Alan J Weissberger on February 26, 2009 at 2:03pm

BSNL Launches India's First High-speed Wireless Broadband Network in Gujarat

http://www.marketwire.com/press-release/Soma-Networks-Inc-954543.html

Comment by Alan J Weissberger on February 10, 2009 at 9:51pm

Please refer to this post for additional info, comment and analysis:

http://www.wimax.com/commentary/blog/blog-2009/february/Study-Predicts-India-to-be-Largest-WiMAX-market-in-Asia-Pacific-by-2013-0209

We especially invite Intel to comment!

Comment by Alan J Weissberger on February 8, 2009 at 2:30pm

India may be next WiMAX mecca

http://economictimes.indiatimes.com/News_by_Industry/India_may_become_next__WiMAX_mecca_/articleshow/4092603.cms

"India is slated to become the largest WiMAX market in the Asia-Pacific by 2013. A recent study sees India's WiMAX subscriber base hitting 14 million by Year 2013 and grow annually at nearly 130%. What's more, initial investment in WiMAX ventures is slated to top $500 mn in India, notes the report conducted by US-based research and consulting firm Strategy Analytics."

Comment by Alan J Weissberger on February 3, 2009 at 9:25pm

Indian columnists do not agree with current terms and conditions of India’s upcoming spectrum auction:

Is it for India?
The 3G-WiMax spectrum auction is happening at a time when the global economy is in doldrums. It does not make sense for India to go ahead with the current format of spectrum auction considering the subscriber base available in other countries

If the 3G and WiMax spectrum auctions happen in the current fiscal, they would see operators grabbing the opportunity to bid for the much needed bandwidth. But is 3G and WiMax indispensable for India? Have their services revolutionized the markets where they have been launched? Not really.

http://voicendata.ciol.com/content/service_provider/109020302.asp

Comment by Ashish on January 12, 2009 at 1:23am

Hi,

I agree and that is why flourishing in India is difficult. The laws and regulations are just outdated. You climb two steps, they pull you down by one. And that is why Indians abroad are doing good. Things are changing but slowly. I work in a 802.16e Base Station development Startup. I am also eagerly waiting for the license to be auctioned so that we could do some business.

And regarding Satyam's Raju, Well, it's is just another Enron. PWC, who did the auditing will have to face the brunt.

Ashish

Comment by Alan J Weissberger on January 10, 2009 at 8:45pm

India ranks 118th for ease of doing business in a country and ranks 136th for ease of getting government contracts/approvals. Even corrupt Nigeria is ahead of India!

http://www.doingbusiness.org/economyrankings/

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