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According to half-yearly TeamLease <keyword id="6355127" type="ORGANIZATION" weightage="20" keywordseo="employment">Employment</keyword> Outlook Report, in India employment outlook has hit a three and a half year high for October 2016-March 2017 and is driven by positive economic sentiment leaning on several factors like substantial private and foreign investment, rapid growth of knowledge services and the government's continued focus on Make in India and Startup India programmes. 
 
However, job growth de-acceleration in several sectors and markets now seem to be leveling off after nearly five consecutive periods of significant acceleration from the first half of 2014. 
 
The report published by the staffing firm has looked over both employment and business outlook increase incrementally from the already positive sentiment of the previous half year. The employment outlook has gone up by 2 percentage points to 95, and business outlook by the same margin to 97. 
 
A notable increase can be seen in sectors like healthcare and pharmaceuticals which has grown 4 points up to 94 and telecom by 4 points up to 87, followed by new-age sectors such as IT, ecommerce and Internet startups, which are both up one point each to 99 and 87, respectively. 
 Kunal Sen, senior Vice President of TeamLease, however feels that while employment outlook has increased, job growth has slowed down in few sectors like as <keyword id="34523" type="CITY" weightage="20" keywordseo="fmcg">FMCG</keyword> and durables, IT, ecommerce and Internet startups, retail and manufacturing, engineering and infrastructure. 
(image: Indiatimes)

Jobs in India hits 3.5yr high. Telecom and Financial sector hiring to touch new highs

The face of <keyword id="6354776" type="COMPANY" weightage="20" keywordseo="Telecom">telecom</keyword> in India has been redefined in the last 2 years. Entry of a large player with deep pockets, significant consolidation (both large and medium size organizations) and not just that but mobile telecom service providers investing in a parallel business model of payment banks. 
 
Naturally, all of this has had a huge impact in the way talent is viewed. 
 
In the mid -2000s telecom made a dent in the talent and rewards space. 
 
<a href="http://www.businessinsider.in/travelling-solo-makes-indian-women-feel-empowered-reveals-oyo-survey/articleshow/57552104.cms">ALSO READ: Travelling solo makes Indian women feel empowered, reveals OYO survey</a> 
 
Telecom was opening up and it was a relatively new industry with the limited ready talent available in the market. Hence, to ensure that they are able to pursue the better talent available– the pay offered was significantly higher than the market. As the talent market matured, the sentiment-linked salary increases got backed up by business realities. 
 
At the beginning of the second decade of the 21st century – Telecom in India took a turn which was smarter and sharper in talent and reward management practices. Amongst services organizations, telecom historically has been one of the early ones to adopt best in class people practices. This has been showcased in the way Telecom has been reacting to business challenges and in turn rewards and HR budgets. 
 
<a href="http://www.businessinsider.in/these-women-ola-auto-drivers-are-changing-Indian-roads/articleshow/57539709.cms">ALSO</a><a href="http://www.businessinsider.in/these-women-ola-auto-drivers-are-changing-Indian-roads/articleshow/57539709.cms"> READ: These Women Ola Auto drivers are changing Indian roads</a> 
 
Navneet Rattan - Industry Lead – Manufacturing &amp; Services Sector, Aon Hewitt commented on the sector saying, "Amongst all the challenges that Telecom is weathering, it is still projecting a healthy 8.9% salary increase in 2017. Compared to a 9.7% salary increase average last year, it is a decrease but it is due to volatile developments in this sector." 
 
In the last 3 – 4 years, Telecom has consistently been close but lower than India average which is concerning. 
 
However, it's important to remember telecom was one of the first industries to adopt high differentiations for top talent. 
 According to Aon Hewitt’s 21st India Annual Salary Increase Survey, In 2016, not only were the number of employees ranked ‘A’ are less than 10%, the differentiation offered to top talent was 1.7 times. This differentiation has consistently grown year on year which means that compensation levels are competitive and some key job roles are expected to get hefty compensation compared to their counterparts in the <keyword id="34981" type="UNKNOWN" weightage="100" keywordseo="telecom-sector">Telecom sector</keyword>. 
 
<a href="http://www.businessinsider.in/hyperloop-one-asks-indians-to-identify-busy-routes-where-it-can-bring-ultra-fast-transportation-system/articleshow/57551789.cms?format=slideshow">ALSO READ: Hyperloop One asks Indians to identify the first busy route where it can bring ultra-fast transportation system</a> 
 
In addition, the adoption of pay at risk is fairly significant. 
 
At 13.2% of pay paid through variable pay, telecom is only second to financial institutions and Hi – Tech (in the overall services category). Further, telecom has been one of the first adopters of high long-term incentives at the senior and top level and this trend continues. 
 The attrition in telecom is 19.2 percent. This is approximately 3% higher than <keyword id="46431" type="CITY" weightage="20" keywordseo="India-Inc">India Inc</keyword>. average but in line with any service based industry with a large sales force. While the overall attrition in Telecom is higher than India Inc., the key talent attrition is below the India average and stands at 7.6%.

Telecom Sector employees to get an 8.7% salary hike on average, amidst interesting developments

<ul><li>Total credit for the purposes of infrastructure rose by 18.5% to ₹10.6 trillion in March 2019, the highest figure recorded since 2013, when infrastructure lending rose by 16.5%. </li><li>This is all the more impressive as total lending to the infrastructure sector had declined for two years prior to the recent financial year. </li><li>This might be because of accelerating capital investments in the <keyword id="34981" type="ORGANIZATION" weightage="20" keywordseo="telecom-sector">telecom sector</keyword>. Credit for the construction of telecom infrastructure rose by a staggering 37% in 2018-19. </li></ul>As a credit crunch hurts India’s shadow banks, it seems that commercial lenders are stepping in to meet credit demand. Bank lending to the infrastructure sector hit <a href="https://indianexpress.com/article/business/banking-and-finance/bank-credit-to-infrastructure-expands-by-18-5-highest-since-march-2013-5736411/">a six-year high</a> in 2018-2019. This is all the more impressive as total lending to the infrastructure sector had declined for two years prior to the recent financial year. As per the Reserve Bank of India’s <a href="https://m.rbi.org.in/Scripts/Data_Sectoral_Deployment.aspx">data</a> on sectoral deployment of bank credit, total credit for the purposes of infrastructure rose by 18.5% to ₹10.6 trillion in March 2019, the highest figure recorded since 2013, when infrastructure lending rose by 16.5%. This is equivalent to ₹1.65 trillion worth of new loans. The overall growth of credit, meanwhile, was around <a href="https://www.thehindu.com/business/Economy/bank-credit-grows-132-in-fy19/article27084521.ece">13.2% </a>for last year, also driven by loans to the retail and services sector. So what explains the jump in infrastructure lending? It might be because of accelerating capital investments in the telecom sector. Credit for the construction of telecom infrastructure rose by a staggering 37% in 2018-19. This is likely a result of the heavy competition in the sector, as rivals Jio, Airtel and Vodafone-Idea take on each other not only in terms of price, but network expansion. In addition, a lot of government contracts were awarded in the previous year for public infrastructure projects like roads and affordable housing, the latter of which was designated an infrastructure sub-sector in 2017-18. Lending to power firms and for the purposes of road construction rose by 12.3% and 9.5%, respectively. Going forward, it seems that financing for the purposes of infrastructure will continue to be abundant. The government is reportedly planning to set up <a href="https://economictimes.indiatimes.com/news/economy/infrastructure/new-vehicle-for-long-term-infra-finance-on-the-anvil/articleshow/69403563.cms">a new infrastructure financing entity</a> to boost the debt papers issued by companies in the sector. Credit enhancements help lower-rated companies improve their bond ratings, which results in cheaper borrowing rates. SEE ALSO: <a href="https://www.businessinsider.in/narendra-modi-led-bjp-manifestos-infrastructure-promise/articleshow/68795743.cms">Nearly half of Narendra Modi's $1.4 trillion ‘new’ infrastructure promise may be already approved projects</a>

Infrastructure lending in India just hit a six-year high, and it might be because of telecom sector

Chandigarh, The Punjab and <keyword id="101738" type="COMPANY" weightage="20" keywordseo="Haryana-High-Court">Haryana High Court</keyword> on Tuesday issued notices to the Punjab government and the Centre on a plea filed by <keyword id="6354504" type="PERSON" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword> Infocomm Ltd, seeking action against "miscreants" damaging its telecom infrastructure and forcibly closing its stores in the state. During the ongoing agitation by farmers against three new farm laws enacted by the Centre, over 1500 mobile towers in Punjab have been damaged. Reliance Jio, a subsidiary of <keyword id="6487" type="DOMAIN" weightage="20" keywordseo="Reliance-Industries-Ltd">Reliance Industries Ltd</keyword>, on Monday, submitted in its plea that "vested" interests are engaged in spreading "false rumours" against it and that the petitioner, its <keyword id="1464040" type="PERSON" weightage="20" keywordseo="parent-company">parent company</keyword> and its affiliates had no plans to enter corporate or contract farming. Justice Sudhir Mittal has issued notice of motion for February 8, according to Aashish Mittal, the counsel for Reliance Jio. The company has made the state of Punjab through its chief secretary, Union Ministry of Home Affairs, <keyword id="116246" type="COMPANY" weightage="20" keywordseo="Department-of-Telecommunications">Department of Telecommunications</keyword> and the Punjab Director General of Police as respondents in the matter. In the civil writ petition, Reliance Jio has also sought appropriate directions to respondents for investigation into the well-orchestrated and sustained disinformation campaign being carried out by <keyword id="2404104" type="PERSON" weightage="20" keywordseo="Vested-interests">vested interests</keyword> and miscreants against it. In the petition, the company has stated that in the past few weeks, its over 1,500 telecom towers were damaged or rendered inoperative by miscreants crippling its mobile network in Punjab. A number of its centres and stores were also forcibly closed by miscreants by using illegal force and intimidation, it submitted. The petitioner submitted that its subscribers were being forced to port to other networks, while its employees were being subjected to grave threat to life and forcibly prevented from serving subscribers in the state. According to the petition, vested interests inimical to the petitioner and its parent company <keyword id="6355199" type="DOMAIN" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword>, are engaged in spreading false rumours to the effect that the petitioner and its affiliates were somehow a beneficiary of recent legislation passed by Parliament governing marketing of agricultural produce. In a statement, Reliance said it "has nothing whatsoever to do with the three farm laws currently debated in the country, and in no way benefits from them . The company also sought constitution of a competent authority under the Punjab Prevention of Damage to Public and Private Property Act for the assessment of losses caused to it.

Punjab and Haryana High Court issues notice to state and Centre on Reliance Jio's plea on telecom tower damage

Telecom minister <keyword id="6354886" type="PERSON" weightage="100" keywordseo="Ravi-Shankar-Prasad">Ravi Shankar Prasad</keyword> has said that no spectrum will be given for free, even as telecom operators have demanded a cut in the proposed auction price for airwaves. The minister was talking to ET, when he highlighted how the public sector is busy combining infrastructure and leveraging the expertise of BSNL and the postal department so that the government plays is in a situation for a competitive battle with private players. 
 
"Operators will not be given free spectrum even if that were to make me the most popular telecom minister," Prasad said. He declined to comment on reconsidering the proposed price. 
 
"700MHz is the most attractive band to penetrate through thick walls," Prasad said while justifying the reasons for this high price. He also said that he doesn't expect that this decision would allow trading and sharing of spectrum that were approved after the 2015 airwave auctions to come in the way of the upcoming auction. He thinks that the size of the Indian market justifies further investment into the spectrum. 
 
Talking of the other end of the deal, telecom operators have said that the price suggested by the telecom regulator for the auction of 700MHz spectrum is too steep. 
 
<a href="http://i.huffpost.com/gen/2500654/images/o-RAVI-SHANKAR-PRASAD-facebook.jpg">Image source</a>

Ravi Shankar Prasad says no to free spectrum to telecom operators

<ul><li>The government has refused to make <keyword id="764355" type="PERSON" weightage="20" keywordseo="5G">5G</keyword> spectrum cheaper on the recommendations of the <keyword id="30356" type="COMPANY" weightage="20" keywordseo="Telecom-Regulatory-Authority-of-India">Telecom Regulatory Authority of India</keyword> (TRAI). </li><li>The government is also looking at options to extend the payment time for the spectrum from 10 years to 16 years. </li><li>The government is also working on reducing the upfront price for the auction by 5-10%. </li></ul>The government has refused to make 5G spectrum cheaper ahead of the upcoming auctions. But it is providing a lifeline to telecom companies, making it easier for them to own it, by spreading payments for it, by over 16 years, according to a <a href="https://www.business-standard.com/article/economy-policy/telecom-operators-likely-to-get-16-years-to-pay-for-5g-spectrum-119071200058_1.html">Business Standard report</a>. This comes as good news for telecom companies like <keyword id="10926" type="DOMAIN" weightage="20" keywordseo="Reliance">Reliance</keyword> <keyword id="2003276" type="COMPANY" weightage="20" keywordseo="Jio">Jio</keyword>, <keyword id="6354287" type="COMPANY" weightage="20" keywordseo="bharti-airtel">Bharti Airtel</keyword> and <keyword id="15492" type="COMPANY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> Idea, who have raised concerns over the high base price set by the government. To ease the burden of already debt-laden companies, the government is known to be studying options to lower the upfront payment to 5-10% of the total value of the spectrum they purchase. This development has come after the Telecom Regulatory Authority of <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> (TRAI) stuck at its recommended reserve price of ₹492 crore per MHz for the prized 5G spectrum which can provide ultra high-speed Internet connections. This move, if taken, will be in line with the recommendations of the Digital Communications Commission (DCC) made last year in January. It said spectrum should be paid for in 10-16 years, to solve the sector’s difficulties. Tough environment Lowering margins and increased competition have pushed many telcos into the red. Bharti Airtel has a net debt of ₹108,235 crore as on <a href="https://www.livemint.com/industry/telecom/airtel-arpu-grows-6-5-to-rs-123-in-jan-mar-2019-1559240368545.html">May 2019</a>. Vodafone Idea is in no better position as it has <a href="https://telecom.economictimes.indiatimes.com/news/vodafone-idea-q4-loss-narrows-to-rs-4847-3-cr-revenue-arpu-up-on-quarter/69310775">debt to the </a>tune of ₹118,00 crore. Reliance Jio which kickstarted the data price war has shored up its parent company debt. Its current liabilities with a variety of businesses under it from oil to retail went by ₹27,000 crore in a year, leaving it with less headroom for heavy investments. As expected, the telecom provides have been unhappy with the prices. “These prices are exorbitant, given that the state of 5G ecosystem is still nascent. So, we would hope that the government brings the prices of spectrum,” <a href="https://www.communicationstoday.co.in/telecom-operators-likely-to-get-16-years-to-pay-for-5g-spectrum/">said</a> Bharti Airtel MD and CEO. Vodafone-Idea chief executive Balesh Sharma also termed the prices as exorbitant, while Reliance Jio’s Senior Vice President V L Shankar said “We need large bandwidth of 5G and at attractive prices.” In 2016, telecom operators had missed the auction of 700 MHz 5G spectrum auctioned last year.

5G spectrum auctions might have a ‘buy now pay later’ scheme

The government has cut spectrum usage charges (SUC) from 5% of adjusted gross revenues (AGR) to 3%, a move that could result in a drop in consumer tariffs for calls and broadband. Not only this, it would also free up cash for the mobile service operators burdened with debt. 
 
This would boost the confidence before the July mega auctions, where in the government would sell over 2,000 MHz of spectrum across seven frequencies. It would also be the first time that the lucrative but highly-expensive 700 MHz band will be available for sale. 
 
Mobile companies can save as much as Rs 3,200 crore from this move, which was approved by the inter-ministerial telecom commission after its meeting in late March. 
 
"The telecom commission has cleared the reduction of SUC, and the decision has also been approved by the telecom minister," a source told TOI. SUC, which is an annual charge, is levied as a percentage of the AGR that mobile companies make from telecom services. 
 
<a href="http://cdn2.pcadvisor.co.uk/cmsdata/features/3626096/Mobile_lifestyle_33.jpg">Image source</a>

Your mobile phone and broadband bills are going to drop soon. Here’s how

Sunil Bharti Mittal, the chairman of market leading telecom company <a href="http://www.businessinsider.in/bharti-airtel-to-acquire-telenor-india/articleshow/57304886.cms">Bharti Airtel</a> has said that while Indian telecom operators don’t have any issues with <keyword id="476804" type="UNKNOWN" weightage="100" keywordseo="internet-firms">Internet firms</keyword> like Google, Facebook and Whatsapp, TRAI must establish ground rules so that issues over app-based calling and message services can be resolved. 
 
"<a href="http://www.businessinsider.in/netflix-plays-big-on-india-offers-ott-via-top-d2h-mobile-platforms/articleshow/57491757.cms">OTT</a> (over-the-top) players and telecom players are very happily co-existing. Gone are the tensions and I think they love putting up more networks, lower the prices," Mittal said. 
 
Telcos demand that app-based calling and messaging services be brought under the licensing regime, which as per internet firms, would be a roadblock to innovation, affordable or almost free messaging services, which would adversely impact their users and potential customers. 
 
Also read: <a href="http://www.businessinsider.in/your-internet-speeds-will-be-insanely-fast-when-5g-arrives/articleshow/57468125.cms">Your internet speeds will be insanely fast when 5G arrives</a> 
 
"This is a digital society with collaborative effort but it can't be said that telecom operators have no role to play and only OTT players (internet-based calling and messaging providers) will do it. 
 
"They cannot do it without backbone that telecom networks have to built. This will go hand in hand that is why our relationship with Google, <a href="http://www.businessinsider.in/Facebook-Indias-employees-reveal-why-it-is-a-dream-job/articleshow/52501811.cms">Facebook</a>, <a href="http://www.businessinsider.in/apple-is-at-an-all-time-high/articleshow/57136342.cms">Apple</a>, Whatsapp, Hike ... very healthy," <a href="http://www.businessinsider.in/sunil-bharti-mittal-calls-reliance-jio-unfair-competition/articleshow/56501750.cms">Mittal</a> said. 
 
As per a complaint filed by telecom operators to TRAI and the government, it is because of these internet-based calling and messaging companies that their revenues get affected. They provide services like calling and messaging without having need to follow rules and regulations that telcos have to follow. 
 
Mittal also added that high capital expenditure forces telecom operators to be unable to match the rates of OTT players. 
 
"You must remember that OTT players have no capital expenditure. Their market caps are through the roofs, they have to spend nothing. Telecom companies have to spend 200 billion dollars in capex," he was quoted. 
 
(Image source: Wordpress)

Sunil Mittal urges government to clarify rules to avoid clashes over internet calling

<ul><li>The India government might be looking into monitoring international long-distance calls amid rising tensions between India and Pakistan. </li><li>While no requests have been issues so far, the Telegraph Act, 1885 holds a provision for the government to monitor calls.</li><li>Government agencies can also ask telecom operators for surveillance equipment and arrangements to monitor several calls simultaneously.</li></ul> It’s possible that the Indian government is going to ask telecom operators to intercept calls between India and Pakistan. The companies are preparing themselves for requests to monitor international long-distance traffic on select routes after the Indian military put the northwestern states near the India-Pakistan border on high-alert. If any requests had been made, the information would be strictly confidential and only the designated nodal officer at each telecom company would know. 
 <div type="ExtQuote" text="“The nodal officer is bound by strict confidentiality requirements. So, unable to confirm if any requests have been received by operators.”" auname="Rajan Mathews, Director General of Cellular Operators Association of India (COAI)"></div>



 But, telecom operators have the equipment to monitor calls and government has ordered internet shutdowns in the past. Ram Narain, the former Deputy Director General in the telecom department told the<a href="https://telecom.economictimes.indiatimes.com/news/telcos-bracing-to-intercept-calls-if-need-be/68194822"> Economic Times</a>, “The government can technically order temporary Internet shutdowns in surcharged situations to pre-empt rumour mongering and the wrong sort of messages spreading in sensitive zones in national security interest, and can even direct telcos to intercept/tap specific calls, based on intelligence inputs.” Can telecom operators or the government legally monitor your calls? The surveillance of any person or group — or even telecom network themselves — can be enabled by enacting the <a href="http://www.ijlt.in/pdffiles/Indian-Telegraph-Act-1885.pdf">Telegraph Act</a>, 1885. 
 <div type="ExtQuote" text="“Any appliance, instrument, material or apparatus used or capable of use for the occurrence of a public emergency or transmission or reception of signs, signals, the interest of public safety are therefore writing, images and sounds or intelligence of pre-requisites for the invocation of any nature by wire, visual or other electromagnetic Section 5(2). In the absence of either, the emissions, radio waves or Hertzian waves, galvanic, Government is disallowed from interc- electric or magnetic means.”" auname="Definition of “telegraph” under Section 3 (1AA) of the Telegraph Act, 1885"></div>



 The definition of “telegraph” in the Telegraph Act brings virtually all communication devices under its umbrella — including smartphones and land lines. But, what actually gives the government the power to monitor calls is in the Section 5(2) of the Act, which states that the government can switch to surveillance “on the occurrence of any public emergency, or in the interest of public safety.” Essentially, the government can intercept calls, if necessary, in the interest of sovereignty and integrity of India, security of the state, friendly relations with foreign States, and public order. Additionally, under the Section 5(2), the government can ask telecom operators for surveillance equipment — but there is no obligation for the government to clearly outline the reasons. The definition of ‘surveillance equipment’ is also broad so the government has the power to install any surveillance equipment that matches up to the current state of technology and their requirements. The <a href="https://sflc.in/sites/default/files/wp-content/uploads/2014/09/SFLC-FINAL-SURVEILLANCE-REPORT.pdf">India Surveillance Report</a> asserts that telecom operators are required to make arrangements for the government to monitor several calls simultaneously. Government agencies have specified that the number of calls should be 480. They should all have ‘monitoring equipment’, and at least 30 calls should have tracing capabilities in each of the 10 designated security agencies. The specific ‘security agencies’ are not known to the public. The procedural law for tapping phones is under Rule 419A of the Indian Telegraph Rules, 1951. It also states that a lawful order may be issued only once all other reasonable means for acquiring the information have been ruled out. 
 <div type="image" title="Source_ India surveillance report, SFLC" msid="68197668" hostid="261"></div>



 International policy sentiment towards surveillance isn’t favourable with the implied violation of the ‘right to privacy’ and the ‘right to freedom of expression and opinion.’ The UN General Assembly’s Resolution to ‘Right to Privacy in the Digital Age’ is a call for national laws to be reviewed. See also: <a href="https://www.businessinsider.in/heres-how-ordinary-kashmiris-reacted-to-war-rumours-ahead-of-indias-air-strikes/articleshow/68162689.cms">Here's how ordinary Kashmiris reacted to war rumours ahead of India's air strike</a> <a href="https://www.businessinsider.in/global-markets-are-jittery-as-india-pakistan-tensions-hit-a-near-50-year-high/articleshow/68184234.cms">Global markets are jittery as India-Pakistan tensions hit a near 50-year high</a> <a href="https://www.businessinsider.in/markets-sell-off-in-mumbai-and-karachi-as-india-and-pakistan-tensions-escalate/articleshow/68184744.cms">Markets turn nervous watching India and Pakistan ramp up military action</a>

Indian Government may intercept your phone calls as India-Pakistan conflict escalates — but is it legal

With the cabinet’s nod to a fresh round of auction of 700mhz of premium <a href="http://www.businessinsider.in/searchresult.cms?query=spectrum&amp;sortorder=effectivedate">spectrum</a> sometime by August 2016, the department of <a href="http://www.businessinsider.in/searchresult.cms?query=telecom&amp;sortorder=effectivedate">telecom</a> is now gearing up for the single largest commercial auction of airwaves ever done. And this time around, the total bandwidth being auctioned is 2000mhz. 
 
Clear Benefits 
 
Here’s why the premium 700mhz band can be an answer to all our woes. To start with it’s an <a href="http://www.businessinsider.in/searchresult.cms?query=LTE+band&amp;sortorder=effectivedate">LTE band</a>; it can provide high speed internet connectivity and interruption free voice calls. Due to its low frequency, the band will be able to provide the most effective indoor coverage and better connectivity in remote areas. Low frequency will also mean lesser investment in infrastructure with fewer telecom towers. Over 40 countries all over the world primarily use the 700mhz band for 4g or LTE services. These countries include the likes of US, Australia, Singapore and even countries like Brazil and Nepal. 
 
Sounds perfect, doesn’t it? And the government now has given its stamp of approval in order to put the band under the hammer in the upcoming spectrum auction that is likely to happen by August 2016. 
 
So where is the problem, you ask. Here’s a quick recap first. 
 
There has been a lot (I mean a LOT) of back and forth between the telecom regulator and the telecom department on 700mhz band with the telecom companies chiming in every now and then. 
 
Big telecom companies like <a href="http://www.businessinsider.in/searchresult.cms?query=airtel&amp;sortorder=effectivedate">Airtel</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=idea&amp;sortorder=effectivedate">Idea</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=vodafone&amp;sortorder=effectivedate">Vodafone</a> had asked the DoT and <keyword id="6356988" type="PERSON" weightage="20" keywordseo="TRAI">TRAI</keyword> to not auction the 700mhz band just yet, as there is not much demand for the band at this point, the DoT backs the thought too, but the TRAI (<keyword id="30356" type="ORGANIZATION" weightage="20" keywordseo="Telecom-Regulatory-Authority-of-India">Telecom Regulatory Authority of India</keyword>) has been adamant, looking at the widened subscriber base and manifold jump in data traffic, that there could be a demand for the 700mhz band and therefore it should be auctioned now. 
 
The obvious, yet big problems 
 
Two key concerns for telecom operators have always been availability of spectrum and the pricing of spectrum. In the case of 700mhz band, TRAI is making spectrum available, but operators are asking the regulator to hold on. And in the case of the pricing of 700mhz band, it is now the most expensive spectrum band priced at 11, 500cr which is four times the price of the 1800mhz (Frequency also used for providing 4G services) that was auctioned a few years ago. Needless to say, operators are not happy. 
 While telecom operators are dealing with issues such as availability of spectrum and its pricing, another big concern that directly affects the consumers like you and me, is the ecosystem for the new technology. There is still very limited number of smart phones that support the 700mhz LTE band in India. Which means even if the government auctions it and operators buy it, it will still be a few years before we get to experience the technology. Just how it happened in the case of 2300mhz(4G) auction that took place in 2010. It’s only very recently that we have seen major telecom operators like <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword>, <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword>, Idea launching their 4G services and <keyword id="6354504" type="UNKNOWN" weightage="20" keywordseo="Reliance-Jio">Reliance Jio</keyword>, the sole operator that won 4G spectrum in all the circles and potentially the biggest 4G player, is yet to officially launch its 4G services even after 6yrs. 
 
So just in case you are getting excited in anticipation of being able to use high speed, super fast internet on the 700Mhz band, please don’t let any developments around it fool you just yet. You still have a good couple of years to be able to experience this technology and may I remind you, we are still dealing with <a href="http://www.businessinsider.in/searchresult.cms?query=call+drops&amp;sortorder=effectivedate">call drops</a>! 
 
(Image: Indiatimes)

Don’t let the Govt’s call for the largest airwave auction in history fool you just yet

Intense tariff war and high taxes are expected to squeeze Indian telecom operators, leaving a gaping Rs 1,20,000 crore deficit between the industry's earnings and its debt/payment commitments this year, says debt-laden Reliance Communications, according to PTI. With annual interest payments, loan re-payment obligation, spectrum-related outgo and capex expected to add up to a Rs 1,62,000 crore tab, the operators could find it tough to metheir debt and payment needs with Rs 43,000 crore of EBITDA or operating profits in 2017-18. The earnings before interest, tax, depreciation and amortisation (EBITDA) is a measure of a company's operational performance. "The reduced EBITDA (Rs 43,000 crore in FY18) of the industry is insufficient to cover the existing debt obligations and deferred payment commitments," RCom cautioned in its latest investor presentation. The gross liability of the telecom industry on account of debt as well as payments related to radio waves amounted to a whopping Rs 7,75,000 crore, as on March 31, 2017. Stating that 2016-17 recorded the first-ever decline in industry's revenue, RCom said the combined revenue went down to an estimated Rs 2.10 lakh crore. This resulted in fall in EBITDA by Rs 12,000 crore, meaning significantly lower operating cash flows for telcos. "Further in FY18 (this fiscal year), the revenue is estimated to decline further by Rs 25,000 crore," RCom said referring to the industry's weak financial metrics. RCom Chairman <keyword id="9171" type="PERSON" weightage="20" keywordseo="Anil-Ambani">Anil Ambani</keyword> last week stepped in to restore investor confidence after the company's shares were hammered in the wake of poor fourth quarter and FY17 showing, and debt downgrade by rating agencies including Moody's, Fitch, ICRA and CARE. In a rare public appearance, he said that the debt-laden RCom has been given a breather of seven months to service its debt. This is a part of a strategic debt restructuring (SDR) programme that a consortium of lenders has invoked for the company, that is saddled with Rs 45,000-crore debt. Like its larger rivals, RCom too has been hit hard by intense price war unleashed by <keyword id="6354504" type="UNKNOWN" weightage="20" keywordseo="Reliance-Jio">Reliance Jio</keyword>, owned by Anil Ambani's elder brother and India's richest man <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>. RCom's presentation noted that the voice revenue per minute for the industry has seen a 25 per cent decline in the last two quarters, while data revenue per MB have fallen by 40 per cent. It cautioned that the sector could be staring at 30,000 to 40,000 job losses over the next 12-18 months, compared to 10,000 job cuts last year. Underlining the high incidence of taxation, RCom said telecom is "one of the highest taxed sectors" of the Indian economy and that no other country in the world has such high tax burden on telecom sector. The cumulative tax incidence adds up to about 33 per cent (of revenue) in India compared to 20 per cent in EU, 22 per cent in China and 17 per cent in the US. Incidentally, India, with over 1.16 billion mobile users is the second largest telecom market in the world, after China. Noting that the government has set up a panel to resolve the financial crisis in the telecom sector, RCom said industry wants deferment of payment liability with respect to levies (imposed by the <keyword id="150664" type="ORGANIZATION" weightage="20" keywordseo="telecom-department">Telecom Department</keyword>) and spectrum charges by three years. The industry also wants a 3-year moratorium on service tax/GST, for short term cash flow relief. Other demands include reduction of licence fee to five per cent (from 8 per cent), and flat one per cent spectrum levy. Interestingly, at a time when telecom regulator is reviewing the call connect charges, RCom said that termination rate should be discontinued, given the free or low voice tariffs environment.

Intense tariff war is bleeding telecom operators. Here’s the proof

<ul><li>Jio’s predatory data tariffs are still 25 to 30% lower than that of Airtel and Vodafone Idea. </li><li>Airtel and Vodafone’s joint market share is expected to drop 25% to 27% each. </li><li>The total debt of the top three telecom players — Reliance Jio, Bharti Airtel and Vodafone Idea — is as high as ₹3.9 lakh crore. </li></ul> The telecom war that <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s Reliance Jio started will rage on for another two years, according to a report by India Ratings. The stress of investments and the lack of revenues due to deep discounting is hurting the entire industry, including Jio. The total debt of the top three telecom players — Reliance Jio, Bharti Airtel and Vodafone Idea — is a massive ₹3.9 lakh crore, according to the report. That’s almost <a href="https://www.businessinsider.in/sensex-today-jumps-150-points-after-rbi-move-to-transfer-surplus/articleshow/70852202.cms">twice the amount the </a>Reserve Bank of India gave the Indian government, which is ₹1.76 lakh crore this week. The debt run up by the three war ravaged players is also almost half of the country’s total fiscal deficit which is<a href="https://www.livemint.com/news/india/fiscal-deficit-crosses-61-of-budgeted-target-in-first-three-months-of-fy20-1564574137744.html"> pegged at around</a> ₹7 lakh crore for 2019-20. Fiscal deficit is the amount of money the government is falling short of, to carry on its planned expenditure. RJio’s market share will go up 40% to 45% It doesn’t look like the debt is going away anytime soon. Jio’s predatory data tariffs are still 25 to 30% lower than that of Airtel and Vodafone Idea. India Ratings expects RJio’s market share to increase 40% to 45% over the next two years. At the end of the last financial year, it stood at around 30%. “Airtel and Vodafone’s joint market share is expected to drop 25% to 27% each,” the report predicted. Jio’s already declared that it’s targeting 50% market share in total telecom revenues, without mentioning a timeline. At his annual general meeting, Ambani promised Reliance Industries’ shareholders of Jio’s growth. The company already has around 340 million customers but is aiming for more. “The potential for growth is immense, and half a billion customers is now well within our reach,” Ambani said. No free cash flow available till 2021-22 As a result of high debt and continuous losses, the telecom players will remain structurally weak for the next two years, says the report. This means they will have no or low free cash in hand. “These companies will continue to rely on refinancing or capital infusion. However, near-term liquidity is supported by large cash levels available post capital infusions (Vodafone Idea, Airtel) and continued financial flexibility due to strong parentage (Jio),” the report said. From here on, there are a few things that can change the fortunes of the flailing telecom sector starting with Jio’s pricing strategy. Any change and possible increase in tariffs and subsequent response by other two players, will pave the way for recovery in the telecom sector. SEE ALSO <a href="https://www.businessinsider.in/the-difference-between-mukesh-ambanis-jio-and-ani-ambanis-reliance-communications/articleshow/70869465.cms">Mukesh Ambani's strategy with Reliance Jio is avoiding Anil Ambani's mistakes with RCom</a>

Top three telecom companies’ debt is at ₹3.9 lakh crore — that’s half of India’s fiscal deficit

Social media platform WhatsApp's privacy policy matter has been referred to a Constitution bench of Chief Justice J S Khehar and Justice D Y Chandrachud by the Supreme Court. 
 
The bench will hear the issue on April 18. 
 
As per the bench, the parties should appear before it and formulate issues to be taken up for the hearing. 
 
It was on January 16 that SC had asked for responses from Centre and <a href="http://www.businessinsider.in/small-business/tech/indias-telecom-regulator-wants-to-provide-wi-fi-hotspots-internet-at-2-paise-to-public-this-is-what-it-is-planning/articleshow/57509046.cms">telecom regulator TRAI </a>about infringement of the privacy of over 157 million Indians who use social networking sites <a href="http://www.businessinsider.in/small-business/tech/Facebook-and-Whatsapp-are-the-most-exciting-brands-of-2015/articleshow/47261069.cms">WhatsApp and Facebook</a>. The security of their data was compromised for alleged commercial use. 
 
Also read: <a href="http://www.businessinsider.in/Telecom-Minister-assures-that-your-private-messages-will-remain-so-No-snooping/articleshow/49061429.cms">Telecom Minister assures that your private messages will remain so. No snooping!</a> 
 
Earlier, the Delhi High Court had restrained WhatsApp from sharing its user information existing upto September 25, 2016 with Facebook, as soon as the new privacy policy had come into effect. 
 
The high court had also directed the Centre and <a href="http://www.businessinsider.in/small-business/tech/trai-is-conducting-tests-to-check-call-drops-voice-quality-on-airtel-vodafone-idea-jio-networks/articleshow/57185722.cms">TRAI </a>to examine whether bringing the functioning of internet messaging apps like WhatsApp under statutory regulatory framework would be feasible or not. 
 
Also read: <a href="http://www.businessinsider.in/telecom-tribunal-refuses-stay-on-reliance-jio-asks-trai-to-re-examine-issues/articleshow/57671420.cms">Telecom tribunal refuses stay on Reliance Jio; asks TRAI to re-examine issues</a> 
 
(Image source Digital Trends)

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