Mr. Paltridge of the O.E.C.D said that the overall consequence of combining AT&T and T-Mobile might be broader than most consumers think. For example, it would leave only one American carrier using GSM, the world’s most common cellular standard. That means AT&T could raise rates for Americans using their phones overseas and for foreigners visiting the United States.

“If the two merged, there would be an international angle to the competition issue,” he said.

The trick for Bharti, which pioneered low-cost telecoms in India, will be to bring down Zain’s high cost base and win subscribers, say analysts — and to get subscribers to talk more using lower tariffs.

Bharti is famous for its so-called “minutes factory” business plan — the low-cost, high-volume model that has made it India’s leading mobile company.

Mittal said Bharti expects to be able to “substantially increase usage” and sign up more callers that would boost call traffic and improve margins.

Bharti’s strength is “bringing down costs of operations and prices”, said Romal Shetty, head of Indian telecom at global consultancy KPMG.

Last week two Chinese nationals were arrested while the authorities busted a bypass den at Islamabad. They have been allegedly the partner of an “influential Pakistani” in this illegal venture. It claims to have caused an estimated six billion rupees (US$74 million) loss to the exchequer. The news followed by a lively debate is going on.

Meanwhile, the Internet Service Providers Association of Pakistan (ISPAK) has rejected a regulatory decree to deploy necessary countermeasures to block the VoIP traffic. Their argument and a loud debate can be viewed here

Indonesia limits foreign ownership in the telecommunication sector to a maximum of 65 percent for mobile phone operators and 49 percent for fixed-line operators.

Two tender offers would begin concurrently in Indonesia and the United States at 7,388 rupiahs ($0.661) per share and would expire on Feb. 18, Qtel said.

“The Indonesian government has determined that Qtel’s total ownership will be limited to 65 percent of Indosat,” Qtel said in a statement.

“Guided by this ruling, Qtel is thus offering to acquire an additional stake of up to approximately 24.19 percent of Indosat, after taking into account its existing 40.81 percent indirect stake in Indosat,” Qtel said.

Qtel bought a stake in Indosat, the country’s second largest mobile phone operator, from Singapore Technology Telemedia for $1.35 billion in June, increasing its ownership of the company to 40.81 percent from around 10 percent.

Indonesia’s communications minister specified last year Qtel should not control more than 65 percent of Indosat and that it had to separate its mobile and fixed-line business in two years.

Read the full story in Reuters here.

Others saw it as the only sensible foreign investment made by NTT, a high-cost operator that was completely unaccustomed to the challenger role, but was the quintessential incumbent. Their culture meshed perfectly with the monopoly culture at SLT. In contrast to the losses incurred in Thailand and Indonesia, they did well in Sri Lanka, in the process turning SLT into some kind of modern organization, even if they could not make it efficient.

Now the Economist talks of the return of the Japanese. No stepping stone, now. Directly to India.

HERE we go again. When NTT DoCoMo, Japan’s dominant mobile operator, last ventured abroad, the results were painful. Between 1999 and 2001 it spent almost ¥2.2 trillion (about $20 billion) buying minority stakes in a handful of mobile operators around the world. But it ended up booking a loss of half the value of these investments in 2002 and scuttled home. In the past couple of years, however, DoCoMo has been buying stakes in foreign operators once again, with investments in South Korea, the Philippines, Malaysia and Bangladesh. Its latest move: India.

On November 12th DoCoMo said it would pay $2.7 billion for a 26% stake in Tata Teleservices, the mobile-telecoms arm of the Tata Group, one of India’s biggest conglomerates. The price, valuing the privately held Indian business at $10.4 billion, is steep: the operator is India’s sixth-largest, with barely 30m customers in a crowded market that boasts more than 300m. The company is believed to be unprofitable and is about to begin a costly network upgrade.

Pity the Economist missed the Sri Lanka experience of NTT.

This is an intriguing development from a company many thought was withdrawing from the South Asian region.  A few years ago there were well publicized negotiations to sell its stake in Sri Lanka’s Suntel, which is believed to have failed for the lack of a high-enough bid.

TeliaSonera and its predecessor entities have not shown the nimbleness of its Nordic competitor, Telenor which has strong positions in South and South East Asian countries.  One hopes it will.  Both Nepal and Cambodia need investment and innovation.

According to the Financial Times, Bharti has indicated it would be willing to pay about $19 billion for 51% of the company. That would make it the heftiest overseas acquisition ever made by an Indian firm, more than Tata Steel paid for Corus, a British steelmaker, and seven times the amount India invested in the whole of Africa over the ten years to 2004.

The deal would unite the leading companies in the world’s two most promising mobile markets. In neither market have penetration rates yet exceeded a third of the population. India is adding more subscribers per month than any other country. In Africa, subscriptions are projected to grow by 11% a year until 2011, according to Gartner, a research firm.

Red the full story in ‘The Economist’