Two thousand and five hundred years ago, Gautama Buddha correlated tax collectors to bees. A righteous ruler, said he, taking the Liccavis as an example, collects tax without making it a burden on people, in the same was a bee collects honey from a flower (without damaging it). Such wise words were not always heeded. Four new levies, reported Financial Times today, will come into force this month under the Environmental Conservation Levy Act No. 8 of 2008.
Telecom sector to see funds bonanza, tariff cuts – Business News – News – MSN India – News India’s booming mobile services market will see investments of over Rs 100,000 crore (around $24 billion) by 2010, the fastest investment ramp-up seen in any telecom market globally even as analysts predict a bruising battle that will see tariffs fall sharply. The investments include between Rs 48,000 crore and 60,000 crore ($12 billion to $15 billion) from six new telecom players (including Reliance and Tatas’ proposed GSM mobile services) over 12 to 24 months to create capacity for 250 million more mobile subscribers. This fresh investment will be over and above the estimated Rs 48,000 crore ($12 billion) being put in by incumbents like Bharti Airtel, Vodafone-Essar, Idea Cellular, Bharat Sanchar Nigam Ltd, Reliance Communications and Tata Teleservices (the latter two for ramping up CDMA mobile operations) in 2008-09 alone. Powered by ScribeFire.
State-owned telco BSNL on Monday said it plans to launch India’s biggest IPO to raise over US$10 billion. “The company is valued at well over US$100 billion. We are looking at offloading up to 10% stake, subject to government approval,” BSNL finance director S K Saxena told reporters. When asked about the development, telecom minister A Raja said: “The government is considering it (an IPO). The department of telecom (DoT) will discuss the issue and take a final decision soon”.
Swami is an employee of My Mobile store in Noida can tell how the mobile business at his store has been dwindling in one of the most popular markets in New Delhi region for mobile phones and its accessories. Before January, My Mobile would sell goods worth about Rs 2.5 lakh on any given Sunday but sales started dipping about four to five months ago and the Sunday before Christmas, which should have been a busy period, with sales being down in the range of Rs1 lakh. “Our future is in danger,” Swami says pointing to a Sony Ericsson Mobile Communications’ service centre that doubles as mobile phone retail store located bang opposite My Mobile outlet. The Sony store opened a year ago.
Bharat Sanchar Nigam Limited (BSNL) Chennai Telephones has launched ‘TV on mobile’ (through GSM mobile handsets). At present, NDTV, Aajtak, CNBC, Cartoon Network, Times Now, Zoom, Bindass and CNN-Mobile were among the channels available. More channels would be available soon, a press release said. To avail themselves of this service, customers using GPRS-enabled handsets need to send the text message ‘MYTV’ to 55447 and follow the response. Watching one channel for 24 hours would cost Rs.
Reliance Communications took the competition in domestic telecom head-on as it reported operating margins similar to bigger rival Bharti Airtel in the July-September quarter. RCom’s robust performance was aided by higher growth in its wireless and broadband services along with increased operating efficiency. Net profit has surged 86% to Rs 1,305 crore (USD 330 mil) year-on-year backed by 30% rise in sales to Rs 4,579 crore (USD 1,166 mil). Operating profit has grown 46% while revenue from wireless business grew 45% and the broadband segment 61%. Read the full story in ‘The Economic Times’ Meanwhile India’s largest wireless operator Bharti Airtel on Wednesday announced a 73% increase in second quarter net profit at Rs 1,617 crore (USD 412 mil) , compared to Rs 934 crore (USD 238 mil) for the quarter ended September 2006.
Six water pressure sensors placed on the seabed in the southern Bay of Bengal and northern Arabian Sea will act as sentinels in India’s tsunami early warning system, which was formally inaugurated today. The sensors — four in the Bay and two in the Arabian Sea — will look for changes in ocean water level and send readings via satellite to the Indian National Centre for Ocean Information Services (INCOIS) in Hyderabad, the hub for the system. The Rs 125-crore early warning system will also use a network of seismic stations, tide gauges and computer simulations based on seabed studies to issue alerts about tsunamis — waves sometimes triggered by undersea earthquakes. Continue reading “Tsunami sentinels on duty under sea – Six sensors in place, six more to be added”
A member of the Presidential Commission on the Tsunami has written an informative article on floods, dam breaches and the lack of warning about them. Twenty one years after Kantale, 2.5 years after the tsunami, 1.5 years after we handed over our extensive report on dam safety to the Disaster Management Center, more sensible writing on the subject. The analysis is done, the remedies known, now is the time for implementation.
Business Telecom Analysts are of the view that even though government has imposed a 10 percent tax on usage over the existing 15 percent value added tax, the mobile companies are unlikely to increase prices. “I don’t think that the four major mobile companies in the country will go for a price hike as there is prospective competition with the arrival of Bharti Airtel by the beginning of the next year. Besides, the industry is growing” said former telecom regulator and industry analyst Professor Rohan Samarajeewa. He further said that this increase in tax might have a negative impact on people’s usage of mobile phones. “If the levy was imposed the way it was planned, the Rs.
We could still do better; But more taxes could kill the industry The Nation Economist, Sunday 26 August 2007 | See Print version I have to say that JHU does not know economics. What is the rationale behind taxing the only sector that is growing? The industry is giving government enormous amount of revenue. Twenty percent of every mobile rupee goes to the government. If you squeeze the goose for more eggs the goose will ultimately die.
LIRNEasia research on Telecom Regulatory Environment (where India gets the lowest scores on the USO dimension) shows that Indian USO policy and implementation are flawed. LIRNEasia research on teleuse at the Bottom of the Pyramid shows clearly that lowering connection charges and keeping the use charges low are critically important in connecting the next billion. The policy recommendation that flows from this, made at meeting of regulators in New Delhi on the 15th of July, is that the USO levy should be phased out and the existing funds be disbursed as quickly as possible. But it appears that the Department of Telecommunications and the new Minister think otherwise: The Hindu Business Line : Raja rejects telecom industry plea to cut USO levy Operators had said that since the USO fund has over Rs 10,000 crore lying unused, the Government should consider lowering the contribution made by the telecom firms. “We realise that USO is an important tool to enable telecom services in rural areas.
The Business Standard (Nokia focuses on rural markets) Sapna Agarwal / Pune July 16, 2007The rural markets account for around 5 per cent of the national GSM (Global System for Mobile Communication) handset sales. The figure is expected to rise to 25-30 per cent, adding around 100 million new cellular subscribers by 2009, according to a recent study by LIRNEasia and AC Nielson.
Telephony base swells; ARPU continues to dip New Delhi April 17 Telephone subscriber base of the wire-line and wireless services together reached 189.92 million in the quarter ending December 2006 from 170.02 million on September 30, 2006, showing an increase of 11.7 per cent during the quarter. However, the blended ARPU (Average Revenue Per User) per month for GSM services has declined by 6.
The Central Bank Annual Report 2006 (p. 39) states: The inflow of foreign direct investment increased substantially by 110.3 per cent to US dollars 604 million in 2006 . . .
Sri Lanka‘s first outdoor wireless computer network is now up and running. Surprisingly, it is not in Colombo. It is not even in any of the other key places. It was installed in Mahavilachchiya, a little known village, 40 km from the nearest town Anuradhapura, and surrounded three sides by the Vilpattu jungle. Most of the villagers are either farmers or labourers with a monthly income of about Rs.
Joji Thomas of the Hindu Buisness Line reported this on August 21, 2006. LIRNEasia research by Payal Malik had recommended USO funds should be technology neutral as well as fund infrastructure creation, but the funds from the USF are not being released as mentioned in this report. Read on… JOJI THOMAS PHILIP NEW DELHI [ MONDAY, AUGUST 21, 2006 10:27:47 AM] DEPARTMENT of telecom has demanded that the finance ministry allocate an additional Rs 2,000 crore towards the Universal Service Obligation Fund (USOF), over and above the Rs 1,500 crore that has been allocated in the Union Budget. It has also said that all telecom companies should pay 5% of their adjusted gross revenue towards the USOF, which is used for building and supporting telecom infrastructure in rural India. DoT move is likely to cause a showdown with the finance ministry .