Delhi High Court Refuses to Refuses to Interfere With TRAI’s Rs 1,050 Crore Penalty on Vodafone

The Delhi High Court has refused to interfere with TRAI’s recommendation for imposing a penalty of Rs. 1,050 crore on two Vodafone companies for allegedly denying inter-connectivity to Reliance Jio Infocomm Ltd (RJIL) under an Interconnection Agreement executed between them.

The high court noted that the Telecom Regulatory Authority of India’s (TRAI) October 21, 2016 recommendation, which has been challenged here is also under challenge before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), and tribunals are expert bodies constituted under statute to decide the disputes arising under that statute.

A bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad, in its May 24 judgment, said the TDSAT has been empowered to deal with all disputes arising under the TRAI Act.

The Central government had passed an order on September 29, 2021 imposing a penalty on the petitioner companies for violation of the provisions of licence agreement and standards of Quality of Service (QOS) regulations of basic telephone service (wireline) and cellular mobile telephone service regulations, 2009.

“After the tribunal gives the conclusion that the order dated September 29, 2021 passed by the respondent no.2 (government) is not sustainable in law, then automatically the recommendation dated October 21, 2016 which is under challenge in the instant writ petitions would be set aside.

“This court finds considerable force in the arguments advanced by the senior counsel for the respondents that any observations made by this court in the instant writ petitions will have an adverse impact on the Telecom Petitions which have been filed before the TDSAT,” the bench said.

The high court disposed of the petitions filed by Vodafone Mobile Services and Vodafone Idea and made it clear that it has not made any observations on the merits of the case.

“It is always open for the tribunal to decide the issue on merits, including the recommendation dated October 21, 2016 which is under challenge in the instant petitions,” it said.

It also noted that the TDSAT has already stayed the September 2021 order.

On September 21, 2016, TRAI issued the a recommendation stating that the petitioners were at fault for not providing Point of Interconnections (POI) to RJIL, and recommended imposition of a penalty of Rs. 50 crore per circle for 21 Licensed Service Areas (LSA) where POI congestion exceeded the allowable limit of 0.5 percent.

The petitioners said they requested TRAI to withdraw the recommendation, but to no avail after which they moved the high court.

Vodafone has challenged the recommendation made by TRAI to the Secretary, Department of Telecommunication, for penal action, contending that the recommendation was contrary to law and deserved to be struck down.

TRAI opposed the petitions saying they are premature at this stage and non-maintainable.


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Reliance Jio Gains 30.5 Lakh Mobile Subscribers in March 2023, Bharti Airtel Follows: TRAI

India’s largest telecom operator Reliance Jio added 30.5 lakh mobile subscribers in March, accelerating its momentum of February, while Vodafone Idea lost 12.12 lakh wireless users during the month, according to data released by telecom regulator TRAI.

Sunil Mittal-led telecom company Bharti Airtel onborded 10.37 lakh mobile subscribers in March, raising its subscriber base to 37.09 crores in March against 36.98 crores in February.

Reliance Jio added 30.5 lakh subscribers in March, as its subscriber count exceeded 43 crore, compared to 42.71 crore in February. It is pertinent to mention that in February too, Reliance Jio had added the maximum number of mobile subscribers (at about 10 lakh) among telcos, while Airtel had gained 9.82 lakh mobile users during February.

A look at March data released by TRAI showed that Vodafone Idea — which trails Reliance Jio and Bharti Airtel in the mobile market subscriber tally — lost 12.12 lakh mobile users in March. Vodafone Idea’s mobile subscriber base shrunk to 23.67 crore in March, from 23.79 crore in the previous month.

Overall, the broadband subscribers’ tally rose by 0.86 percent month-on-month.

“… the total broadband subscribers increased from 839.33 million at the end of February-23 to 846.57 million at the end of March-23 with a monthly growth rate of 0.86 percent,” a Telecom Regulatory Authority of India (TRAI) release said.

Top five service providers constituted 98.37 percent market share of the total broadband subscribers at the end of March 2023, including Reliance Jio (43.85 crore), Bharti Airtel (24.19 crore), Vodafone Idea (12.48 crore).

Overall, the number of total telephone subscribers in India increased to 1,172.84 million (117.2 crore) at the end of March 2023, showing a monthly growth rate of 0.21 percent.

“Urban telephone subscription increased from 652.16 million at the end of February-23 to 653.71 million at the end of March-23 and the rural subscription also increased from 517.77 million to 518.63 million during the same period.

“The monthly growth rates of urban and rural telephone subscription were 0.24 percent and 0.17 percent respectively during the month of March-23,” TRAI said.

Overall teledensity in India increased to 84.51 percent at the end of March 2023.

“The Urban Tele-density increased from 133.70 percent at the end of February-23 to 133.81 percent at the end of March-23 and rural tele-density also increased from 57.63 percent to 57.71 percent during the same period,” it said. 


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Reliance Jio, Bharti Airtel Added 19.8 Lakh Mobile Subscribers in February: TRAI

Telecom operators Reliance Jio and Bharti Airtel added 19.8 lakh mobile subscribers month-on-month in February, even as Vodafone Idea lost 20 lakh customers, according to data released by TRAI on Thursday.

India’s largest telecom player Reliance Jio added the maximum number of mobile subscribers at about 10 lakh, taking its wireless subscriber tally to 42.71 crore users in February, as against 42.61 crore in January.

Sunil Mittal-led Bharti Airtel gained 9.82 lakh mobile users during February and ended the month with a wireless subscriber base of 36.98 crore.

Vodafone Idea lost 20 lakh subscribers in the wireless category as its mobile subscriber base shrunk to 23.79 crore, as per data from the Telecom Regulatory Authority of India (TRAI).

“…the total Broadband Subscribers increased from 839.18 million at the end of January-23 to 839.33 million at the end of February-23 with a monthly growth rate of 0.02 percent,” the release said.

The top five service providers constituted 98.38 percent market share of the total broadband subscribers at the end of February 2023.

“These service providers were Reliance Jio Infocomm 435.20 million, Bharti Airtel 239.70 million, Vodafone Idea 123.74 million, BSNL 24.92 million and Atria Convergence 2.14 million,” according to the release.

Overall, total wireless subscribers decreased to 1,141.96 million (114.1 crore) at the end of February 23 from 1,143.02 million (114.3 crore) at the end of January 2023, a monthly decline rate of 0.09 percent.

“Wireless subscriptions in urban areas decreased from 627.13 million at the end of January 23 to 626.37 million and wireless subscriptions in rural areas also decreased from 515.89 million to 515.60 million during the same period. Monthly decline rates of urban and rural wireless subscriptions were 0.12 percent and 0.06 percent, respectively,” TRAI said.


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Bharti Airtel 5G Touches 2 Million Customer Mark in Mumbai Within a Few Months of Launch

Telecom operator Bharti Airtel on Tuesday announced that it has touched the 2 million customer mark on its 5G network in Mumbai within seven months of the launch.

Mumbai is also the first city in the country to have 5G coverage in all its towns and talukas, Airtel said in a release.

“Bharti Airtel today announced that it has welcomed 2 million customers onto its 5G network in Mumbai thus far. This remarkable growth has occurred in just 7 months from launching the service,” the company said.

The financial and entertainment capital has 5G coverage in Mumbai, Navi Mumbai, Thane, Kalyan-Dombivali, Mira Bhayandar and every other corner of the city.

Vibhor Gupta, CEO, Mumbai, Bharti Airtel, said, “We are thrilled to have 2 million plus customers enjoying the power of 5G in Mumbai. The adoption that we are seeing among Mumbaikars shows that our customers are always evolving and our objective is to offer them a brilliant experience”.

Airtel’s 5G service is now available in over 3,500 cities and towns across the country. The company has recently surpassed the 10 million unique customer mark on its 5G network nationally and is on track to cover every town and key rural area with its 5G service by September 2023. 

Recently, in March, Bharti Airtel overtook Reliance Jio in 5G roll-out with the expansion of the network to additional 235 cities, taking its total reach to 500 cities.

Reliance Jio has so far announced the expansion of its ultra high-speed fifth generation (5G) network to 406 cities.


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Jio’s Unlimited 5G Plans Put Airtel on Back Foot in India, Delay Profits: JP Morgan

The launch of cheaper postpaid plans with unlimited 5G by Reliance’s Jio has put rival Bharti Airtel on the back foot in the Indian market and may delay recovery in its key profit metric, JP Morgan analysts said on Thursday.

Jio, the telecoms unit of Indian conglomerate Reliance Industries, launched new postpaid plans last week, starting from Rs. 399 ($4.85) that included over-the-top (OTT) packages, forcing Bharti Airtel to roll out similar plans.

“We were surprised to see Bharti turn defensive with counter-plans,” JP Morgan analysts said in a client note, adding that unlimited 5G data consumption would also delay any kind of 5G monetisation, pressure the expansion of average revenue per user (ARPU) and delay 4G prepaid tariff increases.

Bharti’s new family plans can drive ARPU drops of Rs. 100-200 per subscriber and any subsequent price matching to that of Jio can drive further ARPU drops of Rs. 50-100 per subscriber, the analysts said.

Stiff competition to attract 5G subscribers would reduce the pricing power for the operators and they will not be able to monetise 5G by charging a premium, they added.

Analysts kept their “under weight” rating on Bharti Airtel, saying that ARPU expansion for Bharti was at risk and could even reduce over 2024-25 as 5G price wars take place.

Both, Jio and Bharti Airtel have been rolling out 5G services across the country.

© Thomson Reuters 2023


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Jio Rs. 2,999 Prepaid Recharge Plan Offers 2.5GB Daily 5G Data Usage: All Details

Jio has updated its annual prepaid recharge plan with access to unlimited 5G data. The telecom company’s prepaid plan priced at Rs. 2,999 will offer users access to high-speed 5G data for 365 days. According to information available on the telecom operator’s website, the annual prepaid plan will provide users with a total of 912.5GB (with a limit of 2.5GB data per day) for the whole year. The plan also offer free access to JioTV, JioCloud, JioSecurity, and JioCinema, according to the operator.

The country’s largest telecom operator has updated its website (via ET Telecom) listing for the Rs. 2,999 prepaid recharge plan to include unlimited 5G data for users who opt for the annual recharge. It continues to offer 912.5GB of data which amounts to 2.5GB of daily data at 5G speeds.

It is worth noting that the Jio recharge plan worth Rs. 2,999 does provide unlimited data access to customers, even after they cross the daily 2.5GB data allowance. However, just like users on 4G devices, the telecom operator will reduce browsing speeds for users with 5G devices to 64Kbps, as per the listing for the recharge plan.

Jio users subscribing to the Rs. 2,999 prepaid plan will also receive complimentary subscriptions to Jio TV, Jio Cinema, Jio Security, and Jio Cloud. The telecom provider also provides users to option to upgrade their prepaid plans worth Rs. 119, Rs. 149, Rs. 179, Rs. 199, and Rs. 209 with a top-up of Rs. 61 providing users an additional 6GB of data.

The operator has launched its Jio True 5G network services in several cities across the country. Users in supported regions will receive an invite to the Jio Welcome Offer. Jio’s 5G network is currently available in 331 cities, after the company recently expanded the rollout to 27 additional cities.

The telecom company has announced that Jio’s 5G services will cover the entire country by the end of 2023. “We are on the path to achieving the declared goal to increase the Jio 5G footprint month after month to other cities, towns, and talukas of various States and UTs, and are aiming to cover every town, every taluka, and every tehsil across the nation by December 2023,” Jio Chairman Akash Ambani said at a post-Budget webinar last month.


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Reliance Jio Leads Wireline Segment in December 2022 With Nearly 3 Lakh New Customers

Telecom subscriber base rose marginally to 1,170.38 million in December 2022 on account of an increase in fixed line connections, according to official data.

The total subscriber base in the country was at 1,170.17 million in November last year.

“The number of telephone subscribers in India increased from 1,170.18 million at the end of November to 1,170.38 million at the end of December, thereby showing a monthly growth rate of 0.02 percent,” telecom regulator TRAI said in its monthly subscriber report for December 2022 released on Thursday.

Wireline subscribers increased to 27.45 million in December from 27.13 million in November, with a net increase of 0.32 million in the wireline subscriber base.

The Telecom Regulatory Authority of India (TRAI) report showed that the growth in the wireline segment was driven by Reliance Jio with an addition of 2,92,411 new customers. Bharti Airtel added 1,46,643 new landline customers, BSNL (13,189) and Quadrant (6,355).

State-owned MTNL lost 1,10,168 fixed line customers in December while Vodafone Idea lost 15,920 fixed line customers, Reliance Communications (6,292) and Tata Teleservices (5,849).

The mobile subscriber base in the country declined marginally to 1,142.93 million in December from 1,143.04 million in November.

The growth in the wireless segment was adversely impacted with Vodafone Idea (VIL) losing 2.47 million subscribers.

While Reliance Jio and Bharti Airtel added 1.7 million and 1.52 million new customers, respectively, the loss of subscribers of Vi, BSNL (8,76,429), MTNL (3,450) and Reliance Communications (214) hindered the growth in the wireless segment.

The broadband subscriber base grew marginally to 832.2 million in December from 825.38 million in November, with mobile devices accounting for 798.69 million customers in the segment.

“Top five service providers constituted 98.41 percent market share of the total broadband subscribers at the end of December-22. These service providers were Reliance Jio Infocomm (432.16 million), Bharti Airtel (234.46 million), Vodafone Idea (123.87 million), BSNL (26.35 million) and Atria Convergence (2.14 million),” the report said.

 


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DoT Said to Have Directed TRAI to Introduce Strict Service Quality Norms

The Department of Telecommunications has asked sector regulator TRAI to make quality of service norms stricter in order to curb call drops and improve call quality, an official source said on Tuesday.

The move comes after the Department of Telecommunications (DoT) collected feedback from the public through an IVRS call around call drop, quality of calls etc.

“Quality of service is very important for customer satisfaction and protection of their interests. DoT has requested TRAI for improvement in the present quality of service (QoS) through more stringent parameters,” an official said.

The source said that the DoT also observed few key performance indicators while broadly studying global best practices on QoS.

“Same has been shared with Trai today,” the source added.

The Telecom Regulatory Authority of India (TRAI) has called a meeting with telcos on February 17 to discuss measures and action plan for improving service quality, review of norms, benchmarks for 5G services, and unsolicited commercial communications.

The move is aimed at improving the telecom service quality and check call drops. It also comes at a time when ultra high speed 5G services are being rolled out across the country.

So far, 5G services have been launched in over 300 cities in India. The next generation of technology that promises turbocharged speeds (about 10 times faster than 4G) and low latency connectivity.

Issues around service quality have been in the spotlight over the last few months. The telecom department back in December met operators to discuss rising instances of call drops and service quality-related issues, as it deliberated on policy measures that can be considered for improving call quality.

Launch of 5G services was expected to improve call quality, but instead people have complained about deterioration in quality of service.

According to an online survey by LocalCircles released in mid-January, 42 percent of 5G subscribers surveyed report no improvement while 19 percent report deterioration in call connection and call drop issues after moving to 5G services.

Half of the respondents in the survey shared that they face call connection and call drop issues with over 25 percent of their calls and 28 percent of them claim they have issues with over 50 percent of their calls.

Telecom operator Reliance Jio and Bharti Airtel have been rolling out 5G services across the country.

State-run BSNL and debt-ridden Vodafone Idea are yet to roll out 5G services. 

 


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Vodafone Idea Ordered to Convert Dues From Government Worth Over Rs. 16,000 Crore Into Equity

Troubled Indian mobile service provider Vodafone Idea said on Friday the government had ordered the company to convert into equity all the dues owed to the government for use of airwaves including the interest related to payments for spectrum.

The total amount to be converted into equity shares is Rs. 16,133 crore, the mobile carrier said.

The company said it has been directed to issue 16.13 billion shares at 10 rupees each. Equity shares of face value of Rs. 10 each will be issued to the government at the same price.

The conversion of Vodafone Idea dues into equity was approved by India’s capital market regulator, Reuters reported in October last year.

“Ministry of Communications…passed an order today ie 3 February, 2023…directing the Company to convert the NPV of the interest related to deferment of spectrum auction instalments and AGR Dues into equity shares to be issued to the Government of India,” the filing said.

The relief for the company comes as part of the reforms package announced by the government in September 2021.

Earlier, VIL had said that with conversion of dues into equity, the government will get around 35 percent stake in the company.

Shares of VIL closed at Rs. 6.89 apiece on Friday at the BSE, up by 1.03 percent compared to previous close. The filing came after market hours.

In 2021, the Indian government approved a rescue package for debt-strapped telecom companies, allowing them to convert interest on deferred adjusted gross revenue owed to the government into equity.

India’s telecom sector was disrupted by the entry of billionaire Mukesh Ambani’s Reliance Jio that forced some rivals out of the market. The sector’s troubles had also been compounded by large dues owed to the government.

The country’s top court in 2020 gave telecom firms 10 years until 2031 to clear the dues. 

 


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TRAI to Meet Jio, Airtel and Other Telcos on February 17 to Discuss Plan for Improvement in Services

Telecom regulator TRAI has called a meeting with telcos on February 17 to discuss measures and action plan for improving service quality, review of norms, benchmarks for 5G services, and unsolicited commercial communications.

The meeting assumes significance as improvement in telecom service quality is bound to cheer mobile customers, irked by call drops and patchy networks. It also comes at a time when ultra high speed 5G services are rolling out across the country.

So far, as many as 200 cities in India have seen launch of 5G services, the next generation of technology that promises turbocharged speeds (about 10 times faster than 4G) and low latency connectivity.

Issues around service quality have been in the spotlight over the last few months. The Telecom Department back in December met operators to discuss rising instances of call drops and service quality-related issues, as it deliberated on policy measures that can be considered for improving call quality.

In a statement on Thursday, the Telecom Regulatory Authority of India (TRAI) said that quality of service (QoS) improvement “is an ongoing exercise, it requires close assessment and monitoring especially with the fast-paced network expansion and introduction of latest technology like 5G.” Accordingly, TRAI has called a meeting with telecom service providers on February 17, 2023, “to discuss measures and action plan for improvement in QoS, review of QoS standards, QoS of 5G services and unsolicited commercial communications”.

India, the world’s second largest smartphone market, had over 114 crore mobile subscribers as of November 2022. Reliance Jio, Bharti Airtel, and Vodafone Idea are the key players.

TRAI monitors performance of various connectivity services provided by telecom operators by collecting Performance Monitoring Report (PMR) on quarterly basis. The PMRs are published on the TRAI website, and the regulator also conducts audits and assessments to gauge the performance of the service providers in respect of the prescribed QoS benchmark.

“Regular interactions are held with concerned stakeholders through meetings, consultation papers and open house discussion to review the status of QoS and measures to further improve the consumer experience,” the TRAI statement said.

On December 28, the Department of Telecom had held discussions with telcos to identify policy and operational measures that can help improve the quality of telecom services in the country.

That meeting was chaired by Telecom Secretary K Rajaraman and attended by telecom service providers, including Bharti Airtel, Reliance Jio and Vodafone Idea.

The issue of interference from illegal boosters and Right of Way (RoW) challenges had come up for discussion then, and operators had made a detailed presentation to the government on current levels of service quality against stipulated benchmarks.

After those parleys, industry sources had said the DoT flagged consumer complaints on service quality at the meeting, and added that companies maintained that quality of service norms were being met. The industry also mentioned locations that are facing specific problems, due to signal interference or other factors.

In September this year, Communications Minister Ashwini Vaishnaw indicated that telecom service quality parameters could be made more stringent and tighter, possibly to the extent of 3-4 times.

The minister had exhorted the industry, including telecom operators and infrastructure providers, to move “full steam ahead” on improving the quality of services in the country, now that a slew of reforms have been announced and more are being proposed.

“You can’t clap with only one hand, both hands are needed. It cannot be that just we keep doing what you ask. You also have to do what we ask,” Vaishnaw had said at that time.

“I will be requesting the (Telecom) Department to send a new consultation paper to TRAI for significantly increasing the quality of service parameters almost making 3X or 4X of what it is today, so whatever is the quality of service we are seeing, should now improve significantly,” Vaishnaw had said at the industry event on September 14. 

 


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