Preparing for India’s next telecom revolution

CCI approves proposed combination involving Google International LLC and Bharti Airtel Limited​

Google International LLC (Acquirer) is a wholly owned subsidiary of Google LLC, (collectively with all Google LLC subsidiaries, “Google”). Google LLC is a Delaware limited liability company and wholly owned subsidiary of Alphabet Inc. The Acquirer is a holding company and does not own / operate any of Google’s products/ services. Google, however, offers various products and services, including its flagship search service, its Android operating system, and its Play app store.

Bharti Airtel Limited (BAL/ Target), headquartered in India, is an international communications solutions provider with over 480 million customers in 17 countries across South Asia and Africa. BAL’s retail portfolio includes, amongst others, high speed mobile broadband, Airtel Xstream Fiber, streaming services (music and video), digital payments and financial services. For enterprise customers, BAL offers solutions including secure connectivity, cloud and data centre services, cyber security, IoT, advertising services, and cloud-based communication.

The Acquirer and Target have executed an Investment Agreement (IA) per which the Acquirer proposes to acquire a minority and non-controlling stake of 1.28% of equity share capital in the Target. Along with the IA, the Acquirer and the Target through their affiliates have also entered into certain commercial deals. The Parties also intend to enter into certain other commercial arrangements in future.

The CCI approved the proposed combination on the basis of modifications offered by the Acquirer.

Detailed order of the CCI will follow.
 

India falls further in mobile speed rankings, improvements on fixed broadband: Ookla​

India’s rankings fell by three spots in the median mobile speeds, according to Ookla’s Speedtest Global Index. India is now down to number 118 in the global ranking.​

India’s rankings fell by three spots in the median mobile speeds, according to Ookla’s Speedtest Global Index. India was at the number 115th spot in May this year, but it dropped down to 118th in June. It should be noted that in April and May, India’s mobile broadband speeds improved. But the month of June 2022, saw the median mobile download speeds in India decrease from 14.28 Mbps in May to 14.00 Mbps, according to the data.

While India’s poor show in mobile broadband speeds continues, it has improved on fixed broadband speeds. India increased three spots in rank globally for overall median fixed broadband speeds. It now stands at number 72 in the list for June, compared to number 75 for the month of May. The fixed median download speeds in India saw a slight increase from 47.86 Mbps in May to 48.11 Mbps in June.

Globally, Norway continues to be at the number one spot for overall global median mobile speeds. In fixed broadband speeds, Chile has reclaimed its number one position from Singapore, which landed at the number two spot. Papua New Guinea and Gabon registered the highest growth for mobile download speeds and fixed broadband speeds respectively in June 2022.

India’s mobile broadband rankings have remained on the lower side despite the rollout of 4G and its broad acceptance. India’s 5G spectrum auction is expected to begin on July 26 with players such as Reliance Jio and Bharti Airtel expected to participate. Adani Data Networks is also a new entrant into the 5G race.

The rollout of 5G is expected to improve India’s rankings in the Ookla global speedtest. Doug Suttles, CEO and co-founder of Ookla had earlier told indianexpress.com that the 5G era should be one of stability for Indian mobile operators and the regulator as well. “With three large-scale operators, we’re unlikely to return to the price wars that occurred during the early 4G tech cycle, which is important in ensuring adequate investment in networks,” he had added.
 

MoEFCC gives nod to undersea telecom cable connecting Singapore-Mumbai to land at Versova beach​

Mumbai The union environment ministry’s expert appraisal committee (EAC) on Coastal Regulation Zone (CRZ) matters has given its go-ahead for the construction of an 8,100km-long undersea, transnational fibre optic cable system connecting Mumbai to Singapore, via Chennai.


The cable system will terminate in Mumbai at Versova beach, per the minutes of the EAC meeting held on July 7 (minutes of which were accessed by Hindustan Times this week), and will boost telecom connectivity between India and other Asian countries, namely Myanmar, Thailand, Malaysia and Singapore.

The project is officially known as the Myanmar/Malaysia-India-Singapore Transit (MIST) Submarine Cable System and is being executed by the global technology provider NEC Corp. This will be the 17th such optical fibre cable system to land in Mumbai, and is expected to be ready for service sometime in 2023. The Maharashtra Coastal Zone Management Authority (MCZMA) recommended the project for CRZ clearance to the MoEFCC on June 10 this year. Out of the total 8,100km length of the cable system, about 202.06km are located in the CRZ boundary of Maharashtra.

“Though the project had applied for CRZ clearance as early as March last year, the dissolution of the former MCZMA and a delay in its reconstitution by the Centre delayed this important clearance. This is a project of immense importance to global communications and will have a minimal footprint on Mumbai’s coastal environment,” said a member of the MCZMA, under the conditions of anonymity.

The union environment ministry has cautioned the project proponent -- NTT Communications India Network Services “to not hinder the fishing activity in the area” around Versova Beach. In the same meeting, the cable system’s landing site in Chennai, at Santhome Beach, was also given CRZ clearance. At the time of the project’s announcement in December 2019, NTT had said the total cost of the MIST project was pegged at around USD 400 million, though the cost of building the beach manhole at Versova to house the cable is only around ₹32 crore.

The 17 submarine cable projects mentioned above include six upcoming undersea cables which will connect with Mumbai between 2023 and 2025, including the MIST. Two of them are Reliance Jio Infocomm’s India Asia Xpress (IAX), connecting India to the Maldives, Singapore, Sri Lanka and Thailand, and the India Europe Xpress (IEX) which will connect India to Italy via Saudi Arabia and Greece. Others include the SeaMeWe-6 project, owned by a consortium of telecom providers, which will connect Singapore to France via India, Bangladesh, Maldives, and the multi-stakeholder-owned Africa2 cable, which will connect India with the United Kingdom via several African countries.
 
Revamping Telecom sector:

Along with data protection, the government is looking to revamp some other sectors which support the data economy, including the telecom sector. "Currently, the telecom industry is regulated by a law which was of 1885, 1933 and 1950. That's the vintage of the legal systems which are currently governing the entire telecom sector. In the Telegraph Act, which is the basic governing act of the entire telecom sector, the word telecom doesn't appear." When the law was drafted, wireless and spectrum were not even part of the discussion during those days.
 
India to become a large exporter of telecom equipment in 2 years:

The government is giving financial incentives along with comprehensive ones to the telecom startups by helping them with the opportunity to integrate the radio in the C-DOT core, and then gets the opportunity to install that in the BSNL network. "Imagine that kind of fundamental comprehensive support that a startup gets and that is what the revealing thing is. I can bet with you in two years' time, we will become a large exporter of telecom equipment. Forget just being them manufacturers and designers for India. They will be supplying to the entire world."