fbpx
Connect with us

Telecoms

India’s DoT discards telcos’ Bank Guarantee

Published

 on

India’s government informed telecom operators that any potential spectrum auctions for telecom service providers (TSPs) are not required to submit a financial bank guarantee (FBG) to estimate annual spectrum installment.

The Department of Telecommunications (DoT) announced it will shift the suitability terms for participation in the upcoming sale to facilitate the bidder’s financial capabilities.

“For spectrum auctions to be held in the future, the requirement for the successful bidder to submit an FBG of an amount equal to one annual installment to scrutinize the installment; and to submit Performance Bank Guarantee for rollout obligation, etc. has been dispensed with,” the notice stated.

To that accordance, India’s government will be altering the suitability of the conditions to facilitate participation in the upcoming sale. In addition, the governmental notice will not demand cashing of bank guarantees (BG) from homegrown telcos Vodafone Idea and Bharti Airtel until the upcoming hearing on October 26.

BGs is a type of financial backstop offered by a lending institution (in this case, banks) and means that any lender will confirm that liabilities of the debtor will be met and fulfilled. This means that in case the debtor neglects to settle its debt, the bank will take over to cover it.  

Earlier this month, India’s DoT issued a license amendment note revealing a staggering – yet logical – decision to curtail performance and financial bank guarantee requirements of telcos by 80 percent.

A move that could potentially exhilarate a suffering telecom sector, with some of the leading company’s enduring a devastating debt, such as Vodafone Idea and Bharti Airtel.

Under the amended term’s rules, telecom operators will need to deliver a performance bank guarantee reaching up to around $0.60 for every service for the telecom license, in comparison to the previously mandated $2.90 of the old term.

In parallel, the operators will also need to demonstrate a financial bank guarantee reaching up to $0.12 for each service for the telecom license, contrary to the $0.60 previous requirement.

The recently initiated rule will be valid in cases where BGs have been already set to accommodate any court order or subject to any lawful action, the license amendment stated.

As for carriers who are currently undergoing a liquidation process, the rules will not be applicable.

The DoT’s recent tactic will unlock any monetary accounts the country’s telcos are upholding with banks to further furnish their BGs.

Telecoms

India’s Reliance Industries seek controlling stake in UK’s BT Group

Published

 on

Indian conglomerate Reliance Industries Ltd. (RIL) is assessing the possibility of bidding on British telecom titan, BT Group Plc., reported by the Economic Times.

According to the report published by the news hub on Monday, Reliance is currently planning to place an unsought offer to obtain shares into the British telco, or as an alternative, to have a controlling stake in the company. From the 419 institutional investors in the British firm, some have expressed their interest in cashing out if a suitable offer surfaces.

In parallel, Reliance is considering proposing a partnership with BT’s fiber-optic firm, Openreach, to finance and expand its plans.

Currently, BT Group’s market gap has reached a whopping $20.63 billion since November 26th. In the event of RIL taking control of the UK company, it will mark the biggest outbound merger and acquisition (M&A) related to any Indian establishment.

An outbound M&A is when a domestic company obtains or merges with a different firm in a different country. This demands notable guidance concerning the legality and issues of compliance to accommodate the other country’s demands, restrictions, and requirements to be included in the pre-merger interactions.

Analysts believe that Asia’s wealthiest man, Chairman and managing director at RIL, Mukesh Ambani, has directed his attention towards BT to further expand the company’s reach on a global scale.

It is worth mentioning that this does not mark the first time Reliance has tried to reach out for global expansion. In September, the Indian Group was outbid by a consortium of Apax and Warburg Pincus to obtain power over Netherland’s T-Mobile.

Continue Reading

Telecoms

Palestine to finally receive 4G rollout, agreement to be settled

Published

 on

Israel has finally agreed to authorize 4G rollout to Palestine, as its latest initiative from the Israeli government to enhance Palestinian daily life.

While the country has already deployed 5G networks to its areas, Palestinian citizens have yet to indulge in the 4G rollout experience, as Palestinian telcos are still operating their services with 3G.

Following a closed meeting held between Israel and Palestinian telecoms, and repetitive complaints from Palestinian officials that Israel has not shown initiative to begin technical discussions until April.

Despite that no official agreement has been made, Palestinian telcos are waiting for clarification regarding the extent of bandwidth to be available, given that a previous Israeli agreement has been rejected by the telcos since Israel offered to provide a modest number of frequencies.

Even if Israel authorizes the agreement, local telecom operators will still need around six months to a year to purchase and import the required equipment for the 4G rollout in rural areas.

In 2018, the Israeli government agreed on the deployment of a 3G network for Palestinian citizens. However, the rollout was confined to the West Bank, given that Israel has not permitted domestic service providers to buy 3G equipment for Gaza, which is still operating on 2G.

The demand has risen from Palestinian to attain 4G networks, as it will heighten the country’s economy, as well as push residents from using Israel cellular networks and focus on local ones instead.

It is worth mentioning that Israeli networks deliver a much higher signal frequency reaching deep into Palestine’s region, in addition to their low-cost effectiveness and faster networks compared to the local ones.

This could potentially raise havoc for Palestine’s telcos as their pricing is too high, a factor led by Israel’s intense restrictions on network frequencies and limitations on towers infrastructure and location.

Continue Reading

Telecoms

Huawei to boost Malaysia digitization through new innovation center

Published

 on

In an effort to boost Malaysia’s digitization, Chinese telecom giant Huawei seeks to accelerate the country’s digital economy transformation by building the country into a regional digital hub, Huawei said in a press release on Tuesday.

The company unveiled its newly refurbished and upgraded Huawei Customer Solution Innovation Center (CSIC) as part of a commemoration ceremony celebrating its 20th anniversary since entering the Malaysian market, the release noted.

Malaysia Prime Minister, Dato’ Sri Ismail Sabri Bin Yaakob said, “The CSIC is a testament to Huawei Malaysia’s commitment to the nation’s digital transformation.”

I was informed that most of Huawei Malaysia’s employees are local. Talents are a crucial part in accelerating digital transformation for the nation, he said.

The Prime Minister added that he believes that Malaysia has the capacity and capability to achieve 100 percent digital inclusivity, especially among vulnerable communities.

“I am proud to say, in embracing the concept of Keluarga Malaysia, Huawei has taken an important role in helping the Government address this matter. I hope more corporations will come forward to follow in your footsteps,” he said.

As such, Huawei’s CSIC was designed as an Information and Communications Technology (ICT) Hub and Centre of Excellence to run the industry’s open ecosystem and accelerate digital economy transformation in Malaysia.

The CSIC, which is located in Integra Tower at the heart of Kuala Lumpur, aggregates the company’s over 120 reference applications and services globally.

Huawei’s customers and partners can leverage this innovative platform to design and test technology solutions, verify new business models, and nurture innovation applications and services to both the public and private sectors.

Huawei Malaysia CEO Michael Yuan said that through the CSIC, Huawei Malaysia would continue to bring global experiences to serve the needs of the ICT industry in Malaysia and to assist local stakeholders in succeeding in their businesses.

“This center will act as a catalyst to accelerate Malaysia’s digital transformation and to capitalise on the potential of advanced technologies and assist in driving investments in the digital economy for the nation at the same time,” added Yuan.

Cloud Computing was another highlight, with Huawei working with Malaysian communication service provider Telekom Malaysia on their Alpha Edge, the only Malaysian-owned Cloud and AI infrastructure and services to enterprises and government institutions that ensures data sovereignty.

Continue Reading

Trending