Vodafone To Launch iPhone 3G In India On Friday, For A Whopping $715 And $830; Not 3G, But GPRS…

So much for the iPhone reaching any scale in India. Vodafone (NYSE: VOD), through its Vodafone Essar joint venture, is gearing up to launch the iPhone 3G in India beginning August 22, but the device will cost almost $715 for the 8GBt model, PC World reports. The 16GB model will sell for $830. Those price points are even higher than what the first iPhone sold for in the U.S. and one that most Indians can’t afford. Even considering an IT professional’s average annual salary of $12,000 to $24,000 in India, it’s hard to imagine the device selling well among that segment.

Vodafone put up a website to detail its iPhone 3G pricing and availability. The details on Voda’s website: ““The iPhone 3G is available in 8GB and 16GB at Rs 31,000 and Rs 36,100 respectively. And as you have already pre-registered with us, you can get it before others do. All you need to do is drop in at a select Vodafone Store between August 20 and 21 and confirm your booking by paying Rs 10000 through cash or credit card. Don’t forget to show the iPhone booking SMS, which you would have received from us, when you visit the Vodafone Store to make the deposit.” Guess this mean people may still flock to the grey-market versions, which are cheaper in this case, possibly as much as Rs 4K-Rs 5K.

Bharti Airtel has also said it plans to begin selling the device on the same day, but hasn’t disclosed pricing.
Turns out of course even though it is called iPhone 3G, and that’s what the site lists it as, it is actually only GPRS, which is enhanced 2G. On this Voda page, it says in fine print: “Select features and services are currently available in India. 3G features can be used on 3G networks while roaming aroad.” Remember, India still has no 3G networks to speak of, the Indian government plans to auction off spectrum for the higher-speed networks later this year, which commercial deployments expected in the first half of 2009…even that has been delayed due to political issues.

Vishal

Bharti Airtel subscriber base crosses 75 mn…

India’s largest private telecom company Bharti Airtel has also become the fourth largest in-country mobile operator in the world.  It achieved this landmark after crossing the 75 million customer mark. Bharti Airtel is now behind China Mobile, China Unicom and American AT&T.

Vishal

BSNL’s $10 Billion IPO Plans

BSNL board has cleared $10bn IPO plans but the company is facing stiff resistance from it’s employee union. This will be country’s largest-ever listing.  However, the unions are against the BSNL management’s contention that listing is necessary for expansion and grant of navaratna status. “It is also decided that if the government moves with the IPO proposal, the entire BSNL workforce of three lakh will get into direct action, including indefinite strike. Other PSUs, including HAL, have been granted navaratna status without listing. As such, the arguments put forth for IPO in BSNL are a ploy to disinvest BSNL and gradually privatise it like Videsh Sanchar Nigam (VSNL).

According to Economic Times, if BSNL does manage to raise Rs 40,000 crore by selling a 10% stake, the telco would be valued at Rs 4,00,000 crore (around $100 billion). This will catapult BSNL into the league of top telcos in the world in terms of market cap. Incidentally, the market valuation of Bharti Airtel is just around $37 billion.

Vishal

Mobile Towers in India being seen as threat by insurgents & Terrorists

India’s Maoist insurgents destroyed two mobile towers and have shut down six others in the country’s east, blaming the network for revealing their movements to the police, officials said.

Rebels, fearing mobiles are being used by informers, have banned the use of mobile phones in villages under their control in India after hundreds of suspected insurgents were arrested this year.

Police said armed rebels set two towers of Bharti Airtel Ltd on fire on Thursday in Bihar state, snapping communication lines in the region.

“The Maoists are angry since the police were able to locate their movements through the mobile network, leading to many arrests.”

Global Telecom Mergers

The global telecom market is prime for consolidation. So far the emphasis was on regional or local consolidation. Now the biggest service providers both in developed and developing world are itching to create a global foot print to offer a truly global and seamless wireless and telecom experience.

On the heals of Deutsche Telekom bid rumor for US operator Sprint, one hears that Bharti, the largest wireless operator in India, is interested in MTN of South Africa. MTN is the largest African operator with service in 21 countries in Africa and Middle East. MTN has 68.2 million subscribers, including 15.2 million South Africa alone. Bharti, which has grown at breakneck speed in India, is now looking to invest in other promising countries and create a footprint across a developing world. Bharti has no other option but to expand in other countries; if it does not create a multinational presence, the western telecom behemoths will capture the developing markets given time and lots of financial muscle. Vodafone is already in India, having acquired a controlling stake in erstwhile Hutch, the second largest India wireless carrier. AT&T is rumored to be eyeing a license bid in India.

Bharti move is in line with the known desire of large firms from newly rich countries like India and China and cash-rich regions like Middle East to assert themselves internationally by acquiring assets across the world.

Separately, France Telecom SA is interested in buying Swedish operator TeliaSonera AB. The global telecom consolidation is all but inevitable. It is just a matter of time. We think in few years, one will see a couple of giant wireless/telecom operators with a footprint on multiple continents offering not only a global scale but also a new level of global mobility and connectivity to their multinational clients and also to the international traveler.

MT