State-run Mahangar Telephone Nigam Ltd (MTNL) has become the first mobile operator to launch 3G services in India, as private companies continue to be stalled by ongoing delays in the auction of 3G spectrum.

MTNL’s 3G service is initially limited to central New Delhi, but will soon be extended to other parts of the city and Mumbai

MTNL’s chairman R.S.P. Sinha told press the operator had invested almost INR4 billion (US$82.3 million) in the network rollout, and he expected about 200,000 3G subscribers within the first two years.

The initial service is limited to central New Delhi, with the service to be extended by vendor partner Motorola to other parts of the city and also Mumbai. Mobile users will need to pay an upfront activation charge of INR500 and a monthly fee of INR599, with mobile TV, video calling, movie downloads and low-cost VoIP-based international calls on offer.

Fellow state-backed operator BSNL is expected to launch 3G services shortly. The companies have gained up to six months’ head start over rivals, with spectrum granted on the condition they pay licence fees equivalent to the highest bidders, when the auction is completed.

The latest auction deferment was due to a proposal by India’s finance ministry to double the reserve prices in 20 of the country’s 22 telecommunications circles where 3G spectrum is being offered. The government is reviewing the proposal and has not announced a decision or a new date; however, analysts suggest it is unlikely the auction will be held ahead of general elections, which must take place by the end of May.

Image courtesy of GSMA & Decisive Media

Unconfirmed reports from Tanzania suggest that Kuwait-listed, Saudi-backed Hits Telecom is facing difficulties in investing in the rollout of its unified licence network, and as such there is now a process underway to see whether an alternative investor, possibly from Russia, might be enticed to take over the investment in the licensee.

Hits Telecom’s Bahabri has set an ambitious target of counting 50 million subscribers by 2015

Hits Africa had planned to launch a GSM network last October, but to date has yet to come to market. Last year the company’s CEO, Talaat El Lahham forecast the operator could garner some 600,000 subscribers in its first full year of operations, saying it would launch 2G services, with an initial network investment of US$300 million.

Speaking to Comm. last year, Lahham explained that in Tanzania, Hits Africa possessed licences to offer GSM as well as WiMAX services. “We intend to launch first with a GSM network in the initial stages and at a later time we will rollout a WiMAX network for data services,” Lahham said at the time. “We are looking to launch the GSM network before the end of this year. We have already selected the vendor for the network deployment – Huawei – and we have completed all the network planning,” Lahham added.

Hits Telecom is chaired by Sultan Bahabri, who last year told Comm. that he was looking to see his company add 50 million subscribers across all its networks by 2015. Bahabri said the company already has concessions in Liberia, Equatorial Guinea, the Democratic Republic of Congo, as well as in Tanzania. Hits Telecom also launched a MVNO in Sao Paulo in Brazil in July last year.

Alcatel-Lucent wrote down the value of assets by €3.91 billion (US$5.1 billion) in Q408, as it posted its eighth consecutive quarterly loss amounting to €3.89 billion. This was a 51 per cent greater loss than reported in Q407. Write downs now total almost €8 billion since the merger of Alcatel and Lucent in 2006.

Alcatel-Lucent CEO Ben Verwaayen said the company met its targets for 2008 and he was encouraged by its operating performance, top-line, operating margin and cash flow targets

Revenues for the quarter came in €4.95 billion, down 5.3 per cent year-on-year. For the full year 2008, the company reported a loss of €5.215 billion, representing a 48 per cent larger loss than the one reported in 2007.

Revenue declined 4.5 per cent in 2008, which the company attributed to a shift in currency values. Based on constant currency exchange rates, fourth quarter revenue declined, but increased 16.9 per cent from the previous quarter.

Alcatel-Lucent’s CEO Ben Verwaayen said the vendor met its targets for 2008 and he was encouraged by its operating performance, top-line, operating margin and cash flow targets. Operating gross margin came in at 34.1 per cent for the full year.

“With an improving balance sheet, adequate funding, a new strategy in place and a clear roadmap to profitability, we are committed to executing on our plans to deliver better solutions and services to our customers and better returns to our shareholders,” commented Verwaayen.

Alcatel-Lucent expects the global telecommunications equipment and related services market to contract between eight and 12 per cent at constant currency in 2009. The company continues to anticipate an adjusted operating profit around break-even for the coming year.

Wataniya Palestine Telecom (WPT), Palestine’s second mobile operator, yesterday announced its success in securing US$85 million of further funding to support the next phase of its mobile telephony network build-out. The private sector loan draws funding from a wide range of international as well as local Palestinian banks, together with multilateral institutions, providing material support for the creation of a new infrastructure for mobile phone services within Palestine.

It is the first agreement in this field to deliver funding for development from international and local private sector sources.

The senior secured syndicated facility loan was agreed between WPT and the lender group comprising of the Bank of Palestine, Quds Bank, Commercial Bank of Palestine Limited, Ericsson Credit, International Finance Corporation, and Standard Bank. Exportkreditnämden, the Swedish Export Credits Guarantee Board and GuarantCo, a specialist guarantor of infrastructure financing in low-income countries, are acting as guarantors to the facility. Standard Bank is acting as a global-coordinator for the facility.

WPT is owned and controlled by the Palestine Investment Fund (PIF) and Wataniya Telecom of Kuwait. Wataniya Telecom is majority-owned by Qatar Telecom.

Qtel and PIF have invested more than US$ 200 million in Wataniya Palestine Telecom to finance licence payments, set up the company and begin the build-out of the mobile telephony network. The launch of commercial services is anticipated by Wataniya Palestine Telecom in 2009.

Last September, the Palestinian telecoms regulator advised Wataniya Palestine that spectrum would be allocated to the licensee, allowing it to launch commercial operations after repeated delays since March 2007.

The Palestinian Ministry of Telecommunications and IT (MTIT) confirmed an agreement had been reached with the Palestinian National Authority (PNA), which would provide staged release of radio frequencies, enabling construction to go ahead for the second mobile entrant.

Roshan, Afghanistan’s leading GSM operator announced it has topped three million subscribers, with one million customers being added in the past six months.

Roshan’s market segmentation includes targeted call plans for the mass market, business users and the youth. The operator will place more emphasis on the women and youth segments in 2009

The company launched commercially in 2003, and as of November 2008 had a 41 per cent market share ahead of competitors Afghan Wireless, a local privately-owned company, and the UAE’s Etisalat. Afghan Wireless had two million customers as of June last year.

Roshan has focused on differentiating the market and last year introduced three plans tailored to different market-segments: Aali for the mass market; Saadat targeted at business users; and Yaraan, focused on the youth segment. CEO Karim Khoja told Comm. in December that the operator will place great emphasis on the women and youth segments during 2009.

Roshan also partnered with Vodafone to launch M-Paisa last October, the country’s first mobile banking product. M-Paisa provides consumers, businesses, local banks and employers with an accessible, cost effective and safe method for funds transfer, airtime refill, salary payment, microfinance transactions and cashless travel. The service is now offered in 10 provinces throughout the country.

“M-Paisa has the potential to boost economic growth through the elimination of common financial barriers, especially in remote areas and in particular to women, who often are the sole supporters of the family,” commented Roshan’s chief operating officer Altaf Ladak. “Through M-Paisa and Roshan’s mobile network coverage, we provide an important vehicle for the economic regeneration of Afghanistan,” he added.

Roshan’s coverage reaches 56 per cent of the population, including 226 cities and towns across 33 of the 34 provinces in Afghanistan.

The company is owned 51 per cent by the Aga Khan Fund for Economic Development (AKFED), while Monaco Telecom International owns 36.75 per cent and Nordic operator TeliaSonera owns the remaining 12.25 per cent.