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India’s new telecom act: A shift towards centralised control?

  • Regulatory measures like the Indian Telecom Act significantly amplify the government’s control, leaving the industry with limited recourse, Chirp CEO says.
  • Chirp advocates for infrastructure decentralisation as a means to circumvent centralised control and promote innovation and community ownership.

The introduction of the new Telecommunication Act in India in 2023, replacing the age-old Indian Telegraph Act of 1885 and the Indian Wireless Telegraph Act of 1933, has raised significant concerns about the consolidation of power in the hands of the government.

While touted as an act aimed at enhancing consumer protection, the provisions under this new Act have wider implications on the regulatory framework governing the telecom sector in India.

Tim Kravchunovsky, the founder and CEO of Chirp, have voiced apprehensions about the extent of control that governments, not just in India but worldwide, can exert over communication networks.

The Act grants the Indian government sweeping authority over telecommunications networks, particularly in times of emergencies. This heightened control signifies an increased level of surveillance and monitoring of all forms of communication.

Kravchunovsky points out that voice telecommunications have traditionally been subject to strict regulations, with requirements like presenting a passport for acquiring a phone number viewed as mechanisms of public control.

Furthermore, he said that governments play a pivotal role in managing the frequencies employed by telecom companies, holding considerable sway over the industry.

Enhanced powers

Regulatory measures like the Indian Telecom Act significantly amplify the government’s control, leaving the industry with limited recourse.

A key change introduced by the new Act is the enhanced powers granted to the government to assume control over telecom services or networks during emergencies for reasons of security, public order, or crime prevention.

The Act mandates that any telecom entity seeking to establish or operate networks, offer services, or utilize radio equipment must obtain government sanction to safeguard national security interests and foster indigenous technology.

Moreover, the Act empowers the government to establish standards for telecom services and networks to uphold security and quality standards.

Kravchunovsky advocates for infrastructure decentralisation as a means to circumvent centralised control and promote innovation and community ownership.

“By decentralizing physical infrastructure through initiatives like decentralized physical infrastructure networks (DePIN), local communities could wield decision-making authority, prioritizing end-user interests over governmental agendas.”

The Act also ushers in regulations concerning SIM card ownership, restricting the number of SIM cards an individual can hold.

Penalties for misuse

While the majority of individuals can possess up to nine registered SIM cards, residents of specific regions face limitations. Violations of these restrictions incur substantial fines and penalties targeting individuals unlawfully acquiring SIM cards using others’ identification documents.

Furthermore, the Act addresses the nuisance of unsolicited commercial messages, imposing stringent penalties on operators sending unauthorized commercial communications. Additionally, provisions within the Act grant the government the prerogative to authorize telecom companies to install infrastructure on private property without the landowner’s consent, ensuring the uninterrupted expansion and maintenance of vital telecom infrastructure.

Interception and surveillance capabilities conferred to the government under the Act enable the authorities to manage telecom services during national emergencies, safeguarding against potential threats to national security.

While the Act affords provisions for exceptions to certain groups, like accredited journalists, to ensure the preservation of press freedoms, the overarching theme remains one of governmental oversight and control over communication networks.

As India navigates the evolving telecommunications landscape shaped by the new Telecommunication Act 2023, stakeholders, policymakers, and the public at large must critically evaluate the implications of these regulatory changes on privacy, security, and the broader socio-political fabric of the nation.

GCC to have second highest 5G penetration rates globally by 2029

  • Major trend emerging in the region is the transformation of service providers from “telcos” to “tech-cos” focusing on de-layering network elements and offering digital services.
  • Global 5G subscriptions forecast to reach close to 5.6b in 2029, making up 60% of all mobile subscriptions.

The Gulf Cooperation Council (GCC) countries are poised to witness a remarkable surge in 5G technology penetration rates, with projections indicating a trajectory towards becoming the second-highest region globally in terms of 5G adoption.

According to Ericsson Mobility Report 2024, as of 2023, North America led the global market in 5G subscription penetration rates at 59 per cent, setting a benchmark for other regions to aspire towards. Notably, the GCC countries followed closely behind with a 5G penetration rate of 34 per cent, showcasing a burgeoning appetite for next-generation connectivity solutions.

The report further projects that by 2029, the GCC countries are expected to soar to an impressive 5G penetration rate of 89 per cent, positioning them on the cusp of technological innovation alongside established regions like North America.

Transition towards 5G dominance

The transition towards 5G supremacy is imminent, with forecasts indicating that by 2028, 5G subscriptions will emerge as the dominant mobile access technology on a global scale.

By 2029, the total global 5G subscriptions are predicted to reach nearly 5.6 billion, representing a significant milestone where 5G subscriptions will constitute 60 per cent of the total mobile subscriptions worldwide.

Such a monumental shift underscores the pivotal role that 5G technology is poised to play in shaping the future landscape of telecommunications, heralding a new era of connectivity and innovation.

Economic impact

In the context of the GCC countries, the economic ramifications of this 5G revolution are profound. With 26 million 5G subscriptions recorded in 2023 and a projected growth to 81 million by 2029, the region is poised for substantial economic growth driven by the proliferation of 5G technology.

The annual growth rate of 21 per cent exemplifies the rapid pace at which the GCC countries are transitioning towards a digital-centric economy, capitalizing on the transformative impacts of 5G technology and its associated services.

Furthermore, as 4G subscriptions witness a decline from 46 million in 2023 to an anticipated six million by 2029, the transition towards 5G as the predominant technology in the region is apparent. The report underlines the emergence of a significant trend in the region, whereby service providers are pivoting from ‘telcos’ to ‘tech-cos’, focusing on innovative digital services such as factory network automation, artificial intelligence, Internet of Things (IoT), and content services.

The strategic pivot underscores the evolving nature of the telecommunications sector in the GCC countries, where technological innovation and digital transformation are driving the industry forward.

Data traffic

The escalating demand for data services and the proliferation of smart devices are propelling data traffic per smartphone to unprecedented levels.

With data traffic per smartphone surging from 24GB per month in 2022 to 28GB per month in 2023 and projected to touch 58GB per month by 2029, the GCC countries are witnessing a seismic shift in data consumption patterns.

Moreover, total mobile data traffic in the region is forecasted to surge from 1.2EB per month in 2022 to 1.5EB per month in 2023 and is projected to reach 3.7EB per month by 2029, underscoring the exponential growth in data usage facilitated by the widespread adoption of 5G technology.

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Byju’s did not “indulge in financial fraud or siphoning of funds”

  • Investigation raised questions about the company’s internal controls and decision-making processes.
  • Byju’s failed to bring in experienced professionals to oversee its finances and compliance, leading to the deterioration of its financial position.

The recent government investigation into the corporate governance practices of Byju’s, India’s struggling online education startup, has shed light on the complex issues plaguing the company.

While the probe found no evidence of financial fraud or siphoning of funds, it did uncover significant governance shortcomings that have contributed to the startup’s mounting losses.

The year-long investigation by the Ministry of Corporate Affairs revealed that Byju’s failed to bring in experienced professionals to oversee its finances and compliance, leading to the deterioration of its financial position, Bloomberg reported. The report also highlighted the startup’s lack of transparency, as it was found to have not disclosed full details of its acquisitions to all directors and calling meetings to approve such deals at short notice.

The findings offer some support for Byju Raveendran, the once-celebrated founder who has been accused of mismanagement by disgruntled investors.

Sigh of relief

The report does not directly address Raveendran’s personal culpability for the governance lapses or his suitability to lead the company. However, it does acknowledge the rationale provided by the founders regarding the involvement of some directors who were also investors in rival companies.

The report’s conclusions come at a critical juncture for Byju’s, which is facing a cash crunch and a plunge in its valuation, as well as multiple lawsuits in India and the US.

The startup’s quick expansion during the COVID-19 pandemic, coupled with a change in the funding environment, has contributed to its financial woes.

While the government investigation has cleared Byju’s of financial fraud, it has raised questions about the company’s internal controls and decision-making processes.

e& enterprise expands into Turkey by swallowing GlassHouse

Aims to become a leader in end-to-end digital solutions in MENA

e& enterprise, the digital transformation vertical of e&, acquires Turkey-based GlassHouse Technologies to expand its footprint into Turkey and enhance its digital transformation capabilities.

The expansion follows the company’s successful market entries into Saudi Arabia in 2019 and Egypt in 2023, reinforcing its position as a formidable player in the regional digital transformation market.

GlassHouse, a leading provider of managed cloud, business continuity and SAP Infrastructure services, also has offices in South Africa and Qatar.

“Following our expansions into Saudi Arabia and Egypt, the acquisition underscores our commitment to entering high-growth markets and advancing our cloud innovations and services as we aim to become a MENA leader in end-to-end digital solutions,” Salvador Anglada, CEO, e& enterprise, said.

Alp Bağrıaçık, CEO of Glasshouse, said: “As we become part of the e& enterprise family, we will continue to serve our customers with our world class managed cloud capabilities. Being part of the e& enterprise family will allow us to benefit greatly from expanded portfolio resources as well as better geographic reach. We look forward to this new chapter of our journey.”

Panasonic rolls out digital service app in Kuwait

  • Makes it easier to request service and claim warranty for its customers across the country.

Consumer electronics giant Panasonic has announced the availability of its Smart Care App in Kuwait, making it easier to request service and claim warranty for its customers across the country.

Panasonic has eliminated the need for customers to keep physical invoice copies and warranty cards with the Smart Care App, thus simplifying the process of tracking multiple products’ warranties as well as booking services.

The company announced that those signing up in the introductory period will get an additional three-month extended warranty on any consumer product within six months of purchase registered on the app.

The prominent features of the app allow customers to know product warranty status, request and track services, find the nearest service centers, use smart assistance, and get timely reminders and alerts for warranty expiry.

“We want to make it easier for customers to avail of services from the safety of their homes and enable our partners to communicate seamlessly to provide the fastest service. We will follow the global CS direction by continuing to offer excellence to our valued customers through 5-star star care service,”  Hiroyuki Shibutani, CEO of Panasonic Marketing Middle East & Africa FZE (PMMAF), said.

Anthony Peter, Director, Customer Service Division (CSD) at PMMAF, said that Panasonic’s focus is to provide a better life and convenience for its consumers.

“We aim to productively engage with dealers, retailers and service partners,” he said.

India’s PC and tablet market to grow 11% in 2024 to 19.62m units

  • Commercial sector will be a strong growth driver as enterprises, SMBs and the public sector will contribute to a large refresh cycle spurred by the end of support for Windows 10 devices and the rising availability of AI-capable PCs.

The PC market, consisting of desktops, notebooks and tablets in India is expected to grow 11 per cent in 2024 to 19.62 million and a further 15 per cent in 2025 to 22.63 million, fuelled by healthy demand across all segments.

In 2023, the PC market shipments stood at 17.73 million.

Ashweej Aithal, analyst at Canalys, said that India’s commercial sector will be a strong growth driver as customers across enterprises, SMBs and the public sector will contribute to a large refresh cycle spurred by the end of support for Windows 10 devices and the rising availability of AI-capable PCs.

“The tablet market has a strong pipeline from substantial education tenders that are anticipated to close this year.” 

The consumer PC market will also see a boost as devices purchased during the pandemic will soon need refreshing – presenting an opportunity for upgrades.

“India’s appetite for higher-end PCs is expected to expand in the coming years,” Aithal said.

“The introduction of on-device AI capabilities from chipset manufacturers and OEMs will buoy this transition. The rise of other use cases like gaming and content creation will also help support a push toward premiumisation.”

For tablets, he said the rollout of 5G infrastructure will act as a tailwind supporting longer-term device refreshes.

Although use-cases for 5G tablets are currently limited, he said the desire to future-proof devices will contribute to the growth of premium devices.

Local manufacturing has been a focal point in India for over a year, with major players actively collaborating with Production Linked Incentive (PLI) approved OEM partners.

 “The reliance on foreign-sourced components has pushed the Indian government to introduce initiatives that boost the domestic semiconductor industry,” Aithal said.

Moreover, he said that self-sufficiency in this sector is a long way off and will require substantial investment in research, capacity building, and the development of supporting industries.

“However, any progress in this area will provide a boost not only to meeting local demand but also in positioning India as a rising player in the global export market.”