Companies & Sectors
Call drops due to telecos' lack of investment in network infrastructure: TRAI
New Delhi : The Telecom Regulatory Authority of India (TRAI) on Wednesday told the Delhi High Court that call drops are a likely result of "lack of investment" by telecom companies in network infrastructure like mobile towers.
 
A division bench of Chief Justice G. Rohini and Justice Jayant Nath was told that the petitioners (telecom firms) "have failed to keep the investments commensurate with the pace of increase in usage and the growth in number of subscribers being added by them"
 
The court was hearing a plea of telecom operators for a stay on TRAI's compensation policy for call drops, under which a rupee will be credited to the mobile users' account for every call drop (restricted to three per day) starting January 1, 2016.
 
Companies had termed TRAI's October 16 order as contradictory and destructive and sought its quashing.
 
TRAI refuted the claim of the telecom firms that they would incur huge losses if the compensation rule was implemented
 
"The total financial implication on service providers was likely to be not more than Rs.800 crore per annum" which would be 0.75 per cent of their Adjusted Gross Revenue of Rs.1,38,566 crores for the year 2014-15, it said.
 
"The investment made in the infrastructure (other than radio spectrum) in wireless access service segment rose by only 4.6 percent from Rs.2,02,399 crore in the financial year 2012-2013 to Rs.2,11,691 crore in the financial y ear 2013-2014," the affidavit said.
 
"During this period the minutes of usage (MOU) grew by 6.8 percent and the data usage grew by more than 100 percent. Clearly, the investment has not kept pace with the usage," it added.
 
TRAI said it cannot permit telecom firms to "ignore the quality of service of voice calls, which continues to be the primary service for the telecom consumers".
 
It also said in its affidavit that the telcos have to compensate a consumer only when the call originates from its network and is dropped within its network.
 
The court would hear the case on January 7.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Mufti Muhammad Sayeed, J&K CM, is dead
New Delhi/Srinagar : Jammu and Kashmir Chief Minister Mufti Muhammad Sayeed passed away here on Thursday, 14 days after he was hospitalised, hospital and family sources said.
 
The All India Institute of Medical Sciences (AIIMS) said he breathed his last at 9.10 a.m. 
 
"We tried to revive him but failed to," an AIIMS spokesperson told IANS.
 
Family sources in Srinagar toLd IANS that the death occurred due to multiple organ failure.
 
"Unfortunately, Mufti saab has expired," a close aid, Waheed-Ur-Rehman Parra, told IANS in New Delhi.
 
A family member added that the doctors' best efforts could not save Sayeed, who was brought to AIIMS on December 24 and put on ventilator three days back.
 
Sayeed, who first served as Jammu and Kashmir chief minister in 2002-05, took oath of office in alliance with the BJP this time on March 1 last year.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Services sector buoys India's economic activity
Mumbai : Services sector expansion buoyed the overall economic activity in India during December, a key macro economic data showed on Wednesday.
 
The Nikkei India composite PMI (purchasing managers' index) which is a key macro data that indicates monthly trends in overall economic activity rose to 51.6 in December from 50.2 in November.
 
An index reading of above 50 indicates an overall increase in the economic activity, while below 50 an overall decline.
 
The composite PMI weighs the average of the manufacturing output index and the services business activity index. It is based on original survey data collected from around 700 companies spread across sectors in India. 
 
The composite PMI report published by the leading global diversified provider of financial information services -- "Markit" disclosed that the latest improvement was driven by services, as sentiment turned positive for the sector.
 
However, manufacturing production capped the gains, as it declined for the first time since October 2013.
 
"The Indian private sector returned to expansion territory at the end of 2015, eking out modest output growth in December," said Pollyanna De Lima, economist with Markit.
 
"A stronger rise in new business and an improvement in year-ahead expectations at service providers are positive developments, but the overall health of the economy remains fragile amid a weak manufacturing sector."
 
On a standalone basis, the Nikkei India manufacturing PMI recorded a 28-month low in December at 49.1, down from 50.3 reported in November.
 
According to De Lima, goods producers saw both order books and production dip for the first time in over two years. 
 
"Whereas manufacturers linked the slump to the Chennai floods, growth of new orders and output had been on a downward trend in recent months," De Lima said.
 
The Nikkei services business activity index for December stood at 53.6 from November's 50.1. 
 
The services index noted growth in four out of the six surveyed categories, led by 'other services' and financial intermediation.
 
The survey revealed an increase in new business inflows and improvement in demand conditions for the services sector. 
 
Notwithstanding the rise in new business generation, services sector employment levels remained unchanged. 
 
On the other hand, goods producers hired additional staff, but the rate of job creation was only marginal. 
 
"Firms' reluctance to hire was evident throughout 2015, with meaningful job creation last recorded in 2013. This suggests that conditions are likely to remain challenging in the near-term," elaborated De Lima.
 
The survey pointed out a rise in input cost for the services sector which touched a seven-month high.
 
Besides, the input prices across the private sector increased at the fastest rate since May.
 
The report cited that the services companies increased their selling prices in the month under review for the first time since August.
 
In addition, factory gate prices, too, rose, which led the private sector to report a rise in charges for a second successive month. 
 
"Cost inflation continues to surpass charge inflation, highlighting the intense competitive environment," added De Lima.
 
On future outlook, the survey predicted growth in the coming 12 months, linked to hopes of a better demand conditions.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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