The Telecom Commission has decided to change the frequency bands associated to the mobile operator’s GSM technology that was flagged by the companies, who claimed that they had to right away compensate INR 55,000 Cr for adding the infrastructure.
R Chandrashekhar, telecom secretary head for the telecom commission panel said that operators said that the additional burden will prompt them to increase the call charges, which are lowest now. The entire frequency spectrum of 900 MHz will get reframed. Recommendations have to get endorsed by the ministers empowered group and that is scheduled to meet this Thursday.
Starting from 2014, when mobile operator licenses come for renewal, operators like Airtel, Bharti, Idea and Vodafone have to change their frequency to 1,800 mega hertz. It is the proposal that was endorsed by telecom regulator.
For this new frequency band, telecom companies have to pay the price that is determined by the market. However, there will be few technical issues if all the operators switch to the 1,800 Mhz. More base stations and signal boosters are required for signal penetration through building walls.
The companies have the option for retaining the frequency in 900 MHz band, when it is auctioned in 2nd half of 2013. Operators who were not successful in bidding, have to vacate 900 MHz frequency band within eighteen months.
Operators will oppose this as they want to avoid the additional investment when they find that intense competition will reflect the overall margin.
In a study, Cellular Operators Association of India representing GSM players said that almost 1.72 lakh base stations should be added to the current 2.86 lakh base stations. It results in total capital expenditure of around INR 55,000 Cr. Annual operating expenses are projected to get increased and cross INR 11,750 crore.
This switching decision will be a death knell to mobile operators, since they are facing a hard time due to unreasonable harsh and irrational government decisions on the spectrum reserve pricing, one time license fee, and usage charges.
The lobby groups that represent dual technology firms like Tata and Reliance Communications have welcomed this particular move saying that they will make level playing field.
Chandrashekhar said that the Telecom Commission panel has considered 3 alternatives, which include allowing re-framing half of 5 MHz spectrum available with the companies but settled for complete frequency switch.
Tesla, Inc. (TSLA): US agencies investigate fatal Tesla Model 3 crash in Florida
American safety officials are looking into the circumstances surrounding another fatal Tesla, Inc. (TSLA) crash. Both the NTSB and the NHTSA have confirmed that they’re investigating a collision between a Model 3 and a semi truck in Delray Beach, Florida on March 1st. According to the police report, the truck was turning left to enter a main thoroughfare when the Model 3 crashed into the semi’s trailer, shearing off the car’s roof and killing the driver. It’s not certain if Autopilot was active, although the Model 3 kept traveling for more than 500 yards before coming to a stop.
Tesla said in a statement that it was “deeply saddened” about the collision and was “reaching out” to authorities to cooperate. The NTSB added that it typically takes one to two years to complete investigations like this.
This certainly isn’t the first time US safety agencies have investigated Tesla crashes to determine the possible role of Autopilot. However, there are unusually close parallels to a deadly incident from May 2016, when a Model S driver in Florida struck a trailer. His vehicle had Autopilot engaged and also kept going a significant distance after the crash, although investigators cleared Tesla and noted that the driver in that case ignored safety warnings. While the particular circumstances are different, it wouldn’t be out of the question for agents to compare the two cases.
Amazon (NASDAQ:AMZN), Qualcomm (NASDAQ:QCOM) Are In News On Monday
Evercore raises its Amazon (NASDAQ:AMZN) price target from $1,800 to $1,965 saying that gross profit has become a “more important indicator” than Y/Y revenue growth.
Key quote: “As such, we remain bullish on AMZN at least in part because the company’s gross profit is expected to grow ~400bps faster than revenue for AMZN over the next 3 years.”
Amazon shares are up 0.9% pre-market to $1,686.
Qualcomm (NASDAQ:QCOM) alleges in a San Diego federal court that Apple (NASDAQ:AAPL) violated three of its patents and asks for tens of millions of dollars in damages.
Qualcomm has filed a series of patent actions against Apple around the world that will conclude before the antitrust trial starting in April, which will hear Apple’s challenge to QCOM’s business model.
U.S. District Judge Dana Sabraw will open an eight-day trial today deciding whether Apple violated Qualcomm’s patents with its iPhones that contain Intel (NASDAQ:INTC) chips.
Qualcomm shares are up 0.8% pre-market to $54.65.
Apple shares are up 0.5% to $175.88.
Tesla, Inc. (TSLA) Shares Slump After Elon Musk’s Comments
Chief Executive Elon Musk’s warning on profit during a conference call with members of the media, which did not include Reuters, contrasted with Tesla’s statements last month that it was expecting a “very small” net profit in the first quarter.
Shares of Tesla, Inc. (TSLA)fell 3.4 percent after hours. Investors have voiced concerns about whether Tesla would be able to maintain profit margins through cost cutting – such as recent layoffs – as it reduces prices of its newest vehicle.
Still, the price drop could quell concerns from some analysts that demand for the higher-priced versions of the Model 3 was beginning to dry up in the United States, especially after a federal tax credit was cut in half this year.
“Tesla wants to drum up demand,” said Elazar Advisors’ Chaim Siegel. “There was a slowdown in the U.S. as the tax credits dropped. (There are) more tax credit hits later in the year too so they are trying to be proactive.”
Musk has often shared that his strategy for Tesla was to build higher-priced cars – the Model S and X – whose success would ultimately usher in a $35,000 mass-market car, followed by an SUV, the Model Y, which is currently in development. But customers who reserved the Model 3 at that lower price have waited nearly three years since Musk first promised it.
An online-only sales strategy, along with other changes, would allow vehicle prices to fall by about 6 percent on average, Tesla said in a blog on its website https://bit.ly/2IHjLw4. Over the next few months, Tesla will wind down “many” of its stores, while investing in its service system, it said.