Finance Minister Arun Jaitley on Saturday&nbsp;said that the decision to hike customs duty on mobile phones and other luxury items was taken in national interest.

Speaking to Zee Business, Jaitley said, &ldquo;There are many goods that we make in India. And I don&rsquo;t see any point in not promoting home-made goods. A few years ago, there were a handful of countries which manufactured mobile phones. Today, that number has grown substantially. And many of them are home-grown. But people buy or import phones from abroad, and this is hurting the domestic market. So, our government took this decision of increasing customs duty to promote Make in India.&rdquo;

Also read:&nbsp;<a href="http://www.wionews.com/india-news/this-years-budget-is-popular-and-not-populist-arun-jaitley-31679">This year&#39;s budget is &#39;popular, and not populist&#39;: Arun Jaitley&nbsp;</a>

It&rsquo;s not right to keep importing goods and not promote our own companies, Jaitley said.

While presenting the Budget on Thursday, Jaitley had announced a hike in customs duty on mobile phones to 20 per cent from 15 per cent in a bid to boost local value addition in domestic electronics manufacturing.

Jaitley said he was making a &ldquo;calibrated departure&rdquo; from the usual practice of reduction in customs duties. He said this is being done in view of the &ldquo;substantial potential&rdquo; for domestic value addition in sectors like food processing, electronics, auto components and footwear. The move will lead to the creation of more jobs in the country, Jaitley added.

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/budget-2018-govts-landmark-national-health-scheme-to-be-implemented-from-october-2nd-31610">Govt&#39;s landmark national health scheme to be implemented from October 2</a>

Commenting on the decision, Indian Cellular Association (ICA) National President Pankaj Mohindroo said that this will be the &ldquo;last nail in the coffin&rdquo; of imports.

&ldquo;We are reaching a situation where imports would be nearly impossible,&rdquo; Mohindroo added.

He said since the bulk of mobile phones are manufactured domestically, there will be no impact on their prices. The exception will be a few brands, that are still making phones overseas.

Customs duty on smartwatches and wearables has been doubled to 20%, while specified parts and accessories of mobile phones have seen a duty hike to 15 per cent&nbsp;from the current range of 7.5-10 per cent.

While presenting the Budget on Thursday, Jaitley had announced a hike in customs duty on mobile phones to 20 per cent from 15 per cent

Finance Minister Arun Jaitley on Saturday said that the decision to hike customs duty on mobile phones and other luxury items was taken in national interest. Speaking to Zee Business, Jaitley said, “There are many goods that we make in India. And I don’t see any point in not promoting home-made goods. A few years ago, there were a handful of countries which manufactured mobile phones. Today, that number has grown substantially. And many of them are home-grown. But people buy or import phones from abroad, and this is hurting the domestic market. So, our government took this decision of increasing customs duty to promote Make in India.” Also read: This year's budget is 'popular, and not populist': Arun Jaitley It’s not right to keep importing goods and not promote our own companies, Jaitley said. While presenting the Budget on Thursday, Jaitley had announced a hike in customs duty on mobile phones to 20 per cent from 15 per cent in a bid to boost local value addition in domestic electronics manufacturing. Jaitley said he was making a “calibrated departure” from the usual practice of reduction in customs duties. He said this is being done in view of the “substantial potential” for domestic value addition in sectors like food processing, electronics, auto components and footwear. The move will lead to the creation of more jobs in the country, Jaitley added. Also read: Govt's landmark national health scheme to be implemented from October 2 Commenting on the decision, Indian Cellular Association (ICA) National President Pankaj Mohindroo said that this will be the “last nail in the coffin” of imports. “We are reaching a situation where imports would be nearly impossible,” Mohindroo added. He said since the bulk of mobile phones are manufactured domestically, there will be no impact on their prices. The exception will be a few brands, that are still making phones overseas. Customs duty on smartwatches and wearables has been doubled to 20%, while specified parts and accessories of mobile phones have seen a duty hike to 15 per cent from the current range of 7.5-10 per cent.

Budget 2018: Customs duty hike will give impetus to 'Make in India', says Arun Jaitley

Over a dozen armed criminals forcefully entered the Bhondsi jail here early today in a bid to kill the superintendent of police over the latter&#39;s cracking down on criminal activities in the area, police said.

The incident took place at around 2.30 am when the accused, including a woman, came in three vehicles and tried to enter the jail&#39;s inner campus on the pretext of an urgent meet with Jai Kishan Chillar, the superintendent of police (prison).

A CRPF personnel advised them to talk to Chillar over phone, but the accused said they forgot to carry their mobile phones.

Suspecting their behaviour, the warden asked them to come next day as Chillar was sleeping. The accused then offered bribe to enter the jail. When the permission was not granted, they pulled out their pistols and forced him to remove the barricades.

The jail warden, however, swiftly alerted other security officers through intercom, which made the criminals escape from the spot in their SUVs, a police officer said. 
Asked about the reason behind such an intrusion, Ravinder Kumar, Gurgaon police PRO, told PTI that Chillar was responsible for checking many illegal activities after taking charge of the prison, following which some criminals threatened him with dire consequences.

A case under various sections was registered against unknown persons. Efforts are on to identify them, the officer added. 
&nbsp;

A CRPF personnel advised them to talk to Chillar over phone, but the accused said they forgot to carry their mobile phones

Over a dozen armed criminals forcefully entered the Bhondsi jail here early today in a bid to kill the superintendent of police over the latter's cracking down on criminal activities in the area, police said. The incident took place at around 2.30 am when the accused, including a woman, came in three vehicles and tried to enter the jail's inner campus on the pretext of an urgent meet with Jai Kishan Chillar, the superintendent of police (prison). A CRPF personnel advised them to talk to Chillar over phone, but the accused said they forgot to carry their mobile phones. Suspecting their behaviour, the warden asked them to come next day as Chillar was sleeping. The accused then offered bribe to enter the jail. When the permission was not granted, they pulled out their pistols and forced him to remove the barricades. The jail warden, however, swiftly alerted other security officers through intercom, which made the criminals escape from the spot in their SUVs, a police officer said. Asked about the reason behind such an intrusion, Ravinder Kumar, Gurgaon police PRO, told PTI that Chillar was responsible for checking many illegal activities after taking charge of the prison, following which some criminals threatened him with dire consequences. A case under various sections was registered against unknown persons. Efforts are on to identify them, the officer added.

Armed criminals barge into Bhondsi jail to kill SP; bid foiled

In a possible bid to keep away the harmful radiations released from the mobile phone, Union Minister Prakash Javadekar was seen using a landline receiver connected to his handset outside the Parliament in New Delhi.

The minister became the&nbsp;centre of attention after he was spotted with a purple landline receiver attached to his mobile phone.&nbsp;&nbsp;

The minister, however,&nbsp;did not disclose any reason behind using a landline receiver with a mobile phone.&nbsp;

Prakash Javadekar was in Parliament to participate in the winter session.&nbsp;

In a move to keep away the harmful radiations released from the mobile phone, Union Minister Prakash Javadekar was seen using a landline receiver connected to his handset

In a possible bid to keep away the harmful radiations released from the mobile phone, Union Minister Prakash Javadekar was seen using a landline receiver connected to his handset outside the Parliament in New Delhi. The minister became the centre of attention after he was spotted with a purple landline receiver attached to his mobile phone. The minister, however, did not disclose any reason behind using a landline receiver with a mobile phone. Prakash Javadekar was in Parliament to participate in the winter session.

Prakash Javadekar talks on landline receiver connected to mobile phone

Tech-giant Apple on Monday increased the prices of all its iPhone models in India, days after the Indian government hiked the import duty on mobile phones by five percent.

The mobile phones will now be taxed at 15 percent from earlier&#39;s 10 percent. The increase will be effective from today itself.

iPhone X lovers will now have to shell out Rs 92,430 for the 64GB and Rs 1,05,720 for the 256GB variant, which earlier were available for Rs 89,000 and Rs 1,02,000 respectively.

The iPhone 8 and 8 Plus will now start at MRP of Rs. 66,120 and Rs. 75,450 respectively, compared to Rs. 64,000 and Rs. 73,000 earlier.&nbsp;

Likewise, the iPhone 7 and 7 Plus will now start at Rs. 50,810 and Rs. 61,060 respectively, while the iPhone 6s and 6s Plus starting price will now be Rs. 41,550 and Rs. 50,740 respectively.

However, iPhone SE is the only model which is unaffected by the price hike, because the company assembles it in India.

The government made this decision to curb the overseas supplies and encourage manufacturing in India as part of the Make in India initiative. &nbsp;

Microwave ovens and cameras are the other electronic products to be affected by the increase in import duty.&nbsp;

The mobile phones will now be taxed at 15 percent from earlier's 10 percent.

Tech-giant Apple on Monday increased the prices of all its iPhone models in India, days after the Indian government hiked the import duty on mobile phones by five percent. The mobile phones will now be taxed at 15 percent from earlier's 10 percent. The increase will be effective from today itself. iPhone X lovers will now have to shell out Rs 92,430 for the 64GB and Rs 1,05,720 for the 256GB variant, which earlier were available for Rs 89,000 and Rs 1,02,000 respectively. The iPhone 8 and 8 Plus will now start at MRP of Rs. 66,120 and Rs. 75,450 respectively, compared to Rs. 64,000 and Rs. 73,000 earlier. Likewise, the iPhone 7 and 7 Plus will now start at Rs. 50,810 and Rs. 61,060 respectively, while the iPhone 6s and 6s Plus starting price will now be Rs. 41,550 and Rs. 50,740 respectively. However, iPhone SE is the only model which is unaffected by the price hike, because the company assembles it in India. The government made this decision to curb the overseas supplies and encourage manufacturing in India as part of the Make in India initiative. Microwave ovens and cameras are the other electronic products to be affected by the increase in import duty.

iPhone prices increases in India after govt hikes import duty

As self-driving cars come closer to being common on American roads, much of the rhetoric promoting them has to do with safety. About 40,000 people die on U.S. roads every year, and driver errors are linked to more than 90 per cent of crashes. But many of the biggest advocates of autonomous vehicles aren&rsquo;t car companies looking to improve the safety of their existing products. Huge backing for self-driving technologies is coming from Silicon Valley giants like Google and Apple.

Those of us who have studied the relationship between technology and society tend to look more carefully at the motivations behind any technological push. In this case, it&rsquo;s clear that in addition to addressing safety concerns, Silicon Valley firms have a strong incentive to create a new venue for increasing the use of their digital devices. Every minute people spend on their mobile phones provides data &ndash; and often money &ndash; to tech companies.

At present, digital devices and driving are in conflict: There are serious, often fatal, consequences when drivers use smartphones to talk or to text. Regulators and safety advocates look to resolve that conflict by banning phone use while driving &ndash; as has happened in virtually every state. But the tech companies are taking a different approach. The obvious answer for Silicon Valley is creating an automobile in which continuous cellphone use no longer poses a threat to anyone.

Not a new idea

The idea of a car so capable a driver is not needed isn&rsquo;t new. As far back as the 1950s, the Saturday Evening Post ran an illustration imagining a family playing a board game (in a convertible!) as the car conducts itself down the road. When self-driving cars actually take to the streets in large numbers, today&rsquo;s families likely won&rsquo;t be playing Scrabble &ndash; though Words With Friends and other mobile games are a near certainty. Every passenger is likely to be using a mobile device.

In recent years, the amount of time adults spend on their mobile devices (beyond actual phone calls) has grown rapidly. At the moment, it&rsquo;s around four hours a day for the average adult in the U.S. However, that rapid growth is likely to slow down as people run out of time that&rsquo;s available for them to use their devices.

Unless, of course, there&rsquo;s a new block of time that suddenly opens up. The average American now spends about 48 minutes in a car every day, a sizable opportunity for increased cellphone use.

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Chris Urmson, former director of Google&rsquo;s self-driving car project, made this interest clear in a 2016 talk, saying that autonomous vehicles offer the &ldquo;exciting&rdquo; possibility of creating &ldquo;another room for you&rdquo; where, among other activities, you can watch videos. The investment analysts at Morgan Stanley have talked about autonomous cars becoming a &ldquo;fourth screen&rdquo; in Americans&rsquo; lives (in addition to the home TV, personal computer and mobile phones or tablets).

Perhaps the most explicit declaration of this interest came from Jia Yueting, co-founder of the budding Chinese automaker LeEco, when he said, &ldquo;We see the car in the future as an extension of the internet, another entry point for us to sell web-based content and services.&rdquo;

So as the public conversation around autonomous cars highlights the safety advantages, don&rsquo;t forget the tech industry&rsquo;s powerful desire for more profits, which goes well beyond simply saving us from ourselves.

This article was originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/why-silicon-valley-wants-you-to-text-and-drive-87972" rel="nofollow" target="blank">original article</a>.

(Disclaimer: The author writes here in a personal capacity).

Image Credit:&nbsp;Shutterstock

Why do tech companies care so much about self-driving cars? If drivers no longer need to pay attention to the road, they can use their mobile devices even more

As self-driving cars come closer to being common on American roads, much of the rhetoric promoting them has to do with safety. About 40,000 people die on U.S. roads every year, and driver errors are linked to more than 90 per cent of crashes. But many of the biggest advocates of autonomous vehicles aren’t car companies looking to improve the safety of their existing products. Huge backing for self-driving technologies is coming from Silicon Valley giants like Google and Apple. Those of us who have studied the relationship between technology and society tend to look more carefully at the motivations behind any technological push. In this case, it’s clear that in addition to addressing safety concerns, Silicon Valley firms have a strong incentive to create a new venue for increasing the use of their digital devices. Every minute people spend on their mobile phones provides data – and often money – to tech companies. At present, digital devices and driving are in conflict: There are serious, often fatal, consequences when drivers use smartphones to talk or to text. Regulators and safety advocates look to resolve that conflict by banning phone use while driving – as has happened in virtually every state. But the tech companies are taking a different approach. The obvious answer for Silicon Valley is creating an automobile in which continuous cellphone use no longer poses a threat to anyone. Not a new idea The idea of a car so capable a driver is not needed isn’t new. As far back as the 1950s, the Saturday Evening Post ran an illustration imagining a family playing a board game (in a convertible!) as the car conducts itself down the road. When self-driving cars actually take to the streets in large numbers, today’s families likely won’t be playing Scrabble – though Words With Friends and other mobile games are a near certainty. Every passenger is likely to be using a mobile device. In recent years, the amount of time adults spend on their mobile devices (beyond actual phone calls) has grown rapidly. At the moment, it’s around four hours a day for the average adult in the U.S. However, that rapid growth is likely to slow down as people run out of time that’s available for them to use their devices. Unless, of course, there’s a new block of time that suddenly opens up. The average American now spends about 48 minutes in a car every day, a sizable opportunity for increased cellphone use. × Chris Urmson, former director of Google’s self-driving car project, made this interest clear in a 2016 talk, saying that autonomous vehicles offer the “exciting” possibility of creating “another room for you” where, among other activities, you can watch videos. The investment analysts at Morgan Stanley have talked about autonomous cars becoming a “fourth screen” in Americans’ lives (in addition to the home TV, personal computer and mobile phones or tablets). Perhaps the most explicit declaration of this interest came from Jia Yueting, co-founder of the budding Chinese automaker LeEco, when he said, “We see the car in the future as an extension of the internet, another entry point for us to sell web-based content and services.” So as the public conversation around autonomous cars highlights the safety advantages, don’t forget the tech industry’s powerful desire for more profits, which goes well beyond simply saving us from ourselves. This article was originally published on The Conversation. Read the original article. (Disclaimer: The author writes here in a personal capacity). Image Credit: Shutterstock

Opinion: Why Google & Apple want you to text and drive

Billionaire Anil Ambani-led Reliance Communications will shut down its loss-making wireless telephony business by November 30 and concentrate only on 4G Internet services.

The debt-laden firm has asked its 1,500-2,000 employees to look for jobs as 2G and 3G cellphone services business will be shut down from November 30, sources in the industry and those privy to the development said.

Refusing to comment on the shutting down of the wireless business, the company issued a short statement, saying it will adopt a 4G focused strategy for profitable growth of its wireless business.

&quot;As already announced on October 1, 2017, RCom has decided to adopt a 4G-focussed strategy for profitable growth of its wireless business. Accordingly, RCom will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30, 2017,&quot; it said.

RCom said its &quot;4G-led strategy will be executed, as at present, on the back of capital-light access to India&#39;s most extensive 4G mobile network, through already operational spectrum-sharing and ICR arrangements with Reliance Jio&quot;.

The company&#39;s more than 40 million customers will have to upgrade to 4G or migrate to other operators, the sources said.

On October 1, it had called off a proposed merger with Aircel, citing regulatory and legal hurdles. The merger was seen as vital for its survival in the intensely competitive telecom sector.

RCom is in the midst of a strategic debt restructuring, under which it has entered into a standstill agreement with banks requiring it not to pay any interest or principal till December 2018.

With Rs 44,000 crore of loan on its books, the company is also shutting down its direct to home television business from next month after it failed to find any buyer for the business.

RCom Executive Director Gurdeep Singh is believed to have told employees yesterday that the company has reached a &quot;situation where we need to call it a day on our wireless business&quot; and this would lead to closure of &quot;wireless business 30 days from now&quot;.

According to an audio recording of the speech made available to PTI, Singh said, &quot;We tried whatever means to sustain and put oxygen in the business, but we will not be able to sustain the business beyond 30 days from now.&quot;

Singh said international long distance (ILD) voice business, consumer voice and 4G dongle post-paid will migrate to the enterprise segment as long as it is profitable.

&quot;But besides these three, everything else will be shut down,&quot; he said.

Singh also said November 30 will be the last working day for all employees at DAKC (Dhirubhai Ambani Knowledge City) associated with wireless business and services that support it.

He specified that employees impacted need to tender resignation and their salary for November will be made along with full and final settlement including gratuity, leave encashments etc on or before January 15.

&quot;We have published in newspapers that as our DTH licence is expiring on 21st of November and we are not renewing licence. So, that will also mark our exit from DTH business. So, that is restructuring of overall wireless and consumer business.&quot;

Telecom tower business will continue to be operational. RCom is reportedly in talks to sell its stake in its tower unit to Canada&#39;s Brookfield.

The debt-laden firm has asked its 1,500-2,000 employees to look for jobs.

Billionaire Anil Ambani-led Reliance Communications will shut down its loss-making wireless telephony business by November 30 and concentrate only on 4G Internet services. The debt-laden firm has asked its 1,500-2,000 employees to look for jobs as 2G and 3G cellphone services business will be shut down from November 30, sources in the industry and those privy to the development said. Refusing to comment on the shutting down of the wireless business, the company issued a short statement, saying it will adopt a 4G focused strategy for profitable growth of its wireless business. "As already announced on October 1, 2017, RCom has decided to adopt a 4G-focussed strategy for profitable growth of its wireless business. Accordingly, RCom will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30, 2017," it said. RCom said its "4G-led strategy will be executed, as at present, on the back of capital-light access to India's most extensive 4G mobile network, through already operational spectrum-sharing and ICR arrangements with Reliance Jio". The company's more than 40 million customers will have to upgrade to 4G or migrate to other operators, the sources said. On October 1, it had called off a proposed merger with Aircel, citing regulatory and legal hurdles. The merger was seen as vital for its survival in the intensely competitive telecom sector. RCom is in the midst of a strategic debt restructuring, under which it has entered into a standstill agreement with banks requiring it not to pay any interest or principal till December 2018. With Rs 44,000 crore of loan on its books, the company is also shutting down its direct to home television business from next month after it failed to find any buyer for the business. RCom Executive Director Gurdeep Singh is believed to have told employees yesterday that the company has reached a "situation where we need to call it a day on our wireless business" and this would lead to closure of "wireless business 30 days from now". According to an audio recording of the speech made available to PTI, Singh said, "We tried whatever means to sustain and put oxygen in the business, but we will not be able to sustain the business beyond 30 days from now." Singh said international long distance (ILD) voice business, consumer voice and 4G dongle post-paid will migrate to the enterprise segment as long as it is profitable. "But besides these three, everything else will be shut down," he said. Singh also said November 30 will be the last working day for all employees at DAKC (Dhirubhai Ambani Knowledge City) associated with wireless business and services that support it. He specified that employees impacted need to tender resignation and their salary for November will be made along with full and final settlement including gratuity, leave encashments etc on or before January 15. "We have published in newspapers that as our DTH licence is expiring on 21st of November and we are not renewing licence. So, that will also mark our exit from DTH business. So, that is restructuring of overall wireless and consumer business." Telecom tower business will continue to be operational. RCom is reportedly in talks to sell its stake in its tower unit to Canada's Brookfield.

RCom hangs up on wireless telephony business

Seeking to escape a cycle of falling prices and tight regulation, big telecom operators from Vimpelcom to Telefonica are set to reinvent themselves as Internet players to escape the industry&#39;s straight-jacket of low growth.

Next week&#39;s Mobile World Congress in Barcelona will feature phone companies in various stages of acceptance that the industry&#39;s predictable, decades-old business model based on selling data packages by the millions is running out of steam.

Beneath the facade of shiny new phones and dusty debates over network technical implementations, Europe&#39;s largest annual technology fair will see top phone companies&nbsp;parading far-reaching business makeovers.

Spain&#39;s Telefonica is set to introduce a broad plan it calls the &quot;4th Platform&quot; to help both consumer and business customers keep greater control over their data rather than giving it away to web giants Google, Facebook and Amazon.

Russian and emerging markets operator Vimpelcom is tearing up many parts of the telecom rule book to remake itself as a tech player in the fast-growing world of messaging apps.

US telecom giant AT&amp;T has inked a series of huge deals to diversify by acquiring Direct TV for $67 billion and is awaiting approval to buy Time Warner for another $110 billion.

&quot;Regulatory and pricing pressure on telecom operators forces them to look to adjacent areas for new sources of revenue and margins,&quot; said attorney Tom Levine, head of Allen &amp; Overy&#39;s global telecoms practice.

&quot;There isn&#39;t a consensus on how to do this.&quot;

It&#39;s also an open question whether the industry is structurally capable of big change. Telcos have dreamed for decades of breaking free of the shackles of consumer regulation and branching out into Internet services in their local markets, only to be consistently beaten by newer, global upstarts.

Russian laboratory

These dramatic changes come as telcos brace to offer new networks ready to handle not just spiralling data use on phones but in cars, in factories and offices and even crop fields. The new generation of 5G networks will provide them new business options but also spells mounting competition from computer, Internet and industrial players with digital plans of their own.

Russia has emerged as the world&#39;s most advanced laboratory for telecom companies seeking to reinvent themselves as Internet players, as classic telecom business pressures, Western economic sanctions and government rules that reduce Silicon Valley giants to small local players create space to combine forces.

Vimpelcom, Russia&#39;s No.3 operator, has undertaken a top-to-bottom overhaul of its business while gearing up for deeper Internet partnerships with the likes of streaming music and online taxi services. The company also focuses on emerging markets from Bangladesh to Algeria and is the world&#39;s sixth largest operator in terms of number of mobile customers served.

Megafon, the No.2 network provider, has acquired control of sister company Mail.ru, a major Russian Internet player - the Russian equivalent of Verizon buying Facebook - and plans to offer a new mobile version of social media site VKontakte.

Top Russian telecoms player MTS is so far sitting on the sidelines, but its executives have signalled they too believe their long-run future lies in Internet services.

Meanwhile, Telefonica sees its &quot;4th Platform&quot; strategy as a way to stoke faster growth and compete aggressively with globally dominant internet players while being a logical evolution of existing businesses, a senior company source said.

The strategy builds on its long-standing investments in communications services, its broad geographic reach across Europe and Latin America and efforts to offer advanced money-making services on top of basic communication connections, but does not require making huge new investments, the source said.

&quot;Now is the turn of the fourth platform: the data. That is Telefonica&#39;s (new) equity story,&quot; the source said of its bid to boost margins by, for example, enabling customers to analyse mountains of data to make their own businesses run smarter.

Other phone companies are taking more modest steps.

Norway&#39;s Telenor, another emerging markets operator, has pushed into data analytics, while Vodafone is making inroads in new industrial internet and connected car applications, through its 2014 acquisition of Cobra Automotive.

Do they have the DNA?

Still, many telecom operators take a dim view of some of the aggressive moves being made by these peers, especially when it comes to business models based on commercialising customer data.

Deutsche Telekom, Europe&#39;s largest telecom operator by revenue, sees this as no-go territory in privacy-conscious Germany. Instead, it is focused on making strides into new connected industrial arenas and cloud computing.

Telekom&#39;s main growth story is likely to remain the United States where it revolutionized the mobile industry by offering unlimited data plans and international roaming packages. Using aggressive marketing, T-Mobile has gained at the expense of rivals, making it nearly as big Telekom&#39;s core German business.

France&#39;s Vivendi, which embarked on a grand misadventure last decade to combine telecom and media assets, offers a cautionary tale for investors betting on these new reinvention stories.

For telecom operators used to predictable cash flows and firm regulatory boundaries, the main issue may be cultural: Most just don&#39;t have the stomach for such drastic transformation.

&quot;Working out how to bring in that entrepreneurial DNA, without disappointing users&#39; expectations of reliability, and recognising the financial expectations of institutional shareholders, is not easy,&quot; Levine said of healthy dividend payouts which remain the industry&#39;s main draw to investors.

(Reuters)

Europe's largest annual technology fair will see top phone companies parading far-reaching business makeovers

Seeking to escape a cycle of falling prices and tight regulation, big telecom operators from Vimpelcom to Telefonica are set to reinvent themselves as Internet players to escape the industry's straight-jacket of low growth. Next week's Mobile World Congress in Barcelona will feature phone companies in various stages of acceptance that the industry's predictable, decades-old business model based on selling data packages by the millions is running out of steam. Beneath the facade of shiny new phones and dusty debates over network technical implementations, Europe's largest annual technology fair will see top phone companies parading far-reaching business makeovers. Spain's Telefonica is set to introduce a broad plan it calls the "4th Platform" to help both consumer and business customers keep greater control over their data rather than giving it away to web giants Google, Facebook and Amazon. Russian and emerging markets operator Vimpelcom is tearing up many parts of the telecom rule book to remake itself as a tech player in the fast-growing world of messaging apps. US telecom giant AT&T has inked a series of huge deals to diversify by acquiring Direct TV for $67 billion and is awaiting approval to buy Time Warner for another $110 billion. "Regulatory and pricing pressure on telecom operators forces them to look to adjacent areas for new sources of revenue and margins," said attorney Tom Levine, head of Allen & Overy's global telecoms practice. "There isn't a consensus on how to do this." It's also an open question whether the industry is structurally capable of big change. Telcos have dreamed for decades of breaking free of the shackles of consumer regulation and branching out into Internet services in their local markets, only to be consistently beaten by newer, global upstarts. Russian laboratory These dramatic changes come as telcos brace to offer new networks ready to handle not just spiralling data use on phones but in cars, in factories and offices and even crop fields. The new generation of 5G networks will provide them new business options but also spells mounting competition from computer, Internet and industrial players with digital plans of their own. Russia has emerged as the world's most advanced laboratory for telecom companies seeking to reinvent themselves as Internet players, as classic telecom business pressures, Western economic sanctions and government rules that reduce Silicon Valley giants to small local players create space to combine forces. Vimpelcom, Russia's No.3 operator, has undertaken a top-to-bottom overhaul of its business while gearing up for deeper Internet partnerships with the likes of streaming music and online taxi services. The company also focuses on emerging markets from Bangladesh to Algeria and is the world's sixth largest operator in terms of number of mobile customers served. Megafon, the No.2 network provider, has acquired control of sister company Mail.ru, a major Russian Internet player - the Russian equivalent of Verizon buying Facebook - and plans to offer a new mobile version of social media site VKontakte. Top Russian telecoms player MTS is so far sitting on the sidelines, but its executives have signalled they too believe their long-run future lies in Internet services. Meanwhile, Telefonica sees its "4th Platform" strategy as a way to stoke faster growth and compete aggressively with globally dominant internet players while being a logical evolution of existing businesses, a senior company source said. The strategy builds on its long-standing investments in communications services, its broad geographic reach across Europe and Latin America and efforts to offer advanced money-making services on top of basic communication connections, but does not require making huge new investments, the source said. "Now is the turn of the fourth platform: the data. That is Telefonica's (new) equity story," the source said of its bid to boost margins by, for example, enabling customers to analyse mountains of data to make their own businesses run smarter. Other phone companies are taking more modest steps. Norway's Telenor, another emerging markets operator, has pushed into data analytics, while Vodafone is making inroads in new industrial internet and connected car applications, through its 2014 acquisition of Cobra Automotive. Do they have the DNA? Still, many telecom operators take a dim view of some of the aggressive moves being made by these peers, especially when it comes to business models based on commercialising customer data. Deutsche Telekom, Europe's largest telecom operator by revenue, sees this as no-go territory in privacy-conscious Germany. Instead, it is focused on making strides into new connected industrial arenas and cloud computing. Telekom's main growth story is likely to remain the United States where it revolutionized the mobile industry by offering unlimited data plans and international roaming packages. Using aggressive marketing, T-Mobile has gained at the expense of rivals, making it nearly as big Telekom's core German business. France's Vivendi, which embarked on a grand misadventure last decade to combine telecom and media assets, offers a cautionary tale for investors betting on these new reinvention stories. For telecom operators used to predictable cash flows and firm regulatory boundaries, the main issue may be cultural: Most just don't have the stomach for such drastic transformation. "Working out how to bring in that entrepreneurial DNA, without disappointing users' expectations of reliability, and recognising the financial expectations of institutional shareholders, is not easy," Levine said of healthy dividend payouts which remain the industry's main draw to investors. (Reuters)

Mobile World Congress 2017: How the saturated mobile world seeks to reinvent itself

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