Nokia will also show off a handset that can receive live TV. It plans to sell such phones in 2006. Qualcomm will also exhibit a rival TV technology it plans to unveil next year. Kodak hopes to profit from the printing of pictures taken on phones and Walt Disney sports network ESPN, which plans to have a mobile service for sports fans this year. 
 

The US and Europe markets have already saturated as nearly everyone has already bought a camera and colour screen cellular phone. Something realy exciting should be offered in terms of technology to stimilate these mature replacement markets.     

Analysts are forecasting that global markets will grow by 10% in '05. India's contribution to the global handset market was about 4% in '04 against China's 10%, the Indian market grew much faster than China at 17% over China's 14%. Global sales in '04 finished with around 630m to 650m units world-wide. Analysts feel that '05 sales will touch 700m.    
 

The main highlights at Cannes were on 3G and HSDPA (High Speed Definition Packet Access). India's policy regarding these would be to adopt a cautious approach and wait until Europe had fully launched both high speed networks. Although wireless broadband would be important for business communications and e-governance plans which would be key for our country. The minister reiterated that the Indian government was fully committed to the telecom industry and was working to ensure both private and state run operators' issues are addressed in a swift and timely manner.         
 

Among the key speakers who will address the distinguished audience are Ed Zander, CEO Motorala, Rene Obermann, CEO T-Mobile International, Lomar Pauly, President and CEO Siemens Communication, Miles Flint, President Siemens. India's           
Mr. Sunil Mittal, CEO Bharti Telecom is also a keynote speaker at the Leadership Summit. Mr. Mittal has been recently appointed a GSM board member. The discussions revolve around not only spectrum allocations and standards, but also mobility focus areas based on socio-economic issues in emerging markets such as India and China. Union telecom and IT minister Dayanidhi Maran will also participate as part of the nine country government delegation that will discuss policies and spectrum allocations for their respective countries.           
 

As part of the consolidation, the shareholders of the various Hutchison Essar group companies transferred their shares to HMTL in return for the issue of new shares in HMTL. Thus, HMTL has become the holding company for all the cellular operations of the Hutchison Essar group. The various group companies included Hutchison Essar Telecom (HETL - Delhi), Fascel (Gujarat), Hutchison Telecom East (HTEL - Kolkata) which wholly owns Aircel Digilink India, operating in UP East, Rajasthan, Haryana and Hutchison Essar South (HESL-AP, Karnataka, Chennai, Punjab, UP West, West Bengal) and Aircel Digilink India (UP East, Rajasthan, Haryana).               

The consolidated HMTL has a footprint across 13 circles. The consolidation is expected to derive many operating synergies, including more efficient management and a more effective use of resources and funds between the various operating companies. In addition, the management believes that the new consolidated company will be better placed to access the debt and equity markets in India.               
 

As per the proposal, FDI would include FIIs, NRIs, Overseas Commercial Borrowings, FCCBs, ADRs, GDRs, convertible preferential shares, proportionate foreign investments in Indian promoters, and investment companies, including their holding companies. Thus, 74% foreign investment can be made directly or indirectly in the operating company or through a holding company.                

Hutchison, Idea, and Bharti, would be the major beneficiaries. The bigger players would be able to raise funds in the international markets through the equity route, while the smaller operators would be able to exit easily. It could also lead to more consolidation, more competition and result in increased choice for consumers.                 

The argument in favour of FDI is that an investment of about Rs.50,000 crore is required in the telecom service sector in the next three years in order to meet growing demands. Such funding cannot be generated in the domestic markets. Therefore, operators found it difficult to meet their requirements.                
 

Under an unified telecom licence, an operator will be able to offer all the telecom services including national long distance (NLD), international long distance (ILD), fixed and mobile access services, cable TV, DTH, TV and radio broadcast and internet telephony.                      
Under class licence, an operator will be allowed to offer all those services which have one way connectivity - VSAT services. Class licence also includes niche operators, who will be allowed to offer fixed telecom services in those districts where fixed rural tele-density is below 1%. Licensing through authorisation will permit an operator to offer infrastructure and bandwidth services to service providers. Standalone broadcasting and cable TV licence will cover those service providers who wish to offer only broadcasting or cable services.                     

In telecom, there are two components of licence fee - one time entry fee and revenue share. The new recommendations propose to reduce revenue share to 6% - 5% for universal service obligation fund and 1% for administrative fee for TRAI.