India aims to issue guidelines for third-generation mobile (3G) and WiMAX networks by June and will allow foreign participation in them, telecoms minister Andimuthu Raja said on Friday.
"By June the guidelines will be issued for 3G and WiMAX," Raja said in a speech at an industry conference, adding he expected the roll-out of such networks by January 2009.
3G wireless networks allow operators to transmit data, voice and video at high speeds, enabling Internet services on mobile devices. India is eyeing 3G network as a solution for lack of voice-centric 2G network capacity and slow growth of broadband.
"All existing operators are ready for 3G rollout. It does not need new infrastructure," Raja told reporters after the speech.
When asked if foreign players would be allowed to bid for 3G spectrum, he said: "If there is common auction, open auction, then there will be no bar."
India allows foreign firms to own up to 74 percent in an Indian telecoms firm, and these partnerships can also start 3G services, Raja said.
"Either way foreign players will be permitted," he said.
Friday, May 23, 2008
Oil resumes climb after sharp drop
Oil stood near $132 a barrel on Friday, recovering a little from a strong bout of profit-taking in the previous session that pulled prices back more than 3 percent from the record high above $135 a barrel.
U.S. light crude for July delivery was up $1.13 at $131.94 a barrel by 0736 GMT. It surged to $135.09 on Thursday before slumping to settle at $130.81, the first time in five sessions that it settled lower.
London Brent crude was up $1.37 at $131.88.
"Supplies not growing is still the main thing. OPEC can turn the tap but they cannot do it forever, and non-OPEC growth is not enough," said Tony Nunan, risk management executive at Tokyo-based Mitsubishi Corp.
"Demand...is not falling as much as expected," he added.
Oil production from countries outside OPEC is stagnating and forecast to remain below 50 million barrels per day this year, at 49.56 million bpd, lower than earlier forecast, a Reuters survey of 12 analysts showed on Thursday.
The failure of non-OPEC producers to increase output significantly has helped drive oil prices up more than a third since the beginning of the year.
It has also sent long-term prices even higher, at close to $150 a barrel, as concerns mount that supplies will not be enough to meet demand from developing countries in the future.
OPEC Secretary-General Abdullah al-Badri on Thursday repeated the group's stance that it can do nothing to lower oil prices in a "crazy" market, blaming record prices on factors such as geopolitical tensions, speculation and the weak dollar.
The cartel's view was shared by the chief executive of Royal Dutch Shell Plc, Jeroen van der Veer, who told Reuters Television that oil prices are rising due to market sentiment rather than a shortage of supply.
A stronger dollar on Thursday also contributed to lower oil prices as investors have increasingly been using oil as a hedge against the falling currency, setting off inverse trends in the dollar and oil.
The greenback steadied on Friday, but the currency stayed in sight of a one-month low against the euro on worries that inflation could lead to a deeper U.S. slowdown.
U.S. light crude for July delivery was up $1.13 at $131.94 a barrel by 0736 GMT. It surged to $135.09 on Thursday before slumping to settle at $130.81, the first time in five sessions that it settled lower.
London Brent crude was up $1.37 at $131.88.
"Supplies not growing is still the main thing. OPEC can turn the tap but they cannot do it forever, and non-OPEC growth is not enough," said Tony Nunan, risk management executive at Tokyo-based Mitsubishi Corp.
"Demand...is not falling as much as expected," he added.
Oil production from countries outside OPEC is stagnating and forecast to remain below 50 million barrels per day this year, at 49.56 million bpd, lower than earlier forecast, a Reuters survey of 12 analysts showed on Thursday.
The failure of non-OPEC producers to increase output significantly has helped drive oil prices up more than a third since the beginning of the year.
It has also sent long-term prices even higher, at close to $150 a barrel, as concerns mount that supplies will not be enough to meet demand from developing countries in the future.
OPEC Secretary-General Abdullah al-Badri on Thursday repeated the group's stance that it can do nothing to lower oil prices in a "crazy" market, blaming record prices on factors such as geopolitical tensions, speculation and the weak dollar.
The cartel's view was shared by the chief executive of Royal Dutch Shell Plc, Jeroen van der Veer, who told Reuters Television that oil prices are rising due to market sentiment rather than a shortage of supply.
A stronger dollar on Thursday also contributed to lower oil prices as investors have increasingly been using oil as a hedge against the falling currency, setting off inverse trends in the dollar and oil.
The greenback steadied on Friday, but the currency stayed in sight of a one-month low against the euro on worries that inflation could lead to a deeper U.S. slowdown.
India set to raise fuel price, inflation a worry
India is set to raise petrol and diesel prices to keep pace with crude oil's record run but the move will fuel inflation, heaping more pressure on a government struggling to calm prices ahead of elections.
Crude oil's surge has hurt consumers around the world and countries such as Indonesia are being forced to raise state-controlled prices. China said on Thursday it would retain controls on fuel prices, denying rumours about deregulation.
"A fuel price hike is inevitable," Indian Petroleum Secretary M.S. Srinivasan told reporters on Friday, adding that the oil ministry was also seeking tax changes to help Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which are forced to sell fuel below cost.
India sets the heavily discounted prices at which fuel is sold in order to help fight inflation and protect hundreds of millions of poor people from price shocks.
It partially compensates oil retailers by issuing oil bonds to them, which they can either hold as assets or sell in the market, while upstream companies share some of the burden.
The government, which faces a string of state elections this year and a national poll by May 2009, is worried that higher fuel prices will stoke inflation, already at its highest level in 3-½ years at nearly 8 percent.
It has strived to contain inflation with tough restrictions on exports of rice and duty cuts on some imports, while steel firms have been firmly told to freeze prices for three months.
But with oil above $130 a barrel and losses at state energy firms mounting, the government has little option but to raise retail fuel prices.
The oil minister said on Friday the government may take a week to decide whether to raise prices.
"With a fuel price hike in the offing, inflation is headed up and we may see inflation hit 8.5 percent by June," said A. Prasanna, economist at ICICI Securities.
"We expect the central bank to take further liquidity tightening measures to control inflation."
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.
Crude oil's surge has hurt consumers around the world and countries such as Indonesia are being forced to raise state-controlled prices. China said on Thursday it would retain controls on fuel prices, denying rumours about deregulation.
"A fuel price hike is inevitable," Indian Petroleum Secretary M.S. Srinivasan told reporters on Friday, adding that the oil ministry was also seeking tax changes to help Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which are forced to sell fuel below cost.
India sets the heavily discounted prices at which fuel is sold in order to help fight inflation and protect hundreds of millions of poor people from price shocks.
It partially compensates oil retailers by issuing oil bonds to them, which they can either hold as assets or sell in the market, while upstream companies share some of the burden.
The government, which faces a string of state elections this year and a national poll by May 2009, is worried that higher fuel prices will stoke inflation, already at its highest level in 3-½ years at nearly 8 percent.
It has strived to contain inflation with tough restrictions on exports of rice and duty cuts on some imports, while steel firms have been firmly told to freeze prices for three months.
But with oil above $130 a barrel and losses at state energy firms mounting, the government has little option but to raise retail fuel prices.
The oil minister said on Friday the government may take a week to decide whether to raise prices.
"With a fuel price hike in the offing, inflation is headed up and we may see inflation hit 8.5 percent by June," said A. Prasanna, economist at ICICI Securities.
"We expect the central bank to take further liquidity tightening measures to control inflation."
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.
MARKET PREDICTION
NO BIG NEWS IS MOVING AROUND THE WORLD ..
TODAY'S INDIAN MARKET WILL TOTALLY DEPENDS ON INFLATION DATA AND GOVERNMENT ACTION PLAN ON THAT.
TOTAL MARKET O I IS 81 K CR (IN MAY SERIES 61 K CR AND 19 K CR N JUNE SERIES) PUT CALL RATIO IS 1.37.DOLLAR VS RUPEE IS 42.85.
CRUDE OIL IS $131.4/BRL.
LEVEL OF NIFTY IS 4950-5000-5060-5100.
IF MARKET HOLD 5000 GO LONG IN TECH AND PHARMA WITH SL OF 4980..IF DOES NOT SUSTAIN ABOVE 5000 GO SHORT IN CONSTRUCTION WITH S L OF 5030.
--HAVE A NICE TRADING DAY
-MR SAM
TODAY'S INDIAN MARKET WILL TOTALLY DEPENDS ON INFLATION DATA AND GOVERNMENT ACTION PLAN ON THAT.
TOTAL MARKET O I IS 81 K CR (IN MAY SERIES 61 K CR AND 19 K CR N JUNE SERIES) PUT CALL RATIO IS 1.37.DOLLAR VS RUPEE IS 42.85.
CRUDE OIL IS $131.4/BRL.
LEVEL OF NIFTY IS 4950-5000-5060-5100.
IF MARKET HOLD 5000 GO LONG IN TECH AND PHARMA WITH SL OF 4980..IF DOES NOT SUSTAIN ABOVE 5000 GO SHORT IN CONSTRUCTION WITH S L OF 5030.
--HAVE A NICE TRADING DAY
-MR SAM
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