Would not have been possible. My heartfelt thanks to PROF. P. L. ARYA for providing me with the infrastructure for the project and also the entire faculty, who have provided me the knowledge and guidance that has facilitated the successful preparation and completion of the project. I am also indebted to all other sources from which I have drawn information and all those persons from whom I have received help and advice in completing this project. Prajakta M. Diwan PGDBM Finance Executive Summary6 Telecom Industry Overview9
India to have 541. 3mn mobile subscribers by FY201113 Incumbent operators to lord over newer entrants17 Spectrum remains the biggest concern19 Infrastructure Sharing – Gaining ground22 Indian Broadband Sector – A sorry tale23 Fixed line subscriber base24 Recent Industry Developments27 Mobile Number Portability ( mnp) – A ‘contingent liability’33 Global Examples Of MNP Implementation :Hongkong & Taiwan35 Conclusion36 Outlook36 Infrastructure Sharing37 Business Case37 Infrastructure Sharing – Driven by Cost Dynamics42
Government support for Infrastructure Sharing53 Case Study – IDEA CELLULARLtd. 59 Company Description in Brief. 59 Circle of Operations. 60 Investment Argument62 Weaknesses & Concerns63 Valuation of Bharti Airtel Ltd. 66 Methodology Of Discounted Cash Flow67 Methodology Of Fair Value Calculation.. 68 Assumtions & Key Inputs. 69 Calculation of FCFF & Net Operating Working Capital70 Forecasting of Future Cash Flows & Intrinsic Value71 References72 Executive Summary Enabling policies, competition, strong GDP growth power subscriber numbers
The Essay on Project Charter: Setting Up a Virtual Private Network
Setting up a LAN/WAN for a small computer repair shop that has two shops within ninety miles of each which will have repairs, sales and networking for home users and small to medium business in the surrounding metro areas of Waynesville and St Roberts Missouri.Prepared ByDate 9/13/14Version1 Project Objective The client is a new computer repair shop in Waynesville and St Robert Missouri and is ...
The Indian Mobile Telecom Industry has been one of the best examples of the success of the Indian Government’s reforms programme. The sector has grown at a scorching pace over the past few years aided by enabling regulations, heightened competition resulting in across-the board lowering of telecom tariffs, higher disposable income due to India’s strong GDP growth rates and greater coverage of India’s landscape by mobile service operators. Going ahead, there exists scope for mobile companies to grow their subscriber base.
Mobile tele-density stands at around 26% as of July 2008, with 291. 2mn subscribers. China, on the other hand, has a mobile tele-density of over 45% and has around 600mn mobile subscribers. Even on this huge base, the country is still adding 7. 5-8mn subscribers each month. Thus, there exists significant scope for further growth of the Indian Telecom Industry. India to have 541. 3mn mobile subscribers by FY2011 We estimate the Indian mobile market hit 541. 3mn mobile by FY2011 (excluding BSNL and MTNL CDMA-WLL subscribers).
This implies a CAGR growth of 28. 3% over FY2008-11E. Thus, the industry in the medium-term is expected to continue to record good subscriber growth rates on as-yet low penetration levels, heightened competitive intensity, a continued fall in minimum subscription costs and tariffs leading to better affordability for lower-income rural users, expansion of coverage area by mobile operators and government support through schemes like the rural infrastructure roll out funded by subsidies from the USO Fund.
We expect a majority of this growth to be driven by the ‘A’ and ‘B’ circle categories, which have been rapidly growing over the past few years and where tele-density is still relatively low at 21-29% levels. Rural India, the next bastion of growth The next phase of growth will undoubtedly be led by rural India. It should be noted that a majority of the Indian population still does not have access to mobile services and has largely remained untouched by the ‘mobile revolution’ that has swept the country.
The Term Paper on Postives and Negatives of Mobile Phones
... landline in Africa as fixed telephone lines are expensive whereas mobiles are cheaper. Mobiles are cheaper because ... regarding mobile phones. How mobile phones has helped the growth of various countries. Also how mobile phones ... subscribers by the end of 2012. Analysts say that there is high usage of mobile ... have poorly-developed technology or economic bases can move themselves forward swiftly through ...
This has led to a huge ‘digital divide’, which is reflected in the urban tele-density levels, which stand at over 60%, whereas rural tele-density has barely touched double digits. As many as 800mn people in the country do not own a mobile phone and connection, in spite of the rapid expansion that has been witnessed over the past many years by all mobile operators. Thus, this is clearly the next bastion of growth for mobile operators. Fixed Line subscriber base – ‘Triple-play’, value-added services provide hope India’s fixed line subscriber base has dwindled.
With mobile telephony proving to be a considerably superior technology, there has been de-growth in the fixed line base, with many people surrendering their landlines in favour of mobile phones. In July 2008, the total number of fixed line subscribers in the country stood at 38. 76mn (penetration of just 3. 4%).
Going forward, to grow the fixed line subscriber base, it is necessary for telcos to introduce a greater number of value-added services such as broadband and ‘triple play’, that is, voice, data and video connectivity through a single line, also known as Internet Protocol Television (IPTV).
This could arrest the decline in the fixed line subscriber base. The move towards fully integrated entertainment companies Major telcos are taking initiatives to expand their suite of services and become ‘fully integrated entertainment players’ rather than remaining merely telephone companies. These companies are making investments in businesses such as DTH and IPTV with a view to tap a greater share of the entertainment spend of consumers.
Ball-park calculations suggest an approximate market size of Rs27,000cr for the DTH market, assuming average cable expenditure of Rs300 per household per month and if all C&S households (75mn) were assumed to go for DTH connections. Thus, the market size and growth potential is significant. Spectrum remains the biggest concern Despite the strong growth prospects of the sector, the biggest concern remains that of spectrum. Spectrum is the lifeblood of the Telecom business, without which growth is likely to get severely restricted.
The Essay on Design and Implementation of a Web-Service Based Public-Oriented
As an emerging form of enabling technology, Web-based e-Health portals provide patients easier accesses to their healthcare information and services. Service-Oriented Architecture provides a uniform means to offer, discover, interact with and use capabilities to produce desired effects consistent with measurable preconditions and expectations. We design and implement such a Public-Oriented ...
Even though in the short-term, the issue does seem to have been resolved, going ahead, with the Defence Forces scheduled to release more spectrum for 3G services, any delays on this front could have adverse implications for the sector. While increasing competition may further queer the pitch for tariffs The ever-increasing competitive intensity in the sector, with licences and spectrum in several circles like Tamil Nadu (including Chennai), Orissa, Kerala and Karnataka allotted to newer operators like Loop Telecom, Swan Telecom, Datacom and Unitech Wireless, is also a concern and could lead to unrealistic pricing levels to grab subscribers.
Outlook Going ahead, we expect robust growth in the Indian mobile subscriber base. However, with a more challenging business environment likely going ahead, given factors such as a secular fall in ARPUs and slowing subscriber growth, thus leading to slowing Top-line growth, increasing competition, which could further queer the pitch for tariffs, higher network expansion costs, all leading to margin pressure and regulatory risks, we believe chances of a major valuation re-rating in the sector are remote. Nonetheless, at current levels, with valuations closer to the bottom-end of historical valuations, downside risk appears limited.
Apart from this, there is also embedded value in the form of towerco valuations, providing a cushion. Telecom Industry Overview Enabling policies, competition, strong GDP growth power subscriber growth The Indian Mobile Telecom Industry has been one of the best examples of the success of the Indian Government’s reforms programme. The sector has grown at a scorching pace over the past few years aided by enabling regulations, heightened competition resulting in across-the board lowering of telecom tariffs, higher disposable income due to India’s strong GDP growth rates and greater coverage of India’s landscape by mobile service operators.
The Term Paper on Baidu Enters African Mobile Browser
... mobile browsing market. Google not only has a deal with South Africa’s giant telecom operator ... past 5 years, the number of subscribers across Africa had grown by almost ... mobile connection penetration in 2015 (forecast) 44% mobile connection growth (the highest growth rate worldwide) $49 billion revenues (mobile operator ... has operations and makes more low-cost smartphones available; customers have been ...
Earlier, the Telecom Sector was a government-controlled monopoly, wherein just three players viz. , MTNL, VSNL and the Department of Telecommunications (DoT, now BSNL), provided telecom services in the country. MTNL was licensed to provide fixed basic telecom services in Mumbai and New Delhi, while BSNL was licensed to provide services to the rest of the country. BSNL also provided national long distance (NLD) services. VSNL, on the other hand, provided international long distance (ILD) services.
However, in 1994, the sector was opened up to competition and cellular licenses were issued, as the government woke up to the need to develop robust telecom infrastructure in the country, necessary to aid higher GDP growth rates. Telecom services were initially expensive due to the high cost of licenses and saw few additions to the mobile subscriber base. At the end of FY1998, there were mere 880,000 cellular subscribers in the country, with over half of them being from the Mumbai and Delhi circles.
However, things changed dramatically with the advent of the National Telecom Policy (NTP) 1999, which envisioned a shift in the license fee payment mechanism from a fixed regime to a revenue-sharing regime. Other initiatives such as allotment of the third and fourth cellular licenses, the unified access licensing regime, implementation of the calling party pays (CPP) regime, making incoming calls free and initiatives to reduce regulatory costs to telecom operators also resulted in a quantum jump in the cellular subscriber base.
The first landmark step taken by the government in terms of regulation was the NTP 1999, which lowered the high entry barriers in the business and made it easier for new players to enter and tap the latent potential, and in turn lower the cost of telecom services. The entry of BSNL in FY2003 and Reliance in FY2004 were other turning points in the history of the Indus try. Both these entrants ensured that the momentum in mobile subscriber additions was not lost through further lowering of tariffs, even as other incumbent players continued to grow at a fast pace.
The entry of the fourth operator in the telecom circles of India led to continuing growth in the sector, along with a further reduction in telecom tariffs amidst intense competition. The implementation of the CPP regime resulted in a continuing surge in mobile subscriber additions. In FY2005, owing to all these initiatives, for the first time ever, India’s total mobile subscriber base crossed the fixed line subscriber base. [pic]
The Essay on Chinese Telecom Industry Foreign China Services
December 11, 2001 was a long awaited day for both local businesses, as well as for foreign investors. It was the day that the Chinese State Council promulgated the Regulations for the Administration of Foreign Invested Telecommunications Enterprises (FITE) which were scheduled to come into effect on the 1 st of January 2002. Since it's accession to the WTO, foreign telecommunications have eyed ...
The phenomenal growth in the sector has continued on account of no let-up in the fall in call costs owing to high competitive intensity, and greater scale of operators enabling them to cut tariffs and drive greater usage. One of the major initiatives included the launch of the pre- paid ‘lifetime validity’ scheme. The first of these schemes was launched in December 2005 at Rs999. These schemes, according to a study carried out by the Telecom Industry regulator, the Telecommunications Regulatory Authority of India (TRAI), added as many as 16mn subscribers in the period between January to June 2006.
According to the study, despite having the facility to recharge only once in six months, around 72% of the ‘lifetime’ subscribers were reported to have recharged every month. Even on the average revenue per user (ARPU) front, despite concerns that such schemes might be unviable for telecom operators, being primarily targeted at low-usage customers, these schemes showed an ARPU of Rs218 per subscriber per month as compared with Rs268 for the overall pre-paid segment of the market at the time.
In May 2007, to take the battle to the next level and further penetrate the market, mobile operators launched the ‘Lifetime Pre-paid Scheme – Part 2’, reducing costs by 50% to just Rs495. A slew of other initiatives were also launched by operators including reducing ILD all costs to the US and Canada to just Rs1. 99/minute, reducing call costs to the Gulf region by 36% and slashing roaming charges in India by as much as 70%. Major operators also launched black-and-white handsets retailing at just Rs777 and colour handsets at Rs1, 234.
Some other major operators are also launching handsets priced at just Rs666, significantly reducing minimum subscription costs and bringing a greater number of people into the mobile telephony fold. In fact, a top mobile operator, post the launch of the Rs777 handset, added over 1mn subscribers in just one week, possibly a global record. In FY2009 thus far, we have already seen operators effect a drastic 43% cut in STD rates to Rs1. 50 per minute from Rs2. 65, while incoming roaming charges have also been slashed by 43% to Re1 a minute from Rs1.
The Term Paper on The influence of Individual Visit Scheme
The Individual Visit Scheme (IVS) began on 28 July 2003. This scheme allows Mainland resident visit Hong Kong or Macau on an individual basis. Before the scheme, China resident must travel to Hong Kong or Macau with a business visa or group tours. In general, as long as people is in the scope of cities, it can take the simple visa (Special licensing) procedure going to Hong Kong or Macao, people ...
75. Another operator has also launched unlimited STD at Rs440 a month for post-paid users, while pre-paid customers can make unlimited STD calls at Rs496 a month for calls within the network (on-net calls).
Further, with TRAI permitting the entry of Mobile Virtual Network Operators (MVNOs), internet telephony (Voice over Internet Protocol, VoIP) and long-distance carrier selection by consumers through issuing pre-paid calling cards by long distance operators, it is clear that tariffs have not as yet hit rock-bottom.
