|
| Thursday, January 28, 2010 |
| Bharti Airtel - Highlights of Analyst Call |
|
Here is what the Bharti Airtel Management Told us in Analyst Call,
- Bharti's long-term position for revenue growth remains strong and has 122 mn customers, as on December 31, 2009, across India
- TRAI recommendations on 2G spectrum allocation and M&A regulations are likely to come out in the next few weeks.
- The sector is currently witnessing peak competitive intensity; industry growth to be more secular in 2HCY10 once the new rollouts are over.
- The real customer addition (excluding multiple SIM subscribers) on a monthly basis is only ~10m vs reported additions of 17-19m.
- Actual wireless penetration in India is only 80% of the reported penetration of 43-44%.
- Sector is likely to witness major regulatory developments over the next few months.
- Migration of subscribers to the new tariff schemes will be over by 4QFY10.
|
Published on Thursday, January 28, 2010 at 3:32 PM  |
|
|
|
| Monday, January 18, 2010 |
| Reliance Infratel IPO to Help RCOM Raise Funds |
|
RCOM's 95% subsidiary, RITL plans to raise money by diluting ~10% (postissue) equity. A successful IPO would help RCOM de-leverage its consolidated balance sheet, and may result in some valuation rerating.
This is a significant development post valuation of Aircel's Tower Business taken over by GTL Infra at Rs 8,000 cr for 17,500 towers which will help RCom raise its sagging fortunes and command better valuations. GTL Infra will earn blended monthly rental of Rs 27,600 per site from Aircel, escalated at 3% p.a. This is inline with Indus (~Rs29K).
We note that tower assets are getting higher valuation multiples than telecom services business, given tower demand from new wireless entrants, potential 3G deployments and lower risk profile of tower assets (more predictable cash flows). |
| Published on Monday, January 18, 2010 at 12:12 PM |
|
|
|
| Wednesday, January 06, 2010 |
| 3G WCDMA + HSPA - Initial Plan by Operators |
|
In the recently held Road Ahead for Indian Telecom conference, operators are quite optimistic about the future of Growth in India. Here is what they have set their initial rollout plans on 3G WCDMA and HSPA.
As the Drama over 3G continues far better than any Hindi serial, cut back in spectrum to be auctioned to three slots vs. four, if it occurs, would increase the pricing uncertainty around the auctions, especially for the incumbents.
Key applications for 3G could include browsing & searching, email and music. Location-based services, user generated content, surveillance are also other applications that could gain traction with the launch of 3G.
Handset prices remain a concern; however, uptake in 3G services should allow prices for handsets to trend lower. Other form factors, such as net-books, will start to gain better traction as mobile broadband and data applications take off. There is also likely to be a greater bundling of service and handset with 3G. Potential target customers include Corporates, Professionals and Youth from Affluent tech-savvy Families.
While WCDMA and HSPA would remain a voice and data service, the industry sees EV-DO and WiMAX emerging as a strong data service, given the low fixedline broadband penetration. |
| Published on Wednesday, January 06, 2010 at 5:41 PM |
|
|
|
|
| Previous Post |
|
| Archives |
|
|
| Blogroll |
|
|
|
| Search this Site |
|
|
|
