...MERGER & ACQUSITION IN TELECOM SECTOR OF INDIA Ashish Agnihotri Bhaven Chheda Dipesh Jain Harsh Chauhan Tejashree Bole Zececa Mehta Sector Overview Indian Telecom Industry Total telecom subscribers 325.79 million (June 2009) Tele density 28.33 per cent (June 2008) Quarterly addition of mobile subscribers (April June 2008) 25.80 million Telecom subscribers annual growth rate (2007 08) 44.79% One of the biggest telecom markets in the world Average Revenue Per User (ARPU) for GSM (June2008) US$ 5.6 Indian Telecom Industry More GSM subscribers than fixed line subscribers Telecom equipment market (2007 08) US$ 23,699 million Handset market (2007 08) US$ 5,962 million Expected mobile subscriber base (2010) About 500 million (i.e., more than one phone for every household) It witnessed a CAGR of approximately 29% from 2002 03 to 2007 08. The CAGR is expected to stabilise at 16% between 2007 08 and 2009 10. India An Ideal Investment Destination The large untapped potential in India s rural markets revealed by 9.21 per cent tele density in rural markets as compared to the national level of 28%. The government promoting telecom manufacturing by providing tax sops and establishing telecom-specific Special Economic Zones. Major Players Vodafone-Hutch Deal In Feburary 2007, Vodafone has bagged the 67% Hutch Telecom International (HTIL) stake in Hutch-Essar at an enterprise value of $19.3 billion Income Tax (I-T) department notice...
Words: 887 - Pages: 4
...are added every month. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future. The telecom industry has been divided into two major segments, that is, fixed and wireless cellular services for this report. Besides, internet services, VAS, PMRTS and VSAT also have been discussed in brief in the report. In today’s information age, the telecommunication industry has a vital role to play. Considered as the backbone of industrial and economic development, the industry has been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been revolutionising human communication. Although the Indian telecom industry is one of the fastest-growing industries in the world, the current teledensity or telecom penetration is extremely low when compared with global standards. India’s teledensity of 36.98% in FY09 is amongst the lowest in the world. India's teledensity has improved from under 4% in March 2001 to around 71% by the end of March 2011. Cellular telephony has emerged as the fastest growing segment in the Indian telecom industry. The mobile subscriber base (GSM and CDMA combined) has grown from under 2 m at the end of FY00 to touch 812 m at the end of March 2011 (average annual growth of nearly 73% during this eleven year period)....
Words: 4878 - Pages: 20
...Block. Net Block is simply Gross Block minus Accumulated Depreciation. Also, there is a depreciation expense entry in the income statement. Using these, can you think of a ratio which would tell the average age of the company’s fixed assets? Average age of the company’s fixed assets = Accumulated Depreciation / Depreciation Expense From a valuation standpoint, a very widely used ratio is the price to earnings ratio (P/E). This is the ratio of the market cap to the last year’s reported earnings of the company. There is another very widely used ratio called Enterprise Value by EBITDA. The Enterprise Value (EV) of a company is total debt plus the market capitalization of the company minus cash and equivalents with the company. Think of it as the price that a private buyer will have to pay for the whole company – he will have to buy out the equity of the company at the market capitalization, then pay off the debt at book value. For the transaction, the buyer can use the cash and equivalents available with the company. EV/EBIDTA is a very important ratio in private equity circles. This ratio, it is said, is a pure valuation ratio - it compares the value of a business, free of debt, to earnings of the business less interest expense. At the current market price, compute the P/E and EV/EBITDA of TCS and INFOSYS. For EV/EBITDA, you will have to take the current market capitalization, add it to it long term (secured and unsecured) debt, subtract the cash and equivalents with...
Words: 1031 - Pages: 5
...fastest growing economies in the world and thus, companies in India are growing at a faster rate than previous decades. As company grows, their share prices increase and the shareholders of these firms gain a lot from the increasing prices. In India people are realising that equity has potential in ploughing back the returns as compared to the other investment avenues, however, equity valuation should be done in order to receive higher and continuous gains. Equity valuation begins with analysis of the sector where a person wants to invest. If the sector looks positive than evaluation of all the companies in that sector should be done in order to decide upon the investment. The objective of this report is to analyse the credibility of an investment into Reliance Communications Limited. In order to achieve this we will focus upon the organisation’s strategic and financial information. A SWOT analysis will evaluate the potential strengths, weaknesses, opportunities and threats facing the business and valuation analysis will tell about the profitability of the company. The methods used for the valuation analysis are: Fundamental Analysis and Technical Analysis. FUNDAMENTAL ANALYSIS: Fundamental analysis is a technique that attempts to determine a securities value by focusing on underlying factors that affect a company’s actual business and its future prospects. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors...
Words: 4676 - Pages: 19
...Deal Summary Memorandum | | | |Maria-Fe Arribas, Derek Bly, Carolina Ratto | |Deal Team Members: | | |Date: |4/09/12 | |Company Name: |Horizon Communications | |Description of Idea: |Provide local switched telecommunications services to targeted sectors of the market. These sectors include high margin | | |corporate applications, custom internet access offerings and strategic alliances with value added resellers of its services.| |Stage/Opportunity: |Start-Up Stage. Horizon has developed its network architecture and strategy but has yet to implement. | |Business Description: |Invest in state-of-the-art-switching platform capable of providing services offered by the incumbent carriers. Horizon would| | |design its switches to meet the needs of its specific target markets and engineer them to handle high volumes...
Words: 2341 - Pages: 10
...entities? Q1.1 ANSWER Yes. Firms represent a combination of people, physical assets, and information (financial, technical, marketing, and so on). People directly involved include stockholders, managers, workers, suppliers, and customers. Businesses use scarce resources that would otherwise be available for other purposes, pay income and other taxes, provide employment opportunities, and are responsible for much of the material well-being of our society. Thus, all of society is indirectly involved in the firm's operation. Firms exist because they are useful in the process of allocating resources -- producing and distributing goods and services. As such, they are basically economic entities. Q1.2 Explain how the valuation model given in Equation 1.2 could be used to describe the integrated nature of managerial decision making across the functional areas of business. Q1.2 ANSWER As seen in the text, Equation 1.2 can be written: [pic] where TR is total revenue, TC is total cost, i is an appropriate (risk-adjusted) interest rate, and t indicates the relevant time period. Thus, the value of the firm is the discounted present value of the stream of expected future profits. Each of the functional areas of business plays an important role in managerial decision making since each area provides vital input into the value maximization process. The marketing department of a firm has a major responsibility for sales, the production...
Words: 4074 - Pages: 17
...entities? Q1.1 ANSWER Yes. Firms represent a combination of people, physical assets, and information (financial, technical, marketing, and so on). People directly involved include stockholders, managers, workers, suppliers, and customers. Businesses use scarce resources that would otherwise be available for other purposes, pay income and other taxes, provide employment opportunities, and are responsible for much of the material well-being of our society. Thus, all of society is indirectly involved in the firm's operation. Firms exist because they are useful in the process of allocating resources -- producing and distributing goods and services. As such, they are basically economic entities. Q1.2 Explain how the valuation model given in Equation 1.2 could be used to describe the integrated nature of managerial decision making across the functional areas of business. Q1.2 ANSWER As seen in the text, Equation 1.2 can be written: [pic] where TR is total revenue, TC is total cost, i is an appropriate (risk-adjusted) interest rate, and t indicates the relevant time period. Thus, the value of the firm is the discounted present value of the stream of expected future profits. Each of the functional areas of business plays an important role in managerial decision making since each area provides vital input into the value maximization process. The marketing department of a firm has a major responsibility for sales, the production...
Words: 4074 - Pages: 17
...A BRIEF REPORT ON TELECOM SECTOR IN INDIA January 2015 For more information, contact: sateesh.kulkarni@asa.in A brief report on Telecom Sector in India 1. INDUSTRY OVERVIEW 1.1 Introduction The Indian telecommunications industry is one of the fastest growing in the world. Government policies and regulatory framework implemented by Telecom Regulatory Authority of India (TRAI) have provided a conducive environment for service providers. This has made the sector more competitive, while enhancing the accessibility of telecommunication services at affordable tariffs to the consumers. In the last two decades, the Indian Telecom Sector and mobile telephony in particular has caught the imagination of India by revolutionizing the way we communicate, share information; and through its staggering growth helped millions stay connected. This growth, however, has and continues to be at the cost of the Climate, powered by an unsustainable and inefficient model of energy generation and usage. Simultaneously, this growth has also come at significant and growing loss to the state exchequer, raising fundamental questions on the future business and operation model of the Telecom sector. Telecommunication services are globally recognised as one of the driving forces for overall economic development in a nation. They are also one of the prime support services needed for rapid growth and modernisation of various sectors of the economy. The Government of India recognises...
Words: 2435 - Pages: 10
...THE UNIVERSITY OF CALGARY THE HASKAYNE SCHOOL OF BUSINESS FNCE 759, L01 Investment & Portfolio Management Course Outline Fall 2012 INSTRUCTOR TELEPHONE OFFICE EMAIL Colin Jackson OFFICE HOURS WEBSITE LECTURE LOCATION LECTURE TIME By appointment only http://blackboard.ucalgary.ca Downtown Campus Room 432 Wednesdays 17:30 – 20:20 COURSE DESCRIPTION Theory and analysis of investment and portfolio management decisions. Evaluation of performance of individual and professional investors and portfolio managers. REQUIRED TEXTBOOK AND/OR MATERIALS Bodie, Kane, Marcus et al. Investments 7th Edition. McGraw-Hill Ryerson, 2011. FEE FOR EXTRA READINGS N/A CLASS PREPARATION & BLACKBOARD Lectures focus on the material presented in the textbook and general discussion relating to the topic(s) outlined in the lecture schedule. Students are expected to read the assigned text chapters and readings before class, and be prepared for class discussion. Important information and additional readings for FNCE 759, L01 are posted on Blackboard. Students should regularly check the Announcements section of Blackboard for ongoing notices. Your instructor may not necessarily cover all of the materials in the chapter, but it is the responsibility of the student to understand the concepts presented in the textbook and lectures. If you are unsure of any of the concepts, please take the initiative to ask the instructor during class. CONTACTING YOUR ...
Words: 1623 - Pages: 7
...relation to the anticipated consequences. In operation, satisfaction is somehow similar to attitude as it can be evaluated as the sum of satisfactions with some features of product." "In the literature, cognitive and affective models of satisfaction are also developed and considered as alternatives (Pfaff, 1977). Churchill and Suprenant in 1982 evaluated various studies in the literature and formed an overview of Disconfirmation process in the following figure:" Non-linear and Asymmetric Relationships in Satisfaction: Since the 1990's a rich body of research has shown that many of the relationships of customer satisfaction with its antecedents and consequences are asymmetric and non-linear. The basis for this research resides in the key idea that people are usually more sensitive to negative information than to positive information, and that losses loom larger than gains. Thus, negative events are not only more salient to customers, but they also have a disproportionately larger impact in the satisfaction judgment formation process, and the consequent consumer intentions and behaviors. Much of this research is summarized in an award winning paper by Professors Eugene Anderson and Vikas Mittal. The general findings, as summarized in their paper show: - Negative performance on an attribute has a larger impact on overall satisfaction than positive performance. Thus, the deleterious impact of failing expectations is proportionately much stronger than the beneficial impact of exceeding...
Words: 9813 - Pages: 40
...TERM PAPER PESIT MBA 2011-2013 3RD SEMISTER MANAGEMENT ACCOUNTIN & CONTROL SYSTEM TOPIC: LEAN ACCOUNTING- An Emerging Concept SUB CODE: 10MBA32 NAME: SPOORTHI.K USN: 1PB11MBA33 CONTENTS 1. ABSTRACT WITH KEY WORDS 2. INTRODUCTION 3. THERORATICAL BACKGROUND 4. DISCUSSION 5. CONCLUSION 6. REFERENCE ABSTRACT WITH KEYWORDS From the last two decades of the 20th Century on, many companies have adopted production strategies that could be termed “lean manufacturing”. Lean team leaders state that traditional costing systems fail to properly assess their operational improvements and therefore ask for new cost accounting methods. The search for a new accounting paradigm has led to important applied research and several accounting methods. With the diversification of customer demand and competition of globalization, mass production is being replaced by lean production. In this background, the traditional accounting system is no longer applicable to lean production, and lean accounting supporting lean production comes into being. This paper introduces the background of lean accounting and the content of lean accounting, gives the measures of implementing lean accounting, finally compares lean accounting with traditional accounting and summarizes obstacles in the process of...
Words: 4166 - Pages: 17
...Page no. | Acknowledgement | 04 | Executive summary | 05 | Introduction about Telecom Industry | 06 | History | 07 | Global Scenario | 08 | National Scenario | 09 | Demographic characteristic | 10 | Market size, Trends & Players | 11 | Telecom turn over/ Subscribers | 12 | Opportunities /Competitive landscape | 13 | Porters generic strategy | 14 | Progress /Acquiring Subscribers | 15 | Rural India | 15 | Government Initiatives / MVAS | 16 | VAS | 18 | Mobile VAS in Rural Market | 19 | Access Device /3G Handset | 20 | Key trends in Telecom Industry | 21 | Inhibitors | 22 | MNP Implementation Globally | 24 | Wimax Vs. 3G | 26 | Mobile virtual network operator | 27 | Regulation for MVN O / IPTV | 28 | Companies overview | 29 | 4P’s Analysis | 43 | Advertisement | 44 | Industry updates | 46 | Major challenges for Mergers | 49 | FDI Investment in Telecom sector | 50 | Outsourcing by Telecom company | 51 | Future Trends | 53 | 4G Technology | 56 | Conclusion/ References | 56 | This project work would never have been an achievable task, had we not been under the great shelter of guidance of respected Professor Mukta Rae. Her simplified teaching technique based on examples has helped us gain more understanding of the subject. The very essence of the project work is the linguistic precision which has an impact of conveying more details in least possible words. An ample use of various reference readings has been...
Words: 11612 - Pages: 47
...the graduates that pass out in an academic year, only 25% are suitable for getting inducted into the industry.” Jeffrey Fuller, Principal Advisor of Human Capital. There exists a huge gap between the skills that are required by the industry and what the Indian academic system produces. The objective of IIQF is to impart training to students in those skill-sets that are in demand in the industry and make them industry ready, or as we call them “The Street-Ready”. Certificate Program in Advanced Financial Modelling in Excel and VBA Certificate Program in Financial Modelling in Excel A course geared towards teaching the practical skills required for making a career in Investment Banking, Equity Research, M&A Specialist, Company Valuations, etc. This is a program where practicing Investment Bankers and Treasury Professionals teach the latest techniques and modeling skills that are used in the industry. This is a “hands-on” course, with extensive use of computers and...
Words: 17797 - Pages: 72
...PROJECT REPORT Submitted for Partial fulfillment for The Award of the degree of Master in Business Administration (2008-2010) J K BUSINESS SCHOOL SOHNA ROAD, GURGAON (HARYANA) SUBMITTED TO: SUBMITTED BY: PROF.KHUSHAL KATARIA HEMANT PAL SINGH FACULTY GUIDE ROLL. NO.-JKBS083193 J K BUSINESS SCHOOL MBA PREFACE All the learning’s in our MBA course is practice oriented. However, hands-on experience in the corporate world during our course is very necessary to be able to test the ability and extent of learning of the student before fully entering the corporate world. The two months training which I underwent at Reliance, Jai Agency, Delhi(West) in was a wonderful learning experience. I was assigned with the project “SWOT analysis of reliance communication with competitor” With the guidance and suggestions provided by Mr. BHUPENDRA SINGH, my Industry Guide, I started first phase of my Project by doing a market analysis, After that I started with the second phase which involved research work pertaining to the customer analysis. In this report I have explained what I undertook based on research and my personal experience. I have also tried to understand business relations with the market developers, business strategies, and ethics and work compliance in an industry as an additional part of my study. HEMANT PAL SINGH JKBS083193 MBA II SEM ACKNOWLEDGEMENT It is my proud privilege to express a deep sense of gratitude and regard to My guide Prof. KHUSHAL KATARIA...
Words: 13122 - Pages: 53
...THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT, AHMEDABAD THESIS TOPIC “Critically analyze the customer preference and satisfaction measurement in Indian Telecom Industry” SUBMITTED BY Naman Shah PGP/SS/06-08 ALUMNI REFERENCE ID: SS/06-08/AHD/MKTG/2 SUMISSION DATE: 27th August, 2008 GUIDED BY Prof. Pabitra Ranjan Chakravorty Senior Research Associate (Marketing) IIPM, Ahmedabad. I LETTER OF CONSENT IIPM Ahmedabad 19, Inquilab Society, Gulbai Tekra, Ahmedabad-380015 To, The Dean, IIPM-Ahmedabad Date: November 6, 2007 Respected Sir, Subject: Letter of Consent I, Prof. Pabitra Ranjan Chakravorty, a faculty of Marketing Management of IIPM-Ahmedabad, expressing my interest in guiding for a thesis on “To critically analyze the customer preference and satisfaction measurement in Indian Telecom Industry” to Mr. Naman Shah, a student of PGP/SS/06-08. This is to inform that I shall support him as a guide for his thesis on the above mentioned topic and extend my knowledge and help in all ways possible. Thank You. Yours faithfully, Prof. Pabitra Ranjan Chakravorty. II LETTER OF APPROVAL III PREFACE The customers are very important and play a crucial role in any process of marketing. Today, customers are the kings of the market because the customer loyalty and customer preference are built by the products and the services offered to the customers and they seek for the more benefits and money’s worth for the amount they spend. That is where the...
Words: 25735 - Pages: 103
