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Presentation on investing opportunities in Telecommunication sector in India

Presentation on investing opportunities in Telecommunication sector in India. Presented by- Pargat Singh. Telecom Industry India . world’s fastest growing industry with 792 million mobile phone subscribers second largest telecommunication network in the world

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Presentation on investing opportunities in Telecommunication sector in India

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  1. Presentation on investing opportunities in Telecommunication sector in India • Presented by- Pargat Singh

  2. Telecom Industry India world’s fastest growing industry with 792 million mobile phone subscribers second largest telecommunication network in the world $80 billion in revenues by 2012

  3. Telecom Industry India (opportunities for Investors) • will employ 1 crore employees • India is set to see another spurt of growth as 3G in India • India, the world’s second largest market for mobile phones • forecasted to become an even larger market with unit shipments of 209 million each year by 2016 at a compound annual growth rate of 12% from 2010 to 2016

  4. Telecom Industry India (opportunities for Investors) • mobile entertainment industry in India is also witnessing significant growth and a latest research forecasts this market to reach $5 billion in 2015 from $1.2 billion in 2009 • India has many things going in its favour provided we do things right the first time every time- • Economic growth rate touching double digits is a strong positive factor

  5. Opportunities for Investors • Demographics of target market-60% of its population is young < 35 years old. which means more users of the latest technology. • We are a young and the largest democracy with the largest English speaking population after USA

  6. Telecom companies in India • Bharat Sanchar Nigam Ltd.– One of the largest & leading public sector units • is World’s 7th largest Telecommunications • only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide • BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493 3Gcustomers

  7. Telecom companies in India • more than 2.5 million Internet Customers • Mahanagar Telephone Nigam Ltd MTNL) – It is a state-owned telecommunications service provider in the metro cities of Mumbai and New Delhi • provides fixed line telephones, cellular connection of both GSM & CDMA and internet services through dialup and DSL

  8. Telecom companies in India • other services include VPN,Internet Telephony- VOIP and leased lines through BSNL and VSNL • Has unveiled a very cost-effective Broadband Internet access plans (TriBand) targeted at homes and small businesses • Reliance Communications Ltd. It is the 16th largest operator in the world with more than 128 million subscribers

  9. Telecom companies in India • only telecom operator offering nationwide CDMA, GSM and 3G mobile services • RCom became the second private sector telecom company (fourth overall) to launch 3G services in India • TATA Teleservices Ltd. – is the pioneer of the CDMA 1x technology • presence through existing operations in all of India’s 22 telecom Circles

  10. Telecom companies in India • market leader in the fixed wireless telephony market • the first Indian private telecom operator to launch 3G services in India • Idea Cellular Ltd. – is an Aditya Birla Group company. • among the top four mobile telephony players in India with an 11 per cent all-India subscribers market share

  11. Telecom companies in India • Bharti Airtel Ltd. -It  is the largest India mobile operator by subscriber base • Airtel, is an Indian telecommunications company that operates in 19 countries across South Asia and Africa • fifth largest mobile operator in the world • Vodafone Ltd. – The world’s largest mobile telecommunications company

  12. Telecom companies in India • Vodafone entered India by acquiring the Hutchinson stake • Aircel Group-is India’s Seventh largest GSM mobile service provider • present in all 23 telecom circles • Spice Communications Ltd. -  Now a subsidiary of Idea Cellular Ltd. Operates in Karnataka & Punjab

  13. Detterents for Investors • Corruption- 2G Telecom Scandal – biggest scam in India.Cheating Charge against Essar,Reliance Communications, minister Rajasent to jail • Most of the telecom companies have been found to be implicated in colluding with sleazy politicians/bureaucrats in looting the Indian taxpayers • Bureaucracy- 2nd biggest problem. Too many hierarchical levels. Too much paper work and corruption is quite prevalent at all levels.

  14. Detterents for Investors • More than 70% population lives in rural areas. Profitability in rural operations is a big question mark. Consistent supply of electricityis a big problem. • economies, operational and security risks and availability of skilled manpower are some other issues and challenges faced when going rural.

  15. Detterents for Investorscontd…… • Power Distance- there is a large power distance between common mass and authority which act as another deterrent. • legislative system- judiciary in India is very complex. Vast stack of cases already pending so getting a decision can take up to decades.

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