Telecommunications industry: Why is the phone keep ringing?
The recent recommendations of Trai, if accepted, will connect the 330 million plus Mobile Phone users and fixed computers and inaugurate a new era of mobile Internet. It will Subscribers also the freedom to choose a carrier of their choice for STD calls and ISD. It is feared that the Trai guidelines are required to affect the bottomline major telephone companies. In addition to increasing competition among service providers, new and formidable competitors like gigantic PowerGrid, RailTel, Sify, AT & T, British Telecom, Gail and Tulip Telecom, which have fiber networks in India are expected to emerge in the telecommunications landscape Indian overcrowded. But what is forgotten is that the basic concept of Internet telephony has to spread in India, for existing competitors to feel the effects. A PC is required to make STD and ISD facilities, but the PC penetration in India is very low. It also need a broadband connection and a good reliable power, all the gaps in this country. The stock market seems to believe that it is negative for telecommunications companies. However, I think the telecommunications industry still has a good time to come. Here's why?
India has emerged as the fastest growing mobile market. More than 7 million new connections are added each months. The focus has been to date on new subscribers per month. As the telecom market reached the stage of maturity, their Scores are eroded. Most analysis of the telecommunications centers around MOU (Minutes of Use) per subscriber per month RMPM (Average revenue per minute). Bharti Telecom has recently announced that the average revenue per minute has dropped 5 percent to 72 paise in the March quarter 2008, fell to only 66 paise in the quarter ended June 31, 2008, down 8%. However, the MOU (Minutes use) per subscriber rose from 507 the previous quarter to 537 in the quarter ended June 31, 2008. Whenever a company Telephone reports results, it is given a thumbs up or thumbs down by the capital markets as its minutes of use per subscriber and subscriber additions are in the positive or negative. This method of stock assessment is, in my opinion, have a vision very close the enormous potential of the telecommunications sector.
I believe that Indian telecom operators are positioning themselves well for changing trends. RCOM and Bharti Telecom are selling part of their stakes in the infrastructure of towers or spin-off of towers in their infrastructure a separate subsidiary, and thus realize value for their shareholders. Nokia, world's largest maker of mobile phones, has experienced extraordinary growth rate (Recently reported 13% increase from year to year gains) due to its presence in emerging markets that has kept it is relatively insulated from any slowdown in the West. The current global crisis spread to the Asian continent is somewhat gradual decrease its growth targets if.
What is forgotten is that the global telecommunications industry is changing and the world's largest companies telecommunications are rushing to add capacity (even if located in mature markets) to add capacity on inter-continental routes, to meet the growing demand fueled by consumers downloading video content bandwidth-intensive from YouTube, iTunes and other sites over broadband networks. technological breakthroughs that have begun to surface in the telecommunications sector power rapid growth in this sector and result in the assessment of actions much higher when the world's capital markets finally recover and to grow.
According to TeleGeography Research, Washington-based telecommunications DC Consulting, "the growing capacity requirements on the systems of submarine cables linking the continents of the world has been driven by the emergence network applications rich in content and growth of the Internet, which are in turn justifying the upgrade of existing lines and construction new cables on roads less-served basis. According to Gary Breuninger, Marketing Officer of Global Crossing chief, "With over a terabit of capacity in Atlantic, Global Crossing has experienced an annual increase of over 60 percent of demand between 2004 and 2008. "It has made strategic investments in improving capabilities of its mid-Atlantic crossing subsystem fiber optic cable to meet the growing demand for Internet protocol and Ethernet transport among its customers and other companies.
There is also need to build new "redundancy" in the network of submarine cables as a protection against damage and breakage. The break in the Internet service in the Middle Sea and South Asia was the impact of three submarine cables being damaged is a grim reminder. According to TeleGeography, at least 25 new cables, costing about $ 6.4 billion, will be built between 2008 and 2010. The reasons for cable construction are often a combination of several factors including reduced capacity available on some cables, a desire for wider dining options, the need for different physical channels, competition and prices for High Capacity in some regions.
In 2001, only 30 households worldwide had access to broadband Internet. At the end of 2007 this figure had increased to over 337 m of households. India will soon see its first spectrum auctions for 3G and broadband wireless access (BWA). 3G technology has now made its mark in many parts of the world. The price of network equipment and handsets have fallen, 3G affordable, and the technology itself has improved. High Speed Packet Access (HSPA), the updating of data packets to the 3G tender Today about 5 Mbps average data rate for each cell tower with 5 MHz of spectrum. The latest evolution of technology HSPA is claimed to support the highest throughput of 15 Mbps. YouTube-like new applications bringing improved recipes become possible. It is the right time for Indian operators to embrace 3G.
Video new driver of growth in Internet traffic:
According to TeleGeography Research, the DC-based telecommunications Washington consulting, video is now the main engine of growth in Internet traffic. Applications such as YouTube, the iTunes online store, and peer-to-peer such as BitTorrent, helping Internet users consume huge amounts of bandwidth.
DoT has recently authorized the allocation 3G spectrum for BSNL and MTNL and India will soon see its auctions of spectrum for 3G first and broadband wireless access (BWA) services. Third generation mobile services allow users to surf the Internet content or downloading, including including music and video at speeds faster than current technologies deployed on Indian networks allow. 3G is expected to celebrate revolution in the area of broadband access and comes at the right time because the phone companies are peaking in terms of new contributions customers in metros. It will also enable the government to achieve the target of 20 million subscribers by 2010 and further its e-governance initiatives and m-commerce. The price of network equipment and handsets have fallen recently, which 3G affordable and technology itself has improved. High Speed Packet Access (HSPA), the updating of data packets for 3G, now offers about 5 Mbps average data rate for each cell tower with 5 MHz of spectrum. The latest evolution of HSPA is claimed to support the highest throughput of 15 Mbps. New applications like YouTube, providing improved recipes become possible. This is an opportune time for Indian operators to embrace 3G. Apple 3G i-Phone and will be in addition to the factors mentioned above significantly change the way we talk, communicate, make advertising and entertainment factors that influence our eating habits and investment funds. The iPhone 3G combines three products in one – a phone revolutionary, a widescreen iPod and a breakthrough Internet device. With entertainment being the major companies in India with 3G multimedia applications its capacity will provide a huge potential opportunity.
WiMax and WiFi technologies to benefit industry Telecommunications:
These technologies can provide voice and data services fixed and mobile terminals. WiMax can also be used in conjunction with Wifi to reduce the cost of terminal equipment for deployment in rural areas. These technologies are about to be deployed in large play an important role in the implementation of e-governance, e-learning and telemedicine.
Mobile / cell phone advertising: the next big thing after the online advertising:
The latest fad sweeping the advertising world is AdRBT (Ad Ring Back Tone). Via AdRBT, each time someone calls, he hears an announcement instead of a ring. This product has a maximum capacity compared to other ad products, which include advergaming, adfunded WAP content and advertising. RCOM created one of the first AdRBT of its kind for the Reliance Power IPO in January 2008.
Reliance Power jingle was estimated to have been heard 800 million a billion times, which is 3-5 times compared to other traditional media. One of the campaigns has been with Tata Teleservices Parachute hair oil to peak at promote the flavor of their bells balladic Tum Ho Hamesha superb. During the series of cricket IPL (Indian Premier League), there were 8,00,000 downloads "Karmayudh Cricket Ka 'the jingle in 45 days, so get significant revenues for telecom operators. AdRBT is non-invasive and has a mass reach.
The tracking stock quotes and portfolios of mutual funds / NAV on mobile phones: Fidelity AMC and ICICI Prudential AMC began allowing investors to check the values of portfolio and details of the transaction 24 * 7. In the context of complaints of non-delivery of statements time account, investors can check in real time the NAV, portfolio securities and their even go and make additions / redemptions of the click of a button. This will improve the use of mobile phones and enable investors to manage their investments anytime, anywhere.
Mobile / Cell gambling revenues phone: Is this a "Home run?
The firm Study Gartner predicts that mobile gaming revenue will experience a compound annual growth rate of 10.2% between 2007 and 2011 expenditures end users worldwide to $ 6.3 billion in 2011. India should lead the Asian countries in terms of total turnover mobile games has generated, with the 2007 figure at approximately $ 80 million. mobile gaming revenue is expected to reach 450 million by 2012. A Download a high-end gaming on mobile fees ranging between Rs 50 to Rs 100. For a relatively small sum, consumers can still enjoy the game and again, rather than pay a huge sum in advance. On a per-game, games Hungama could require anything between Rs 20 to Rs 150. The cost pay-per-play with Jump Games (Reliance) could be anything between Rs 5 to Rs 10. Players such as breakpoint, Glu Mobile, Gameloft, Tocco, Mophun, Electronic Arts are fast moving
Mobile banking to become popular: With nearly 41% of India of 1.1 billion people "unbanked", suppliers of mobile payment platform provides a huge market to facilitate services for micro-credit or variations of it on mobile phones at a reasonable cost. Estimated customers mobile banking services to between 50 million and 100 million over the next two years, by which India could be home to nearly half a billion phone users Mobile cons about 300 million today.
Mobile messaging to replace e-mail: Mobile email help organizations to overcome physical and economic reach of mass, leading to reduced costs and increased efficiency and productivity through real-time communication.
rural growth is an important growth driver:
Some two billion new subscribers are expected to start using mobile phones over the next five years, and 80% of them live in developing country markets. For networks of mobile energy in remote areas today, telecom operators pair base stations – the radio transmitters of the tower-top that form the backbone networks of mobile generators with- diesel engine and batteries. The fact that the fuel is 65% of the cost of operating a typical Base Station acts as a damper.
telecom giants such as Telefon AB LM Ericsson, Alcatel-Lucent and Motorola Inc. are all looking at how they could change the equipment existing telecommunications to run on less electricity or on renewable energy. Ericsson and Alcatel-Lucent have separately installed about 400 solar-powered base stations in African countries, including Senegal and Uganda. In India, Ericsson has installed some 40 base stations ob operate biodiesel, essentially recycled cooking oil. Station works with Alcatel-Lucent's solar base 750W, while Ericsson requires 600W.
VNL (Vihaan Networks Ltd.) has developed a simplified base station (costing $ 3,500 or Rs 1.5 lakhs) funded by panels Solar and consuming only 100 watts, about the same as a light bulb. In comparison, the GSM stations most widely used today may cost anywhere from $ 40,000 to $ 100,000. rural telephony is an opportunity to bridge the digital divide between areas urban and rural India.
4G technology is emerging on the scene:
A standard known as IEEE 802.16e (belonging to the family Mobile WiMax) is now commercially available and is a curtain raiser to the 4G. Its flow cell per MHz of spectrum may now be comparable to that HSPA technology, but its total data rates with a bandwidth higher transmission. Soon the next generation 802.16m will be standardized as a candidate for 4G, which promises to provide data speeds of around 100 Mbps in 15 MHz. Another standard OFDM, LTE and LTE-A cousin becomes a candidate for 4G with a similar speed. Such high throughput enables broadband wireless to compete with copper-based DSL widely available today. India is about to attend a wireless revolution.
Currently underserved areas served, particularly in Africa, Caribbean and the Middle East are fueling demand for more cable capacity:
Google, the Internet search and advertising company, is one of six groups that have announced plans to build a cable 10,000 km submarine broadband fiber optic link the United States and Japan. Other partners in the $ 300 million Unity consortium, including India's Bharti Airtel, Global Transit, KDDI, Pacnet and SingTel.
AT & T, the largest telecommunications group in the United States, is involved in six projects international consortium cable, including the Trans-Pacific Express, where he joined with Japan's NTT DoCoMo in early 2008. Other participants in this project include Verizon and a handful of carriers Asia, including China Telecom, China Netcom, China Unicom, Korea Telecom and Chunghwa Telecom in Taiwan.
Caution should not be thrown to the wind: HSPA evolved limiting CDMA techniques in a large extent (by limiting it to a spreading factor 16) and co-opting the developments related to emerging technology 3.5G/4G wireless OFDM. However, it lacks the wider bandwidth transmission (typically 15-20 MHz) 4G technology is built brick by brick using OFDM (frequency division multiplexing orthogonal) technology. The government and regulators must act not only to ensure that spectrum is not undervalued, but also that it is no overstatement, which could in long-term impact on customers and broadband penetration. Nearly 30% of what we consumers are paying today goes to the government through the service tax, license fees, spectrum charges USO tariffs and excise taxes, sales tax, etc.. Operators need to understand technology deeply and not go by the vendor hype. This exaggeration was significantly contributed to unrealistic offers on 3G spectrum in Europe.
Disruptive technologies, which make their mark in the telecommunications sector have the potential to transform the way we live our lives, ensure rapid growth and significantly higher stock market in telecommunications. It is not surprising that even a market society connected as Google has made its mark on the map of online advertising and was the darling of Wall Street has now changed its focus to the mobile / cellular phone arena to power its growth in years to come. It will be in India's interest to see that both 802.16m and LTE-A rival as a 4G standards in the Indian market. India is expected to affect the availability phones that support both standards, and a price not exceeding one standard handset. The similarity of the two standards makes it technically possible. India is a market big enough to be able to claim convergence. Google hopes to hook the millions of mobile subscribers in India who do not use data or SMS-based services in its research based on the voice. It is in the process automation service voice search and collection of samples of voice and dialect users in Hyderabad and Delhi. Similar to Just-Dial, another search engine based on the voice; consumers will be invited to call a toll-free number from either a landline or mobile and request the information they need. Google or transmit information through an SMS or read it out. Mobile phones of the future will be integrated with breakthrough technologies that transform radically the way we research, analyze and retrieve voice and data.
Note Mr Sunil Kewalramani is a Wharton Business School MBA. He is the CEO, Global Capital Advisors. He can be contacted at worldequity@sunilkewalramani.com .
Mandatory Disclosure: It is assumed that I own stock in telecommunications markets Global equity and would have advised my clients on stocks on lines similar to the view I expressed above.
About the Author
Mr Sunil Kewalramani is a Wharton Business School MBA, a CPA, CA and a leading consultant for multinational companies on global asset management, strategic planning and cross-border mergers and acquisitions
UFirst Telecom : Digital landline, landline telecom Dublin, VoIP service UK
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