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Telecommunications Sector: Why is the phone still ringing?

Trai's recent recommendations, if accepted, to connect the 330 million more users of mobile phones to computers and to inaugurate a new era of the telephone network. Subscribers also will be free to choose a company carrier of your choice for STD / ISD calls. It is feared that the Trai guidelines should affect the baseline major phone companies. Also to increase competition between service providers, new and formidable competitors as giant PowerGrid, Railtel, Sify, AT & T, British Telecom, Gail and Tulip Telecom, that have fiber networks in India will appear in the Indian telecom landscape overpopulated. But what is forgotten is that the basic concept of Internet telephony to spread in India, for existing competitors to feel the effects. A PC is required to make STD and ISD facilities, but the penetration of PCs in India is very low. It also requires a broadband connection and a good, reliable power, all the gaps in this country. The bag seems to think that is negative carriers. However, I believe that the telecommunications industry still has great moments to come. Here's why?

India has emerged as the fastest growing mobile market. More than 7 million new connections are added each month. Attention has been focused to date on new subscribers per month. As the telecommunications market at the stage of maturity, their Scores are eroded. minutes most of the analysis of telecommunication centers all MOU (use) per subscriber per month and ARPM (Average Revenue per minute). Bharti Telecom has recently announced that the average revenue per minute declined by 5 percent to 72 paise in the March 2008 quarter, fell further to just 66 paise during the quarter ended June 31, 2008, a decrease of 8%. However, MOU (minutes use) per subscriber increased from 507 in the previous quarter to 537 in the quarter ended June 31, 2008. Each time a company reports results of telephone is given a thumbs up or thumbs down on the capital markets as minutes of use per subscriber and subscriber additions in the positive or negative. This method of evaluation populations, I think, have a very narrow view of huge potential of the telecommunications sector.

I think telecom operators India is positioned well for the development trends. RCOM and Bharti Telecom to sell part of its shares in the infrastructure of towers or infrastructure to spin off its towers into a subsidiary separate and realize value for its shareholders. Nokia, the worldwide manufacturer of mobile phones, has experienced tremendous growth (it was reported recently 13 years% on increased revenues of years) Thanks to its presence in emerging markets has been relatively spared a slowdown in the West. Dissemination current global crisis in Asia is somewhat lower their growth targets, yes.

What is forgotten is that the global telecommunications industry is changing rapidly and the largest global telecommunications companies are rushing to add capacity (even if they are in mature markets) to add capacity on intercontinental routes, to meet the increasing demand fueled by consumers to download video content from YouTube's bandwidth, iTunes and other sites throughout broadband networks. Disruptive technologies have begun to emerge in the telecommunications sector will be a rapid growth in this sector and lead to assessments stocks significantly higher in world capital markets eventually recover, and gain ground.

According to TeleGeography Research, Washington, based telecommunications consultancy, DC, increased skill requirements in submarine cable systems connecting the continents of the world has driven by the emergence of network applications and content-rich Internet growth, which in turn justifies the upgrade of existing roads and building new cables on the road less used. "According to Gary Breuninger, head of Global Crossing's marketing," With more than one terabit of capacity in the Atlantic Global Crossing has increased annually over 60 percent of demand between 2004 and 2008. "The strategic investments made in strengthening the capacity of its Mid-Atlantic Subsystem Crossing fiber optic cable to meet the growing demand for Internet Protocol and Ethernet transport among its customers and other businesses.

There is also a need to build new "redundancy" in the network of undersea cables as a protection against damage and breakage. The interruption in Internet service in the Middle Sea and South Asia was the impact of three damaged undersea cables is a sad reminder. By Telegeography, at least 25 new cables, costing about $ 6.4 million, will be built between 2008 and 2010. They reasons for cable construction are often a combination of several factors, including reduced spare capacity in some cables, a desire for restoration options in general, the need to physically different channels, price competition and high capacity in some regions.

In 2001, only 30 million households worldwide had access Internet broadband. In late 2007, this figure had increased to more than 337 homes Mr. India will soon see its first auction of 3G spectrum and broadband wireless access Broadband (BWA). The 3G technology has left its imprint on various world regions. The prices for network equipment and phones have decreased, 3G, affordable and technology itself has improved. High Speed Packet Access (HSPA), the update package for 3G data, currently provides about 5 Mbit / s data rate averaged each cell tower for 5 MHz of spectrum. The latest evolution of HSPA is claimed to support up to 15 Mbps New YouTube-like A request which made it possible to improve revenues. This is the right time for Indian operators to embrace 3G.

Video of the new driver of growth in traffic Internet:

According to TeleGeography Research, Washington DC-based Telecommunications Council, the video is now the main engine of growth in Internet traffic. Applications such as YouTube, iTunes Store online, and peer-to-peer services like BitTorrent, users help consume huge amounts of bandwidth.

Department of Transportation has recently approved the award of 3G spectrum and India BSNL and MTNL will soon see its spectrum auctions, first for 3G wireless and broadband (BWA) services. Third generation mobile services allow users browse the Internet or download content, including music and video at faster speeds than current technologies deployed in networks in India permit. 3G is expected to celebrate the revolution in access to space and bandwidth comes at the right time, because telephone companies are peaking in terms of new clients in the metro again. It will also allow the government to achieve the goal of 20 million subscribers in 2010 and further its e-government initiatives and m-commerce. The price of network equipment and phones have fallen recently, making affordable 3G, and the technology has improved. High Speed Packet Access (HSPA) updating of 3G packet data, which provides about 5 Mbps average speed data for each base station in 5 MHz of spectrum. The latest evolution HSPA is claimed to support up to 15 Mbps News applications, such as YouTube provide enhanced revenue are possible. This is the right time for Indian operators to embrace 3G. Apple i-Phone 3G and also above factors could change the way they speak, communicate, advertise, and the factors that influence our entertainment habits food and funds. The iPhone 3G combines three products in one – a revolutionary phone, a widescreen iPod and a breakthrough internet device. With the fun being the major companies in India, 3G multimedia applications with its ability, will represent a huge potential opportunity.

WiMax and WiFi technologies to benefit the telecommunications industry:

These technologies can deliver fixed voice and data 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 the big game an important role in the implementation of electronic government, e-learning and telemedicine.

 

Mobile / Cellular telephone advertising: The next big thing after the online advertising:

After invading the world of how advertising is AdRBT (Ad Ring Back Tone). Via AdRBTs, every time someone calls, listen to an ad instead of a dial tone. This product has a capacity compared with products from other ads that include advergaming, adfunded WAP content and advertising. RCOM created one of the first of its kind for AdRBTs trust IPO office in January 2008.

The energy dependence was estimated jingle that have been heard $ 800 million to one billion times, which is 3-5 times compared with other traditional media. A campaign has been Tata Teleservices parachute hair oil peak to promote the taste of your jingle ballad "Beautiful Ho Hamesha Tum. During the IPL (Indian Premier League) cricket series, there were 8,00,000 download the jingle" Cricket Ka Karmayudh in 45 days in order to obtain significant revenues for telecom operators. AdRBT is not invasive and has a range of masses.

Continuation stock quotes and portfolios of mutual funds / VL on mobile phones: Fidelity AMC ICICI Prudential AMC and began to allow investors to check values of the portfolio and details of the operation 24 * 7. In the context of the complaints do not arrival time, billing statements, investors can see in real time NAV, the Portfolio equity and spend even make additions and / redemptions click of a button. This will improve the use of mobile phones and enable investors to manage their investments at any time, anywhere.

Mobile / cell phone gaming revenues: it is a home run?

Research firm Gartner predicts that mobile gaming revenue will experience a compound annual growth rate of 10.2% between 2007 and 2011 end-user spending worldwide to $ 6.3 billion in 2011. India should lead among Asian countries in terms of turnover Total Games phones have generated, with the 2007 figure at approximately $ 80 million. the mobile gaming revenue is expected to reach 450 million in 2012. You can download a game high-level mobile rates ranging between 50 and R 100 R. For a relatively small sum, consumers can enjoy the game again and again, instead of paying a large sum in advance. On a per-game, games Hungama could require anything between Rs 20 to 150 rupees. The cost of paying for playing with Jump Games (dependence) can be anything between R 5 and R 10. Players such as breakpoint, Glu Mobile, Gameloft, Player One, Mophun, Electronic Arts are moving quickly in.

Mobile Banking popular for almost 41% of India's 1.1 million people of "unbanked", providers of mobile payment platform offers a huge market for services providing micro-credit or variants thereof in mobile phones at a reasonable cost. According to estimates, customer services mobile banking, 50 to 100 million over the next two years, in which India may be home about half a billion mobile phone users, compared with around 300 million today.

Mobile messaging to replace e-mail: The solution organizations to help overcome physical and economic barriers to reach the mass, leading to reduced costs and increased efficiency and productivity through communication in real time.

Rural growth an important growth engine:

About two million new users are expected to start using mobile phones over the next five years, and 80% live in developing world markets. energy networks to mobile phones in remote areas today, telecommunications operators pair base stations – the radio transmitters of the tower-top that form the backbone of mobile networks, with diesel generators and batteries. The fact that the fuel is 65% of the cost of operating a typical act of the base station as a shock.

Telecom giants such as Telefon AB LM Ericsson, Alcatel-Lucent and Motorola Inc. all watching how they could solve existing telecom gear operate with less power or renewable energy. Alcatel-Lucent and Ericsson have separately installed a solar energy 400 base stations in African countries like Senegal and Uganda. In India, Ericsson has installed 40 base stations operating primarily ob recycled cooking oil biodiesel. Work with the base station of solar energy W 750 Alcatel-Lucent, Ericsson, while it requires 600W.

VNL (Vihaan Networks Ltd.) has developed a simplified base station (cost, $ 3,500 or Rs 1.5 lakh) powered by solar panels and consumes only 100 W, or about the same as a light bulb. In comparison, the GSM stations most widely used today can cost from $ 40,000 to $ 100,000. Rural Telephony is an opportunity to reduce the digital divide between urban and rural India.

4G Technology appeared on the scene:

 

A standard known as IEEE 802.16e (belonging to the family of mobile WiMax) is now available on the market and is a curtain raiser to the 4G. The flow cell MHz spectrum today may be comparable to that of the HSPA, but the full scale of the data with a bandwidth higher transmission. Soon, 802.16m the next generation will be standardized as a candidate for the 4G, and is committed to providing data speeds of around 100 Mbps in 15 MHz. Another standard OFDM LTE and LTE-cousin of A becomes a candidate for the 4G with a similar rate. This will enable broadband wireless broadband to compete with copper-based DSL now widely available. India is on the verge of a wireless revolution.

Currently served areas, especially in African, Caribbean and Middle East are fueling demand for more cable capacity:

Google Search the Internet and advertising business, is one of the six groups that have announced plans to build a 10,000 km submarine cable for broadband optical fiber connecting the U.S. and Japan. Other partners in the $ Bharti 300 million units of the Partnership in India Airtel, Global Transit, KDDI, Pacnet and SingTel.

AT & T, the largest telecommunications group in the U.S., participating in six international consortium cable projects including the Trans-Pacific Express, which merged with NTT DoCoMo in Japan in early 2008. Other participants include Verizon draft and a handful of Asian carriers like China Telecom, China Netcom, China Unicom, Korea Telecom and Chunghwa Telecom in Taiwan.

Attention should not be thrown to the wind: CDMA HSPA evolved greatly limit (by a factor limiting the spread 16) and co-option of the events related to emerging wireless technology 3.5G/4G OFDM. However, no increased bandwidth of transmission (for Usually 15 to 20 MHz) 4G technology is built brick by brick by OFDM (Orthogonal Frequency Division Multiplexing). The government and regulators must act not only ensure that frequencies are not undervalued, but that is not an exaggeration, which could affect long-term customers and broadband penetration. Almost 30% of what we as consumers are now paying the government through the payment of services, license fees, spectrum, universal service fees, rights customs and excise duties, sales tax, etc. Operators must understand technology and do not go deeply by the vendor hype. This exaggeration is contributed significantly to the unrealistic offers of 3G spectrum in Europe.

The revolutionary technologies that make their mark in the telecommunications sector have the potential to transform how we live our lives, ensuring rapid growth and significantly higher stock price of telecommunications. Not wonder that even a market society with a large domain of Google, who left his mark on the map of online advertising and has been the darling of Wall Street has now shifted its attention in the mobile / cell phone arena to fuel its growth in the coming years. It is in the interest India's view that both 802.16my LTE-A and 4G standards competing in the Indian market. India should affect the availability of phones that support Once the rules and not a higher price to a basic device. The similarity of the two standards makes it technically possible. India is a market large enough to be able to require the convergence. Google hopes to hook the millions of mobile subscribers in India who do not use data or SMS-based services to their voice-based search. It is in the service automation search process and collect voice samples voice and dialect users in Hyderabad and New 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. The future of mobile phones are integrated with advanced technologies to radically transform the way research analyze and retrieve voice and data.

Note: Mr. Sunil Kewalramani is an MBA from Wharton Business School. He is the director Generally, financial advisors worldwide. He can be reached at worldequity@sunilkewalramani.com .

Mandatory Disclosure: It is safe to assume they have shares in global equity markets, telecommunications, and I advise my clients on stocks in the same direction in 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

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