TELELCOM SECTOR

FROM
INVESTORS PERSPECTIVE

SUBMITTED BY :-
YASHPAL SINGH MBA(II)
 PRESENTATION PLAN
INTRODUCTION
OBJECTIVES OF STUDY
ECONOMY ANALYSIS
COMPANY ANALYSIS & COMPARISION
SWOT ANALYSIS
SUGGESTION & RECOMENDATIONS
 Introduction to
Indian Telecom
Industry`
The Indian Telecom sector is third largest
network in the world.
Subscriber numbers already crossed 300 million.
Compound growth rate of over 40% in respect of
subscribers.
Monthly additions of above 8 million phones.
Growth impetus from wireless segment with 84%
wireless and 16% wired.
 Further access is provided by 54 lakh PCOs
and 5 lakh VPTs.
10 million Internet and 7.5 million broadband
subscribers.
All most all the cities have been provided with
broadband connectivity out a total of five
thousand cities
 Players of Telecom
Industries
Bharti Airtel - 33.9 %
Vodafone –Essar Ltd. -19.6 %
Reliance Communications-12%
BSNL + MTNL – 11.8 %
Idea Cellular – 11.6 %
Tata teleservices – 7.2 %
 OBJECTIVES
To focus on Telecom sector
from investor’s perspective in
India.
To have comparative analysis of
telecom companies.
To describe and analyze return
of telecom sector companies to
investors.
 ECONOMY ANALYSIS
The Indian telecom industry is affected by
following factors:
Budget
Tax Reduction
Foreign Direct Investment
Contribution to GDP
Impact of Recession
COMPANY ANALYSIS AND
COMPARISION
 RATIO ANALYSIS
GROSS PROFIT RATIO
NET PROFIT RATIO
EARNING PER SHARE
CURRENT RATIO
 SWOT ANALYSIS
OF
INDIAN TELECOME
SECTOR
 Strengths:
Huge wireless subscriber potential
One of the fastest growing sectors
FDI limits are 74%
Unified license regime
Market is regulated by Government bodies
 WEAKNESS
Lowest call tariffs
Too many companies are ruling this sector
Value Added Services (VAS) is restricted
because of literacy and language problems
It is difficult to make into the semi-rural and
rural areas because of the lack of
infrastructure.
 OPPORTUNITIES:
To offer more VAS on GSM, CDMA and Internet
Service Providers (ISP)
Language independent services. E.g. sending
the message in local language, information
available in local language etc.
New innovations in service providers
Huge content providing to local culture as well
as globally
Foreign investments in form of equity or
technology
 THREATS:
Threat of low cost service providers
Political instability
Global interference
The service providers have to incur a huge initial
fixed cost to make a mark in rural markets.
Achieving break-even under these circumstances
may prove to be difficult.
 SUGGESTIONS &
RECOMMENDATIONS
Instead of going for one sector, investor should
diversify their investment to minimize their risk
and to obtain high returns.
Since, the fundamentals of telecom industries are
better than other banking ,insurance and other
financial sector, investors have better opportunity
in telecom sector
From Investors point of view, the telecom sector
in Indian capital market still remains highly
lucrative, with approximately 8 million users are
added per month, making India the world’s fastest
growing wireless services market.