Telicom Sector of Investor Prespective-yashpal
Transcript of Telicom Sector of Investor Prespective-yashpal
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TELELCOM SECTORFROM
INVESTORS PERSPECTIVE
SUBMITTED BY :-YASHPAL SINGH MBA(II)
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PRESENTATION PLAN
INTRODUCTION
OBJECTIVES OF STUDY
ECONOMY ANALYSIS
COMPANY ANALYSIS & COMPARISION
SWOT ANALYSIS
SUGGESTION & RECOMENDATIONS
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Introduction toIndian Telecom
Industry`The Indian Telecom sector is third largestnetwork in the world.
Subscriber numbers already crossed 300 million.
Compound growth rate of over 40% in respect ofsubscribers.
Monthly additions of above 8 million phones.
Growth impetus from wireless segment with 84%wireless and 16% wired.
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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 withbroadband connectivity out a total of five
thousand cities
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Players of Telecom
IndustriesBharti Airtel - 33.9 %Vodafone Essar Ltd. -19.6 %
Reliance Communications-12%
BSNL + MTNL 11.8 %
Idea Cellular 11.6 %
Tata teleservices 7.2 %
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OBJECTIVES
To focus on Telecom sectorfrom investors perspective inIndia.
To have comparative analysis oftelecom companies.
To describe and analyze returnof telecom sector companies toinvestors.
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ECONOMY ANALYSISThe Indian telecom industry is affected by
following factors:
Budget
Tax Reduction
Foreign Direct Investment
Contribution to GDP
Impact of Recession
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COMPANY ANALYSIS ANDCOMPARISION
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RATIO ANALYSIS
GROSS PROFIT RATIO
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NET PROFIT RATIO
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EARNING PER SHARE
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CURRENT RATIO
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SWOT ANALYSIS
OF
INDIAN TELECOME
SECTOR
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Strengths:
Huge wireless subscriber potential
One of the fastest growing sectors
FDI limits are 74%
Unified license regime
Market is regulated by Government bodies
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WEAKNESS
Lowest call tariffs
Too many companies are ruling this sector
Value Added Services (VAS) is restricted
because of literacy and language problemsIt is difficult to make into the semi-rural and
rural areas because of the lack of
infrastructure.
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OPPORTUNITIES:
To offer more VAS on GSM, CDMA and InternetService 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 globallyForeign investments in form of equity or
technology
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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 circumstancesmay prove to be difficult.
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SUGGESTIONS &
RECOMMENDATIONS
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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 worlds fastest
growing wireless services market.
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