TELECOM

Sector Watch
10% Customs Duty on import of select telecom
equipments could push up costs and data tariffs.
Aircel launches 4G LTE Broadband in Andhra
Pradesh, Assam, Bihar & Odisha.
Huawei Tech. Co. Ltd. reports 19% rise in
revenue, (135.8 billion Yuan)
Khaitan Group's Telecom owe Rs. 808 crore in
spectrum and other charges to DoT
Federal Auditor suggests cancellation of Reliance
Jio's licenses
Bharti Enterprises sells majority stake in Beetel
teletech to Brightstar corp

Source:
http://economictimes.indiatimes.com/industry/telecom/articlelist/13354103.c
ms
http://gadgets.ndtv.com/telecom/news
http://indiatelecomnews.com/

Key Performance Indicators
Number of Subscribers: Total Subs, Subs
Segmentation: Prepaid, Post Paid, Subscriber per
Employee
Usage: Minutes of Usage, Roaming Minutes, Number
of Outgoing SMS
Revenue growth: For example- Vodafone Group has a
negative revenue growth of 1.9% as compared to
1.5% in 2012
EBITDA margin
Free cash flow: Vodafone Group had Free cash flow
of 5.6 billion which was within their guidance range
for the year
Mobile network performance floor
Relative market share performance


Source:
http://consultantvalueadded.com/2010/04/14/100-kpi%E2%80%99s-for-mobile-telecom-
operators/
Vodafone Annual Report
Growth Trends





Year of "project phase" for Indian telecom industry
Growth of voice services almost stagnated (2-3%
annual)
Data services increasing rapidly (12% 2G; 17%
3G Quarterly)

Source:
http://trak.in/wp-content/uploads/2013/10/3G-growth.jpg
Challenge Areas
Consumers addicted to connectivity and speed
High Competition
Minimizing costs while providing better services
for better customer satisfaction
Rapidly Falling ARPU
Ensuring reliability, availability and security of
network and services
Lack of Telecom Infrastructure in semi-rural
and rural areas

Source:
https://www.dnb.co.in/IndianTelecomIndustry/issues.asp
http://www.deloitte.com/view/en_US/us/Industries/industry-outlook/839e85e47142b310VgnVCM2000003356f70aRCRD.htm
http://www.eddingtonconsulting.com/CompanyBrochure.pdf
Our Opinion
We should invest in telecom sector
Large and important sector with around six and a
half billion connections across the globe
Number of mobile phone users doubled in the last
five years, increased by an average of 14% each
year
By 2012, 93% of the worlds population had a
mobile phone, whereas ten years ago this was
only 18%
Vast rural sector, a huge potential for growth
Worldwide Interoperability for Microwave Access
(WiMAX) Huge Potential