Month: May 2010
3G Auction Ends – Pan India Price – $3.64 Bn
The 3G Spectrum Auctions came to an end in India with the Government playing the trump card by creating spectrum scarcity and unclear roadmap for the sector. Bharti, Vodafone and RCOM obtained spectrum in the ‘coveted’ Mumbai and Delhi circles, while Aircel was the major surprise factor, gaining spectrum in…
2G Spectrum Price Likely to be De-Linked with 3G Price
TRAI issued recommendations that tagged 2G Spectrum Price with that of 3G. However, the recommendations are not likely to be accepted in its current form. Industry Analysts met DoT and TRAI officials and here is the takeaway from the meeting. De-linking of 2G Spectrum price from 3G Auction Price: Incumbent…
RCom – Management Meet
RCOM’s 4QFY10 revenues and EBITDA (down 4%/ 12% qoq) came in 6%/13% below our estimates. Reported PAT of Rs12.2bn was up 10% qoq, but we estimate adj. /normalized PAT of Rs4.9bn (down 25% qoq). RCom Management on Impact of TRAI Recommendations – Mgmt confirmed that savings on account of reduction…
TRAI’s 2G Policy draws criticism from all corners
TRAI’s New 2G Spectrum Allocation and Renewal recommendations along with guidelines for M&A has drawn criticism from all the corners. Lead Institutional Investors, the big financiers for Indian Telecom Sector are unhappy with the recommendations and their reaction is as under, Citigroup said, Though the TRAI recos will need to…
TRAI Recommendations for Spectrum, M&A – Telecom Sector
TRAI yesterday submitted wide-ranging recommendations to the government (DoT) on licensing, 2G spectrum allocation/pricing, M&A etc. We discuss they key recommendations, TRAI recommendations on licensing related issues Tower companies and Internet service providers brought under licence fees – Negative – Negative for Indus Tower joint venture, Bharti Infratel, and other…
3G Winners Business Case + Way Forward for Auction Losers
We are believers in the prospects of 3G in India due to maturity of internet usage, falling prices and improving usability of handsets and the proliferation of mobile applications. 3G Expenses and Income common for all Operators – We expect near term pressure on profitability of operators winning the 3G…
3G Auction Game – End Insight ?
Auctions should come to a logical end over the next 2-3 days, but demand movement and activity over the past two days clearly indicates that some operators have pulled out (technically taken eligibility points hit) either completely or partially from the auctions. However, we believe there are still enough players…
Uninor Performance Review + Outlook
Uninor [Unitech + Telnor JV in India] disclosed that it has 2.1m active subs i.e. just 50% of the reported 4.3m as of Mar-10. The company defines active subs as those that used network during last 30 days. Even on active subs, ARPU at ~Rs90 suggests low usage especially given…