Telecommunication Industry: Mergers And Acquisitions In The Telecom Industry

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Mergers and Acquisitions:

Telecom industry now becomes very attractive in terms of mergers and acquisitions. Telecom industry now a days is the fastest growing industry all over the world. In this industry deals with several types of communication medium like fixed line phones, mobile phones ,internet and broad band services .Through mergers and acquisition domestic telecommunication cut down their expenses and they achieve greater market share. Many Telecommunication service provider take mergers and acquisition for growing globally. In the telecommunication sector the growth of mergers and acquisition boosted by the private sector investment and FDI.
The main reason for rapid growth of telecom industry through mergers and acquisition are: first of all deregulation ,second one is wireless land phone services and finaly the last one is innovative products like internet, broadband and cable services.
In India, mergers and acquisition in telecom industry increases from the mid of 1990s.In developed country like US, the mergers acquisitions in this sector is going in the full-fledged manner.
The telecommunication industry mergers and acquisitions completely controlled and supervised by the TRAI (Telecom regulatory authority of India).TRI always keep a tab on the telecom industry so that no monopoly formed.
The following are the mergers and acquisitions took place in the telecommunication sector:
All Tata tele services under Tata DOCOMO:
Under Tata DOCOMO all the services of telephony provider Tata Teleservices Limited (TTSL) including Tata indicom, Tata walky and Tata photon are comes. The company will provide the CDMA and GSM platforms. Due to this merger all the customer of Tata indicom migrated to Tata DOCOMO. The migrati...

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...Import Intensity:

2005 2006 2007 2008 2009 2010 2011
Bharti 28.53 20.85 23.08 25.55 15.78 9.72 9.96 reliance 23.59 7.26 45.63 76.00 6.15 1.69 0.00
Vodafone 22.03 30.23 40.75 26.57 23.20 13.22 15.33
Idea 16.23 16.92 21.75 24.32 19.99 17.72 11.07
Bsnl 1.75 2.95 1.63 1.26 4.14 4.64 1.70

Import Intensity (%) = Total Forex Spending / Net Sales

From the above graph it is visible that:
Import intensity for Reliance goes down from year 2005 to year 2006, later in the year 2007 and 2008 it increases and then again it goes down in the year 2009.
In case of BSNL we can see that the import intensity was negligible up to year 2008 and later it increases but very less as compared to other service providers.
Note: From the import and export intensity of BSNL it is visible that its operations are mostly internal to the country. BSNL neither Imports more nor exports more.

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