India Vs Pakistan (Telecommunication Sector)

1617 Words4 Pages
bulb-icon

Recommended: Mobile phones addictions

Pakistan and India Telecommunication industry: a critical analysis

INDIA SIDE

Telecom statistics

November’05 December’ 05 January’06

Total subscribers 119.9mn 123.85mn 129.82mn

Tele-density 11.00 11.43 12.00

Fixed line 48.47mn 48.93mn 49.21mn

Additions during the month 0.28mn 0.46mn 0.28mn

Mobile 71.46mn 75.92mn 80.61mn

Total additions during the month 3.51mn 4.46mn 4.69mn

GSM additions 2.32mn 3.19mn 3.52mn

CDMA additions 1.18mn 1.17mn 1.17mn

India’s tele-density in January 2006 neared 12% with the subscriber base nearing the 130mn mark. During January 2006, record 5mn subscribers were added as against 4.92mn subscribers in December 2005. This strong growth could be attributed to lifetime validity cards launched by almost all operators. During the first 10 months of FY06, 31.41mn subscribers have been added. In the fixed segment, a total of 0.28mn subscribers were added during January 2006, taking the subscriber base of fixed line services to 49.21mn. In the mobile segment, total additions during the month summed up to 4.69mn with highest ever GSM additions of 3.52mn and CDMA additions of 1.17mn. During the first 10 months of FY06, 28.39mn subscribers have been added.

Bharti set to raise FDI limit to 74%

Bharti Tele-Ventures has proposed to raise the foreign direct investment (FDI) ceiling to 74% from the present 49%. The private telephony major has placed a special resolution seeking shareholders' permission. In a letter to shareholders, Bharti said the move was "to comply with the terms and conditions incorporated in the licence agreement by DoT." The government through the press note 5 (2005 series) dated November 3, 2005 has enhanced the FDI ceiling from 49 per cent to 74 per cent in telecom. The company is also mulling over amending its `Article of Association', which states the maximum number of directors cannot exceed 18, so that it can induct three more members. To comply with the listing agreement requirement, FDI guidelines, other statutory requirements and shareholder agreements, the company is required to broaden its base. It is, therefore, proposed to amend article 117(a) of the Article of Association to increase the existing limit of 18 to 21. The existing article will be replaced by a new one, which would state that the company's management will comprise not less than eight and not more than 21 directors, "unless a greater number is required for legal, regulatory, listing requirements or to meet the provisions of the shareholder agreement". However, this is subject to government approval.

Mobile telephony update

Mobile telephony services are rapidly expanding and have contributed approximately 941% to new subscriber additions in January 2006. The segment’s subscriber base grew 5.16% mom to 80.61mn. Of the total subscriber’s added, almost 75% subscribers belonged to the GSM segment and the rest were CDMA segment.

Show More
Related

  • Verizon Wireless - Price Of Demand

    1350 Words  | 3 Pages

    Verizon Wireless cellular service is inelastic because the products and services it offers makes them the dominant leader in the wireless industry; therefore, a 10% change in calling plan prices (monthly access fees) would not affect the quantity demanded. Verizon Wireless can depend on this inelasticity in their pricing model because of the strength of its brand and the wealth of products and services it offers. Verizon Wireless' competitive advantage comes from its ultra-low churn rate (the percentage of customers who disconnect their service is less than one percent of its 60 million customer base). This indicator suggests that customers are satisfied with the service Verizon Wireless offers and a slight price increase probably would not drive its customers to the competition. This data also suggests that customers probably stay with Verizon Wireless because of its continued expansion of new technologies and services such as its all-digital nationwide CDMA network, ‘EVDO' or its advanced data network (used to wireless send and receive email and other data almost anywhere in the US), and VoIP (Voice over Internet Protocol) that they use for their Push to Talk products. Verizon Wireless markets to a nearly all demographics nationwide and most of its services are offered in the smaller rural markets as a direct result of the one billion dollars per quarter it spends on improving its network as well as acquiring smaller wireless networks to make their nationwide network stronger and larger.

    Read More

  • Discussion on Iridium

    1210 Words  | 3 Pages

    In 1990s, ground-based wireless phone service grew rapidly around the world. A key factor in the growth of wireless phones was the adoption of a single standard, known as GSM, in Europe and parts of Asia. There were 480 million cellular subscribers worldwide by January 2000 and it reached more than billions before 2005. The economy of scale that introduced will provide the extent of competitive pressure in the business environment. It helps to stimulate Iridium to consider price-performance tradeoff that offered by the substitutes and the need of product differentiation alternatives in advance.

    Read More

  • Why China Can Attract More FDI: A Response to "Competitiveness in India and China: the FDI puzzle"

    1483 Words  | 3 Pages

    Zheng, P. (2009). A comparison of FDI determinants in China and India. Thunderbird International Business Review, 51(3), 263-279. doi:10.1002/tie.20264

    Read More

  • Role of Outside Directors in Firm Monitoring

    1174 Words  | 3 Pages

    The Council of Institutional Investors (1998) documents that full-time directors should not serve on more than two other boards. The National Association of Corporate Directors (1996) suggests that full-time directors should not serve on more than three or four other boards. In contrast The Principles of Corporate Governance issued by The Business Roundtable (1997) believes that limits on the number of directorships are not required. Further a survey of directors of Fortune 500 companies by Korn/Ferry International (1998) shows that too many board appointments place an excessive burden on a director. Fifty-six percent of outside directors report that they declined an invitation to serve on an additional board, sharing the view that it is not feasible to serve too many boards. Because the directors in the survey believed that too many board appointments might distract them, thereby making them inefficient monitors. There is ample evidence that suggest the US market has efficient infrastructure and established institutions that has well-functioning capital, labor and product markets. The transaction cost theory proposed by Coase (1937) and Williamson (1985) suggests that the optimal structure of a firm depends on its institutional context . However, in emerging market

    Read More

  • Aeropostale Inc. Corporate Governance

    880 Words  | 2 Pages

    With good corporate governance, the costs of capital are lowered, transaction costs are reduced and firms are encouraged to use resources optimally (Balgobin 2008). The board comprises of 11 members, the chairperson, seven independent directors, two non-executive director, and one executive director (Chief Executive Officer). This is reflective of a unitary board with majority non-executive directors which is typical of significant listed companies in the United States of America and is in compliance with NYSE requirement for listing. In addition, the size of the board is similar to most publicly-traded companies in the US which was discovered to have between 8-11 members. By-law of the Company however, provides for a larger number at the discretion of the board.

    Read More

  • Phone Usage in Schools: A Given Luxury, or a Deterrent from Learning?

    916 Words  | 2 Pages

    Phones have come a long way from their beginnings. When the first phone was developed, a mere phone call took up to ten minutes just to connect. The calls made on this phone would go through a system of connections where the caller would have to state who they were calling and where the person lived. It would be many years later that a telephone would be created that made use of a dial, which made calling easier. In 1963, the first pushbutton telephone was distributed by the company, Bell Telephone. In 1983, the first cellular device, the Motorola DynaTAC 8000X, was created, which took the world by storm. Soon later, miniature computers were being put in these devices, allowing the user to browse parts of the web while on their cellular device. Yet we wouldn’t see a product that allowed us to browse the web, communicate with others, and let us store music and run apps, until 2007. (ht...

    Read More

  • SWOT Analysis: Telstra

    737 Words  | 2 Pages

    Wired telecoms involve telephone networks, cable television internet access and fiber-optic communication (Kaur & Monga 2014). Wireless telecoms include cell phone and other wireless networking (Kaur & Monga 2014). The telecommunication industry of Australia is in the mature stage of life cycle (IBIS 2016), with compound annual growth rate (CAGR) of 0.1% in the five-year period 2012-2017, to reach 43.4 billion dollars (IBIS 2016). Both fixed line and wireless providers have been reducing prices and providing additional value on their plans in order to maintain their market share as well as keep customer base. It is forecasted a return to positive CAGR of 1.5% in 2015-2020 (IBIS 2016).

    Read More

  • Onetel Case Study

    1655 Words  | 4 Pages

    Background One. Tel was launched by Jodee Rich and Brad Keeling in 1995 (Cook, 2001). At first, it looked to get the advantages from deregulation of the telecommunication industry by reselling other network’s capacity and making money through stock market speculation. Rich and Keeling tried to increase the company’s shares rather than profit the company (Cook, 2001). Initially, One.

    Read More

  • Cellular Phones

    1011 Words  | 3 Pages

    Cellular phones carry a diverse group of users. In June 1985, there were about 203,000 cellular phone service subscribers. By June 1989, the number had exploded to 2.7 million subscribers, and by June 1995 there were mire than 26 million subscribers. When cell phones were first introduce, only people with a lot of money had them and the service was very expensive. It was a lot cheaper to stop and use the pay phone than it was to use a cell phone. Now, it is almost as cheap to use a cell phone to make a long distance call as it is to make a long distance call using AT&T.

    Read More

  • Telco Essay

    1325 Words  | 3 Pages

    The telecommunications industry has changed drastically over the past two decades. Combined computational power together with the new telecom infrastructure have made the world very well connected. Now, the millennials use 4G connection on their smartphones to stay online, download applications, watch television, play games, read and do a lot more. This ever-increasing customer demand has led to telecom companies offering a diverse portfolio. Earlier, they only provided landline connections and basic mobile services for making voice calls and sending text messages.

    Read More

  • Position of Vodafone in International Markets

    2887 Words  | 6 Pages

    Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).

    Read More

  • General Environment of T-mobile

    1823 Words  | 4 Pages

    Mobile is the first order priority device for access because people are connecting with others, finding entertainment, and doing business—all with smart phones. The prices of mobile phones are never over $1,000 in today’s world. They are affordable and accessible. As the result of the changes the worldwide and national business environment has undergone, people own 1-2 cell phones on average. However, the mobile markets in US seems to have been saturated.

    Read More

  • Vodafone

    882 Words  | 2 Pages

    There is a slowdown in sales of mobile handsets, in some markets like the UK, as the mature part of the product lifecycle is reached. Customers are exposed to a barrage of different images and messages by mobile phone companies, as the competition gets tougher. Vodafone appeals to new customers and aims to keep its existing ones by emphasising the uniqueness of the brand.

    Read More

  • The Negative Effects of Mobile Phones

    624 Words  | 2 Pages

    We should know how everyday life is changing and how this relates to mobile telephony. Work Cited = == ==

    Read More

  • Bharti Airtel Limited

    1421 Words  | 3 Pages

    Success Factors for Growth in the Indian Telecom Market. In India’s highly competitive market, Bharti must be mindful of how to keep its core competencies ahead as well as trying to develop new ones.

    Read More

More about India Vs Pakistan (Telecommunication Sector)

Open Document