Category: telecom
Reliance Infratel demerger from RCom into GTIL Infrastructure
Reliance Communications announced it has approval to demerge its tower business Reliance Infratel (RITL) into GTL Infrastructure Ltd. (GTLI). The combined entity will have over 80,000 towers and has EV of US$ 11 bn, implying an EV/tower of US$133k. Optic fibre assets, owned by RITL, are not a part of…
What End of BWA Spectrum Auction mean to the Sector ?
The Broadband Wireless Access Spectrum Auction came to an end this morning with Infotel Broadband Services springing a surprise by winning Pan India Spectrum. Lets analyze what this mean to the sector and leading operators. Bharti has won BWA spectrum in Maharasthra (and 3 other circles), a very important circle…
RCom – MTN Deal Unlikely
Media Reports suggest that MTN could reopen negotiations with RCOM. Per reports, the proposal is similar to the one in 2008 when RCOM had proposed to merge with MTN by swapping Anil Ambani’s 67% equity holding in the Indian company with MTN shares. We believe the possibility of such a…
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…
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 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…
Idea Cellular Cares less of Uninor Discount Engine
The management of Idea Cellular sees Uninor’s recent dynamic pricing plans (discounts linked to capacity utlisation) as being factory-oriented rather than consumer-oriented. Idea believes these plans are not impactful so far and hence unlikely to trigger price reaction from other operators. Further, Idea’s top management said that irrational competition has…
Which Equipment Vendors Power our Network ?
The Government of India has been successfully blocking Chinese Equipment being deployed in India’s Telecom network by an indirect means of delaying the approval and certification of equipment indefinitely. This move follows a period of more than 12 months of uncertainty, in which the Home Ministry of India had raised…