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- philocalist,kosher,susceptive,addlepated,philonoist....and.... i abhor pugnacious people...!!!!
Saturday, September 25, 2010
Sunday, September 19, 2010
Finance Glossary - Common Terms & Definitions
Amortising loan
An amortising loan is one in which the principal and the interest of the loan is paid down through set payments over the life of the loan. Amortising loans are the most common types of loans written in Australia.
Application fee
This fee is paid by the customer for setting up the loan.
Approval in principle
An initial step in getting a home loan where the lender estimates how much the customer can borrow based on the information they have provided. Final approval occurs after a more rigorous process is followed.
Basis points
Each basis point is equivalent to 0.01%. Therefore, a 1% increase in interest rates is equal 100 basis points.
Break cost
Fees charged by the lender if the loan is paid-off in full early by the customer.
Bridging finance
Bridging finance is a temporary loan or facility that is often used when buying a new home before selling the old home. As the name implies, bridging finance is a short term loan.
Comparison rate
A rate which includes fees and charges so loans can be compared on equal footing. For example, a loan with a low advertised rate but high fees might cost the borrower the same as a loan with a higher advertised rate but low fees. In this case, both loans would have the same comparison rate.
Conveyancing
The process of transferring the legal title of a property between the seller and the buyer. This usually requires a third party known as a conveyancer who is trained in all aspects of property law.
Credit limit
The maximum that a customer can borrow under their agreement with the credit provider.
Credit report
A report containing information relevant to the credit history of the customer.
An amortising loan is one in which the principal and the interest of the loan is paid down through set payments over the life of the loan. Amortising loans are the most common types of loans written in Australia.
Application fee
This fee is paid by the customer for setting up the loan.
Approval in principle
An initial step in getting a home loan where the lender estimates how much the customer can borrow based on the information they have provided. Final approval occurs after a more rigorous process is followed.
Basis points
Each basis point is equivalent to 0.01%. Therefore, a 1% increase in interest rates is equal 100 basis points.
Break cost
Fees charged by the lender if the loan is paid-off in full early by the customer.
Bridging finance
Bridging finance is a temporary loan or facility that is often used when buying a new home before selling the old home. As the name implies, bridging finance is a short term loan.
Comparison rate
A rate which includes fees and charges so loans can be compared on equal footing. For example, a loan with a low advertised rate but high fees might cost the borrower the same as a loan with a higher advertised rate but low fees. In this case, both loans would have the same comparison rate.
Conveyancing
The process of transferring the legal title of a property between the seller and the buyer. This usually requires a third party known as a conveyancer who is trained in all aspects of property law.
Credit limit
The maximum that a customer can borrow under their agreement with the credit provider.
Credit report
A report containing information relevant to the credit history of the customer.
Saturday, September 18, 2010
Tuesday, September 14, 2010
FACE TO FACE WITH NAVEEN BHAITIA:CEO OF BHATIA NAVEEN & COMPANY(Secrets behind his success)
The man who faced the great problem of unemployment in the beginning of his career, is now a renowned business personality of Ludhiana. Naveen Bhatia, the 40 years old CEO of Bhatia Naveen & Co. and Direrctor of B & G Power Ltd. has attained this distinguished place in the society with his hard work and diligent efforts. He is a familiar name in Ludhiana Stock Market. An addendum would include: earthy,inspiring and ambitious.He has also diversified his resources in the lucrative business Real Estate. Apart from these businesses now Mr. Bhatia has further planned to expand his activities in the area of Solar Energy with full enthusiasm and organized efforts.
In this interview Mr. Bhatia has shares his success secrets, the challenges of present and plans for the future. Edited excerpts:-
From where did you get the idea of entering into this business and which profitable opportunities attracted you towards this business?
After completing my studies, I started looking for job I wanted to go in the service sector but in spite of my uphill battle for job, I was not able to find the same. Consequently, I started visiting Ludhiana Stock Exchange where my uncle was already engaged. With his guidance I stated my career as a Sub-Broker. Then in 1997, I commenced my own business by establishing Bhatia Naveen & Co. and till 2002 I had put my endless efforts to uplift the same.
What kind of difficulties have you encountered while setting up your own business?
In the beginning, I had to face the financial crunch as my father was a service man and we didn’t have surplus amount to finance my business. But by God’s grace, I managed everything.
Do you face any kind of competition in your business and how do you overcome the same?
When I started my business there was no competition as such. As there were only National Stock Exchange and Ludhiana Stock Exchange. NSE was established in 1994 and it was growing at a very fast space. I was the second person in Ludhianawho started working in NSE. That was the most rewarding period and it provided conducive environment for the business to develop.
In the beginning amicable environment helped your business to grow by leaps & bounds but how the present era of recession-hit-economy has affected your business?
Recession has certainly hit the business adversely and the crash of the market has resulted in the decrease profits. Moreover policies are not much favourable. It led us to diversify in the field of real-estate and the major part of our investment is now in real-estate.
Now please let us be familiar with your future plans:-
Now we are planning to enter into the field of Solar Energy. To achieve this target I will be visiting an exhibition which is going to be held in U.S.A to have thorough and comprehensive knowledge of this field and if everything goes well, we will go for the 5 MW solar energy plant.
Have you ever planned for using the service of internet to advertise your business?
I have use the internet service to gather information about real estate business and have used it even more intensively to learn about the forthcoming project of solar plant. We also have our business website but do not promote it much and have not planned to utilize the services of e-commerce.
What steps do you take to fulfill your social responsibility?
We have established charitable societies and an Ashram which work with the main motive of benefiting the children and we are also associating with Go-Sewa. We set aside a part of our income to fulfill our social responsibility.
What message would you like to convey to the future generation for being a successful entrepreneur?
As this business of stock exchange is shifting into the hands of Big Business Houses I would suggest that before entering into this business one should make an comprehensive study to acquire complete knowledge about the concerned field and must get ready for hard work and success will be at your feet.
In this interview Mr. Bhatia has shares his success secrets, the challenges of present and plans for the future. Edited excerpts:-
From where did you get the idea of entering into this business and which profitable opportunities attracted you towards this business?
After completing my studies, I started looking for job I wanted to go in the service sector but in spite of my uphill battle for job, I was not able to find the same. Consequently, I started visiting Ludhiana Stock Exchange where my uncle was already engaged. With his guidance I stated my career as a Sub-Broker. Then in 1997, I commenced my own business by establishing Bhatia Naveen & Co. and till 2002 I had put my endless efforts to uplift the same.
What kind of difficulties have you encountered while setting up your own business?
In the beginning, I had to face the financial crunch as my father was a service man and we didn’t have surplus amount to finance my business. But by God’s grace, I managed everything.
Do you face any kind of competition in your business and how do you overcome the same?
When I started my business there was no competition as such. As there were only National Stock Exchange and Ludhiana Stock Exchange. NSE was established in 1994 and it was growing at a very fast space. I was the second person in Ludhianawho started working in NSE. That was the most rewarding period and it provided conducive environment for the business to develop.
In the beginning amicable environment helped your business to grow by leaps & bounds but how the present era of recession-hit-economy has affected your business?
Recession has certainly hit the business adversely and the crash of the market has resulted in the decrease profits. Moreover policies are not much favourable. It led us to diversify in the field of real-estate and the major part of our investment is now in real-estate.
Now please let us be familiar with your future plans:-
Now we are planning to enter into the field of Solar Energy. To achieve this target I will be visiting an exhibition which is going to be held in U.S.A to have thorough and comprehensive knowledge of this field and if everything goes well, we will go for the 5 MW solar energy plant.
Have you ever planned for using the service of internet to advertise your business?
I have use the internet service to gather information about real estate business and have used it even more intensively to learn about the forthcoming project of solar plant. We also have our business website but do not promote it much and have not planned to utilize the services of e-commerce.
What steps do you take to fulfill your social responsibility?
We have established charitable societies and an Ashram which work with the main motive of benefiting the children and we are also associating with Go-Sewa. We set aside a part of our income to fulfill our social responsibility.
What message would you like to convey to the future generation for being a successful entrepreneur?
As this business of stock exchange is shifting into the hands of Big Business Houses I would suggest that before entering into this business one should make an comprehensive study to acquire complete knowledge about the concerned field and must get ready for hard work and success will be at your feet.
COMPULSORY LICENSING
What is compulsory licensing?
Compulsory licensing is a process through which a government allows the local industry to produce drugs under patent protection without the permission of the patent holder. While the global agreement on intellectual property, the Trade Related Intellectual Property Rights (Trips) under the WTO, says that a patent holder will have the sole right to give permission to produce its patented products on payment of a licence fee, flexibilities have been given to countries to address public health concerns by issuing compulsory licenses.
When can a government issue compulsory licences?
These could be issued to address any public health concern as considered appropriate by the issuing country. The Trips Agreement gives a country the freedom to decide when it wants to issue such licenses and it does not necessarily have to be an emergency. It is generally issued for producing life-saving medicines to ensure their availability at low prices.
Does compulsory licensing strip a patent holder off the right to collect license fees on patented products or process?
Not at all. Companies that are issued compulsory licenses to produce a patented product have to pay ‘adequate remuneration’ based on the ‘economic value’ to the patent holder, but there is no elaboration on what the value is.
Why has India not been issuing compulsory licenses? Why has it suddenly woken up to the need?
While the Indian Patents Act provides for issuing of compulsory licenses, the procedural guidelines and the policy framework for the same are not in place. India had been taking it easy so far, as it had a flexible patent regime till 2005, which granted protection only to processes and not the final product. This allowed other producers to manufacture generic versions using a different method. However, ever since there was a switch-over to the more stringent product patent regime in 2005 (under which a patented product cannot be produced through any other process) to meet the country’s commitments under Trips, the country has been facing a shortage of life-saving drugs such as anti-cancer medicines and prices of patented versions have been going up. This prompted the DIPP to float a note on compulsory licensing inviting comments on how the country should go about implementing it.
Can compulsory licenses be issued for exporting to other countries?
Compulsory licenses are generally issued for producing for the domestic market. However, during the Doha ministerial meet in 2001 the WTO recognised that there are countries which do not have manufacturing capacities and allowed such countries to import generic versions from other countries by issuing compulsory licenses
IMPORTATNT TERMS
Repo (Repurchase) Rate
Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the demands they are facing for money (loans) and how much they have on hand to lend. If the RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.
Reverse Repo Rate
This is the exact opposite of repo rate. The rate at which RBI borrows money from the banks (or banks lend money to the RBI) is termed the reverse repo rate. The RBI uses this tool when it feels there is too much money floating in the banking system. If the reverse repo rate is increased, it means the RBI will borrow money from the bank and offer them a lucrative rate of interest. As a result, banks would prefer to keep their money with the RBI (which is absolutely risk free) instead of lending it out (this option comes with a certain amount of risk). Consequently, banks would have lesser funds to lend to their customers. This helps stem the flow of excess money into the economy Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks, while repo signifies the rate at which liquidity is injected.
Bank Rate
This is the rate at which RBI lends money to other banks (or financial institutions . The bank rate signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa. Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate (this is currently 6 per cent), the interest that a bank pays for borrowing money (banks borrow money either from each other or from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.
Call Rate
Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement. Since banks need funds on a daily basis, they lend to and borrow from other banks according to their daily or short-term requirements on a regular basis.
CRR
Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have to keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby, inflation by tying their hands in lending money.
SLR
Besides the CRR, banks are required to invest a portion of their deposits in government securities as a part of their statutory liquidity ratio (SLR) requirements. What SLR does is again restrict the bank’s leverage in pumping more money into the economy.
Human Development Index(HDI)
Human development can be viewed as the process of achieving an optimum level of health and well-being. It includes physical, biological, mental, emotional, social, educational, economic, and cultural components. Only some of these are expressed in the Human Development Index, a composite scale that has three dimensions: life expectancy at birth, adult literacy rate and mean years of schooling, and income as measured by real gross domestic product per capita. Like all one-dimensional scales that attempt to measure multiple complex variables, it is flawed by inherent inaccuracies, but it is nonetheless a useful comparative measure of the well-being of a population. The Human Development Index (HDI) is a composite statistic used to rank countries by level of "human development" and separate developed (high development), developing (middle development), and underdeveloped (low development) countries. The statistic is composed from data on life expectancy, education and per-capita GDP (as an indicator of standard of living) collected at the national level. Index of Industrial Production(IIP) An index of the total output from manufacturing, mining, and utility companies. The Federal Reserve Board compiles the industrial production index and publishes it monthly. It is seen as an indicator of macroeconomic trends. A high industrial production index indicates that economic growth and is seen as good for stockholders, especially in industrial sectors. A low industrial production index indicates that industry is falling, which is bad for stockholders, but good for bondholders, as the Fed may use the index as a reason to cut interest rates. Low industrial production also means that there are fewer inflationary pressures on the economy
Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the demands they are facing for money (loans) and how much they have on hand to lend. If the RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.
Reverse Repo Rate
This is the exact opposite of repo rate. The rate at which RBI borrows money from the banks (or banks lend money to the RBI) is termed the reverse repo rate. The RBI uses this tool when it feels there is too much money floating in the banking system. If the reverse repo rate is increased, it means the RBI will borrow money from the bank and offer them a lucrative rate of interest. As a result, banks would prefer to keep their money with the RBI (which is absolutely risk free) instead of lending it out (this option comes with a certain amount of risk). Consequently, banks would have lesser funds to lend to their customers. This helps stem the flow of excess money into the economy Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks, while repo signifies the rate at which liquidity is injected.
Bank Rate
This is the rate at which RBI lends money to other banks (or financial institutions . The bank rate signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa. Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate (this is currently 6 per cent), the interest that a bank pays for borrowing money (banks borrow money either from each other or from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.
Call Rate
Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement. Since banks need funds on a daily basis, they lend to and borrow from other banks according to their daily or short-term requirements on a regular basis.
CRR
Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have to keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby, inflation by tying their hands in lending money.
SLR
Besides the CRR, banks are required to invest a portion of their deposits in government securities as a part of their statutory liquidity ratio (SLR) requirements. What SLR does is again restrict the bank’s leverage in pumping more money into the economy.
Human Development Index(HDI)
Human development can be viewed as the process of achieving an optimum level of health and well-being. It includes physical, biological, mental, emotional, social, educational, economic, and cultural components. Only some of these are expressed in the Human Development Index, a composite scale that has three dimensions: life expectancy at birth, adult literacy rate and mean years of schooling, and income as measured by real gross domestic product per capita. Like all one-dimensional scales that attempt to measure multiple complex variables, it is flawed by inherent inaccuracies, but it is nonetheless a useful comparative measure of the well-being of a population. The Human Development Index (HDI) is a composite statistic used to rank countries by level of "human development" and separate developed (high development), developing (middle development), and underdeveloped (low development) countries. The statistic is composed from data on life expectancy, education and per-capita GDP (as an indicator of standard of living) collected at the national level. Index of Industrial Production(IIP) An index of the total output from manufacturing, mining, and utility companies. The Federal Reserve Board compiles the industrial production index and publishes it monthly. It is seen as an indicator of macroeconomic trends. A high industrial production index indicates that economic growth and is seen as good for stockholders, especially in industrial sectors. A low industrial production index indicates that industry is falling, which is bad for stockholders, but good for bondholders, as the Fed may use the index as a reason to cut interest rates. Low industrial production also means that there are fewer inflationary pressures on the economy
INDIAN TELECOM INDUSTRY
History
Telephone services in India begun in a small scale with the commissioning of a 50-line manual telephone exchange in 1882 in Kolkata. This was less than five years after the invention of the telephone by Alexander Graham Bell. India had approx. 82,000 telephone connections at the time of independence (1947) and by 1984 the number of connections had slowly risen to 3.05 million. India's telecom network was notoriously unreliable and only available to a small section of households along with the corporate sector. The telecom sector was a government monopoly until 1994 when liberalisation gradually took place. Cellular service was launched in November 1995 in Kolkata.
Expanding Network
The Indian telecom industry has grown rapidly during the last few years. India has the third largest (based on the total number of fixed/mobile subscriber lines) telecom network in the world and the second¹ largest mobile network with over 635 million subscribers while the total number of telephone lines amounted to almost 672 m at the end of June 2010. While subscriber volumes continue to grow in the larger urban areas, the maximum growth potential lies within rural India comprising of over 600,000 villages and well below average teledensity levels. Coverage is increasing rapidly, eg Reliance Mobile's network covers 400,000 villages and 14,000 towns across India as of Feb '09. The number of phone subscribers in rural areas (rural population amounts to 70 % of India's over 1.1 billion inhabitants) was only 64 m at the end of Nov '07. An estimated base of 650 million subscribers is envisaged by 2012. Revenue from fixed and mobile services amounted to an estimated Rs 880 bn in fiscal year 2005. National long distance (NLD) and international long distance (ILD) service revenues grew to an estimated Rs 93 bn in the same year. While the number of mobile subscribers increased by 27.9 m in 2005, this figure skyrocketed to 83 m in 2007 and grew even further to around 113 million added mobile subscribers in 2008. India's telecom market is now the largest in the world based on the number of new monthly subscribers added.The government has set a target under the Bharat Nirman program, to connect all the remaining villages without telephone services, basically VPT's (Village Public Telephones), by the end of 2009.² This figure includes GSM, CDMA and WLL-Fixed subscribers.
Mobile
While anywhere upto 20 million new mobile subscriber lines are being added every month (India is the world's largest market for the number of added new mobile subscribers), the number of landlines is gradually decreasing. Overall telecom subscriber penetration increased to over 52 % at the end of Q1/2010. This is a relatively low figure in comparison to many other nations but nevertheless is a quantum leap from a few years back. Mumbai and Delhi (NCR) are among the few metro areas globally to have over 25 m mobile subscribers each. The FDI cap in the telecom sector is currently 74 %. UK's Vodafone Group recently acquired a 52 % stake in Hutchison Essar, India's fourth largest mobile service provider. Bharti Airtel is the first Indian operator to exceed a subscriber base of 50 million.Mobile number portability (MNP) is expected to be available across India by Oct '10. 3G (third generation) mobile services are initially being introduced in the major cities. Three 3G spectrum slots are to be auctioned in early 2010 to private bidders. The number of broadband connections is growing albeit at a slow pace.
Telecom Manufacturing
A growing number of telecom companies have set up manufacturing facilities for the production of mobile phones and other telecom equipment to cater to India's growing telecom market and exports too. Nokia's plant, located in a Special Economic Zone (SEZ) at Sriperumbudur near Chennai, manufactures mobile handsets and network infrastructure equipment incl. base stations. Nokia's plant produces ca 8 m handsets a month. A slew of other telecom equipment manufacturers already have or are in the process of setting up production facilities in the same zone. These include Aspocomp Group (HDI printed circuit boards), Perlos (handset mechanics/mouldings), Salcomp (mobile phone chargers), Motorola (mobile handsets), Foxconn (mobile phones), Flextronics (mobile handsets, base stations and other electronic items), Sanmina-SCI (network components), Jabil, Laird (antennas, battery packs and EMI shielding products) and Wintek. Elcoteq's telecom plant located near Bangalore manufactures handsets among others. Samsung Electronics' mobile handset plant is located in Gurgaon, near Delhi. Alcatel and Ericsson manufacture base station and mobile switching equipment at plants located in Rae Bareli and Jaipur respectively. BPL Telecom manufactures GSM phones and LG Electronics India produces GSM phones in a plant near Pune. Kolkata based Xenitis Group plans to set up a mobile phone manufacturing facility located near Kolkata.Mobile handsets account for 26 % of the total telecom equipment industry in India. The lion's share was held by the carrier equipment business while the enterprise equipment segment accounted for the remaining 14 %. The market size of the telecom equipment industry grew to Rs 954 (ca USD 22 bn).Mobile Network StatisticsIndia's Largest Telecom Operators as on Dec 31, 2009¹
OperatorSubscriber Base(millions)
Bharti Airtel118.9
Reliance Communications93.8
Vodafone Essar91.4
Bharat Sanchar Nigam Ltd.62.9
Idea Cellular Ltd.57.6
Tata Teleservices Ltd.57.3
Wireless Subscribers (in millions) in the Four Metros as on Jun 30, 2010 ¹CityTotalOperatorsDelhi31.0Bharti Airtel, Vodafone Essar, MTNL, Idea Cellular, Reliance and Tata TeleservicesMumbai29.1Loop Mobile, Idea Cellular, Vodafone Essar, MTNL, Bharti Airtel, Reliance and Tata TeleservicesKolkata17.5Aircel, Bharti Airtel, Vodafone Essar, BSNL, Reliance and Tata TeleservicesChennai11.4*Aircel Cellular, Bharti Airtel, Vodafone Essar, BSNL, Reliance and Tata Teleservices¹ Source: TRAI. Figures include CDMA, GSM and WLL(Fixed) connections. * Apr 30 '10
SOME FACTS & FIGURES ON INDIAN TELECOM
Number of telecom (mobile and landlines) subscribers: ~672 million (as on 30.6.10)
Number of fixed line subscribers: 36.2 m (as on 30.6.10)
Number of cellular (GSM, CDMA and WLL-Fixed) subscribers: ~636 m (as on 30.6.10)
Number of broadband subscribers: 9.5 m (as on 30.6.10)
Number of GSM cellular subscribers: 444 m (as on 31.5.10)
Number of CDMA cellular subscribers: 155 m (as on 31.12.09)
Overall teledensity: ca 568/1000 inhabitants (as on 30.6.10)
Number of PCO's (Public Call Offices): 2.27 m (as on 31.12.07)
Number of VPT's (Village Public Telephones): 0.55 m (as on 31.3.06)
More telecom at the Department of Telecommunications network status page.
Total revenues of telecom service providers (2005-06): Rs. 880 bn
Telecom equipment production (2007-08): Rs. 954 bn
Mobile handset market (2009): estimate Rs. 300 bn
Telephone services in India begun in a small scale with the commissioning of a 50-line manual telephone exchange in 1882 in Kolkata. This was less than five years after the invention of the telephone by Alexander Graham Bell. India had approx. 82,000 telephone connections at the time of independence (1947) and by 1984 the number of connections had slowly risen to 3.05 million. India's telecom network was notoriously unreliable and only available to a small section of households along with the corporate sector. The telecom sector was a government monopoly until 1994 when liberalisation gradually took place. Cellular service was launched in November 1995 in Kolkata.
Expanding Network
The Indian telecom industry has grown rapidly during the last few years. India has the third largest (based on the total number of fixed/mobile subscriber lines) telecom network in the world and the second¹ largest mobile network with over 635 million subscribers while the total number of telephone lines amounted to almost 672 m at the end of June 2010. While subscriber volumes continue to grow in the larger urban areas, the maximum growth potential lies within rural India comprising of over 600,000 villages and well below average teledensity levels. Coverage is increasing rapidly, eg Reliance Mobile's network covers 400,000 villages and 14,000 towns across India as of Feb '09. The number of phone subscribers in rural areas (rural population amounts to 70 % of India's over 1.1 billion inhabitants) was only 64 m at the end of Nov '07. An estimated base of 650 million subscribers is envisaged by 2012. Revenue from fixed and mobile services amounted to an estimated Rs 880 bn in fiscal year 2005. National long distance (NLD) and international long distance (ILD) service revenues grew to an estimated Rs 93 bn in the same year. While the number of mobile subscribers increased by 27.9 m in 2005, this figure skyrocketed to 83 m in 2007 and grew even further to around 113 million added mobile subscribers in 2008. India's telecom market is now the largest in the world based on the number of new monthly subscribers added.The government has set a target under the Bharat Nirman program, to connect all the remaining villages without telephone services, basically VPT's (Village Public Telephones), by the end of 2009.² This figure includes GSM, CDMA and WLL-Fixed subscribers.
Mobile
While anywhere upto 20 million new mobile subscriber lines are being added every month (India is the world's largest market for the number of added new mobile subscribers), the number of landlines is gradually decreasing. Overall telecom subscriber penetration increased to over 52 % at the end of Q1/2010. This is a relatively low figure in comparison to many other nations but nevertheless is a quantum leap from a few years back. Mumbai and Delhi (NCR) are among the few metro areas globally to have over 25 m mobile subscribers each. The FDI cap in the telecom sector is currently 74 %. UK's Vodafone Group recently acquired a 52 % stake in Hutchison Essar, India's fourth largest mobile service provider. Bharti Airtel is the first Indian operator to exceed a subscriber base of 50 million.Mobile number portability (MNP) is expected to be available across India by Oct '10. 3G (third generation) mobile services are initially being introduced in the major cities. Three 3G spectrum slots are to be auctioned in early 2010 to private bidders. The number of broadband connections is growing albeit at a slow pace.
Telecom Manufacturing
A growing number of telecom companies have set up manufacturing facilities for the production of mobile phones and other telecom equipment to cater to India's growing telecom market and exports too. Nokia's plant, located in a Special Economic Zone (SEZ) at Sriperumbudur near Chennai, manufactures mobile handsets and network infrastructure equipment incl. base stations. Nokia's plant produces ca 8 m handsets a month. A slew of other telecom equipment manufacturers already have or are in the process of setting up production facilities in the same zone. These include Aspocomp Group (HDI printed circuit boards), Perlos (handset mechanics/mouldings), Salcomp (mobile phone chargers), Motorola (mobile handsets), Foxconn (mobile phones), Flextronics (mobile handsets, base stations and other electronic items), Sanmina-SCI (network components), Jabil, Laird (antennas, battery packs and EMI shielding products) and Wintek. Elcoteq's telecom plant located near Bangalore manufactures handsets among others. Samsung Electronics' mobile handset plant is located in Gurgaon, near Delhi. Alcatel and Ericsson manufacture base station and mobile switching equipment at plants located in Rae Bareli and Jaipur respectively. BPL Telecom manufactures GSM phones and LG Electronics India produces GSM phones in a plant near Pune. Kolkata based Xenitis Group plans to set up a mobile phone manufacturing facility located near Kolkata.Mobile handsets account for 26 % of the total telecom equipment industry in India. The lion's share was held by the carrier equipment business while the enterprise equipment segment accounted for the remaining 14 %. The market size of the telecom equipment industry grew to Rs 954 (ca USD 22 bn).Mobile Network StatisticsIndia's Largest Telecom Operators as on Dec 31, 2009¹
OperatorSubscriber Base(millions)
Bharti Airtel118.9
Reliance Communications93.8
Vodafone Essar91.4
Bharat Sanchar Nigam Ltd.62.9
Idea Cellular Ltd.57.6
Tata Teleservices Ltd.57.3
Wireless Subscribers (in millions) in the Four Metros as on Jun 30, 2010 ¹CityTotalOperatorsDelhi31.0Bharti Airtel, Vodafone Essar, MTNL, Idea Cellular, Reliance and Tata TeleservicesMumbai29.1Loop Mobile, Idea Cellular, Vodafone Essar, MTNL, Bharti Airtel, Reliance and Tata TeleservicesKolkata17.5Aircel, Bharti Airtel, Vodafone Essar, BSNL, Reliance and Tata TeleservicesChennai11.4*Aircel Cellular, Bharti Airtel, Vodafone Essar, BSNL, Reliance and Tata Teleservices¹ Source: TRAI. Figures include CDMA, GSM and WLL(Fixed) connections. * Apr 30 '10
SOME FACTS & FIGURES ON INDIAN TELECOM
Number of telecom (mobile and landlines) subscribers: ~672 million (as on 30.6.10)
Number of fixed line subscribers: 36.2 m (as on 30.6.10)
Number of cellular (GSM, CDMA and WLL-Fixed) subscribers: ~636 m (as on 30.6.10)
Number of broadband subscribers: 9.5 m (as on 30.6.10)
Number of GSM cellular subscribers: 444 m (as on 31.5.10)
Number of CDMA cellular subscribers: 155 m (as on 31.12.09)
Overall teledensity: ca 568/1000 inhabitants (as on 30.6.10)
Number of PCO's (Public Call Offices): 2.27 m (as on 31.12.07)
Number of VPT's (Village Public Telephones): 0.55 m (as on 31.3.06)
More telecom at the Department of Telecommunications network status page.
Total revenues of telecom service providers (2005-06): Rs. 880 bn
Telecom equipment production (2007-08): Rs. 954 bn
Mobile handset market (2009): estimate Rs. 300 bn
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