RELIANCE COMM SEES INDIA TELECOM CONSOLIDATION
Intensifying competition in the Indian telecom sector, the world’s fastest growing in mobile sign ups, should kick off an industry consolidation in two years, a senior official at Reliance Communications said.
With four firms, including ventures of Norway’s Telenor and United Arab Emirates’ Etisalat, set to start operations in India this year, existing players led by Reliance and Bharti Airtel have slashed call charges to lure users.
India, which has 11 mobile operators, has this year added an average 14 million mobile users a month. Analysts say still there is huge potential as only 40 people of every 100 own mobile phones from a population of more than a billion.
Reuters/Livemint
Showing posts with label Bharti Airtel. Show all posts
Showing posts with label Bharti Airtel. Show all posts
Sunday, November 22, 2009
BHARTI SLASHES MOBILE ROAMING CHARGES, SHARES FALL
Bharti Airtel launched yet another new billing plan on Friday, slashing mobile roaming rates by nearly 60% and signalling a tariff war in the world’s fastest-growing wireless market was far from over.
The announcement accelerated losses in the shares of Bharti, the country’s top mobile operator. The stock fell as much as 3.3% but trimmed losses to 2.7% at Rs284.90 by 0825 GMT in a Mumbai market that was up 0.3%.
The price war, aimed at grabbing new users ahead of fresh entrants waiting in the wings, has raised concerns about telecom firms’ profitability. Four new firms, including ventures funded by Telenor and Etisalat, are set to start services this year adding to the existing 11 operators.
Reuters/Livemint
Bharti Airtel launched yet another new billing plan on Friday, slashing mobile roaming rates by nearly 60% and signalling a tariff war in the world’s fastest-growing wireless market was far from over.
The announcement accelerated losses in the shares of Bharti, the country’s top mobile operator. The stock fell as much as 3.3% but trimmed losses to 2.7% at Rs284.90 by 0825 GMT in a Mumbai market that was up 0.3%.
The price war, aimed at grabbing new users ahead of fresh entrants waiting in the wings, has raised concerns about telecom firms’ profitability. Four new firms, including ventures funded by Telenor and Etisalat, are set to start services this year adding to the existing 11 operators.
Reuters/Livemint
Monday, August 31, 2009
MTN WANTS SPEEDY CONCLUSION TO BHARTI DEAL
South African mobile operator MTN wants to conclude a proposed tie-up with Indian partner Bharti Airtel quickly to end any doubt about the deal, chief executive Phuthuma Nhleko said.
“We want to do the deal sooner rather than later because we are really uncomfortable with the uncertainty,” Nhleko told Reuters on Thursday.
Last week, Bharti and MTN extended talks aimed at creating the world’s third-biggest mobile company for a second time, frustrating investors who wanted the deal finalized, and raising concerns its structure was too complex to succeed. Both firms agreed to extend talks to 30 September, after previously extending discussions by a month to 31 August, as they negotiate a $23 billion cash and share-swap deal aimed at an eventual full merger.
Livemint
South African mobile operator MTN wants to conclude a proposed tie-up with Indian partner Bharti Airtel quickly to end any doubt about the deal, chief executive Phuthuma Nhleko said.
“We want to do the deal sooner rather than later because we are really uncomfortable with the uncertainty,” Nhleko told Reuters on Thursday.
Last week, Bharti and MTN extended talks aimed at creating the world’s third-biggest mobile company for a second time, frustrating investors who wanted the deal finalized, and raising concerns its structure was too complex to succeed. Both firms agreed to extend talks to 30 September, after previously extending discussions by a month to 31 August, as they negotiate a $23 billion cash and share-swap deal aimed at an eventual full merger.
Livemint
Thursday, August 13, 2009
OVERSEAS INVESTMENT MATCHES DOMESTIC CAPEX
India Inc.’s appetite for overseas investments at about $37 billion in the financial year 2008-09 is underscored by its corresponding increase in capital expenditure and inorganic expansion strategy to accelerate growth.
The surge in capital expenditure of $47.5 billion at more than 21% in the financial year 2008-09 has a very visible contribution of the infrastructure sector that accounted for a large chunk of the increase at $18 billion, with a share of more than a third.
As a clear signal of revival, the increased capital expenditure in the sector coupled with the Indian government’s well timed stimulus packages, amounting to 3.5% of the country’s GDP, resulted in a healthy growth of 6.5% in the six core infrastructure sectors in June 2009. The sector had grown by 5.1% in corresponding month the previous year, while the figure for May 2009 stood at 2.8%. Cement topped the chart with a growth of 12.8%, while steel rose 5.3%, both crucial inputs for construction activity.
Of significance is the fact that a part of the expense finds its way in to mergers and acquisitions (M&As), as in the case of the largest acquisition of the sector by state-run Oil and Natural Gas Corporation Ltd’s (ONGC) of then London Stock Exchange listed-Imperial Energy Corporation for $2.8 billion in August 2008. The other large overseas acquisition by an Indian company was that of the U.K.-based automobile marquee brands Jaguar and Land Rover by Tata Motors Ltd for $2.3 billion.
The potential merger of India’s largest GSM mobile telecom service provider Bharti Airtel Ltd and South Africa's largest telecom company MTN Group Ltd for about $23 billion will substantially add to the share of the telecom sector in the capital expenditure this year. The deal will result in about $4 billion of net cash outflow from Bharti. (See Vol4 | Issue 7; Bharti-MTN: A Billion Subscribers in Sight).
India Inc.’s appetite for overseas investments at about $37 billion in the financial year 2008-09 is underscored by its corresponding increase in capital expenditure and inorganic expansion strategy to accelerate growth.
The surge in capital expenditure of $47.5 billion at more than 21% in the financial year 2008-09 has a very visible contribution of the infrastructure sector that accounted for a large chunk of the increase at $18 billion, with a share of more than a third.
As a clear signal of revival, the increased capital expenditure in the sector coupled with the Indian government’s well timed stimulus packages, amounting to 3.5% of the country’s GDP, resulted in a healthy growth of 6.5% in the six core infrastructure sectors in June 2009. The sector had grown by 5.1% in corresponding month the previous year, while the figure for May 2009 stood at 2.8%. Cement topped the chart with a growth of 12.8%, while steel rose 5.3%, both crucial inputs for construction activity.
Of significance is the fact that a part of the expense finds its way in to mergers and acquisitions (M&As), as in the case of the largest acquisition of the sector by state-run Oil and Natural Gas Corporation Ltd’s (ONGC) of then London Stock Exchange listed-Imperial Energy Corporation for $2.8 billion in August 2008. The other large overseas acquisition by an Indian company was that of the U.K.-based automobile marquee brands Jaguar and Land Rover by Tata Motors Ltd for $2.3 billion.
The potential merger of India’s largest GSM mobile telecom service provider Bharti Airtel Ltd and South Africa's largest telecom company MTN Group Ltd for about $23 billion will substantially add to the share of the telecom sector in the capital expenditure this year. The deal will result in about $4 billion of net cash outflow from Bharti. (See Vol4 | Issue 7; Bharti-MTN: A Billion Subscribers in Sight).
Monday, July 20, 2009
TOP-10 COS ADD OVER RS 1.42 LAKH CR
India's top-10 firms added Rs 1,42,000 crore to their market capitalisation last week with country's most valued firm, Reliance Industries crossing Rs 3 trillion mark after two weeks.
The country's most-valued firm, Reliance Industries Ltd, added Rs 24,395 crore to its market valuation taking its total market cap to Rs 3,04,292 crore. Shares of RIL surged nearly 9 per cent on the Bombay Stock Exchange (BSE) to end the trade at Rs 1,933.40 on Friday...
The Financial Express
India's top-10 firms added Rs 1,42,000 crore to their market capitalisation last week with country's most valued firm, Reliance Industries crossing Rs 3 trillion mark after two weeks.
The country's most-valued firm, Reliance Industries Ltd, added Rs 24,395 crore to its market valuation taking its total market cap to Rs 3,04,292 crore. Shares of RIL surged nearly 9 per cent on the Bombay Stock Exchange (BSE) to end the trade at Rs 1,933.40 on Friday...
The Financial Express
Wednesday, May 27, 2009
BHARTI-MTN DEAL LARGEST INDIAN CROSS-BORDER CORPORATE MERGER
--- India’s biggest cross border deal, twice the value of Tata Steel – Corus and Vodafone – Hutchison Essar transactions
The potential merger of India’s largest GSM mobile telecom service provider Bharti Airtel Ltd and South Africa's largest telecom company MTN Group Limited highlights the attractiveness of fast-growing telecoms markets in India and Africa and reinforces India Inc.’s global ambitions undeterred by the worldwide economic slowdown.
”The companies are buying international scale and growth in the world’s fastest growing telecoms markets of India and Africa,” said Bundeep Singh Rangar, Chairman IndusView Advisors Ltd, the India-focused cross-border advisory firm. “This one deal worth $23 billion will almost match the value of the 280 cross-border mergers and acquisitions last year at $25 billion. It marks the grand entry of India as an acquirer in the international telecoms industry, just as previous years saw India Inc. buy into international steel, auto and IT industries.”
“It shows what a catalyst a stable government with an unencumbered policy toward economic liberalization can be,” he added. The Indian National Congress led United Progressive Alliance (UPA) won a second term in Parliament with an increased majority, in an affirmation of its economic policies of continued liberalization and desire for political stability and continuity.
The merger of Bharti and MTN will be India’s biggest cross border deal at almost twice the value of the acquisition of U.K.’s top steel maker Corus Group Plc for $12 billion by India’s Tata Steel Ltd in January 2007. It also surpasses the acquisition of Hutchison Essar Ltd, India’s second largest GSM mobile service provider then by the U.K.’s Vodafone Group Plc for $11 billion, by more than a similar margin.
The Bharti Airtel and MTN Group combine will create a leading emerging market telecom operator with more than $60 billion in market value, revenues of about $20 billion and over 200 million subscribers. The combined entity will be amongst the top five service providers globally with operations spanning more than 23 countries in Asia, Middle East and Africa.
The new entity will enjoy better pricing power in the market, lower costs on account of shared infrastructure and resources, better purchasing power with suppliers, doubling up of subscribers to 200 million that will gradually result in more average revenue per user (ARPU) as new mobile applications and services are offered to them.
Global telecom companies are drawn to India’s market estimated to grow to more than 650 million subscribers by 2012 from 360 million currently as 10 million new subscribers are added each month. Africa’s telecommunications growth is driven by its 360 million mobile users who account for 90% of all subscribers, growing at about 40% per year.
The telecommunication sector has been a significant driver of merger and acquisition (M&A) deals in India accounting for the highest share of deals at 18.6% and 22% during the last two years with values of $5.7 billion and $11 billion in 2008 and 2007, respectively.
“The deal will add the much needed traction to the deal flow in the country this year encouraging other companies to pursue their growth ambitions that had been stalled owing to the downturn,” added Rangar.
The total number of M&A deals during the first four months of 2009 at $2 billion against $9.43 billion during the corresponding period last year illustrates the impact of the economic slowdown.
The string of investments in Indian telecom companies since last year, including, Tata Teleservices Ltd, the telecommunication services arm of India’s largest private sector diversified Tata Group by NTT DoCoMo, Inc., the largest Japanese mobile telecom service provider; Unitech Telecom, the telecom arm of India’s second largest real estate developer Unitech Ltd by Norwegian telecom firm Telenor ASA, world’s seventh largest telecom service provider at $1.36 billion; and Swan Telecom, a start-up GSM telecom service company of a Mumbai-based real estate developer Dynamix Balwas Group by Dubai-based Emirates Telecommunications Corp (Etisalat) at $900 million; Gulf-based Bahrain Telecommunications Co’s acquisition of 49% stake in S Tel Ltd, joint venture between Skycity Foundations and Telecom Investments (Mauritius) Ltd for $225 million; and now, South Africa’s largest telecom company MTN Group’s renewed attempt to enter the Indian market – are an indication of the fact that there is ample room to enter this market, at least inorganically.
Other international telecom service providers seeking an India entry include Kuwait-based Zain Group, Qatar Telecom, Italy-based Telecom Italia SpA, among others. However, some of the global mobile telecom service providers such as Telefonica SA of Spain, French mobile telecommunication services provider, France Telecom and Deutsche Telekom AG of Germany are among those missing out on the opportunity to tap a market that is projected to offer overall mobile services revenues of more than $37 billion by 2012 growing at a CAGR of 18%, according to estimates.
Such growth trends bring with it corresponding increase in investments as government estimates suggest that the overall telecommunication sector will need $73 billion over the next five years to achieve a tele-density of up to 45%. And, a major chunk of the investment is expected to be realized through Foreign Direct Investment (FDI), particularly in the area of mobile communication.
“The Indian National Congress led government’s pledge to revive the economy from the slowdown with continued liberalization will likely see more regulatory reforms toward attracting investments in the telecom sector, among others,” added Rangar
It becomes significant as the government has granted new licenses and spectrum to aspiring operators such as Datacom Solutions a subsidiary of one of India’s leading consumer durables company Videocon Industries Ltd; and Loop Telecom, a BPL Mobile Communications group company, which are likely targets – but within the regulatory purview of the overseas entity’s stake in the domestic company not to exceed 74%.
--- India’s biggest cross border deal, twice the value of Tata Steel – Corus and Vodafone – Hutchison Essar transactions
The potential merger of India’s largest GSM mobile telecom service provider Bharti Airtel Ltd and South Africa's largest telecom company MTN Group Limited highlights the attractiveness of fast-growing telecoms markets in India and Africa and reinforces India Inc.’s global ambitions undeterred by the worldwide economic slowdown.
”The companies are buying international scale and growth in the world’s fastest growing telecoms markets of India and Africa,” said Bundeep Singh Rangar, Chairman IndusView Advisors Ltd, the India-focused cross-border advisory firm. “This one deal worth $23 billion will almost match the value of the 280 cross-border mergers and acquisitions last year at $25 billion. It marks the grand entry of India as an acquirer in the international telecoms industry, just as previous years saw India Inc. buy into international steel, auto and IT industries.”
“It shows what a catalyst a stable government with an unencumbered policy toward economic liberalization can be,” he added. The Indian National Congress led United Progressive Alliance (UPA) won a second term in Parliament with an increased majority, in an affirmation of its economic policies of continued liberalization and desire for political stability and continuity.
The merger of Bharti and MTN will be India’s biggest cross border deal at almost twice the value of the acquisition of U.K.’s top steel maker Corus Group Plc for $12 billion by India’s Tata Steel Ltd in January 2007. It also surpasses the acquisition of Hutchison Essar Ltd, India’s second largest GSM mobile service provider then by the U.K.’s Vodafone Group Plc for $11 billion, by more than a similar margin.
The Bharti Airtel and MTN Group combine will create a leading emerging market telecom operator with more than $60 billion in market value, revenues of about $20 billion and over 200 million subscribers. The combined entity will be amongst the top five service providers globally with operations spanning more than 23 countries in Asia, Middle East and Africa.
The new entity will enjoy better pricing power in the market, lower costs on account of shared infrastructure and resources, better purchasing power with suppliers, doubling up of subscribers to 200 million that will gradually result in more average revenue per user (ARPU) as new mobile applications and services are offered to them.
Global telecom companies are drawn to India’s market estimated to grow to more than 650 million subscribers by 2012 from 360 million currently as 10 million new subscribers are added each month. Africa’s telecommunications growth is driven by its 360 million mobile users who account for 90% of all subscribers, growing at about 40% per year.
The telecommunication sector has been a significant driver of merger and acquisition (M&A) deals in India accounting for the highest share of deals at 18.6% and 22% during the last two years with values of $5.7 billion and $11 billion in 2008 and 2007, respectively.
“The deal will add the much needed traction to the deal flow in the country this year encouraging other companies to pursue their growth ambitions that had been stalled owing to the downturn,” added Rangar.
The total number of M&A deals during the first four months of 2009 at $2 billion against $9.43 billion during the corresponding period last year illustrates the impact of the economic slowdown.
The string of investments in Indian telecom companies since last year, including, Tata Teleservices Ltd, the telecommunication services arm of India’s largest private sector diversified Tata Group by NTT DoCoMo, Inc., the largest Japanese mobile telecom service provider; Unitech Telecom, the telecom arm of India’s second largest real estate developer Unitech Ltd by Norwegian telecom firm Telenor ASA, world’s seventh largest telecom service provider at $1.36 billion; and Swan Telecom, a start-up GSM telecom service company of a Mumbai-based real estate developer Dynamix Balwas Group by Dubai-based Emirates Telecommunications Corp (Etisalat) at $900 million; Gulf-based Bahrain Telecommunications Co’s acquisition of 49% stake in S Tel Ltd, joint venture between Skycity Foundations and Telecom Investments (Mauritius) Ltd for $225 million; and now, South Africa’s largest telecom company MTN Group’s renewed attempt to enter the Indian market – are an indication of the fact that there is ample room to enter this market, at least inorganically.
Other international telecom service providers seeking an India entry include Kuwait-based Zain Group, Qatar Telecom, Italy-based Telecom Italia SpA, among others. However, some of the global mobile telecom service providers such as Telefonica SA of Spain, French mobile telecommunication services provider, France Telecom and Deutsche Telekom AG of Germany are among those missing out on the opportunity to tap a market that is projected to offer overall mobile services revenues of more than $37 billion by 2012 growing at a CAGR of 18%, according to estimates.
Such growth trends bring with it corresponding increase in investments as government estimates suggest that the overall telecommunication sector will need $73 billion over the next five years to achieve a tele-density of up to 45%. And, a major chunk of the investment is expected to be realized through Foreign Direct Investment (FDI), particularly in the area of mobile communication.
“The Indian National Congress led government’s pledge to revive the economy from the slowdown with continued liberalization will likely see more regulatory reforms toward attracting investments in the telecom sector, among others,” added Rangar
It becomes significant as the government has granted new licenses and spectrum to aspiring operators such as Datacom Solutions a subsidiary of one of India’s leading consumer durables company Videocon Industries Ltd; and Loop Telecom, a BPL Mobile Communications group company, which are likely targets – but within the regulatory purview of the overseas entity’s stake in the domestic company not to exceed 74%.
Sunday, March 01, 2009
INDIA SHATTERS MONTHLY MOBILE SUBSCRIBER RECORD
India added new mobile phone subscribers at a furious pace in January after telecom service provider Reliance Communications launched a new network. The nation increased its mobile subscriber tab by a monthly record high 15.4 million people in January, up from the previous record, 10.8 million, in December, according to the Telecom Regulatory Authority of India (TRAI).
Network World
India added new mobile phone subscribers at a furious pace in January after telecom service provider Reliance Communications launched a new network. The nation increased its mobile subscriber tab by a monthly record high 15.4 million people in January, up from the previous record, 10.8 million, in December, according to the Telecom Regulatory Authority of India (TRAI).
Network World
Sunday, June 29, 2008
IDEA DEAL GOOD FOR INVESTORS, CONSUMERS
The Idea-Spice merger brings is good news for shareholders as well as consumers of Idea and Spice, experts said. "The offer price and the deal is good for investors especially under current market conditions," said Phani Sekhar, fund manager at Angel Broking.
Yahoo News
The Idea-Spice merger brings is good news for shareholders as well as consumers of Idea and Spice, experts said. "The offer price and the deal is good for investors especially under current market conditions," said Phani Sekhar, fund manager at Angel Broking.
Yahoo News
Monday, June 02, 2008
Reliance, MTN Tie-Up Meets Financiers
Barclays Capital, Calyon and Lehman Brothers are close to arranging the financing behind Reliance Communications’ takeover bid for MTN, Africa’s biggest mobile phone company, following the collapse of talks between MTN and Bharti Airtel. Reliance, India’s second largest mobile phone operator, began discussing a possible merger with MTN only this week. Bankers involved in the financing say talks are at a very early stage. One banker said it was very likely that the banking group would be enlarged before any financing package was sealed.
The Euromoney Institutional Investor
http://www.emii.com/Article.aspx?ArticleId=1940048
The Euromoney Institutional Investor
http://www.emii.com/Article.aspx?ArticleId=1940048
Friday, May 16, 2008
Merger offer for MTN by this weekend
Bharti Airtel Ltd’s proposal to merge with MTN Group Ltd—not one buying the other—would be placed before the MTN board by the end of this week and likely taken up by the Johannesburg company’s board early next week, say people familiar with the talks between the two telecom companies. But a few industry analysts also predict MTN, Africa’s largest phone firm, will have to be valued at about $50 billion, or $25 a share (Rs1,060 per share), about 25% more than its current value, for a deal to be consummated.
Mint
http://www.livemint.com/2008/05/
14234019/Merger-offer-for-MTN-by-this-w.html
Mint
http://www.livemint.com/2008/05/
14234019/Merger-offer-for-MTN-by-this-w.html
Thursday, February 28, 2008
RIL, Reliance Cap among Asia's 20 best for future investor returns
Seven Indian firms, including Reliance Industries and Reliance Capital from the two Ambani groups, have been named among Asia Pacific's 20 best companies in terms of expected investor returns over next five years.
The Economic Times
http://economictimes.indiatimes.com/Market_Analysis/
RIL_Reliance_Cap_among_Asias_20_best_for_future_investor_returns/
articleshow/2812588.cms
The Economic Times
http://economictimes.indiatimes.com/Market_Analysis/
RIL_Reliance_Cap_among_Asias_20_best_for_future_investor_returns/
articleshow/2812588.cms
Stocks to watch
Equities are seen opening higher Wednesday tracking advances in Asian markets. But volatility cannot be ruled ahead of the derivatives contract expiry for the February series.
The Economic Times
http://economictimes.indiatimes.com/articleshow/2818213.cms
The Economic Times
http://economictimes.indiatimes.com/articleshow/2818213.cms
Monday, January 07, 2008
Remittances through mobile phones likely by year-end
Indians working abroad may be able to send money back home through mobile phones before the end of 2008, with Western Union and Bharti Airtel looking to operationlise the service by December.
The Economic Times
http://economictimes.indiatimes.com/News/News_By_Industry/
Remittances_through_mobile_phones_likely_by_year-end/
articleshow/2681163.cms
The Economic Times
http://economictimes.indiatimes.com/News/News_By_Industry/
Remittances_through_mobile_phones_likely_by_year-end/
articleshow/2681163.cms
Thursday, January 03, 2008
India’s market cap crosses Rs 70 lakh crore-mark
Investors’ wealth on the Indian bourses has crossed Rs 70,00,000-crore milestone for the first time in history, with an average increase of over Rs 40 crore in every minute of trading during 2007. The total wealth, measured in terms of cumulative market capitalisation of all the listed Companies on the Bombay Stock Exchange, has surged to a record high of Rs 70,38,538 crore (over $1.7 trillion), the latest data available with the bourses show. This marks a ten-fold surge in the total market value in just about four and a half years. It stood at about Rs 7,00,000 crore in May 2003. The investors’ wealth has grown by Rs 34,14,181 crore, or about $970 billion, since the beginning of 2007. Taking into account the 249 days of trading so far this year, this means an average gain of about Rs 13,711 crore a day or about Rs 41 crore a minute.
The Financial Express
Indias-market-cap-crosses-Rs-70-lakh-croremark/255870/
The Financial Express
Indias-market-cap-crosses-Rs-70-lakh-croremark/255870/
Wednesday, December 26, 2007
Mukesh trails Anil in creating wealth for investors
Mukesh Ambani, the richest Indian and head of market leader Reliance Industries Ltd, was not the leading wealth creator for small investors in 2007 but was pipped for the top spot by younger brother Anil. A comparison of cumulative share price gains for the listed companies from the two groups puts the surge for Mukesh Ambani group at 153 per cent, as against about 232 per cent for the Anil Dhirubhai Ambani Group (ADAG).
The Economic Times
Mukesh_trails_Anil_in_creating_wealth_for_investors/
articleshow/2650121.cms
The Economic Times
Mukesh_trails_Anil_in_creating_wealth_for_investors/
articleshow/2650121.cms
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