InfoAnda - India's fast-growing telecom sector hits trouble

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Ledger in posthumous Globes nomination | 12 December 2008
Transformers aims to recharge U.S. box offices | Entertainment | | 23 June 2009
ASEAN meets in shadow of Korea tensions | 20 July 2010

London film festival opens, Rolling Stones to star | | 10 October 2012

Forum Views () Forum Replies ()

Read more with google mobile : India's fast-growing telecom sector hits trouble

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World India's fast-growing telecom sector hits trouble AFP - Sunday, November 8 Send IM Story Print India's fast-growing telecom sector hits trouble Slideshow: Full Photo Coverage: Business & Economy NEW DELHI (AFP) - – India is still adding a staggering 15 million new mobile phone connections a month but the world's fastest-growing cellular market has hit rough waters. A cut-throat price war is hammering down call charges, putting pressure on telecom companies' earnings and share prices, and threatening a bruising shakeout in a sector that has become crowded with new players. "The tariff reductions are hitting revenue growth and with new entrants, there's less to go round for everyone," said Religare Securities analyst Himanshu Shah. Top Indian mobile phone firm Bharti this month announced a lower-than-expected 13-percent rise in quarterly net profit from a year earlier while profits halved at number two operator Reliance Communications. Competition was already fierce but has become even more aggressive as new players unleash deeper price cuts with innovative per-second billing plans that have pushed call costs down to less than a cent a minute. Some operators are offering rates as low as 0.01 rupees a second, or a fraction of a US cent. The per-second billing was kicked off in June by the entry of Tata DoCoMo, a joint venture between India's Tata Teleservices and Japan's NTT DoCoMo. "We've seen a wave of price cuts," said Shubham Majumder of Macquarie Research. "Definitely there's downside pressure." Signs of the trend can be seen in the fall in average revenue per usage or ARPU -- an industry profitability measure -- which shows the amount companies make for every minute a client talks. Reliance Communications' ARPU for the second quarter ending September slid 23 percent from the preceding quarter while Bharti's ARPU fell 9.4 percent. Akhil Gupta, deputy chief executive of Bharti Airtel's parent, Bharti Enterprises, said the sector had been afflicted by "irrational pricing". The ARPU drop reflected the rock-bottom tariffs as well as companies' growing reliance on lower-spending rural customers as they push deeper into India's hinterland to grow revenues. Total telephone penetration, including landline and mobile phones, in the country of nearly 1.2 billion stands at 43 percent -- up from 2.8 percent in 2000 and testimony to the telecom sector's blistering growth. India added 14.98 million new phone customers in September, pushing the number of users to over 500 million -- 15 months ahead of a government target for reaching the milestone. The boom in phone connections has been overwhelmingly driven by cellular services, with mobile customers comprising 40.31 percent of the 500 million telephone users. India is the second-biggest cellular market, lagging behind only China, which has over 600 million users. Urban mobile markets are already saturated but there are still hundreds of millions of customers to be signed up in rural areas -- a tantalising prospect for new entrants that see India as one of the few global growth areas. Another four players, including Norway's Telenor and United Arab Emirates' Etisalat, are set to roll out services in the next few months, joining the 11 companies already pitching for customers. As competition has mounted, the companies' share prices have taken a hit, with market leaders Bharti sliding 30 percent in a month and Reliance Communications tumbling 45 percent. Investment house MacQuarie recently downgraded the sector to under-perform. India plans to hold an auction in January for third-generation or 3G spectrum, which will allow high-speed internet and video downloads on mobile phones. But analysts say it will take time for companies to earn back the money spent on the licences and the auction will add to their balance sheet burdens. Experts say the sector can only reasonably support four to five players and that consolidation looms. "These developments will accelerate industry consolidation over the next 18 to 24 months," Satish Seth, group managing director of Reliance Communications, said, adding that Reliance would be a survivor. A shakeout will ultimately be beneficial for the industry as it will allow those who emerge on top to restore pricing, analysts say. Recommend Send IM Story Print Related Articles Hindustan Con sees order book of $4.3 bln by March'10 Reuters - 55 minutes ago Australia stimulus needed for recovery: Treasurer AFP - 1 hour 41 minutes ago Global car sales have bottomed-Nissan/Renault's Ghosn Reuters - 2 hours 5 minutes ago Nobel laureate says global crisis a chance to change AFP - 2 hours 39 minutes ago China's new Nasdaq-style board sees wild start AFP - Sunday, November 8 News Search Top Stories Advertisers face resistance to on-line tracking IMF says stimulus needed to aid 'nascent' recovery Obama to push lawmakers on health care vote Opel chief quits after GM decides to keep European unit Obesity causes 100,000 US cancers every year: study More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Gold price hits record after 'Sri Lanka purchase' US grieves after Muslim doctor kills 13 on army base 10 percent jobless rate adds to pressure on Obama Obesity causes 100,000 US cancers every year: study Newborns cry, coo in their own language: study More Most Viewed » Somali centenarian weds 17-year-old Mobile phone giant Nokia sues Apple over patents More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

Other News on Sunday, 8 November 2009
Two Britons Win $149 Million Lottery Jackpot
Escaped Circus Elephant Sideswipes Car
The Sky Is Falling: Mysterious Ice Chunks Hit Chicago Home
Japanese Gangster Opens Fire On Three Debt Collectors, Then Commits Suicide
New Mom Sarah Jessica Parker Relishes The Smell Of Dirty Diapers
Dartmouth Scientist Uses Modern Technology To Authenticate Iconic Oswald Photo
Atlanta Man Rescues One Dog, Ends Up With Ten
Iran to reject UN-brokered nuclear plan: leading MP
G20 wants 'ambitious' Copenhagen talks
G20 'agrees timetable' for monitoring economic policy
Obama to push lawmakers on health care vote
Lebanon's Hariri set to form government with Hezbollah
Honduran rivals signal new bid to solve crisis | International |
Study shows high cost of German reunification: report | International |
Iran releases 3 journalists jailed during rallies
British man provides photo for his own wanted poster | International |
Shortage of military therapists creates strain
China PM reaches out to Muslims in Cairo speech
Fort victims had different reasons for enlisting
To defang Taliban, some look to private schools
Pelosi: Obama visit inspired Democrats
Thousands throng Indian town for Dalai Lama visit
George W. Bush visits Fort Hood, wounded soldiers
Lawyer: Fla. office shooting suspect mentally ill
Afghan ministry: NATO strike kills Afghan soldiers
France asks Sri Lanka to end emergency laws
Another attack leaves US Muslims fearing backlash
Japan urges Myanmar to release Suu Kyi before poll
Ministry: NATO airstrike kills Afghan soldiers
Colo. man who threatened Obama makes weapons plea
Japan to increase aid to Myanmar: PM
Navy ship built with WTC steel goes into service
Prized mushroom collection returns to China
Muslim leader had troubling talks with suspect
Pohang beat Al Ittihad to win AFC Champions League
Obama to push lawmakers on health care vote
Police: LA celebrity burglaries led by 19-year-old
A Prophet nominated for six European film awards | Entertainment |
Sri Lanka buying gold 'to diversify reserves'
Police: LA celebrity burglaries led by 19-year-old
Advertisers face resistance to on-line tracking
In eastern Europe, people pine for socialism | International |
Advertisers face resistance to on-line tracking
IMF says stimulus needed to aid 'nascent' recovery
"Modern Warfare 2" strikes on Tuesday
Iran releases 3 journalists jailed during rallies
Award-winning Cuban blogger says she was beaten, detained
Dalai Lama begins visit to disputed India state | International |
Brazil blackouts result of cyber hacking: report
Families hold Rio memorial for doomed Air France flight
Market attack in NW Pakistan kills at least 8 | International |
Yushchenko to blame for Russia-Ukraine spat: Medvedev
Saudi Arabia says regains area seized by Yemen rebels | International |
Haiti's new prime minister wins confirmation | International |
China's Wen seeks to boost blossoming Africa ties | International |
House Roll Call: How they voted on abortion issue
Dalai Lama visits town near Tibet, angering China
Market attack in NW Pakistan kills at least 8
Clinton leaves for Europe, Asia
Japanese FM says no base deal during Obama visit
House passes health care bill on close vote
Funeral services held for slain New Mexico nun
Police: Suicide bomb in northwest Pakistan kills 8
Report: NKorea's Kim Jong Il fires top TV official
US ship built from twin tower steel commissioned
Weather forecast for the Asia-Pacific region
US is helping Guyana track terror suspect: US official
Malaysia to charge Japanese woman over drug haul
House passes resolution honoring Fort Hood victims
Deans's joy as rugby slam bid starts with England win
Japanese protest over US base before Obama visit
U.S. House approves sweeping healthcare overhaul
Obama wraps up Afghan review, eyes final options
China's new Nasdaq-style board sees wild start
India's fast-growing telecom sector hits trouble
iPhone disappoints in China launch: analysts
SKorean workers march against labour law plan
Chinese premier: Africa trade push is 'selfless'
An east German stockbroker wrestles with his fate
Taiwan breeders see big profits in rare shrimps
Nepal emerges as 'poacher's paradise'
Hopper: All's 'good right now' despite cancer
Guests for the Sunday TV news shows
Japanese cellist wins world's top competition
Swiss less wary of foreigners than a decade ago: survey
Pope a fan of sports -- but not doping athletes
"A Prophet" nominated for six European film awards
Nabokov's unfinished -- and unburned -- novel reappears
Taiwan court to scrap 'unfair' law on prostitutes
European Court Ruling Against Classroom Crucifix Stirs Italy, Prompts Appeal
Netanyahu's Washington trip clouded by Abbas threat
Japan eyes solar station in space
Saudis claim gains from Yemen rebels
NATO, Afghanistan probe deadly 'friendly' strike
Thousands in West Bank urge Abbas not to quit | International |
Russia must keep promise to supply missiles: Iran | International |
17 rebels killed in Afghan battle: ministry
China to boost aid to Africa as ties blossom | International |
War support flagging as Britain remembers fallen
Hurricane Ida strengthens, 42 dead in Salvador | International |
Women fight new battle in Iraq's insurgent corner | International |
Congolese forces arrest 100 over police deaths | International |
AP NewsAlert
Police: 1 killed, 3 injured in shooting near Vail
Dalai Lama visits Indian state disputed by China
China to boost aid to Africa as ties blossom
Chinese premier pledges funds, aid to Africa
Murder case a glimpse into stresses of caretaking
Thaksin to visit Cambodia this week: PM
Malaysian lawmakers put marriages on line in oath
Fuel convoy hit in eastern Afghanistan
British soldier killed in southern Afghanistan
Jimmy Cobb still 'Kind of Blue' after 50 years
Communist consumer goods make comeback
US Bordeaux prices at risk of 'bloodbath', experts say
Kosher comics prove hit with Israel's Haredi Jews
India PM invites world to invest in economy
Football fever transforms 'Carmen' in SAfrica
Shakespeare's MacBeth meets Africa in Botswana's opera
Indian PM hopes for 7 percent growth next year
Taiwan, China to sign financial agreement: report
Nobel laureate says global crisis a chance to change
Hundreds join anti-corruption rally in Indonesia
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01