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Showing posts from 2008

Can Telecom Come To The Rescue?

Vasu Reddy from Chicago
vasureddy@aol.com

Communications users in India continue to grow at record pace with tens of millions of new users added every month. With hundreds of millions of people trying to reach them from within and outside of India, represent a potent force for personal and business uses. Each day the enormous outreach of this group of communicators is expanded, and will continue to expand. It’s December and with the holiday season coming upon us, it is time perhaps to look at what else can Telecom do to help the nation and its user base.

While looking at the benefits of communications and the valuations of these networks; enhancing both the shareholders and users, it is time for some social innovation that can be brought into helping with both user and national concerns. Each and every time we hear of advancements in communications or value addition, they typically cater to either a very niche segment of the market or trying to add numbers to the lower end of the mar…

Technology Conundrum

Vasu Reddy from Chicago
vasureddy@aol.com

GSM
CDMA
TDMA
WiMAX
Dual Technologies
3 G
VoIP
Next Generation Networks

We can go on about the long list of technical or fancy terms that we continue to read about in reference to communications. Talking about the technology is a global feature that typically announces the latest and greatest with each major communications event. It is typical to claim that each such advancement is life changing. India has its share great lobbying groups for various mobile technology offerings, and they are merciless in promoting their own vested interests as the best available alterative to solve the ever growing need for spectrum.

India is blessed with explosive growth in the new subscribers each month. The country’s new subscribers each month equal to many small countries total subscribers, and with no slowing down in these projections the value of spectrum is increasingly evident.

No new mobile technology is being introduced specifically for the Indian market, rat…

Perfect Telecom Market

Vasu Reddy from Chicago
vasureddy@aol.com

Unprecedented growth in users usually creates great opportunities for investors and customers. Be it a capitalistic society or a socialistic society, market forces typically take over in managing the imponderables with rapid growth in users and revenues and profits of any industry.

Last year, this year and future years hold great promise for the Indian telecommunications market, as the user base continue to grow at a pace that by most optimistic projections looks continuously attainable. Manufacturers, operators, suppliers, distributors and marketers are all beating their expectations and the users don’t seem to complain about what is being offered to them. Every inexpensive or most expensive offering seem to be lapped up in big numbers and customers hungry for more innovative products and services will keep the telecom market robust for years to come.

The latest developments with 3 G, VoIP and WiMax will deliver more products and services, alo…

Going Green with Telecom

Vasu Reddy from Chicago
vasureddy@aol.com

The subject is not about green bucks (US Dollars) but the environment. With millions of mobile communications users being added each month to the Indian talk space, it is probably time to start to think of going GREEN now and prevent the undue effects of the toxic waste left behind by the equipment; mobile phones and ancillary devices will pose to the already fast depleting Indian resources and surroundings.

Laws
We don’t have any favorable set of laws that encourage active recycling of mobile materials across the world. Much of the waste is creating hazard in select locations in China and other parts of the world, destroying the environment. India can adopt favorable laws for encouraging a pollution free mobile industry before it gets to be one more dump the rivers and destroy them activity of Telecom waste. Favorable laws will also allow for early investors to look at funding such enterprises.

Innovations
Early awareness of the problems with T…

Communications Menu

Vasu Reddy from Chicagovasureddy@aol.comSome 300 million people in India own a phone and are communicating with each other witin the country and probably with many millions more across the world.The number of subscribers in India is growing rapidly and shows no sign of slowing down.In five years from now we could have 700 million or more and perhaps the largest mobile community of the world from India.To estimate the market growth has been is to simply underestimating the potential of the Indian market, and the demand seems constant.Dozens of operators, thousands of innovative companies, tens of thousands of outlets, millions of advertisement minutes and constant press on the communications revolution will keep pushing a variety of options and opportunities for the Indian Communications Consumer. More 2 G NetworksOutside of the expected 3 G networks, more 2 G networks are inline for deployment.There is plenty of rural India to be covered by the current operators, and as it is mandated…

Policy Innovations

Vasu Reddy from Chicago
vasureddy@aol.com

Effective politics have always used innovative schemes to attract voter blocks. Many such policies are short lived while effective in pleasing the appetite of the electorate. The subsidized rice scheme which provides a kilo of rice at two Rupees is a great one and has been used several times in the last 25 years. The great fan fare this attracts at election rallies is phenomenal, and perhaps brings votes to the party that subsidizes Rice at such low price. This is not a clever policy but a populist political scheme, which really doesn’t do justice to the budgets of any state.

Indians, especially Indians in the opposition parties decry of political opportunism whenever we hear of such schemes, but never really protest against it. The ruling party can pretty much establish policies that are popular and cost a lot of money to the treasury, most times money that is not budgeted. The Indian democracy is happy with fighting market forces. The la…

The New India Company

Vasu Reddy from Chicago
vasureddy@aol.com

India’s national interest is in making Indian management and investment successful in the world and outside of its own well defined confines. There is no questioning on the Indian minds being some of the best in all fields of business and global affairs. The technology and information boom of the last decade has transformed services industries around the world with major contributions from Indian resources. Many IT services companies from India have not only become billion dollar profit makers but also become entrenched in every aspect of global technology development. Decades of excellence in medicine and science has always been the Indian forte, but last decade has seen Indian enterprise freely expanding and reaching markets that once were even difficult to visit.

The shareholders of these booming companies have continued to realize the benefits of betting on these now global companies early. Not underplaying today’s volatility of the Indi…

Will You Allow ME to be A BIG Telecom?

Vasu Reddy from Chicago
vasureddy@aol.com

In India things are not the same anymore. Everything in India seems to be big these days. Indian is synonymous with enormous pride and growth. Every industry segment in India is zooming in growth and valuations. So, if the Indian market allows me, I will be a big telecom.

Here is what will allow me to be a BIG Telecom:

We have the second largest telecommunications subscriber base in the world. We have enormous opportunities in mobile, land line, rural and other forms of communications services. We may be the most attractive investment destination in the world for telecommunications markets. We have been slowly erasing the sins of over taxing and removing the taxation barriers for the operators for faster growth with investment and attractive pricing. We have the ability to allow more competition and become a natural capital market where both users of the services and providers of services can get the best of each other. We can continue to…

Can Indian Telecom Foster Cottage Industry?

Vasu Reddy from Chicago
vasureddy@aol.com

Indian enterprise and cottage industry go hand in hand through the ages and successfully thrive along with the growing industries with huge workforces. The communications revolution of the mid-nineties through the mind boggling subscriber growth through 2007 and early 2008 should offer opportunities for India’s cottage industry to get involved in the opportunity to develop jobs and create wealth for small business person in all areas of India. The Indian cottage industry is quite enterprising and some great examples include:

· While the Mumbai workers run off to their offices and markets, the food delivery system makes sure they are served home cooked and almost hot food at their desks and on time. It is the coordination and planning that still baffles many a strategists who may never plan it as well as it is done in Mumbai.

· Farmers with very small tracts of land still are a large source of food for the Indian population. Farmi…

Can Value Addition Be Reality In Indian Telecom Market?

Vasu Reddy from Chicago
vasureddy@aol.com
On March 2, 2008 Virgin announced its entry into the ballooning Indian mobile market via value added services targeting youth segment with a franchise agreement with Tata Teleservices. Virgin provides value added services in various mobile markets around the world. Virgin doesn’t actually hold any wireless licenses. It simply brands its services in partnership with mobile operators as value added. It is quite a common practice across the globe to buy bulk airtime, add new features and resell with custom branding.
On March 4, 2008 the DOT asked for clarifications from Tata Teleservices on this agreement and asked to stop any services under the arrangement with Virgin until the agreements are reviewed and in accordance with the license issued by the DOT.
The COAI also has been asking for clarity on this agreement and has written multiple letters to the DOT, and has clearly articulated that the Virgin-Tata value added services agreement was illeg…

Spectrum for Budget Balancing

Vasu Reddy from Chicago
vasureddy@aol.com

There is a fix to just about every business and budget in the world. The on-going C Block spectrum auctions in USA have crossed 20 Billion dollars as of the 2nd week of February, and still have until June 2008 to close. This auction could fetch 30 billion or more when done, giving a nice chunk of change for the FCC and the USA government to erase some of the budget deficit.

This not only creates an extraordinary value for the US government in using the scarce resource in an already saturated mobile market, but also caters to the open access protocol being pushed by Google. This means that VOIP, Internet, Mobile and other content based services will be available on these new networks, creating opportunity for new generation of services and products. It is a win for the government, and also a win for operators along with a win for consumers who continue to crave the enhanced services. There is a great deal that can be emulated from this to the…

Satisfying India's Communications Needs

Vasu Reddy from Chicago
vasureddy@aol.com

Hundreds of high profile applicants are lining up for spectrum in India, and there is much confusion about when there will be clarity on who will be next in providing mobile communications for the fastest growing market in the world. There is market driven valuations floated at hundreds of billions of dollars, but nothing focused on the affordability of the services for the consumers.

To draw parallels and calculate the USA and India market affordability for about 500 minutes a month per user, we estimate that approximately $40.00 per month is spent with services with basic SMS services and 500 mobile minutes in the USA. If per capita of USA is $30,000 annually, then the percentage of income spent on an annual basis is $480.00/$30,000.00 or a 1.6% of per capita income spent on the services. If we calculate One Rupee per minute for the same service or 500 Rupees per month, or 6000 Rupees, or $150.00 on an annual basis and if the per capita inco…