Telecom Sector Analysis
“SECTOR ANALYSIS – TELECOM INDUSTRY
&
A CASE STUDY OF: IDEA CELLULAR LTD.”
SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF DEGREE OF
POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT (PGDBM)
SUBMITTED BY
PRAJAKTA M. DIWAN
PGDBM - FINANCE
BATCH: 2007-09
UNDER THE GUIDANCE OF
PROF. V. S. DATE
[pic]
N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
SHRISHTI, SECTOR 1, MIRA ROAD (E), MUMBAI 401104
CERTIFICATE
This is to certify that Prajakta M. Diwan, a student of N.L. Dalmia Institute of Management Studies and Research, has successfully completed the project titled ““SECTOR ANALYSIS – TELECOM INDUSTRY & A CASE STUDY OF: IDEA CELLULAR LTD.”,under my supervision and guidance as a partial fulfillment of the requirements of PGDBM course ,Batch 2007-2009.
The information submitted is true and original to the best of my knowledge.
Place:Mumbai
Date:
DECLARATION
I, Prajakta M. Diwan, a PGDBM student of N. L. Dalmia Institute of Management Studies and Research hereby declare that, I have completed my project on “SECTOR ANALYSIS – TELECOM INDUSTRY & A CASE STUDY OF: IDEA CELLULAR LTD.” in the academic year 2007-09.
The information submitted is true and original to the best of my knowledge.
Signature:
Prajakta M. Diwan
PGDBM Finance
ACKNOWLEDGEMENT
The success of any project is the result of hard work & endeavour of not one but many people and this project is no different.
I would like to express my gratitude towards my project guide Prof. V. S. DATE for his encouragement and support throughout my project. Without his help and guidance, this in-depth exposure to all aspects of SECTOR ANALYSIS – TELECOM INDUSTRY & a CASE STUDY OF: IDEA CELLULAR LTD. would not have been possible.
My heartfelt thanks to PROF. P. L. ARYA for providing me with the infrastructure for the project and also the entire faculty, who have provided me the knowledge and guidance that has facilitated the successful preparation and completion of the project.
I am also indebted to all other sources from which I have drawn information and all those persons from whom I have received help and advice in completing this project.
Prajakta M. Diwan
PGDBM Finance
Executive Summary6
Telecom Industry Overview9
India to have 541.3mn mobile subscribers by FY201113
Incumbent operators to lord over newer entrants17
Spectrum remains the biggest concern19
Infrastructure Sharing - Gaining ground22
Indian Broadband Sector - A sorry tale23
Fixed Line subscriber base24
Recent Industry Developments27
Mobile Number Portability ( mnp) - A 'contingent liability'33 Global Examples Of MNP Implementation :Hongkong & Taiwan35
Conclusion36
Outlook36
Infrastructure Sharing37
Business Case37
Infrastructure Sharing – Driven by Cost Dynamics42
Government support for Infrastructure Sharing53
Case Study – IDEA CELLULARLtd.59
Company Description in Brief.59
Circle of Operations.60
Investment Argument62
Weaknesses & Concerns63
Valuation of Bharti Airtel Ltd.66
Methodology Of Discounted Cash Flow67
Methodology Of Fair Value Calculation..68
Assumtions & Key Inputs.69
Calculation of FCFF & Net Operating Working Capital70
Forecasting of Future Cash Flows & Intrinsic Value71
References72
Executive Summary
Enabling policies, competition, strong GDP growth power subscriber numbers
The Indian Mobile Telecom Industry has been one of the best examples of the success of the Indian Government's reforms programme. The sector has grown at a scorching pace over the past few years aided by enabling regulations,...
Please join StudyMode to read the full document