Comments on: Why Are Indian Companies So Keen on Looking Outside? A Look at some Strengths and Weaknesses of the Mobile Operators in India http://www.watblog.com/2008/05/30/why-are-indian-companies-so-keen-on-looking-outside-a-look-at-some-strengths-and-weaknesses-of-the-mobile-operators-in-india/ The Refreshing Blog on Web, Advertising and Technology in India! Wed, 08 Feb 2012 06:34:44 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: vinu http://www.watblog.com/2008/05/30/why-are-indian-companies-so-keen-on-looking-outside-a-look-at-some-strengths-and-weaknesses-of-the-mobile-operators-in-india/comment-page-1/#comment-7154 vinu Sun, 01 Jun 2008 16:57:22 +0000 http://www.watblog.com/2008/05/30/why-are-indian-companies-so-keen-on-looking-outside-a-look-at-some-strengths-and-weaknesses-of-the-mobile-operators-in-india/#comment-7154 Shallow article. Looks like you have seen two reports and put together this piece. It would be better if you could also put your individual opinions that make would make a good argument. Shallow article. Looks like you have seen two reports and put together this piece. It would be better if you could also put your individual opinions that make would make a good argument.

]]> By: raghav soni http://www.watblog.com/2008/05/30/why-are-indian-companies-so-keen-on-looking-outside-a-look-at-some-strengths-and-weaknesses-of-the-mobile-operators-in-india/comment-page-1/#comment-6858 raghav soni Fri, 30 May 2008 13:56:28 +0000 http://www.watblog.com/2008/05/30/why-are-indian-companies-so-keen-on-looking-outside-a-look-at-some-strengths-and-weaknesses-of-the-mobile-operators-in-india/#comment-6858 the most important reason of indian telcos going abroad is the buoyancy in the indian markets which despite 25 percent below their peak in jan offers tremendous amount of private equity money to indian companies......thats not the same case in western market because citigroup raised 10billion$ at a coupon rate of 9%........vc's think thrice when they invest in western countries and none while investing in indian counterparts......the other most reason for them going abroad is their ability to outsource most of the operations to india....remember wat sunil mittal told "he wants to replicate the low cost model acroos the globe" this shows that they are not after higher arpu's but expectation of higher margins is wat excites them thru outsourcing .....arun sarin had to convince his board members many times while acquiring hutch for 20billion$...but 4 airtel offering mtn for 40 billion dollar was a piece of cake(cheap capital i say).................they also wants to acquire companies abroad for 15x expected earnings so they can get 30xtimes earning multiple on inidan bourses..........know all this cos i have a deep understanding of capital markets........... the most important reason of indian telcos going abroad is the buoyancy in the indian markets which despite 25 percent below their peak in jan offers tremendous amount of private equity money to indian companies……thats not the same case in western market because citigroup raised 10billion$ at a coupon rate of 9%……..vc’s think thrice when they invest in western countries and none while investing in indian counterparts……the other most reason for them going abroad is their ability to outsource most of the operations to india….remember wat sunil mittal told “he wants to replicate the low cost model acroos the globe” this shows that they are not after higher arpu’s but expectation of higher margins is wat excites them thru outsourcing …..arun sarin had to convince his board members many times while acquiring hutch for 20billion$…but 4 airtel offering mtn for 40 billion dollar was a piece of cake(cheap capital i say)……………..they also wants to acquire companies abroad for 15x expected earnings so they can get 30xtimes earning multiple on inidan bourses……….know all this cos i have a deep understanding of capital markets………..

]]> By: Shayon http://www.watblog.com/2008/05/30/why-are-indian-companies-so-keen-on-looking-outside-a-look-at-some-strengths-and-weaknesses-of-the-mobile-operators-in-india/comment-page-1/#comment-6854 Shayon Fri, 30 May 2008 13:35:34 +0000 http://www.watblog.com/2008/05/30/why-are-indian-companies-so-keen-on-looking-outside-a-look-at-some-strengths-and-weaknesses-of-the-mobile-operators-in-india/#comment-6854 It's common knowledge that the call costs are the cheapest in India. At a stage when mobile providers like Reliance offering free calls to every other reliance all over the country and almost every other operator charging just 1 ruppee to keep the common consumer connected with the rest of the country, it is very tough to extract profits without depending on mass subscribers. It's not for nothing that today's telecom operators are trying their best to get the villages connected and also try to offer wireless internet connection at every corner because increasing the number of customers and also the number of services offered are the only way to increase profits. I shall even go to the extent of declaring that we are lucky that the telecom sector in our country has come of age and it is because of the combined efforts of the operators (I can still not forget the time when Reliance forced every other operator to stop charging for incoming calls) and the government that today's market is so competitive, despite the presence of so many players on the scene. Talking about the strengths and weaknesses of the Indian telecom operators, I should say that India is one of the most mature markets in the world. It’s common knowledge that the call costs are the cheapest in India. At a stage when mobile providers like Reliance offering free calls to every other reliance all over the country and almost every other operator charging just 1 ruppee to keep the common consumer connected with the rest of the country, it is very tough to extract profits without depending on mass subscribers. It’s not for nothing that today’s telecom operators are trying their best to get the villages connected and also try to offer wireless internet connection at every corner because increasing the number of customers and also the number of services offered are the only way to increase profits.

I shall even go to the extent of declaring that we are lucky that the telecom sector in our country has come of age and it is because of the combined efforts of the operators (I can still not forget the time when Reliance forced every other operator to stop charging for incoming calls) and the government that today’s market is so competitive, despite the presence of so many players on the scene.

Talking about the strengths and weaknesses of the Indian telecom operators, I should say that India is one of the most mature markets in the world.

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