Tuesday, March 11, 2008

MVNOs in India

MVNOs are welcome!!!
This is what Indian govt is saying as of now for its second fastest telecom market in the world.
Question is however the feasibility and timing of MVNO entry in Indian market. With spectrum and new licenses already been given to so many player to create competition , MVNO entry will surely deplete margins and might have negative impact.
MVNOs are typically opened in market where market is close to saturation and carrier want to seek new avenues of revenue. Whereas in India, teledensity is still around 24%.
Entry of MVNO will see price decline and as well negative competition , much more churn and might not be positive for Indian markets as of now.

Time for Indian govt to think again

China Inflation at 8.7%

China came out with their inflation figure and it is 8.7% which is actually a high figure. Inflation is directly linked to price rise including commodity prices which effects country growth trend.
This shows that in globalised world, however secluded a country remains cannot be left alone from global economic signs like slowdown or growth.

China too has been impacted by slowdown in western world and has seen 15-20% correction their markets too. Time to see how China copes with its image to maintain its country business in coocon environment policy.

Indian Budget 2008

India is gearing up for next election for biggest democracy. On one hand where global market is going through sub-prime crisis and talking themselves into recession, India still confident of its growing economy along with dfferent challenges.
Indian bidget by PC has been a right balance on tight rope. On one hand current congress government is trying to lure voter for next election by populist budget, on the other hand it has to be seen that India keep growing with its current rate.
Budget 2008 is very much for Aam aadmi, with tax slabs being changed showing straight saving of 50K for average person. Auto industry said cheers with PC announcing subsidy for small car. I am sure Nano effect is already showing its 'side effects'

The question now is whether the plans announced will show positive signs on Indian economy.