Africa - New playground for Chindia

February 2010 came with events which shows African love for both China and India.
Africa is clearly being identified as next growth markets and is being eyed by Indian and Chinese companies for expansion. We have seen news of active acquisition in field of Oil and Gas and also automobiles, example Mahidra and Tatas setting up shops in South Africa as part of MEA region strategy.
Next in line is telecom business landscape. Chinese and Indian players are currently first and second biggest markets by subscribers in the world and growing at a fast pace.
Wireless story has been successful in both the countries, and private wireless brands like Bharti and Unicom have made healthy balance sheet. There is surely an interesting scene building up in telecom in Asia region. Global telecom brands are actively looking options to enter both these markets whereas domestic telecom brands need to look outside to expand for growth. Bharti aggresive bid for MTN confirmed global ambitions of Indian players to buyout in other markets.
What best can be options for expansion than Middle East and Africa region. MEA telecom landscape had been monopoly driven by state owned incumbents till late, but with MEA countries opening market for new players in both fixed and mobile space, telecom opportunities are showing in ample.Market previously controlled by State incumbents, limited telecom services, low teledensity are just good starters for any telecom players to jump on the opportunity.
Therefore, for China and Indian telecom players, MEA region is a good bet, seeing region proximity, telecom congomelarate opening in multiple countries in MEA, valuations, opportunity are some of parameters to lure them for acquisitions.
An invisible race has just started between Chinese and Indian players to enter MEA market, with Bharti bidding for Zain African operations and China Unicom bidding for Nigeria Telecom.Valuations of both these deals are high like $10bn for Zain and $2bn for NITEL, still these valuations are seen positive by analysts for these players.
I am seeing telecom landscape in MEA and Chindia region wherein, you will have few big brands controling major of the market say 5 years down the line. This is in assumptions that M&A in Indian telecom landscape will kickoff as expected in 1-2 year timeframe.
Africa is surely next playground for Chindia telecom brand to develop and showcase their business muscles.

Wake up India and vote for change!!

Welcome to 21st century India... a growing superpower and on verge of change....but recent terrorist attack has some open looof us loopholes in the internal security.

It is sad state that lack of political will and corrupt politicians is hampering growth of our country. I think time has come that each one of us as Indian citizen should vote in upcoming 2009, and ensure that we vote for right people in the system to seriously bring in some serious changes in the system.

I know there can be many If and But on this view, but seriously how many actually vote..not many. As long we dont vote, I think lets not then blame the system because we will get what we vote for.

Infosys buys Axon for $753mn

Finally, IT giant announces its strategic acquisition of Axon, SAP consulting for $753mn all cash deal. There has been lot of talk about Infy planning acquisition since it was sitting on lot of cash and required some strategic inorganic growth.

With Axon, Infy is expected to gain strong foothold in SAP consulting market, a high paying service offering and also it will help diversifying its revenue contribution coming from US. Axon has its 55% revenue coming from Europe and 45% coming from US geos. It also has operations in Malaysia.

On other hand HCL too has announced its $20mn acquisition of Control Point, telecom software services vendor.

IT giants are increasingly looking for inorganic growth to increase their presence. This can also be seen as Indian players dominance in IT versus Chinese counterpart. Chinese IT companies are still in stage wherein they are playing resourcing game, on other hand Indian IT players are moving into value chain game with strategic acquisitions.

MVNOs and Indian telecom market

TRAI recently released its recommendations on MVNOs in Indian market.
For more - please visit www.trai.gov.in
The executive summary of the recommendations of the Authority on MVNO is as follows:
1. MVNO to be introduced as a distinct service provider with its own licensing and regulatory framework
2. MVNO free to choose its business model (Full or Intermediate or Thin)
3. Arrangement/ agreement between MNO and MVNO to be driven by market forces
4. MVNO to be issued a license under Indian Telegraph Act
5. The license service area of MVNO to be same as that of parent MNO
6. Any Indian Company with networth -10% of that of MNO for the service area and paid up capital - 10% of prescribed networth and fulfilling other licence conditions is eligible for MVNO licence.
7. Agreement with MNO to be submitted before issue of license to MVNO
8. No limit on number of MVNOs attached to a MNO
9. MNO to pay the spectrum charges for utilisation of spectrum by MVNO
10. Entry fees for MVNOs – 10% of MNOs subject to a maximum of Rs.5/3/1 crores for category A/B/C areas
11. Annual licence fees same as that of MNO of the service area
12. Allocation of Numbers, Number portability, Interconnection with other service providers and Roaming to be provided by parent MNO.
13. Subscribers to be protected on failure of agreement between MNO and MVNO or MVNO quitting service
14. No Roll out Obligations for MVNO
15. FDI limit 74% (same as MNO)
16. Bank Guarantee: FBG – equivalent to two quarters license fees;
PBG – 5% of MNO
17. Restrictions on Mergers and acquisition on similar lines as MNOs

Following these recommendations, activity on MVNO front has already started with Tata making statement that it hold exclusive rights with Virgin in India. Now, it need to be seen who is next MVNO players approaching Indian telcos

India wins first ever individual gold medal at the Olympics

India won its first ever individual gold medal at Olympics 2008 at Beijing, China.
As an Indian , I am both happy and sad.
I am happy and have best regards to our champ, Bindra, who has won that gold medal.
But frankly, I am more sad. We all know the reason.
With second largest population on this planet earth of more than 1.1 billion, we have just few atheletes and sports champ which you can even count on fingers.
Its time that India takes initiative for all sports and stop making cricketers the god.

Current Indian Political Saga and K- Serials of Saas Bahu

Indian political scene has turned up similar to famous K- serials which dominates Indian Television TRPs.

- First, both has offlate been able to attract highest TRPs seeing the highly dramatic situation

- Second, both was like long going story where every thing was moving fine in festive mood, that got disrupted by a strom of nuclear deal( read extra marital affair for K- Serial)

- One party or one side of family is against excepting an idea, just then enters another political party with lots of shaking cameras

- And boom!! all excitement begins!! Lot of twist and turns in the story almost evry single day

- Situation that keep everybody guessing wat will happen in next day serial which comes with a new dramatic twist

- As it happens in K- Serial, there is a vamp/villian waiting to take revenge, they join with opposing or cursed party to take revenge from primary family.

- Yeh one more similarty, these moments are also telecasted in 8-10pm slot ;)

- K-serial families are shown to be rich families with so much of wealth etc, but noone in their family actually work during day time for their business, instead all men will be at home clad in nice well embrodary kurta pyjamas ;).... same is happening in political front, every one is busy with vote numbers and work has taken back front( not to forget, all politicians also wear Kurta pyjamas)

- Both K-serial and political saga is being dominated by women power

Now the only catch is gender based. Each of them has got one of the gender as the most loyal viewers.... You know the answer very well here....dont you !!!

Indian market at Bottom!!!

13000 and going further down... well this is very dialogue which you can hear on any business TV channel in India.

I see this a good buying opportunity and create portfolio.

As Warren Buffet says- you should get greedy when others are fearful and fearful when others are greedy

Global Inflation riding on the bull now

Inflation- Thats a global word now.
China, India are feeling most pressure from it and fighting to cool it down from double digit figure to sub 5% levels. With rising crude prices and OPEC not in mood to increase demand, I guess these two emerging markets will have to struggle for some more time with Inflation numbers.
Western markets too are feeling the pinch now, people in west are reducing their long drives and expenditures.
Interesting thing however is that dreaded word "Recession" is no more heard. There is still sense of optimism in global market of things recovering back in medium term and everything will be alright.
I feel too there are chances of the above facts. OPEC meeting last sunday resulted in divided views by members which means crude is soon going to see correction in prices. Saudi and Kuwait are pro-demand increase so as to fill the demand-supply gap.

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

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.

Incredible India

Incredible India(www.incredibleindia..org)

Thats Brand campaign for India.

India is just full of landscapes, the side one is bird's eye view of river Yamuna as seen on the way to Delhi.

Experience with Indigo

Recently,I flew from Hyderabad to Delhi with Indigo Airlines

Well, I really don't have anything special to write about Indigo.
I found it like yet another Low cost carrier. The only thing I will say that the aircraft are good.
As for service, they dont offer you anything except water and their seats are little cramp.

Check In and Handling is fine, in case you get a deal on ticket price, I think its worth going in for.

Overall, I will rate Indigo service as 6/10.