The rebranded Windows Phone will be made available in the Thai market, with 16 models from eight global brands on offer as Microsoft attempts to retain its share in the smart phone market.
Lisa Lam, Business & Marketing Organisation Director, Microsoft (Thailand), said the company has rebranded Windows Mobile as Windows Phone to build consistency and common experience in using the world's foremost operating system, whether on PC, server or phone.
Moreover, the company has also launched its handset OS Windows Mobile 6.5 in conjunction with several global brand manufacturers.
By the end of this year, the company expects to have eight mobile phone brands running Windows 6.5, with HTC,Samsung, Acer, Asus, LG, Motorola, Sony Ericsson and Toshiba on board, offering 16 models covering a variety of styles and price ranges to fit customer needs.
Windows Phone has been designed to be interoperable with many device brands and platforms to respond to the different needs and demands of users, for both work and play, and creating experiences through a variety of hardware, applications and services.
"Choice is a big differentiating factor when considering competitors which offer a limited range of models, and this has helped us sell more than 35 million Windows Mobiles from 140 Top OEMs," said Lam.
She continued that Windows Mobile 6.5's key features include a newlydesigned home screen, an improved touch-sensitive user interface and Mobile Internet Explorer with built in Adobe Flash Lite, which enables websites to be displayed on phones in the same way they appear on a PC. Outlook Mo-bile/Exchange sync will be available at no additional charge if users hold an Exchange corporate license.
In addition, Windows Phones will feature two new services: My Phone, to sync text messages, photos, video, contacts and more to the web; and Windows Marketplace for Mobile, which will offer over 30,000 applications. Popular mobile internet applications such as Facebook,MySpace, Netflix, Twikini, WunderRadio and Zagat will be available alongside a selection of games.
According to IDC, the smart phone market in 2009 is estimated at around 197 million units worldwide, and is expected to reach 350 million unit by 2012. This is a growth rate of 77 percent,which is higher than that of feature phones, which have grown around 13 percent year-on-year.
According to Gartner, in the smart phone operating system (OS) market,Symbian held s 51 percent share, down from 57 percent a year ago, while RIM and Apple shares grew year-on-year.
Android's share was just under 2 per cent of the market and more Androidbased devices will come to market in the fourth quarter of 2009, intensifying competition in the smart phone OS market, particularly for Symbian and Windows.
Microsoft's share continued to drop year-on-year to account for 9 per cent of the market in the second quarter of 2009.
Recently, HTC (Thailand) introduced HTC Touch2, the first model built on the Windows Mobile 6.5 platform available in the Thai Market. The phone supports 3.5G, Wi-Fi and GPS, including a 3.2 MP camera at 16,900 baht.
Meanwhile, Research in Motion's BlackBerry Curve 8520 smart phone has a touch-sensitive trackpad and is the first BlackBerry to feature dedicated media keys, giving customers greater control of their music and videos.
Advance Info Service offers the product, which will be available next month,at 13,900 baht.
Friday, October 30, 2009
HTC Touch2 smart phone launched
Taiwan-based HTC has launched the Touch2 smart phone in the Thai market, with a target to sell 50,000 units in the next 12 months.
The Touch2 is the latest version of the HTC Touch, 50,000 of which have been sold locally in two and a half years. The Touch2 is HTC's fighting model, with which it aims to regain momentum in the Thai market for smart phones.
HTC (Thailand) country manager Nattawat Woranopkul said the highlight of the new model was that it is the first smart phone bundled with the Microsoft Mobile 6.5 operating system, as well as being equipped with social-networking features such as Facebook, Twitter and Windows Live.
He said that with its competitive price of Bt16,900 (including value-added tax), the HTC Touch2 will be the company's flagship product for the rest of the year.
"We will launch two more models: one for Windows Mobile and another for the Android platform. Currently, there are 12 HTC models on the Windows Mobile platform and only two - Magic and Hero - on Android," said Nattawat.
HTC targets overall revenue this year of Bt1.5 billion, up from Bt1.2 billion last year.
He said that even though for a couple months it seemed the market momentum was going the way of other brands - notably iPhone and BlackBerry - from now on the momentum will return to HTC because of the new model with Windows Mobile 6.5.
Moreover, the Touch2 is specially designed to meet the needs of customers demanding social-networking connections, he added.
Somchai Sitthichaisrichart, managing director of SiS Distribution (Thailand) - HTC's local distributor - said the fact that there were now more players in the smart-phone market was good for consumers. But for HTC, its strength is based on Windows Mobile, on which Microsoft is working to rebrand and relaunch its strategy.
"We admit we were not happy with our growth for a couple months, as we had expected much higher sales. However, we still have growth in double digits, although it is less than that of the market," he said.
HTC (Thailand) this year expects to grow by less than 30 per cent, while the smart-phone market is expected to grow by 30 to 40 per cent.
"The smart-phone market in Thailand still has a lot of room for growth as it is currently about 20,00 units per month, while total mobile-phone sales are around 700,000 to 800,000 per month. But the market for traditional mobile phones is showing flat growth, and is likely to fall further," said Somchai.
The Touch2 is the latest version of the HTC Touch, 50,000 of which have been sold locally in two and a half years. The Touch2 is HTC's fighting model, with which it aims to regain momentum in the Thai market for smart phones.
HTC (Thailand) country manager Nattawat Woranopkul said the highlight of the new model was that it is the first smart phone bundled with the Microsoft Mobile 6.5 operating system, as well as being equipped with social-networking features such as Facebook, Twitter and Windows Live.
He said that with its competitive price of Bt16,900 (including value-added tax), the HTC Touch2 will be the company's flagship product for the rest of the year.
"We will launch two more models: one for Windows Mobile and another for the Android platform. Currently, there are 12 HTC models on the Windows Mobile platform and only two - Magic and Hero - on Android," said Nattawat.
HTC targets overall revenue this year of Bt1.5 billion, up from Bt1.2 billion last year.
He said that even though for a couple months it seemed the market momentum was going the way of other brands - notably iPhone and BlackBerry - from now on the momentum will return to HTC because of the new model with Windows Mobile 6.5.
Moreover, the Touch2 is specially designed to meet the needs of customers demanding social-networking connections, he added.
Somchai Sitthichaisrichart, managing director of SiS Distribution (Thailand) - HTC's local distributor - said the fact that there were now more players in the smart-phone market was good for consumers. But for HTC, its strength is based on Windows Mobile, on which Microsoft is working to rebrand and relaunch its strategy.
"We admit we were not happy with our growth for a couple months, as we had expected much higher sales. However, we still have growth in double digits, although it is less than that of the market," he said.
HTC (Thailand) this year expects to grow by less than 30 per cent, while the smart-phone market is expected to grow by 30 to 40 per cent.
"The smart-phone market in Thailand still has a lot of room for growth as it is currently about 20,00 units per month, while total mobile-phone sales are around 700,000 to 800,000 per month. But the market for traditional mobile phones is showing flat growth, and is likely to fall further," said Somchai.
Tuesday, October 20, 2009
Designers set for phone competition
Creating new phone designs will help companies break into new markets and capture more target users, especially as businesses prepare for 3G networks, said Thananan Vilailuck, President of Samart i-Mobile, a major Thai brand with 2.7 million unit sales expected this year.
Recently, the company joined forces with the Industry Designer Society Thailand, or IDS, to launching the "i-Mobile Creative Synergy Award" competition to spur university students nationwide to submit mobile phone designs along with outstanding brand-building plans.
"Every year, the company spends around 20 million baht on mobile phone design, both internally and outsourced,but this is often limited to only the scope of ideas," said Thananan.
"The award will help us to apply the ideas and product designs arising from this project to actually develop products in Thai and foreign markets.
"This collaboration with IDS will stimulate interest in mobile phone design, which is a rather specialised discipline that requires a focus on userfriendliness and the real needs of the user, as well as in the formulation of strategic marketing plans."
He added:"This project is an important component of brand differentiation, as it encourages unique designs through the selection of premium-level gadgets as well as the development of content and applications that meet the needs and lifestyles of the users.
"We will not attempt to compete with the big companies like Apple or Nokia,but we will offer 80 percent of the functions of those brands with value-formoney prices."
Ditaphon Chantraurai, Assist Vice President, Product Marketing, Samart i-Mobile, added that the contestants who pass the shortlisting round will proceed to a product design and marketing communication workshop, where they will develop two types of mobile phones,namely, a Bar Type and a Touch Phone.
University students who are interested in entering the contest are invited to form groups of three to four members each.
Application forms can be downloaded from www.i-mobilephone.com until October 30.
Makorn Chowanich, Chairman of the Industrial Product Design Association of Thailand, added that market knowledge is a key concern for designers.
The project should also help strengthen the design business, especially in terms of gaining an understanding of local requirements, especially upcountry.
Design and manufacture will be mutually beneficial, with attractive designs increasing demand, therefore boosting opportunities for supply.
"In terms of price only, Thailand cannot compete with Chinese manufacturing, but I believe we have opportunities in niche markets and some expertise areas," said Makorn.
Meanwhile, Niwat Wongprompreeda,Secretary General and Director of Education at the Advertising Association of Thailand, said designers should study consumer behavior and compare their products with competitors who offer similar designs and functions in the same price range.
Currently, the the biggest market segment for mobile phones is models in the 1,000-3,000 baht range, leading Niwat to say:"Design can add value to the product and this is not limited to highprice models.
"We can make low cost designs with low-cost material but still make it look attractive."
Recently, the company joined forces with the Industry Designer Society Thailand, or IDS, to launching the "i-Mobile Creative Synergy Award" competition to spur university students nationwide to submit mobile phone designs along with outstanding brand-building plans.
"Every year, the company spends around 20 million baht on mobile phone design, both internally and outsourced,but this is often limited to only the scope of ideas," said Thananan.
"The award will help us to apply the ideas and product designs arising from this project to actually develop products in Thai and foreign markets.
"This collaboration with IDS will stimulate interest in mobile phone design, which is a rather specialised discipline that requires a focus on userfriendliness and the real needs of the user, as well as in the formulation of strategic marketing plans."
He added:"This project is an important component of brand differentiation, as it encourages unique designs through the selection of premium-level gadgets as well as the development of content and applications that meet the needs and lifestyles of the users.
"We will not attempt to compete with the big companies like Apple or Nokia,but we will offer 80 percent of the functions of those brands with value-formoney prices."
Ditaphon Chantraurai, Assist Vice President, Product Marketing, Samart i-Mobile, added that the contestants who pass the shortlisting round will proceed to a product design and marketing communication workshop, where they will develop two types of mobile phones,namely, a Bar Type and a Touch Phone.
University students who are interested in entering the contest are invited to form groups of three to four members each.
Application forms can be downloaded from www.i-mobilephone.com until October 30.
Makorn Chowanich, Chairman of the Industrial Product Design Association of Thailand, added that market knowledge is a key concern for designers.
The project should also help strengthen the design business, especially in terms of gaining an understanding of local requirements, especially upcountry.
Design and manufacture will be mutually beneficial, with attractive designs increasing demand, therefore boosting opportunities for supply.
"In terms of price only, Thailand cannot compete with Chinese manufacturing, but I believe we have opportunities in niche markets and some expertise areas," said Makorn.
Meanwhile, Niwat Wongprompreeda,Secretary General and Director of Education at the Advertising Association of Thailand, said designers should study consumer behavior and compare their products with competitors who offer similar designs and functions in the same price range.
Currently, the the biggest market segment for mobile phones is models in the 1,000-3,000 baht range, leading Niwat to say:"Design can add value to the product and this is not limited to highprice models.
"We can make low cost designs with low-cost material but still make it look attractive."
Thursday, October 15, 2009
Cancer studies may be biased
Studies on whether mobile phones can cause cancer,especially brain tumours, vary widely in quality and there may be some bias in those showing the least risk, researchers reported on Tuesday.
So far it is difficult to demonstrate any link, although the best studies do suggest some association between mobile phone use and cancer, the research coordinated by South Korea's National Cancer Center found.
Dr Seung-Kwon Myung and colleagues at Ewha Women's University and Seoul National University Hospital in Seoul and the University of California, Berkeley,examined 23 published studies of more than 37,000 people in what is called a meta-analysis. Results often depended on who conducted the study and how well they controlled for bias and other errors.
"We found a large discrepancy in the association between mobile phone use and tumour risk by research group, which is confounded with the methodological quality of the research," they wrote in the Journal of Clinical Oncology .The use of mobile and cordless phones has exploded in the past 10 years to an estimated 4.6 billion subscribers worldwide, according to the UN International Telecommunication Union.
Research has failed to establish any clear link between the devices and cancer.
The latest study, supported in part by the US Centers for Disease Control and Prevention, examined cases involving brain tumours and others including tumors of the facial nerves, salivary glands and testicles as well as non-Hodgkin's lymphomas.
It found no significant association between the risk of tumours and overall use of mobile phones, including cellular and cordless phones.
The South Korean team said "high quality" studies that blinded participants against bias found a mildly increased risk of tumours among mobile phone users. An increased risk of benign tumours was also found in people who used the phones for a decade or longer.
The "high quality" studies were funded by the Swedish Work Environment Fund,the Orebro Cancer Fund and the Orebro University Hospital Cancer Fund, the research team said.
Funding for some of the lower-quality studies included two industry groups,the Mobile Manufacturers Forum and the Global System for Mobile Communication Association.
So far it is difficult to demonstrate any link, although the best studies do suggest some association between mobile phone use and cancer, the research coordinated by South Korea's National Cancer Center found.
Dr Seung-Kwon Myung and colleagues at Ewha Women's University and Seoul National University Hospital in Seoul and the University of California, Berkeley,examined 23 published studies of more than 37,000 people in what is called a meta-analysis. Results often depended on who conducted the study and how well they controlled for bias and other errors.
"We found a large discrepancy in the association between mobile phone use and tumour risk by research group, which is confounded with the methodological quality of the research," they wrote in the Journal of Clinical Oncology .The use of mobile and cordless phones has exploded in the past 10 years to an estimated 4.6 billion subscribers worldwide, according to the UN International Telecommunication Union.
Research has failed to establish any clear link between the devices and cancer.
The latest study, supported in part by the US Centers for Disease Control and Prevention, examined cases involving brain tumours and others including tumors of the facial nerves, salivary glands and testicles as well as non-Hodgkin's lymphomas.
It found no significant association between the risk of tumours and overall use of mobile phones, including cellular and cordless phones.
The South Korean team said "high quality" studies that blinded participants against bias found a mildly increased risk of tumours among mobile phone users. An increased risk of benign tumours was also found in people who used the phones for a decade or longer.
The "high quality" studies were funded by the Swedish Work Environment Fund,the Orebro Cancer Fund and the Orebro University Hospital Cancer Fund, the research team said.
Funding for some of the lower-quality studies included two industry groups,the Mobile Manufacturers Forum and the Global System for Mobile Communication Association.
Tuesday, October 13, 2009
SA CELLPHONE OPERATORS PRESSED TO CUT RATES
South African lawmakers want mobile-phone operators, including MTN Group and Vodacom Group, to slash interconnection fees by more than half.
Cellular phone operators will appear before Parliament's portfolio committee on communications in public hearings to be held over two days starting tomorrow, Ismail Vadi, the committee's chairman, said by phone from Cape Town yesterday.
Parliament has proposed that mobile-phone companies cut interconnection fees to 60 cents (Bt2.75) a munute from 1.25 rand this year, and reduce them by a further 15 cents a year over the next three years, Vadi said.
Teh committee is aiming to exert more pressure on operators and the Independent Communciations Authority of South Africa after four years of talks to cut fees failed to result in any "significant progress", he added. "Interconnection rates in South Africa are amongst the highest in the world, and certainly in Africa," Vadi said. "The committee is extremely concerned about this. Lower fees will increase competition and will reduce communications costs in the country."
MTN, Vodacom and other cellphone operators are meeting witht Icasa today to discuss reducing call charges, acting spokesman Josias Mathiba said by phone from Johannesburg yesterday.
Icasa will make recommendations on pricing to lawmakers following today's meeting, he added.
MTN, africa's biggest mobilephone operator, fell 1.95 rand, or 1.6 per cent, to 124.10 rand as of 10.14 am in Johannesbug yesterday. Vodacom slid 75 cents. or 1.4 per cent, to 53.65 rand.
The Communications ministry may issue a policy directive to Icasa to force mobile-phone operators to slash fees, the department's spokesman, Tiyani Rikhotso, said.
Cellular phone operators will appear before Parliament's portfolio committee on communications in public hearings to be held over two days starting tomorrow, Ismail Vadi, the committee's chairman, said by phone from Cape Town yesterday.
Parliament has proposed that mobile-phone companies cut interconnection fees to 60 cents (Bt2.75) a munute from 1.25 rand this year, and reduce them by a further 15 cents a year over the next three years, Vadi said.
Teh committee is aiming to exert more pressure on operators and the Independent Communciations Authority of South Africa after four years of talks to cut fees failed to result in any "significant progress", he added. "Interconnection rates in South Africa are amongst the highest in the world, and certainly in Africa," Vadi said. "The committee is extremely concerned about this. Lower fees will increase competition and will reduce communications costs in the country."
MTN, Vodacom and other cellphone operators are meeting witht Icasa today to discuss reducing call charges, acting spokesman Josias Mathiba said by phone from Johannesburg yesterday.
Icasa will make recommendations on pricing to lawmakers following today's meeting, he added.
MTN, africa's biggest mobilephone operator, fell 1.95 rand, or 1.6 per cent, to 124.10 rand as of 10.14 am in Johannesbug yesterday. Vodacom slid 75 cents. or 1.4 per cent, to 53.65 rand.
The Communications ministry may issue a policy directive to Icasa to force mobile-phone operators to slash fees, the department's spokesman, Tiyani Rikhotso, said.
Sunday, October 11, 2009
STILL IN THE GAME
Bharti Airtel, India's biggest mobile operator, may restart talks with South Africa's MTN while eyeing smaller targets in the Mideast and Asia. By Tony Arora in New Delhi
For the second time in as many years, India's Bharti Airtel and South Africa's MTN have failed in their bid to create the world's third-largest mobile services company with 200 million subscribers,revenues of US$20 billion and operations in 24 countries - just behind China Mobile and Vodafone Group.
The deal-breaker was the South African government's concern that the country would lose MTN to a foreign player. Delhi could not meet Pretoria's demand for dual listing of MTN shares post-merger since India does not yet allow full capital account convertibility.
Official sources in New Delhi say a dual-listing structure would lead to huge tax losses to the government.
Another major hurdle was an amendment by the Securities and Exchange Board of India (SEBI) stating that any acquisition through American or Global depository receipts (ADRs and GDRs)with voting rights would trigger a mandatory 20% open offer above the 15%threshold. This upset the terms of the proposed deal as MTN sought to acquire 36% in Bharti through GDRs.
The South African government's pension fund, Public Investment Corporation, holds 21% in MTN and the government was under intense pressure to nix the deal on concerns that MTN's South African identity would be lost.
Sources said a dual-listed company (DLC) clause also would weaken the supervisory authority of SEBI as it would not be able to monitor overseas stock exchanges. MTN is currently listed on the Johannesburg Securities Exchange.
Last year, China Mobile and Vodafone also were reportedly close to striking a deal with MTN but nothing materialised.But Bharti is determined to replicate its staggering growth at home in other emerging markets, where scale is vital and penetration rates are low but rising fast. It is interesting to see why.
The company is the market leader in India, the world's fastest growing mobile market and the second largest after China. It has nearly a quarter of the country's total mobile subscriber base.
Telecom analysts and bankers say Bharti is keen to expand offshore as returns from the Indian market are likely to slow down in coming years. About 40% of India's 1.1 billion people have mobile phones and more than 10 million users are signing up every month.
Subscriber growth is expected to be slow eventually as more of the population gets phones. Increasing competition in the already crowded market with the entry of international players such as NTT DoCoMo, Vodafone, Etisalat, Virgin Mobile, Sistema Telecom and Telenor in ventures with local firms has started taking its toll on revenue and margins.
Singapore Telecommunications,Southeast Asia's biggest phone company,owns 30.4% in Bharti. Company executives say they will keep looking to expand overseas but may aim for smaller firms than MTN. One possibility on the horizon is the Kuwaiti telecom firm Zain, whose shareholders are selling a 46% stake.
Bharti is also reportedly eyeing the Sri Lankan operations of Luxembourg-based Millicom International Cellular.Other possibilities are Warid Telecom whose shareholders are Abu Dhabi Group and SingTel, and Egypt's Orascom, said a banker who worked with Bharti chairman Sunil Mittal in the past.
"He clearly wants to scale up and knows he needs to go outside India as well," said the banker."Maybe he will temper his global ambition for now, but that will strengthen his aim to be at least a regional powerhouse."
Currently, the company has operations in Sri Lanka and its parent operates mobile firms in Seychelles and the British Channel Islands.
But the collapse of talks with MTN also mean that Bharti will not have to take on debt and its strong cash position will leave it well placed for local expansion and an upcoming 3G auction in India.The government will auction thirdgeneration spectrum in December and analysts expect winning bids of $1 billion to $1.5 billion for pan-India spectrum.
Bharti and will soon start accumulating cash even after spending on the 3G auction. It needs to deploy that somewhere,and acquisitions are the natural choice.
The company became net cash-flow positive in the year to March 2009. With $629 million in net debt, its net debt-toEBITDA ratio (earnings before interest,tax, depreciation and amortisation) of 0.25 makes it one of the best-placed Indian telecom firms.
As of June 30, Bharti had 63 billion rupees in cash and investments that could be converted into cash. If the MTN deal had gone through, fresh debt could have strained its balance sheet.
3G also throws open opportunities in non-SMS services including data, music and video. This calls for more investments and here again Bharti looks comfortable.
Apart from 3G, another growth area in India is consumer services such as direct-to-home (DTH) and television service based on internet protocol. Bharti has entered both segments and faces stiff competition from players such as Reliance Communications and Tata Sky.
For the second time in as many years, India's Bharti Airtel and South Africa's MTN have failed in their bid to create the world's third-largest mobile services company with 200 million subscribers,revenues of US$20 billion and operations in 24 countries - just behind China Mobile and Vodafone Group.
The deal-breaker was the South African government's concern that the country would lose MTN to a foreign player. Delhi could not meet Pretoria's demand for dual listing of MTN shares post-merger since India does not yet allow full capital account convertibility.
Official sources in New Delhi say a dual-listing structure would lead to huge tax losses to the government.
Another major hurdle was an amendment by the Securities and Exchange Board of India (SEBI) stating that any acquisition through American or Global depository receipts (ADRs and GDRs)with voting rights would trigger a mandatory 20% open offer above the 15%threshold. This upset the terms of the proposed deal as MTN sought to acquire 36% in Bharti through GDRs.
The South African government's pension fund, Public Investment Corporation, holds 21% in MTN and the government was under intense pressure to nix the deal on concerns that MTN's South African identity would be lost.
Sources said a dual-listed company (DLC) clause also would weaken the supervisory authority of SEBI as it would not be able to monitor overseas stock exchanges. MTN is currently listed on the Johannesburg Securities Exchange.
Last year, China Mobile and Vodafone also were reportedly close to striking a deal with MTN but nothing materialised.But Bharti is determined to replicate its staggering growth at home in other emerging markets, where scale is vital and penetration rates are low but rising fast. It is interesting to see why.
The company is the market leader in India, the world's fastest growing mobile market and the second largest after China. It has nearly a quarter of the country's total mobile subscriber base.
Telecom analysts and bankers say Bharti is keen to expand offshore as returns from the Indian market are likely to slow down in coming years. About 40% of India's 1.1 billion people have mobile phones and more than 10 million users are signing up every month.
Subscriber growth is expected to be slow eventually as more of the population gets phones. Increasing competition in the already crowded market with the entry of international players such as NTT DoCoMo, Vodafone, Etisalat, Virgin Mobile, Sistema Telecom and Telenor in ventures with local firms has started taking its toll on revenue and margins.
Singapore Telecommunications,Southeast Asia's biggest phone company,owns 30.4% in Bharti. Company executives say they will keep looking to expand overseas but may aim for smaller firms than MTN. One possibility on the horizon is the Kuwaiti telecom firm Zain, whose shareholders are selling a 46% stake.
Bharti is also reportedly eyeing the Sri Lankan operations of Luxembourg-based Millicom International Cellular.Other possibilities are Warid Telecom whose shareholders are Abu Dhabi Group and SingTel, and Egypt's Orascom, said a banker who worked with Bharti chairman Sunil Mittal in the past.
"He clearly wants to scale up and knows he needs to go outside India as well," said the banker."Maybe he will temper his global ambition for now, but that will strengthen his aim to be at least a regional powerhouse."
Currently, the company has operations in Sri Lanka and its parent operates mobile firms in Seychelles and the British Channel Islands.
But the collapse of talks with MTN also mean that Bharti will not have to take on debt and its strong cash position will leave it well placed for local expansion and an upcoming 3G auction in India.The government will auction thirdgeneration spectrum in December and analysts expect winning bids of $1 billion to $1.5 billion for pan-India spectrum.
Bharti and will soon start accumulating cash even after spending on the 3G auction. It needs to deploy that somewhere,and acquisitions are the natural choice.
The company became net cash-flow positive in the year to March 2009. With $629 million in net debt, its net debt-toEBITDA ratio (earnings before interest,tax, depreciation and amortisation) of 0.25 makes it one of the best-placed Indian telecom firms.
As of June 30, Bharti had 63 billion rupees in cash and investments that could be converted into cash. If the MTN deal had gone through, fresh debt could have strained its balance sheet.
3G also throws open opportunities in non-SMS services including data, music and video. This calls for more investments and here again Bharti looks comfortable.
Apart from 3G, another growth area in India is consumer services such as direct-to-home (DTH) and television service based on internet protocol. Bharti has entered both segments and faces stiff competition from players such as Reliance Communications and Tata Sky.
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