Telecom Sector: In its prime
Q4FY06 witnessed several important developments in the telecom sector –M&As, equity issuance and momentum in regulatory activity. With theintroduction of ‘lifetime free’ validity schemes, the mobile telephony sector in India is well poised to witness record quarterly mobile subscriber additions as India catches up with China in mobile additions. As per a recent study conductedby the Telecom Regulatory Authority of India (TRAI), India’s mobile subscriberbase in the first 11 years of mobile operations has far outpaced that of China.
Key factors to watch for over the next few months would be:
i) the pace ofdecline of mobile ARPUs post the launch of lifetime schemes
ii) the likelyannouncement on BSNL-MTNL integration
iii) line up of big-ticket telecom IPOs –Hutch-Essar, BSNL and Tata Teleservices and
iv) the onset of triple-playservices.
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