Indian mobiles set to get 11 digit numbers
www.WirelessFederation.com/news: Get ready to add one more digit to your already difficult to remember mobile number from January next year. National Numbering Plan 2003 has been amended by Department of Telecommunications (DoT), migrating the current 10 digit numbers to an 11-digit numbering plan in mobile services.
As per the amendment, an extra ‘9′ would be prefixed to the existing two-digit PLMN Access Code. According to an internal DoT note, the proposed migration may be implemented from January 10, 2010.
Earlier, number ‘2′ was prefixed to all BSNL and MTNL fixed-line phones across the country a few years ago to accommodate more connections.
Every service provider has its own PLMN, identified by Mobile Country Code (MCC) and the Mobile Network Code (MNC). The PLAM connects with internet service providers for data and internet access and interconnects with other PlAMs and public switched telephone networks (PSTNs) for telephone communications.
The unexpected growth in India’s mobile subscribers has made this numbering plan imminent. With 10-14 million mobile subscribers added to the list every month, the wireless subscriber base has already crossed 500 million, making it compulsory for DoT to re-examine plans in order to accommodate more subscribers.
Bharti remains top pick in Indian telecom sector
“Bharti Airtel (Formerly Bharti Televentures) is
India
‘s largest private sector provider of integrated telecom services, especially wireless. The wireless business accounts for nearly two-thirds of the company’s total revenue. The company is a market leader in wireless services and its wireless operations extend across all 23 domestic circles.”
Potential for margin expansion despite tariff pressures
“Bharti believes that wireless EBITDA margins could expand to ~39-40% over the long term, despite likely continued pressure on revenue per minute, rpm. In 1Q FY07A, Bharti’s wireless margin stood at 36.4%; we forecast margins at ~37% for FY07E and expect that margins will expand further to ~39% in longer term, as scale economies should overcome rpm pressures. Despite the growing cloud of mobile minutes, Bharti expects rpm to remain under pressure due to high competitive intensity in the market and also, some pass through of scale benefits by operators.”
New operator rollouts seem unlikely before end-2007
“Recent newsflow of more wireless operators seeking a pan-India footprint is a dampener from the standpoint of industry structure, but we think any threat to Bharti’s customer and profit leadership is distant. Also, we think any on-the-ground network rollout by new operators is unlikely to commence before end-CY07.”
Reiterate Buy, Bharti remains our top pick
“We forecast Bharti’s earnings to grow at a CAGR of ~48% over FY06A-08E driven primarily by ~61% growth in its wireless subscriber base. At a PE of ~16x Mar ’08 & EV/EBITDA of 9x FY08E, the stock is currently trading near the lower end of its one-year forward PE-band of 18-24x and EV/EBITDA band of ~10-13x. Bharti remains our top pick in the Indian telecom sector. Buy.”
Source- http://www.moneycontrol.com
Technorati : Bharti Airtel, EBITDA, GSM, India
Ice Rocket : Bharti Airtel, EBITDA, GSM, India
