market research report : telecom towers in india 2012
DESCRIPTION
For the complete report, get in touch with us at : [email protected] Continual improvement in the field of Information and Communications Technology (ICT) coupled with favorable demographics prevailing in India is predominantly driving the telemedicine market in India. The market receives plenty of government attention which in turn further proves to be a boon for growth. Competition in the market is healthy wherein most of the players are focusing on the rural sections of India. The report begins with an introduction section, featuring an illustration defining the concept of telemedicine. It depicts all the components that actually build up telemedicine system. Market overview section of the report talks about the Indian market as a whole and highlights crucial aspect of the market such as factors driving the market, government participation, proportion of telemedicine within the overall healthcare sector and the preferred business model by vendors in the market. The section features forecasted market figures (2011-2015e) as well. Telemedicine snapshot portion has been derived after a thorough research, wherein key strategic insights about the market has been mentioned so as to provide a clear cut idea about the market scenario in India in current times. SWOT analysis of the overall telemedicine market has been done and presented in the report, which further provides readers with the relevant strength, weakness, opportunities and threats for the market inIndia. The section features a detailed analysis of each SWOT point.TRANSCRIPT
Telecom Towers in India
March 2012
Executive Summary
Drivers:
Market
Drivers &
Challenges
� In FY 20--, x1 telecom towers were added, taking the total no. of towers in the country to x2
� In terms of revenue, domestic market size of telecom towers is estimated at INR x3-x4 bn
� The market is expected to grow at a CAGR of x5% in revenue and x6% in earning till 20--
Challenges:
�Challenges faced in rural set up
� Increasing Pollution and Radiations
�Growth in Wireless Subscriber Base
� Emergence of Solar Power as a Positive
Source of Energy
� Introduction 3G and Upcoming Cellular
2TELECOM TOWERS IN INDIA 2012.PPT
Trends & Developments
Competition
� Trend1
� Trend2
�Development1
�Development2
Major Players
Bharat Sanchar Nigam Ltd. Bharti Infratel Ltd. GTL Infrastructure Ltd.
Indus Towers Ltd. Reliance Infratel Ltd. Viom Networks Ltd.
� Introduction 3G and Upcoming Cellular
Technology
� Spectrum Scarcity
•Introduction
•Market Overview
•Scope in India
•Drivers & Challenges
•Major Telecom Tower Companies
3TELECOM TOWERS IN INDIA 2012.PPT
•Major Telecom Tower Companies
�Other Telecom Tower Companies
•Mergers & Acquisitions
•Trends & Developments
•Strategic Recommendations
•Appendix
Introduction
Telecom Industry Overview
Indian telecom sector is the x1 largest sector in the world and x2 largest among the Asian emerging
economies
The telecommunication sector in India has been the major contributor to the country’s growth,
accounting for around x3% of the total GDP in FY--
Telecommunication Industry
4TELECOM TOWERS IN INDIA 2012.PPT
SAMPLE Source:
Sub-Vertical1 Sub-Vertical2 Sub-Vertical3 Sub-Vertical4 Sub-Vertical5
• Sub-Vertical3 consists of service deployment facilities and equipments
• Telecom towers are one of the prime components of Sub-Vertical3
• India being an enormous country with rapidly increasing colossal subscriber base across the country,
deployment of telecom towers will be essential to reach every corner of the nation
• Telecom towers can be broadly categorized in two types, type1 and Roof Type Tower
Demand for telecom towers is high resulting in a rapidly growing
industry and emergence of lucrative tower business
• Growth in mobile subscribers in India over the last few years has created huge opportunities for the telecom infrastructure industry
• In FY 20-- alone, x1 telecom towers were added, taking the total no. of towers in the country to x2
• In terms of revenue, market size of telecom tower vertical is estimated at INR x3-x4 bn, which excludes reasource1 and reasource2 billing
� The market is expected to grow at a CAGR of x5% in revenue and x6% in earning till 20--
• All leading mobile service operators are expanding and increasing their coverage by increasing their network, increase coverage through tower sharing and using independent tower networks
• The growing market for towers is also attracting the attention of vertical1 to invest in the companies
Market Overview – India
5TELECOM TOWERS IN INDIA 2012.PPT
• The growing market for towers is also attracting the attention of vertical1 to invest in the companies
• The commercial terms between the tower company and its tenants are governed by Master Service Agreements (MSA)
Source:
Telecom Tower Requirements - India
Towers (‘000s)
1.500
1.000
500
0
+30%
20--e20--e20--e20--e20--20--20--20--
Note: The figures are for the respective financial years
Market share of Telecom Tower Companies - India
6TELECOM TOWERS IN INDIA 2012.PPT
SAMPLE • Company1 holds majority of the telecom tower market in India
• The major y1 companies hold around y2% of the market
• Rest of the y3% market is shared by various specialty1 and specialty2 owned
tower companies
Source:
Player7Player6Player5Player4Player3Player2Player1
Infrastructure sharing takes place at two levels – level1 and
level2
level1 level2
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• ccccccccccc
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• ccccccccccc
Types of Infrastructure Sharing
7TELECOM TOWERS IN INDIA 2012.PPT
Source:
X X
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• bbbbbbbbb
• ccccccccccc
Benefits of Infrastructure Sharing
SWOT Analysis of Telecom Tower Sharing in India
SWOT
Strengths
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Weaknesses
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8TELECOM TOWERS IN INDIA 2012.PPT
SWOT
Analysis
Opportunities
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Threats
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Source:
Drivers & Challenges – Summary
Drivers
Growth in Wireless Subscriber Base
Challenges
9TELECOM TOWERS IN INDIA 2012.PPT
Growth in Wireless Subscriber Base
Introduction 3G and Upcoming
Cellular Technology
Spectrum Scarcity
Emergence of Solar Power as a
Positive Source of Energy
Challenges faced in rural set up
Increasing Pollution and Radiations
Public: Domestic Company – Company1 (-/-)
Company Information Offices and Centres – India
Corporate Address
Adress line1
Adress line2
City. Country
Tel No. +91- --- - -----
Fax No. ++91- --- - -----
Website www.------.com
Year of Incorporation 19--
Ticker Symbol ------
City Name
Head Office
10TELECOM TOWERS IN INDIA 2012.PPT
Key People
Products and Services
Stock Exchange Exchange1
Category Products/Services
Primary Products
•Passive Infrastructure Solutions
•Tower Operations Center
•Infratel Enterprise Suite
•Advantage Infratel
•Shared Infrastructure
Name Designation
Mr. X Chief Executive Officer
Mr. Y Chief Financial Officer
Mr. Z Chief Operating Officer
Head Office
Source:
• The company incurred a net profit of INR a1 mn in FY 20--, as
Public: Domestic Company – Company1 (-/-)
Financial Snapshot Key Ratios
Financial Summary
Net Profit/LossTotal Income
0
50
100
150
0
2
4
6
8
Profit
INR mn
Revenue
INR mn
20--
c4
20--
c3
20--
c2
20--
c1
Particulars y-o-y change
(2011-10)2011 2010 2009 2008
Profitability Ratios
Operating Margin 2.23 0.74% -1.49% -9.59% -10.70%
Net Margin -34.74 -35.26% -0.51% 1.00% -37.12%
Profit Before Tax Margin -53.05 -53.57% -0.51% -25.32% -12.44%
Return on Equity -10.93 -11.06% -0.14% 0.21% -5.79%
Return on Capital Employed 0.18 0.06% -0.12% -0.55% -0.48%
Return on Working Capital 78.72 77.98% -0.74% 0.18% -3.99%
Return on Assets -2.26 -2.29% -0.04% 0.05% -1.56%
Return on Fixed Assets -2.88 -2.94% -0.06% 0.09% -2.98%
Cost Ratios
Operating costs (% of Sales) -2.95 99.22% 102.16% 112.14% 113.76%
11TELECOM TOWERS IN INDIA 2012.PPT
• The company incurred a net profit of INR a1 mn in FY 20--, as
compared to net profit of INR a2 mn in FY 20--
• The company reported total income of INR a3 mn in FY 20--,
registering an increase of a4 per cent over FY 20--
• The company earned an operating margin of a5 per cent in FY 20--,
an decrease of a6 percentage points over FY 20--
• The company reported debt to equity ratio of a7 in FY 20--, an
increase of a8 per cent over FY 20--
Key Financial Performance Indicators
Indicators Value (--/--/20--)
Market Capitalization (INR mn) 10,985
Total Enterprise Value (INR mn) 87,544
EPS (INR) 48.39
PE Ratio (Absolute) 66.9
Improved DeclineSource:
Operating costs (% of Sales) -2.95 99.22% 102.16% 112.14% 113.76%
Administration costs (% of
Sales)1.04 18.03% 17.00% 15.75% 18.00%
Interest costs (% of Sales) 20.57 63.33% 42.77% 45.59% 29.69%
Liquidity Ratios
Current Ratio -54.82% 0.82 1.81 4.42 7.13
Cash Ratio -96.41% 0.19 5.34 2.99 5.66
Leverage Ratios
Debt to Equity Ratio 45.86% 3.82 2.62 2.92 2.72
Debt to Capital Ratio 6.85% 0.75 0.70 0.72 0.71
Interest Coverage Ratio 124.52% 0.01 -0.05 -0.27 -0.46
Efficiency Ratios
Fixed Asset Turnover -9.25% 0.08 0.09 0.07 0.06
Asset Turnover 18.69% 0.06 0.05 0.04 0.03
Current Asset Turnover 5.19% 0.47 0.45 0.11 0.07
Working Capital Turnover -308.15% -2.08 1.00 0.14 0.08
Capital Employed Turnover 58.09% 0.29 0.19 0.16 0.12
Public: Domestic Company – Company1 (-/-)
Key Business Segments Key Geographic Segments
0%
50%
100%
20-- 20-- 20--20--
0%
50%
100%
20-- 20--20--20--
Product1 Product2 Product3 India Outside India
12TELECOM TOWERS IN INDIA 2012.PPT
Key Information
Description Details
Overview
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Operations• It owns, deploys, and manages telecom towers & communication structures for telecom operators as
well as wireless service providers
Source:
SAMPLE
Some Other Telecom Tower Companies (-/-)
Business Highlights
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• bbbbbbbbb
• Its products include telecom towers, transmission towers, substation structures, monopoles and high masts, windmill towers, broadcast
towers, and telecom shelters
• It serves customers in telecom, transmission and distribution, and special structures markets
• ccccccccccc
Company2
13TELECOM TOWERS IN INDIA 2012.PPT
SAMPLE Company3
Business Highlights
• aaaaaaaaaa
• bbbbbbbbb
• It offers Build-Operate-Lease services to design, acquire sites, procure and build the passive infrastructure for cell sites
• ddddddddd
• eeeeeeeeee
• Also an independent provider of passive telecom infrastructure, offering tower space and active electronics space to multiple operators at
its owned sites
Source:
Mergers & Acquisitions (20-- - 20--)
Announced Deal Type Target Buyer/Investor(s) Seller(s) Deal Size (INR) Status
Month, 20-- Acquisition Target1 Buyer1 Seller1 x1 bnCompleted/
Expected
Month, 20-- De-acquisition Target2 Buyer2 Seller2 x2 bnCompleted/
Expected
Month, 20-- Merger Target3 Buyer3 Seller3 x3 bnCompleted/
Expected
14TELECOM TOWERS IN INDIA 2012.PPT
Month, 20-- Merger Target4 Buyer4 Seller4 x4 bnCompleted/
Expected
Month, 20-- Acquisition Target5 Buyer5 Seller5 x5 bnCompleted/
Expected
Month, 20-- Acquisition Target6 Buyer6 Seller6 x6 bnCompleted/
Expected
Month, 20-- Acquisition Target7 Buyer7 Seller7 x7 bnCompleted/
Expected
Source:
Trends & Developments
Introduction of
Biometrics in
Education
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Introduction of
Biometrics in
Education
Trend1
Biometric ID Cards
for Public
Transportation
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Biometric ID Cards
for Public
Transportation
Trend2
15TELECOM TOWERS IN INDIA 2012.PPT
Source:
Development2
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Biometrics
Application in
Customs
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Development1
Strategic Recommendations (-/-)
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Strategic Recommendation1
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16TELECOM TOWERS IN INDIA 2012.PPT
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Strategic Recommendation2
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Source:
Appendix
Ratio Calculations
Operating Margin(Operating Income/Revenues)*100
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin(Income Before Tax / Revenues *100
Return on Equity (ROE) (Net Income / Shareholders Equity)*100
EBIT / (Total Assets – Current
Ratio Calculations
Current RatioCurrent Assets / Current
Liabilities
Cash Ratio
{(Cash & Bank Balance +
Marketable Securities) / Current
Liabilities)}
Debt to Equity Total Liabilities / Shareholders
Equity
Debt to Capital Ratio{Total Debt / (Shareholders
Equity + Total Debt)}
17TELECOM TOWERS IN INDIA 2012.PPT
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
Return on Working Capital(Net Income / Working Capital) *100
Return on Assets (Net Income / Total Assets)*100
Return on Fixed Assets (Net Income / Fixed Assets) *100
Operating Costs (% of Sales)(Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Capital Employed Turnover Sales / Shareholders Equity
Thank you for the attentionTelecom Tower in India report is a part of Research on India’s Telecommunications Series. For more detailed information or customized research requirements please contact:
Kalyan BangaPhone: +91 33 4064 6215
E-Mail: [email protected]
18TELECOM TOWERS IN INDIA 2012.PPT
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