NEW DELHI: India’s largest cellular operator, Bharti Airtel has overtaken Hutchison Essar (now Vodafone-Essar) with regard to its average revenue per user (ARPU). As per the latest data by the Cellular Operators Association of India, Bharti had an ARPU of Rs 343.17 per month for the quarter ended December 2006, ahead of Hutchison Essar’s Rs 340.15 per month.
HEL, India’s fourth largest telecom company, had the largest ARPUs amongst private operators until Q3 of the current fiscal. However, the company’s ARPU fell by over 9% in the quarter ended December 2006, from Rs 373.99 in September 2006 while Bharti witnessed only a 1.5% fall in its average revenues during the same period. Bharti had an ARPU of Rs 348.56 in September 2006.
More importantly, COAI’s data also reveals that ARPUs of Indian mobile companies, which are already the lowest in the world, is continuing to head further south, even as companies are registering a significant increase in their overall revenues.
Read more at Economic Times
Friday, March 23, 2007
Bharti overtakes Hutch in ARPU in Q4
Indiabulls Real Estate lists at Rs 380 on BSE
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BT may offer low-powered GSM in India
| British Telecom (BT) of the UK is considering a low-powered global system for mobile communications (GSM) service in India, which can bring down the costs significantly on calls made by mobile phones inside offices. |
| Speaking to Business Standard, BT Global Services Chief Executive Officer Andy Green said, “Low-powered GSM is part of our 21st century network solution and we are ready to explore, if it is allowed, in India.” |
| India does not issue separate licences for such services. Existing GSM licence holders can go ahead and offer the service, but given their outdoor orientation, the viability may be an issue. |
| The Telecom Regulatory Authority of India had some time ago suggested the possibility of such networks in the country. Read more at Business Standard |
Over 38% IPCL staff opt for VRS
| IPCL’s voluntary retirement scheme has evoked tremendous response. By Thursday morning, over 2,500 employees had already applied for the scheme. |
| To attract more employees, the RIL management late last evening announced ex-gratia payment of Rs 1.5 lakh to all those who have applied for the scheme. |
| The phenomenal success of the scheme has made it the largest-ever VRS implemented by the company. In the past, the IPCL management had come out with a similar scheme in 2003 and in 2005. |
| In 2003, VRS was announced immediately after the RIL takeover and around 1,800 employees had opted for the scheme. In 2005, the scheme had received poor response and there were only 600 takers. Read more at Business Standard |
RIL, Rohm to set up chemical unit
| Sign an MoU for 200,000 tonne facility at Jamnagar. |
| Reliance Industries today announced that it will set up a chemical plant at Jamnagar in Gujarat in partnership with US-based Rohm and Haas Co, the world’s biggest producer of acrylic-paint ingredients. |
| The companies have signed a memorandum of understanding for a plant with a capacity to produce 200,000 tonnes of acrylic acid annually. |
| Products from the new plant would be used to make paints, packaging adhesives, detergents, and textile and construction materials, Reliance said in a statement to the exchanges. |
| Industry sources said the decision to collaborate with Rohm and Haas meant Reliance would not acquire the commodities business of Dow Chemicals. Read more at Business Standard |
FM talks tough, asks cement cos to cut prices
Finance Minister P Chidambaram today asked cement manufacturers to cut prices claiming that a section of them was keen to co-operate with the government in this regard.
"We have information how much your (cement makers) sales have increased. How much your PBT has increased. How much your PAT has increased. So, you should come forward with some proposals (on moderating cement prices)," Chidambaram told reporters after meeting a delegation of cement companies.
The Finance Minister had called cement manufacturers for the second time after the Budget, which imposed dual excise duty structure on cement to rein in prices. The budget hiked excise duty to Rs 600 a tonne from Rs 400 if cement is sold higher than Rs 190 per bag of 50 kg and reduced it to Rs 350 per tonne if sold up to Rs 190. The move, however, failed as cement makers hiked prices by up to Rs 12 per 50 kg bag.
Chidambaram asked the industry to co-operate with the government to fight inflation, which has touched 6.46% for the week ended March 3 with cement prices increasing at the rate of 4.4%.
Read more at Business Standard
Sebi okays short selling by institutions
The Securities & Exchange Board of India (Sebi) today tightened the norms for initial public offerings (IPOs) by real estate companies, while allowing short selling of equities by institutional investors, including FIIs.
It also made grading mandatory for all IPOs and waived the requirement of minimum public holding post-IPO for public sector companies and institutions.
The stock market regulator said real estate companies looking to tap the market must show the current value of their landholding, which should only include land actually owned by them.
A large number of real estate companies have lined up IPOs. Many have computed the value of their land on basis of what they expect the price to be when the projects are completed.
When approached for comments on Securities & Exchange Board of India’s directive, a senior executive with Delhi-based DLF said, “This will work to our advantage. The cost of land has been escalating and we will now be able to do the valuation at today’s prices.”
DLF has been awaiting Sebi’s permission to float an IPO that is estimated to garner Rs 13,600 crore, more than any issue so far.
Read more at Business Standard