Worldwide telecom industry:

In the period 1950-1970 the developments in the telecom sector are best characterized by
the terms: stable, steady and predictable. In terms of change this was truly evolutionary.
However, a new period started in the ’80-ties: a period of revolutionary change. Initiated by de-
regulation in the ’70-ties1, the introduction of new technologies, such as cellular and fiber optic
communications, and fuelled by the widespread use of the Internet an e-world was emerging
that seemed unprecedented in terms of growth. The growth attracted many and big money was
flowing into the ICT sector. New e-world “click & order”- companies quickly surpassed the
old-world “bricks & mortar” - companies in share value. Many new businesses were started
through fresh inflow of venture capital. Wave after wave of new telecom operators emerged to
challenge the status quo of the incumbents. Investments in the industry soured. Being a player
in the future of the mobile eworld became a must. Auctions for 3G radio spectrum became huge
cash generators for national governments. Until the wisdom behind these huge valuations
became questioned; when Return on Investment was re-visited and Return on Vision became
out of vogue, the boom period came to an end. In April 2000 the Internet bubble collapsed,
having started in 1995.2 To adjust company operations to the new realities of the market over
485,000 jobs have been eliminated or announced to be eliminated in the telecommunications
industry for the period July 2000 until February 2002 (Financial Times, 2002).3 Measured from
2000 until 2002, 94 telecommunications companies defaulted (OECD, 2003 p16), including big
first-wave new entrants such as Global Crossing and established firms such as WorldCom, the
single largest default at approx. US$ 31.8 billion. And the impact has not remained restricted to
the telecom and internet sector. As major institutional investors, such as mutual funds and
pension funds, have participated in the bubble, the fall-out is affecting the public at large.4
From the perspective of a free market economist, bubbles are to be considered as natural
market phenomena, and the crash is expected to provide for the necessary correction on the
excesses that were part of the boom period. Hence, the recovery should run its course without
intervention. However, recognizing the special features of telecommunications as a network
infrastructure, a laissez-faire attitude may not be the most desirable policy to be pursued.
Consider in this respect the high expectations that surrounded the recent liberalization of the
telecom sector. Politicians may perceive the current state of affairs in the sector as a ‘market
failure’ and may be inclined to intervene, as has been the case in other liberalized infrastructure
industries.5 Furthermore, European government leaders agreed to a long-term goal of
establishing the EU as a leading region in the global Information Society.6 The related Action
Plan calls for the formulation and implementation of national policies that aim at the realization
of an ubiquitous broadband infrastructure with access for all European citizens. The

Telecom industry in India:

Introduction
 The telecom network in India is the fifth largest network in the world meeting upwith
global standards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to India’s GDP.
The Indian Telecommunications network with 110.01 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia. Today, it is
the fastest growing market in the world and represents unique opportunities for U.S. companies
in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is
expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of
India aims at 9 million broadband connections and 18 million internet connections by 2007.
The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in
FY20042005. In the last 3 years, two out of every three new telephone subscribers were
wireless subscribers. Consequently, wireless now accounts for 54.6% of the totaltelephone
subscriber base, as compared to only 40% in 2003. Wireless subscribergrowth is expected to
bypass 2.5 million new subscribers per month by 2007. Thewireless technologies currently in
use are Global System for Mobile Communications(GSM) and Code Division Multiple Access
(CDMA). There are primarily 9 GSM and 5CDMA operators providing mobile services in 19
telecom circles and 4 metro cities,covering 2000 towns across the country.
Evolution of the industry-Important Milestones:
History of Indian Telecommunications
Year
1851 First operational land lines were laid by the government near Calcutta (seatof British
power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable CommunicationCompany
(IRCC)
1947 Nationalization of all foreign telecommunication companies to form thePosts,
Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of
Communications
1985 Department of Telecommunications (DOT) established, an exclusive provider of
domestic and long-distance service that would be its own regulator (separate from the postal
system)
1986 Conversion of DOT into two wholly government-owned companies: the Videsh
Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar
Telephone Nigam Limited (MTNL) for service in metropolitan areas.
1997 Telecom Regulatory Authority of India created.
1999 Cellular Services are launched in India. New National Telecom Policy is adopted.
2000 DoT becomes a corporation, BSNL
Scope Of Telecom Industry
 The telecom industry is growing at a great pace and the growth rate is expected to double
with every passing year. There are many new developments in the telecomm sector, including
the ingress of 3G technology that the Indian market is witnessing at present.
Public and Private Players:
MTNL, BSNL, VSNL are the major Public Players, whereas Airtel, Idea, Hutch, Tata,
Reliance, BPL are the leading Private Players in the country. Some of them are entering foreign
markets as well. The Bharti Telecom will be launching its services for the NRIs in the US with
the help of Airtel CALLHOME service.

The market shares of the leading public and Private Players

INVESTMENT AND GROWTH:

In 2005-2006, the telecom industry witnessed a growth of 21% with a total revenue of
Rs. 86,720 crores, and the total investment rising to Rs. 2,00,660 crores. It is projected that the
telecom industry will be enjoying over 150% growth in the next 4-6 years. The growth also
requires a huge investment by the players in the sector. Bharti Airtel is planning to invest about
$8 billion by the year 2010.
Liberalization policy and some socio-economic factors are mainly responsible for the
immense growth in the sales volumes. The lifestyle of the people has changed. They need to be
connected to the other people all the time. With the lowering down of the tariffs the
affordability of the mobile phones has increased. The finance sector has also come up with
loans for handsets on 0% interest. Mobile services providers are also expanding their coverage
area by installing more and more antennas and other equipments.
The telecom sector in the country has already adopted the latest technological
advancements to cater to the demands of the growing market. Telecom Expo India,
Convergence India, VAS India and IPTV India being organized year to year are all efforts in
this direction.
Budget 2007 has brought disappointment to the telecom sector. Mobile service providers
have been asked to cut down their roaming rentals as well as their long distance and
international call tariffs. This has led to discontent on the part of the service providers.
However, Telecom Regulatory Authority of India (TRAI) is of the opinion that this will lead to
increased use of roaming, which will ultimately lead to more revenue generation. Moreover,
with cheaper handsets and lesser tariffs, it is expected that by the year 2010 there will be over
500 million subscribers in the Indian telecom market.
Also, the telecom industry this year will be focusing more on rural areas to connect them
with the urban areas so that the farmers and the small-scale industries can have faster access to
information related to weather and market conditions.

EMPLOYMENT STATUS :
With the coming of more and more projects, the telecom industry is going for high scale
recruitments. There is a huge demand for software engineers, mobile analysts, and hardware
engineers for mobile handsets. Besides, there are ample opportunities for marketing people
whose services are required to capture more and more customer base.
The new projects, setting up of new service bases, expansion of coverage areas, network
installations, maintenance, etc are providing more and more employment opportunities in the
telecom sector

Origan:
India is one of the fastest growing telecom networks in the world. This is due to its high
population and fast rate of growth.
Rural India is still inadequate in terms of connectivity for efficient telecommunication.
BSNL is one of the main public sector telecommunication companies in India. It has been
rated 7th largest in the world.
Hutch, BPL, MTNL, Bharti Telecom, Reliance and Tata Indicom are the other active
telecommunication operators in India.
India’s mobile phone industry is one of the fastest growing industries in the world.
Mobile phones in India were formally launched in august 1995. For the first few years after the
advent of mobile phones, monthly subscriptions were added to the tune of 0.05 to 0.1 million in
India. Subsequently the subscriber base stood at 10.5 million in December 2002.
The Indian mobile phone industry has entered a phase of boom due to many proactive
measures taken by various licensors and regulators. Two Million mobiles subscribers were
added every month in India from 2003 to 2005. The two other countries with more mobile
phones then India are USA and China.
The main technologies followed by India for mobile communication are global GSM and
CDMA.GSM is the global system for mobile communication and CDMA is based on code
division multiple access. Mobile tariffs are very low in India.
Thirty two million mobile handsets were sold in India in the year 2005. Indian ring tones
primarily comprise of music of Indian origin like Indian film songs and bhajans.
 Total revenue generated by the telecom service sector in 2004-2005 was 86,720 crore in
India. This meant an increase of revenue by 21% from the previous year.
Airtel covers 21.45 of subscriber base in India. Reliance is the second largest with a
subscription controlling a base of 20.3%. BSNL follows closely at 18.6% and Hutch was 14.7%
according to a June 2005 survey.
Growth:
Yes, that’s true. Indian telecommunication Industry is one of the fastest growing telecom
market in the world. The mobile sector has grown from around 10 million subscribers in 2002
to reach 150 million by early 2007 registering an average growth of over 90% yoy. The two
major reasons that have fuelled this growth are low tariffs coupled with falling handset prices.
Surprisingly, CDMA market has increased it market share upto 30% thanks to Reliance
Communication. However, across the globe, CDMA has been loosing out numbers to popular
GSM technology, contrary to the scenario in India.
The other reason that has tremendously helped the telecom Industry is the regulatory
changes and reforms that have been pushed for last 10 years by successive Indian governments.
According to Telecom Regulatory Authority of India (TRAI) the rate of market expansion
would increase with further regulatory and structural reforms.
Even though the fixed line market share has been dropping consistently, the overall (fixed
and mobile) subscribers has risen to more than 200 million by first quarter of 2007. The
telecom reforms have allowed the foreign telecommunication companies to enter Indian market
which has still got huge potential. International telecom companies like Vodafone have made
entry into Indian market in a big way.
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400,000 crore). Two telecom players dominate this market – Bharti Airtel with 27% market
share and Reliance Communication with 20% along with other players like BSNL (Bharat
Sanchar Nigam Limited) and AT&T.
One segment of the market that has been puzzling is broadband Internet. Despite the
manner in which the countrys Internet market has been booming, India’s move into high-speed
broadband Internet access has been distinctly slow. And, while there appears to be considerable
enthusiasm amongst the population for the Internet itself, this has not been reflected in
broadband subscription numbers. In 2006 India witnessed a good surge in broadband users with
the total subscriber base in the country expanding by almost 200% to just over 2 million by
years end. Despite this surge, broadband penetration in India still remains around only 0.2%;
broadband services still account for only 25% of the total Internet subscriber base, still in itself
comparatively low.
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth, targeting 250 million telephone subscribers by
end-2007 and 500 million by 2010. Most of the expansion in subscribers is set to occur in rural
India. India’s rural telephone density has been languishing at around 1.9%;
GSM and CDMA subscription numbers:
Year GSM GSM CDMA CDMA
Subscriber Annual Subscriber Annual
s (millions) growth s (millions) growth
2000 3.1 94% - -
 2001 5.05 76% - -
2002 10.5 91% 0.8 -
2003 22.0 110% 6.4 700%
2004 37.4 70% 10.9 70%
2005 58.5 57% 19.1 75%
2006 105.4 80% 44.2 131%
2007 180.0 71% 85.0 92%

Achievements of National Telecom Policy 1994

Need for New Telecom Policy cropped up as a result of fast change in the overall Policy
1994 and Need for New Telecom Policy cropped up since the Indian telecommunication sector
grew very rapidly over the last decade and half. The meteoritic rise of the Indian
telecommunication industry enforced rapid amendment of the Indian telecommunication policy
as drafted in the early 1990s. The 'Telecom Regulatory Authority of India' (TRAI) and
'Department of Telecommunication' (DOT), the two main governing bodies of the Indian
telecommunication industry soon realized the need for an overall revamping of the Indian
telecommunication policy to The highlights of the basic telecommunication policy of India are
as follows - compliment the rapid growth of this industry

• To facilitate telecommunication for all

• Ensuring quick availability of telephone connectivity
• Achieve universal service access at affordable price covering all Indian villages, as early
as possible
• Providing world class telecommunication services
• Solving consumer complaints, resolve disputes, and special attention to be given to public
interface
• To provide widest possible range of services at reasonable prices
• To emerges as a major manufacturing base and major exporter of telecommunication
equipment
• To protect the defense and security interests of the country

The tenth plan meets the need for new telecom policy of the Indian communication industry,
which are as follows -
• Creating world class telecommunication infrastructure to meet the communication
requirements of IT, ITES, media and other IT based industry
• Easy and affordable access to basic telecommunication services across all the states of
India
 • Affordable and efficient basic telephony facility to each and every applicant
• Provision for world class service to all uncovered and rural areas of India
• Establishment of modern and efficient telecommunication infrastructure to meet the
requirements of modern India
• Continual upgradation of the Indian telecommunication sector and provide an equal
opportunity for all the telecommunication service providers doing business in India
• Strengthening R&D on telecommunication hardware and software
• Efficient and unbiased spectrum management
• Facilitating protection of the Indian defense and security systems
• Facilitating the Indian telecommunication companies to reach global standards
• Facilitate world class products and services at affordable prices
• Institutionalize the Department Of Telecommunication (DOT), Government of India and
help it function as a corporate body
• To make telephone available within 48 hours of such demand
• To reach tele-density of 9.91 by the end of 31st March 2007 (which has been achieved)
• Facilitate reliable communication relay media to all telephone exchanges
• Provide high-speed data and multimedia connections using technologies like ISDN across
all towns, having population strength of two lakh or more
The Achievements of National Telecom Policy 1994 and Need for New Telecom Policy initiated
the following developments -
• Friendly Government of India economic and telecommunication policies
• Low operational cost
• Availability of world class infrastructure at a much cheaper cost
• Availability of huge English speaking workforce
• Prevalence of strong technical education amongst the majority of educated Indians
• Large number of science and engineering graduates
• Assurance of high quality output
• Highly skilled workforce
• Usage of innovative technologies
• Effective and efficient entrepreneurship skills
• Good client and service provider's relationships
• Creation of global brands
• Huge scope of business across all industries especially, in IT and ITES industries
• Expansion of existing relationships
• Ever growing domestic market, especially the rural market
• Huge success in overseas markets
• Increased electronics and hardware manufacturing in India
 • Aggressive promotion of R&D in telecommunication
• Increased penetration of computers
• Increased utilization of Internet
• Growth of domestic software market
• Development of local language software, especially for the use in rural- India
• Use of Information Technology to increase productivity
• Use of Information Technology as a means of generating employment
• Increased number and quality of training facilities across India

Vision:
NEW DELHI: In May 2008, Bharti Airtel had come very close to taking over Africa’s largest
telecom provider MTN, but couldn’t clinch a deal. Now,
as the world battles a deep recession, the Bharti brass must be pleased that the talks with
MTN broke down. The global markets have crashed and MTN’s market value has fallen 28%
since then. MTN, which was also in talks with Reliance Communications, has a history of being
courted by suitors but shying away from a deal.
Bharti has had lady luck smile on it before too, but it’s not by chance that India’s largest
telecom operator has been coursing through the economic slowdown without showing any signs
of strain, posting strong profits and expanding its user base rapidly.
Bharti did it the hard way, through far-sighted strategy and sound execution, backed by
its unmatched ability to innovate constantly and set industry benchmarks, the same way Sunil
Mittal, who started off making bicycle parts, built up the company from near-obscurity in 1995
when it had launched its mobile services in Delhi and then went on to become the country’s top
telco, ahead of state-owned BSNL, Reliance Communications (RCOM) and Vodafone.
The benefits of the business model that we have put in place over the last few years are
kicking in. We are reaping the benefits now,” says Bharti Airtel CEO and joint MD Manoj
Kohli. True, the Indian telecom industry mostly shrugged off the global downturn. But Bharti did
it better than its peers. During October-December, its net profit jumped 25% y-o-y, while rival
RCOM managed only a 2.7% rise. And it increased its market share from 23.6% at the start of
2008 to 24.7% by year end.

In the stock market also, Bharti outperformed industry peers. While its share price fell by
about 28% during the market meltdown, its primary competitors fared worse — Idea’s shares
have fallen 52% during the same period, while RCOM’s fell by nearly 70% during the same
period. According to Mr Kohli, Bharti’s current business model has been in the making since
2004, when it stunned the telecom world by outsourcing network operations, IT and call centre
functions. It was an audacious move then. Today, outsourcing is a standard practice in the
industry, in India and elsewhere. Bharti adopted the reverse outsourcing model where it gave out
contracts to global majors rather than go in for Indian companies to save on costs. Bharti
believed that outsiders could manage its core functions better than they could ever do and
outsourced its networks to Ericsson and Nokia Siemens, its IT functions to IBM and its call
centre operations to six leading BPOs, each of which are long-term multi-million dollar deals.
Only to be copied by fascinated industry peers. Mr Kohli said, Bharti succeeded in anticipating
the changes in the market and preparing for them. “Bharti’s principle to proactively look at the
future has helped the company improve on its productivity and efficiency quarter after quarter
and year after year,” Mr Kohli added.
Its rural drive is an example. With urban markets showing signs of stagnation, experts
predict that rural India will be the new battleground for mobile market share. Ready for the task,
Bharti recently launched a project to set up Airtel service centres in 4,00,000 villages across the
country. In the last three months, it has set up 20,000 such outlets.
Mr Kohli said Bharti owes its success to its talent. “The company is no longer dependent
on a single person as we have built a leadership pipeline,” he said.
The recent elevation of Sanjay Kapoor as deputy CEO is a case in point. Bharti has also
decided to restructure its businesses into several new divisions under different CEOs. The
company’s overall structure as such will not change as these new divisions will be under the
existing three verticals — mobility, telemedia (DTH, broadband & fixed lines) and enterprise —
which oversees the undersea cable business, national and international long-distance services and
also services large companies.
Bharti has identified mobile commerce, entertainment, media, internet, enterprise
services and small and medium businesses, among others to boost its non-voice services, which
account for just about 10% of its mobile revenues. It has also developed a $100-million service
development platform in a tie-up with IBM for companies to develop and offer applications to
Airtel customers across mobile, landline, broadband and DTH service.
Bharti has also roped in global experts like Joachim Horn, who was the chief technology
officer of German communications major T-Mobile. Just prior to that, the telco had recently
roped in B Srikanth from Unilever UK as its CFO and Shireesh Joshi from beverages and chips
maker PepsiCo China to be its chief marketing head.
Analysts believe this shows the company is aiming for a big-ticket acquisition in the
global market. “Bharti is looking for seasoned hands who can handle the complexity of business
not just within India, where the company’s achieved a near global scale, but also in the global
market,” said BK Syngal, former CMD of Videsh Sanchar Nigam and senior principal at Dua
Consulting.

Telecom Policy Environment:

Indian telecommunications today benefits from among the most enlightened regulation in
the region, and arguably in the world. The sector, sometimes considered the “poster-boy for
economic reforms,” has been among the chief beneficiaries of the post-1991 liberalization.
Unlike electricity, for example, where reforms have been stalled, telecommunications has
generally been seen as removed from “mass concerns,” and thus less subject to electoral
calculations. Marketoriented reforms have also been facilitated by lobbying from India’s
booming technology sector, whose continued success of course depends on the quality of
 communications infrastructure. Despite several hiccups along the way, the Telecom
Regulatory Authority of India (TRAI), the independent regulator, has earned a reputation for
transparency and competence. With the recent resolution of a major dispute between cellular and
fixed operators (see below), Indian telecommunications, already among the most competitive
markets in the world, appears set to continue growing rapidly. While telecom liberalization is
usually associated with the post-1991 era, the seeds of reform were actually planted in the
1980s. At that time, Rajiv Gandhi proclaimed his intention of “leading India into the
21stcentury,” and carved the Department of Telecommunications (DOT) out of the Department
of Posts and Telegraph. For a time he also even considered corporatizing the DOT, before
succumbing to union pressure. In a compromise, Gandhi created two DOT-owned corporations:
Mahanagar Telephone Nigam Limited (MTNL), to serve Delhi and Bombay, and Videsh
Sanchar Nigam Limited (VSNL), to operate international telecom services. He also introduced
private capital into the manufacturing of telecommunications
equipment, which had previously been a DOT monopoly. These and other reforms were
limited by the unstable coalition politics of the late 1980s. It was not until the early 1990s,
when the political situation stabilized, and with the general momentum for economic reforms,
that telecommunications liberalization really took off. In 1994, the government released its
National Telecommunications Policy (NTP-94), which allowed private fixed operators to take
part in the Indian market for the first time (cellular operators had been allowed into the four
largest metropolitan centers in 1992). Under the government’s new policy, India was divided
into 20 circles roughly corresponding to state boundaries, each of which would contain two
fixed operators (including the incumbent), and two mobile

operators:
As ground-breaking as NTP-94 was, its implementation was unfortunately marred by
regulatory uncertainty and over-bidding. A number of operators were unable to live up to their
profligate bids and, confronted with far less lucrative networks than they had supposed, pulled
out of the country. As a result, competition in India’s telecom sector did not really become a
reality until 1999. At that time the government’s New Telecommunications Policy (NTP-99)
switched from a fixed fee license to a revenuesharing regime of approximately 15%. This figure
has subsequently been lowered (to 10%-12%), and is expected to be reduced even further over
the coming years. Still, India continues to derive substantial revenue from license fees ($800
million in 2001-2002), leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller. Another, perhaps even more significant,
problem with India’s initial attempts to introduce competition was the lack of regulatory clarity.
Private operators complained that the licensor – the DOT – was also the incumbent operator.
The many stringent conditions attached to licenses were thus seen by many as the DOT’s
attempt to limit competition. It was in response to such concerns that the government in 1997
set up the Telecom Regulatory Authority of India (TRAI), the nation’s first independent
telecom regulator. Over the years, TRAI has earned a growing reputation for independence,
transparency and an increasing level of competence. Early on, however, the regulator was
beleaguered on all fronts. It had to contend with political interference, the incumbent’s many
challenges to its authority, and accusations of ineptitude by private players. Throughout the late
1990s, TRAI’s authority was steadily whittled away in a number of cases, when the courts
repeatedly held that regulatory power
 lay with the central government. It was not until 2000, with the passing of the TRAI
Amendment Act, that the regulatory body really came into its own. Coming just a year after
NTP-99, the act marks something of a watershed moment in the history of India telecom
liberalization. It set the stage for several key events that have enabled the vigorous competition
witnessed today. Some of these events include:
• The corporatization of the DOT and the creation of a new state-owned telecom company,
Bharat Sanchar Nigam Ltd (BSNL), in 2000;
• The opening up of India’s internal long-distance market in 2000, and the subsequent drop in
long-distance rates as part of TRAI’s tariff rebalancing exercise;
• The termination of VSNL’s monopoly over international traffic in 2002, and the partial
privatization of the company that same year, with the Tata group assuming a 25% stake and
management control;
• The gradual easing of the original duopoly licensing policy, allowing a greater number of
operators in each circle;
• The legalization, in 2002, of IP telephony (a move that many believe was held up due to
lobbying by VSNL, which feared the consequences on its international monopoly);
The introduction in 2003 of a Calling Party Pays (CPP) system for cell phones, despite
considerable opposition (including litigation) by fixed operators;
• And, more generally, the commencement of more stringent interconnection regulation by
TRAI, which has moved from an interoperator “negotiations-based” approach (often used by
the stronger operator to negotiate ad infinitum) to a more rules-based approach. All of these
events have created an impressive forward-momentum in Indian telecommunications, resulting
in a vigorously competitive and fast-growing sector. India has also suffered from its fair share
of regulatory hiccups. Many operators (mobile players in particular) still complain about the
difficulties of gaining access to the incumbent’s (BSNL) network, and the government’s
insistence on capping FDI in the telecom sector to 49% (a move made in the name of national
security) limits capital availability and thus network rollout. In addition, ISPs, who were
allowed into the market under a liberal licensing regime in 1998, continue to hemorrhage
money, and have been pleading with the government for various forms of relief, including.
the provision of unmetered phone numbers for Internet access. Despite initially
impressive results, the growth of Internet in the country has recently stalled, with only 8 million
users. Broadband penetration, too, remains tiny. Unified Licensing
But perhaps the biggest – and, until recently, most intractable – regulatory problem has
been the drawn-out battle over “limited mobility” telephony. This imbroglio began in 1999,
when MTNL sought permission from TRAI to provide CDMA-based WLL services with
“limited mobility.” GSM cellular operators were soon up in arms, arguing that “limited
mobility” was simply a backdoor entry into their business. Moreover, fixed operators had paid
lower license and spectrum fees than cellular ones; were not required to pay access charges for
cell-to-fixed calls (unlike their cellular counterparts); and, amidst accusations of cross-
subsidization, were charging considerably lower rates than the cellular operators. The resulting
conflict dragged on in the courts and in the political arena for years. Fixed operators including
new entrants Reliance and Tata Teleservices claimed that they were being prevented from
providing a cheap service that would drive penetration and be of benefit to the “common man”;
cellular players bitterly opposed what they perceived as unequal regulatory treatment for two
kinds of operators who were in fact offering the same service. The real victim, of course, was
the Indian telecommunications market, which suffered from investor perceptions of regulatory
confusion and operator in-fighting. In late 2002, for example, thousands of mobile users in New
Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies. (MTNL later attributed the incident to a “technical
snag.”)
It was not until late 2003 that the issue was finally resolved, under considerable
government pressure, when cellular operators agreed to withdraw their many cases against the
fixed-line operators. Fixed operators would in effect be allowed to enter the mobile business; in
return, the government granted cellular players several concessions, including lower revenue-
share arrangements estimated to total over $210 million. Perhaps most notably, the government
announced its intention to adopt a “unified access licensing” regime, which would in the future
provide a single, technology-neutral license for fixed and cellular operators. The hope is that
this new license category will prevent a repeat of the recent controversy, and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing laws.

MAJOR MARKET TRENDS:

The telecoms trends in India will have a great impact on everything from the humble PC,
internet, broadband (both wireless and fixed), cable, handset features, talking SMS, IPTV, soft
switches, and managed services to the local manufacturing and supply chain. This report
discusses key trends in the Indian telecom industry, their drivers and the major impacts of such
trends affecting mobile operators, infrastructure and handset vendors.
Higher acceptance for wireless services:
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself). They prefer wireless
services compared to wire-line services, which is evident from the fact that while the wireless
subscriber base has increased at 75 percent CAGR from 2001 to 2006, the wire-line subscriber
base growth rate is negligible during the same period. In fact, many customers are returning
their wire-line phones to their service providers as mobile provides a more attractive and
competitive solution. The main drivers for this trend are quick service delivery for mobile
connections, affordable pricing plans in the form of pre-paid cards and increased purchasing
power among the 18 to 40 years age group as well as sizeable middle class – a prime market for
this service.
Some of the positive impacts of this trend are as follows. According to a study, 18
percent of mobile users are willing to change their handsets every year to newer models with
more features, which is good news for the handset vendors. The other impact is that while the
operators have only limited options to generate additional revenues through value-added
services from wire-line services, the mobile operators have numerous options to generate non-
voice revenues from their customers. Some examples of value-added services are ring tones
download, coloured ring back tones, talking SMS, mobisodes (a brief video programme episode
designed for mobile phone viewing) etc. Moreover, there exists great opportunity for content
developers to develop applications suitable for mobile users like mobile gaming,
location based services etc. On the negative side, there is an increased threat of virus –
spread through mobile data connections and Bluetooth technology – in mobile phones, making
them unusable at times. This is good news for anti-virus solution providers, who will gain from
this trend.
 MERGERS:
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim large
number of subscribers to gain more spectrum as a precursor to the launch of larger and
expanded services. However it must also be noted that this may very well never happen on
account of low telecom penetration.

NEW CIRCLES:
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created.
Constraints:
* Slow pace of the reform process .
* It would be difficult to make in-roads into the semi-rural and rural areas because of the lack of
infrastructure. The service providers have to incur a huge initial fixed cost to make inroads into
this market. Achieving break-even under these circumstances may prove to be difficult.
* The sector requires players with huge financial resources due to the above mentioned
constraint. Upfront entry fees and bank guarantees represent a sizeable share of initial
investments. While the criteria are important, it tends to support the existing big and older
players. Financing these requirements require a little more liberal approach from the policy
side.
* Problem of limited spectrum availability and the issue of interconnection charges between the
private and state operators.

Major Players :
There are three types of players in telecom services:
• -State owned companies (BSNL and MTNL)
• -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
• -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular,
BPL Mobile, Spice Communications)
BSNL:
On October 1, 2000 the Department of Telecom Operations, Government of India
became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now
India’s leading telecommunications company and the largest public sector undertaking. It has a
network of over 45 million lines covering 5000 towns with over 35 million telephone
connections.
The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet
and long distance services throughout India (except Delhi and Mumbai). BSNL will be
expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to provide a
telephone density of 9.9 per hundred by March 2007. BSNL, which became the third operator
of GSM mobile services in most circles, is now planning to overtake Bharti to become the
largest GSM operator in the country. BSNL is also the largest operator in the Internet market,
with a share of 21 per cent of the entire subscriber base

BHARTI:
Established in 1985, Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first
private basic telephone service provider in the country, first Indian company to provide
comprehensive telecom services outside India in Seychelles and first private sector service
provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was
incorporated on July 7, 1995 for promoting investments in telecommunications services. Its
subsidiaries operate telecom services across India. Bharti’s operations are broadly handled by
two companies: the Mobility group, which handles the mobile services in 16 circles out of a
total 23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixed
line, broadband, data, and satellite-based services. Together they have so far deployed around
23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes,
and presence in around 200 locations. The group has a total customer base of 6.45 million, of
which 5.86 million are mobile and 588,000 fixed line customers, as of January 31, 2004. In
mobile, Bharti’s footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective is
“to capitalize on the growth opportunities the company believes are available in the Indian
telecommunications market and consolidate its position to be the leading integrated”.
MTNL:
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services, expand the telecom network, introduce new services and to raise revenue for
telecom development needs of India’s key metros – Delhi, the political capital, and Mumbai,
the business capital. In the past 17 years, the company has taken rapid strides to emerge as
India’s leading and one of Asia’s largest telecom operating companies. The company has also
been in the forefront of technology induction by converting 100% of its telephone exchange
network into the state-of-the-art digital mode. The Govt. of India currently holds 56.25% stake
in the company. In the year 2003-04, the company's focus would be not only consolidating the
gains but also to focus on new areas of enterprise such as joint ventures for projects outside
India, entering into national long distance operation, widening the cellular and CDMA-based
WLL customer base, setting up internet and allied services on an all India basis. MTNL has
over 5 million subscribers and 329,374 mobile subscribers. While the market for fixed wireline
phones is stagnating, MTNL faces intense competition from the private players—Bharti,
Hutchison and Idea Cellular, Reliance Infocomm—in mobile services. MTNL recorded sales of
Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per cent over the previous
year’s annual turnover of Rs.63.92 billion.
RELIANCE INFOCOMM:
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate. It is also an integrated telecom service provider with licenses for mobile, fixed,
domestic long distance and international services. Reliance Infocomm offers a complete range
of telecom services, covering mobile and fixed line telephony including broadband, national
and international long distance services, data services and a wide range of value added services
and applications. Reliance IndiaMobile, the first of Infocomm's initiatives was launched on
December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital
revolution in India by becoming a major catalyst in improving quality of life and changing the
face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain
to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government
and public sector organizations. Until recently, Reliance was permitted to provide only “limited
mobility” services through its basic services license. However, it has now acquired a unified
access license for 18 circles that permits it to provide the full range of mobile services. It has
rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year
to become the country’s largest mobile operator. It now wants to increase its market share and
has recently launched pre-paid services. Having captured the voice market, it intends to attack
the broadband market.
TATA TELESERVICES:
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over
200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic
(fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai),
New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000
subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120
million) fee, which enables it to provide fully mobile services as well.
The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million)
to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The new
licenses, coupled with the six circles in which it already operates, virtually gives the CDMA
mobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm.
The company hopes to start off services in these 11 new circles by August 2004. These circles
include Bihar, Haryana, Himachal Pradesh, Kerala, Kota, Orissa, Punjab, Rajasthan, Uttar
Pradesh (East) & West and West Bengal.
VSNL:
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS. The company operates a network of earth
stations, switches, submarine cable systems, and value added service nodes to provide a range
of basic and value added services and has a dedicated work force of about 2000 employees.
VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. The
international telecommunication circuits are derived via Intelsat and Inmarsat satellites and
wide band submarine cable systems e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.
The company's ADRs are listed on the New York Stock Exchange and its shares are
listed on major Stock Exchanges in India. The Indian Government owns approximately 26 per
cent equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group owns 45 per cent
equity and the overseas holding (inclusive of FIIs, ADRs, Foreign Banks) is approximately 13
per cent and the rest is owned by Indian institutions and the public. The company provides
international and Internet services as well as a host of value-added services. Its revenues have
declined from Rs. 70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in
2002-03, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL
has also started offering domestic long distance services and is launching broadband services.
For this, the company is investing in Tata Telservices and is likely toacquire Tata Broadband.
HUTCH:
Hutch’s presence in India dates back to late 1992, when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in Mumbai.
Commercial operations began in November 1995. Between 2000 and March 2004, Hutch
acquired further operator equity interests or operating licences. With the completion of the
acquisition of BPL Mobile Cellular Limited in January 2006, it now provides mobile services in
16 of the 23 defined licence areas across the country. Hutch India has benefited from rapid and
profitable growth in recent years. it had over 17.5 million customers by the end of June 2006.

IDEA:
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the side of
Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or regions, in
Western India, and has received additional GSM licenses to expand its network into three
circles in Eastern India -- the first phase of a major expansion plan that it intends to fund
through an IPO, according to parent company Aditya BirlaGroup .
 TOP TEN PLAYERS IN INDIA:
The telecom industry of India has registered manifold growth in the recent
years.Personalized telecom access is essential necessity of life for increasing number of the
people. The sector offers unlimited prospects when we consider future growth. Both Public
Players and Private Players are enhancing their technologies and taking the telecom industry to a
much higher growth state. Not only service providers but also handset manufacturers are
contributing significantly to the industry and economy of India.
1) Reliance Communications Limited
2) Bharti Airtel Limited
3) BSNL
4) MTNL
5) Hutchison Essar
6) Ericsson
7) Nokia
8) Siemens Communications
9) Idea Cellular Limited
10) Tata Teleservice

Telecom Industry In A.P:

Land line numbers are 8 digits long, and GSM / CDMA cellular operators are 10 digits. Landline
operators
Bharat Sanchar Nigam Limited (BSNL): The oldest operator in the telephone business. BSNL
phone numbers start with the prefix '2'. (27, 23)
Tata Indicom: Formerly Tata Teleservices. Numbers start with '6'.
Reliance Infocomm: Reliance Infocomm is part of the Reliance - Anil Dhirubhai Ambani
Group. Numbers start with ‘3’.
Airtel: Newest of the landline operators. Airtel numbers start with ‘4’.
GSM operators:
Airtel: Airtel is the largest GSM operator. Airtel is the most prominent of all the GSM networks
in tamilnadu. Airtel is owned by Bharti Group. Airtel numbers start with '9849', '9866', '9949',
'9989', '9959'.
Hutch: Hutchisson Essar group owned Hutch has a pretty good user base because of the many
attractive packages it offers. Hutch numbers start with '9885' or '9985' or '9966'
IDEA: Idea Cellular Limited is part of Birla [previously TATA & AT&T were also partners]
Limited. IDEA numbers start with ‘9848’, '9948', '9912'.
Cellone: BSNL's mobile arm Cellone has a very good rural and suburban user base. Pre-paid
cards are sold as Excel. BSNL numbers start with '9440' or '9441'.
Reliance GSM : Introduced in jan 2009,3g ready network and very good innovative offers
Aircel: Already a prominent operator in tamilnadu enters ap.3G ready network and good offers.
TATA DOCOMO: India's one of the leading CDMA operator Tata teleservices Ltd.,(TTSL) in
association with Japan's leading gsm operator NTT DOCOMO Launched its operations in
Andhrapradesh on July 16, 2009.
CDMA operators
CDMA make use of wireless local loop.
Reliance Infocomm: Numbers start with '93' and are 10 digits long.
Tata Indicom: Tata Indicom, like Reliance also offers CDMA connections. Tata now has
operations on a national scale. Numbers start with '924','929.
Tata (by the name ‘Walky’) and Reliance (by the name ‘Fixed Wireless Phone’) also
offer a landline hybrid phone. The phone is like a normal instrument, but instead of the phone
cable it has an antenna which connects to the network like any mobile phone. Internet connection
also is possible though this via dialup and using broadband. The call rates are also comparable to
landline rates.

Telecom industry-Growth I N A.P :

1998 Nov 24, 1998 - Satyam Infoway is one of the first companies in India to have
received the category 'A' license from the Department of Telecommunications to ... Vajpayee
complimented the Andhra Pradesh government for uniquely combining the strength of the
government and the IT industry for setting up ...
1999 Mar 11, 1999 - The move has thrown the telecom industry into confusion on future
business projections and the status of its regulator vis-a-vis the government. ... The High Court
ordered Tata Teleservices, the licence holder for Andhra Pradesh basic telecom circle, to pay
about Rs 24 crore (20 per ...
2000 May 21, 2000 - Consolidation through mergers and acquisitions (M&A) will
become inevitable just as they have been in the telecom industry globally. ... The Tatas and Birla
AT&T have come together for a joint venture in Andhra Pradesh. AT&T may establish another
direct presence in India when it takes ...
2001 Jul 15, 2001 - Out of its two circles, Karnataka contributed 57.1 percent and Andhra
Pradesh contributed 42.9 percent of revenue. ... In Andhra Pradesh, it is aggressively marketing
its prepaid card Magic, which it launched in June 2000 and wants to make it its growth
vehicle. ...
2002 Jul 1, 2002 - ... ... well as rental value, however, with a few industry segments
spurring fresh activity — which include telecom companies, insurance and retail businesses. ...
And not to be left behind and to latch on to the emerging business opportunity, the State-owned
Andhra Pradesh Housing Board, ...
2003 Feb 1, 2003 - In effect, the inequality in incomes, characteristic of Indian society, is
mirrored in the operations of the industry. ... The six private operators - Bharti in Madhya
Pradesh, Tata Teleservices in Andhra Pradesh, Hughes Telecom in Maharashtra, Shyam
Telelink, HFCL Infotel in Punjab ...
2004 Oct 4, 2004 - Srinivasahalli, who joined Airtel's Andhra Pradesh circle as the chief
operating officer, was heading Hindustan Lever's Project Vindhya and Singh joined the telecom
company's Kerala operations after leading Hindustan Lever's tea and coffee vending business.
According to industry ...

2005 Apr 28, 2005 - After the central government declared the telecom policy in 1999,
investments started flowing into the Indian telecom industry and the operators started ... The
company has to its credit the feat of setting up one of the largest shelters in India on a 2000 feet
hill in Andhra Pradesh.
2006 May 17, 2006 - With as much as 73 per cent of the population still concentrated in
the rural areas of Andhra Pradesh, Reliance was making easy inroads, thanks to the faith reposed
in it by customers, he claimed. One important reason for this was that unlike other telecom
companies which had one ...
2008 Aug 31, 2008 - What's more, telcos have been pumping money into the industry to
meet the growing demand of the expanding telecom industry. According to reports, telecom
companies ... Spectrum has already been allotted in six circles — Tamil Nadu, Chennai,
Karnataka, Kerala, Andhra Pradesh and Orissa. ...
Comparative balance sheet :
Introduction :
comparative balancesheet helps you to compare the financial position (statement of assets
& liabilities)of an organization as it stands at the end of a period. generally such a period is a
year, half yearly or quaterly.
you can compare the balancesheets of an org. for different periods or balancesheet of
different org. within an industry.
Cash flow statement is very important. though an org. may b interested in profits, it is
cash profits which one is real interested in. cash flow statement shows the sources of reciept and
payment in basic terms.
In india a company has to prepare cash flow, if it is listed in an stock exchange. i guess
similar is the position as sarbenes oxley in US. one of two or more financial statements prepared
on different dates that lend themselves to a comparative analysis of the financial condition of an
organization
A comparative balance sheet is designed to show financial differences between several
accounting periods. A balance sheet is a detailed account of everything lost and gained
financially during a certain time, containing both physical and abstract data. A comparative
balance sheet is useful because a business can instantly compare profits and losses between
different time periods. Most businesses use comparative balance sheets to help increase profits
and functionality of a company
Features:
A comparative balance sheet will include several different types of accounting data. First
there will be the income received and money spent. There will also be a list of credits and debits
to the company. A list of assets and liabilities is also included. All of these factors are necessary
to see what the total worth of the company is through the balance sheet. The comparative balance
sheet allows the company or business to see at a glance how its profits differ from one year to
another. These comparative balance sheets are aligned so that business people can see at a glance
the financial differences from year to year.
Function:
A balance sheet is designed to help keep a business or company aware of every expense
and profit that it is receiving. It also allows the company to see which times of the year are most
profitable, and which years they did the best. This knowledge is important so that the company
can adapt to the information to build the best business possible. If the business did better three
years ago, they can look at that data and try to decide what it was that made them do so well that
year. Then they can change what they are doing in the present to help boost current profits.
Benefits:
The main benefit of a comparative balance sheet is that profits and losses can be seen at a
glance. It is also possible to see the increase or decrease of assets that the business has. The
company will be able to tell what the biggest money suckers in the business are, and try to think
of ways to cut down losses in that area.
Significance:
Without a comparative balance sheet, businesses would not know how to change their
strategy from year to year. All they would have to go on would their current balance statements.
This would be detrimental to most businesses. It is very important to be able to look at past profit
information to judge how to act for the future.
Expert Insight:
Most businesses and companies use comparative balance sheets. It would be a very poor
business decision not to use them. A lot of times these comparative balance sheets are used when
proposing new additions or changes to a business. The company can go back as many as 10 or 20
years to identify trends, and to judge if a new project is right for the company. Comparative
balance sheets are a necessity in the business world.
This comparative balance sheet serves as a financial comparison from year to year.
Prepare this analysis at least once a year to see what kinds of trends are developing. Your future
financial security could very well depend on how well you grow and maximize your net worth.
Percentage totals may...
Tags: Financial, Balance Sheet, JaxWorks, Balance Sheets, Financial Accounting..., Financial
Statements, Finance
Tools & templates 2007-09-01
Strayer Education Inc. — NASDAQ: STRA — Consolidated Balance Sheet For First
Quarter Ended March 31, 1998
WASHINGTON--BUSINESS WIRE--May 1, 1998--Strayer Education Inc. (NASDAQ:STRA)
Friday released a comparative balance sheet for first quarter, ended March 31, 1998. The balance
sheet supplements first quarter earnings released earlier this week.-0- CONDENSED
CONSOLIDATED...
Tags: asset, equity, FINANCE, income, Investment..., Nasdaq Stock Market Inc., Strayer
Education Inc., Taxes
Our cheat sheet tells you which B-school classes will teach you valuable skills and which
ones aren't worth your time. Finance Course...
Tags: Vision, Management, Geoffrey James, Entrepreneurship, Useless Skill..., Finance, Useful
Skill, MBA, Entrepreneurial, BNET Feature, Agenda
Avocent Corporation Q1 2008 Earnings Call Transcript
Question-and-Answer SessionOperator Operator Instructions We’ll go first to Mark
Kelleher with Canaccord Adams. Mark Kelleher- Cannacord Adams Hi Guys. Very nice quarter.
A couple of numbers questions. What was the cash flow from operations in the quarter? Teddy
Blankenship ... ?
In the world of MDC Partners CEO Miles Nadal, everything only seems to go up. In his
last conference call with investors, he predicted MDC's revenues will rise in 2009 by 1-3 percent
and profits will grow 3-6 percent. Could happen. But there's another growing thing on...
Comparative balance sheets of BSNL company:

particulars 2008 2009 absolnt %of different

Previous year Current year
Assets
Current assets
Inventories 242847 322006 79159 32.5962
Sundry debtors 558066 546551 -11515 -2.0633
Cash &bank balance 3745279 4055158 309862 8.2733
Other current assets 114148 137687 23539 20.6214
Loans advances 714431 744441 30010 4.2005
Total current assets 5374788 5805843 431055 8.0199
Fixed assets
Gross block 11864901 12457823 592922 4.9972
(-)depreciation 6071511 6987974 916463 15.0944
Net block 5793390 5469849 -323541 -5.5846
Capital working 256860 266562 9702 3.7771
progress
Decommissioned 64443 389 -6055 -93.9633
assets
Invest ments 20000 20000 - -
Total fixed assets 6076694 5756800 -319894 -5.2816
Liabilities&capital
Current
liabilities&provisions
Current liabilities 1667919 1739788 71869 4.3089
 provisions 514858 606321 91463 17.7647
Total current 2346109 2182777 -163332 -6.9618
liabilities
Long term liabilities
Un secured loans 554366 338887 -215479 -38.8694
Deffered tax liabilities 124605 131053 6448 5.1747
Total long term 678971 469940 209031 -33.6947
liabilities
Capital &reserves
Capital 1250000 1250000 - -
Reserve&sur plus 7444802 7562825 118023 1.5853
Total 8694802 8812825 118023 1.5853
capital&reserve

Interpretation:

• The above table indicates the 2008&2009 comparative balance sheet of the BSNL.
• The BSNL company current assets are increased by comparison of the 2008&2009.
• The BSNL company fixed assets are decreased and investments are same.
• The BSNL company current liabilities are increased because the company liabilities
provisions are increased.
• The BSNL loan funds are decreased.
• And the sources of funds are increased.
• Finally the company capital is no chaing.
Comparative balance sheet of the airtel company:

Particulars 2008previous 2009 Absolute %of

year Current different
year
Assets
Current assets
Current Assets, loans 8439.38 10466.63 2027.25 24.0213
advances
Miscellanea 0.20 0.09 -0.11 -55
expenecess
Total 8439.58 10466.63 2027.14 30.9787
Fixed assets
Gross block 28115.65 37266.70 9151.05 32.5478
(-)revaluation reserve 2.13 2.13 _ _
(-)accumulated 9085.00 12253.34 3168.34 34.8744
depreciation
Net block 19025.52 25011.23 5982.71 31.4407
Capital working 2751.08 2566.67 -184.41 -6.7031
progress
Invest ments 10952.85 11777.76 824.91 7.5314
Total 699935.23 88877.83 18942.6 2.7063
Liabilities&capital
Current 14362.33 14466.89 104.56 0.7280
liabilities&provisions
Long term libilities
Secured loans 52.42 51.73 -0.69 -1.3162
Un secured loans 6517.92 7661.92 1144 17.5516
total 6570.34 7713.65 11439.31 0.2354
Source of funds
Owners’ funds
Equity capital 1897.91 1898.24 0.33 0.0173
Share application 57.63 116.22 58.59 101.66
money
Preference capital _ _ _ _
Reserves&surpluse 18283.82 28627.38 7343.56 40.1642
total 20239.36 30641.84 10402.48 51.3981
Notes
Book value of 379.62 9898.56 518.94 5.532
unquoted
investments
Marketed value of 1574.29 1887.76 313.47 19.91
investment
Contingent liabilities 7140.59 18982.40 -3036.34 -42.5222

Interpretation:
• The above table indicates the 2008&2009comparitive balance sheets of the airtel.
• The airtel company current assets are increased comparing between 2008&2009.
• And the airtel company fixed assets are increased.
• The airtel company current liabilities are increased so the company financial
passion is not good.
• The airtel company long term liabilities are also increased.
• And the airtel company source of fund s are also increased.
Findings&suggessions:

Findings :
Findings of the BSNL company:
• the BSNL company current assets are increased because the company because the
company cash&bank balances ,and sundry debtors .
• the BSNL company fixed assets are decrease because the company net block is
decreased comparing between 2008&2009and the company accumulated
depreciation is also increased.
• And the BSNL company current liabilities are increased because the company the
company current liabilities and provisions are increased.
• The company loan funds are also decreased because the company un secured loans
are decreased -38%.
• The BSNL company source of funds are also increased because the company
reserves&surpluse are increased .

Findings of the airtel company:

• the airtel company current assets are increased .
• the airtel company fixed assets are increased because the company the company
fixed assets are increased yearly and the company working in progrease is
decreased comparing between 2008&2009.
• The airtel company current liabilities are increased because the company short
term liabilities and provisions are increased comparing between 2008&2009.
• And the company long term loans are increased but the company secured loans are
decreased and un secured loans are increased.
• The airtel company source of funds are increased because the company equity
capital,share application money and reserves&surplues are increased comparing
between 2008&2009.
Suggestions
Suggestions of the BSNL company:
• The BSNL company current assets are increased comparing between 2008&2009
its good so the company try to increase the current assets.
• The BSNL company fixed assets are decrease because the company fixed assets are
have the high depreciation so the company try to decrease the depreciation of fixed
assets.
• The BSNL company current liabilities are increased because the company current
liabilities&provisions are increased thetsfy the company decreased the provisions
and short term liabilities.
• The BSNL company loan funds are decreased but the company try to decreased the
loan funds.
• And the company source of funds are also decreased and try to follow this
decrease.
• The company capital does not chaig so the company try to increase the capital of
the company.

Suggestions of the airtel company:

• The airtel company current assets are increased but the company miscellaneous
expenses are very decreased so the company try to increase the company
miscellaneous expenses.
• The company fixed assets are increased but the company try to increase the
company fixed assets of the company.
• The company current liabilities are increased because the company try to decrease
the company short term liabilities and provisions also.
• The airtel company loan funds are increased but the secured loans are decreased but
the company try to decrease the un secured loans.
• The company source of funds are increased so the company try to decrease the
source of funds.