VAS : The next big thing in Mobile Telecom

With the advent of Mobile technology,the communication barrier between the people is completely broken. Now ever days mobile tele density is increasing day by day, just for instance India largest GSM player Bharti , alone adds 20-30 million customers in a month. Bharti is not alone who is getting the customer in big numbers, its every major telecom operator, who is counting on such a big customer number. Though in India, the tele density base is still lowest as compare to other developed nation. But this question must hovering in a mind of every CEO of a telecom company, and the question is What after Mobile Telephony reach its saturation ? The first obvious answer is looking for opportunities in another emerging markets, through ways of merger and acquisitions. But M&A is not a cakewalk for every organization. The second answer is providing Value added service (VAS), to end user. Today, mobile is not only a calling device, but it's a more or less like a computer in the hands of the customer. They use their mobile for ringtones,gaming, chatting, watching news, cricket scores, stock quotes etc.. As the mobile bandwidth increase, the demand for such kind of products will definitely be increased, so during that time, every other telecom operator will not only trying for new customers, but they will also try to retain their existing customers, by offering best of the best VAS services, either free of cost or at a negligible amount. So as per my opinion, the VAS will be the next big thing in Mobile telecom business.

Thanks&Regards,
Mohit Kumar

Dark Pool Riding on Bourses

Today, when I was reading TOI, I came across an article which was really quite fascinating to read. The article was on Dark Pool kind of trading activities, which is getting huge momentum in US and Europe bourses. According to Times, its one of the biggest structural in equity trading to hit the American and European in 20 years, and it is threatening the real existence of exchanges like LSE NYSE and Euronext.

By Investopedia, dark pool gets its name because details of these trades are concealed from the public.

So Dark pooling is not for small investors, this kind of trading is suitable for institutional investors having lump sum amount of money to park in such kind of activity.

As this kind of trading involves huge amount of money, and directly or indirectly it will affect stocks valuations. So regulators providing such platform to these institutional investors, have to keep a hawk eye on them in order to prevent some big fraud or crisis like sub-prime, and also to safegaurd interests of small investors.

Thanks&Regards,
Mohit Kumar

MTN / R-COM tie up in jittery

After Bharti Airtel broke merger talks with MTN, R-COM without any delay entered with a 45 day exclusivity merger talk with MTN, with a hope to create one of the biggest telecom conglomerate in emerging markets. For intial couple of weeks things seemed to be going smoothly, keeping in mind the scale of the deal and business policies of the two nations, a different deal scenarios were created, from share swaping to R-COM becoming a subsidiary of MTN. But as markets were expecting the deal to work through smoothly, there was a full stop from RIL. The RIL issued a statement saying that in R-COM and MTN deal, they have a Right of First Refusal (RoFR ). This statement from RIL, put the complete deal in jittery, which in turn led to increase in the exclusivity talk time period. Hope to see the animosity between Ambani brothers to be settled off peacefully, so that R-COM and MTN deal end up successfully.

Thanks&Regards,
Mohit Kumar

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