Telecom industry ppt

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Telecom Industry:

Telecom Industry


Introduction Today the Indian telecommunications network with over 375 Million subscribers is second largest network in the world after China. India is also the fastest growing telecom market in the world. The teledensity of the Country has increased from 18% in 2009 to 45% in December 2011. India has emerged as a major base for the telecom industry worldwide. Thus Indian telecom sector has come a long way in achieving its dream of providing affordable and effective communication facilities to Indian citizens. As a result common man today has access to this most needed facility.


TELECOM SUBSCRIBER BASE IN INDIA Indian telecommunication Industry is one of the fastest growing telecom markets in the world. The mobile sector has grown from around 10 million subscribers in 2008 to reach 150 million by early 20010 registering an average growth of over 90%. The two major reasons that have fuelled this growth are low tariffs coupled with falling handset prices. The telecom reforms have allowed the foreign telecommunication companies to enter Indian market which has still got huge potential. (vodafone). Currently the Indian Telecommunication market is valued at around $100 billion (Rupees 400,000 crore). India’s rural telephone density has been languishing at around 1.9%.


OBJECTIVE To identify the position of the Company among other Branded companies. To find out the strengths and weaknesses of the individual companies To analyze the financial performance of the companies. Scope The study helps in gaining the knowledge about the company’s financial position at the present scenario. To know the major Telecom players in the market.

Bharti airtel:

Bharti airtel Bharti Airtel Limited, commonly known as Airtel, is an Indian telecommunications services company headquartered at New Delhi, India. Airtel is the world’s third largest mobile telecommunications company with over 261 million subscribers across 20 countries as of August 2012. It is the largest cellular service provider in India, with 186.41 million subscribers as of October 2012. Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India,

Idea cellular ltd.:

Idea cellular ltd. IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational corporation. A leading GSM mobile services operator with over 38 mn subscribers. A brand known for their many firsts, IDEA is the only operator to launch General Packet Radio Service (GPRS) and EDGE in the country. Idea Cellular Limited was incorporated in 1995, and now ranks third in terms of all-India wireless revenue market share at 13.6 per cent. Idea ranks second with 23.6 per cent revenue market share.


vodafone Vodafone was formed in 1983 as a joint venture between Racal Electronics (a UK electronics firm) and Millicom (a US telecom company). Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license. Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected Telecom Company’, the ‘Best Mobile Service in the country’ and the ‘Most Creative and Most Effective Advertiser of the Year’. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market.

Reliance communications:

Reliance communications Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday. Reliance Communications Limited provides integrated converged telecommunications services to individual, enterprise, and carrier customers in India and internationally. It has a strategic alliance with GetJar Inc., an applications store, to offer catalog of approximately 65,000 free mobile applications.

Ratio analysis:

Ratio analysis Current Ratio: Interpretation:- If current ratio is bellow 1 (current liabilities exceed current assets), then the company may have problems paying its bills on time. A ratio equal or nearer to the thumb of 2:1 i.e., current assets double the current liabilities is considered as satisfactory.

Gross profit ratio: :

Gross profit ratio: Interpretation:- The Gross Profit Ratio indicates the extent to which selling prices of goods per unit may decline without resulting in losses on operations of a firm. A low gross profit ratio generally indicates high cost of goods sold due to unfavorable purchasing policies, lesser sales,etc.

Net Profit Ratio:- :

Net Profit Ratio:- Interpretation:- This ratio indicates the firm’s capacity to face adverse economic conditions such as price competition, low demand,etc. the higher the ratio the better is the profitability.

Operating Cash Flow/Sales Ratio:- h:

Operating Cash Flow/Sales Ratio:- h Interpretation:- The greater the amount of operating cash flow, the better. There is no standard guideline for the operating cash flow/sales ratio, but obviously, the ability to generate consistent and/or improving percentage comparisons are positive investment qualities.

Return on Total Assets:- :

Return on Total Assets:- Interpretation:- The Return on Total Assets identifies how well the investments of the company (the Total Assets) have generated earnings (Net Earnings) back to the company. Smart companies strictly control major purchases, attempting to limit those that will best bring a return in greater revenue to the company. The Return on Total Assets is a useful way to measure how well the company is actually able to make intelligent choices on how to spend its money on new assets.


findings Company’s financial position is good and having liquidity, Bharti Airtel, Vodafone, Reliance communications having good financial position and Idea Cellular Ltd having liabilities more than the assets so not having the proper liquidity. Bharti Airtel is having high profits and maintaining the operational cost of the firm when compared to other companies. The net profits of all the companies are in a good position, Bharti Airtel and Reliance Communications are having high net profits when compared to Idea Cellular Ltd and Vodafone. Bharti Airtel is having highest EBIT when compared to other companies. Compared to all companies Idea Cellular Ltd is giving satisfied earnings than other companies. Because of mobile number portability there is slight ups and downs in the mobile subscribers. The companies are trying to attract the customers by providing various policy plans and with latest technological innovations in the telecom industry. Idea Cellular Ltd is the first company to launch GPRS (General Packet Radio Service) in India. Bharti Airtel is the largest cellular service provider in India, with 186.41 million subscribers as of October 2012. Vodafone is awarded the “Most Effective Advertiser of the Year”. Reliance Communications has a strategic alliance with Get Jar Inc., an applications store, to offer catalog of approximately 65,000 free mobile applications.

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