Recently the reports on Mexico telecom business revenues and associated mcap of those companies were disturbing.Because of the high tariff the economy there looks to be getting into incompetitive mode.Back home the telecom companies are complaining of high cost structures and declining growth of monthly subscribers.And the companies are clamouring for increasing the tariffs, up over already increased a few months back.Perhaps the license fees paid for 3G is showing up negatively on their balance sheet.
For one thing is clear though,the telecom industry is playing important role in impacting GDP and competitiveness of the Country.Generally the Power & Telecom sectors play a big role in an emerging economy.So all efforts must be put in to pep up these sectors by investing here,reducing the interest rate and making loans available liberally through the market as well as the banking system.This can be only done more efficiently if there are no losses and cost of transactions is less and operators make reasonable topline & bottomline growth.There are several ways it can be achieved.However one way -a small way- is to use the T&M industry in serving these sectors more!
T&M services can be deployed and instruments used to increase the efficiency,productivity and quality of the network operators and utility system and its impact will be quite high in terms of the output to input.Lot of economies of scale can be achieved by injecting innovation in the network management and deployment of T&M services.Using T&M and the T&M services innovatively can be a big efficiency booster.Few projects in Telecom and Power can be in Fiber based Networks and mega power projects.
Specific projects and how to make use of T&M in these will be discussed in following blogs this month.
Tuesday, January 31, 2012
Sunday, January 22, 2012
T&M India market fortunes fluctuate with Telecom Market nature!
Since the beginning of 2001,the T&M market in India started behaving very differently than the previous thirty years or more.Whereas the T&M market earlier concentrated heavily on Defense,Aerospace and an occasional Pubcasting and DoT sectors, it decisively started growing with the deregulated Private sector Telecom.The Government and Public sector gave way to neo telecom companies in the private sector.By 2003 end the trend was getting into mainstream!
If we review the achievements overall in the past decade,few things are very evident.Telecom sector revenue logged up to approx 300KCr and the FDI was approx
10B$ plus and many private sector companies,or their associates became 100 KCr mcap.All major business groups piled on the bandwagon.The involvement of Private sector led to new devices companies like Micromax,Karbonn,Lava and extended to manufacturers like Gemini,HFCL etc.Many started cashing out by selling to overseas players.Market for T&M could get boost,particularly till2008 end.After struggle of past three years,and several anxieties later started looking up again.
Like wise the overall T&M market also went up and down with Telecom.New players like Education sector,industrial and defense R&D and power utilities chipped in with newer type of T&M businesses.Overall gain though was emergence of all together new private companies in all those sectors,where Government was dominant earlier.
What does future hold for market? Bright and even brighter as we move forward.Newer areas are slated to privatise,telecom technologies are getting more pervasives,FDI is expanding in new areas and GDP wants to explore new areas of growth to beat Global stagnation.T&M will get its due share and place of influencing.I am optimistic.
Also good day to write this blog.We celebrate our daughter Shikhas birthday today.As a bonus to boot we have Chinese new year,and also Netajis birthday.
If we review the achievements overall in the past decade,few things are very evident.Telecom sector revenue logged up to approx 300KCr and the FDI was approx
10B$ plus and many private sector companies,or their associates became 100 KCr mcap.All major business groups piled on the bandwagon.The involvement of Private sector led to new devices companies like Micromax,Karbonn,Lava and extended to manufacturers like Gemini,HFCL etc.Many started cashing out by selling to overseas players.Market for T&M could get boost,particularly till2008 end.After struggle of past three years,and several anxieties later started looking up again.
Like wise the overall T&M market also went up and down with Telecom.New players like Education sector,industrial and defense R&D and power utilities chipped in with newer type of T&M businesses.Overall gain though was emergence of all together new private companies in all those sectors,where Government was dominant earlier.
What does future hold for market? Bright and even brighter as we move forward.Newer areas are slated to privatise,telecom technologies are getting more pervasives,FDI is expanding in new areas and GDP wants to explore new areas of growth to beat Global stagnation.T&M will get its due share and place of influencing.I am optimistic.
Also good day to write this blog.We celebrate our daughter Shikhas birthday today.As a bonus to boot we have Chinese new year,and also Netajis birthday.
Monday, January 16, 2012
T&M industry with mature outlook can provide clues for India Growth!
Whenever we confront a mature market,we feel people cant or wont buy our wares and some despondency will be there.But at those times a few things happen. Smart Companies make investment in innovation,keep good hold on their bright people and squeeze lot of bang from the buck,by focussing more on the "crevices and corners" of the balance sheet.Of course it requires a great risk taking abilities and foresight of People Power.
India is experiencing lot of despondency due to the Environment on the political economy and Governments lack of credibility on key issues,even though the overall banner policies are great.We have large number of people entering the job market and our fiscal deficit running high.We are not able to move on the good direction we had taken earlier.We have similar situation on the stagnating T&M industry.When there is stagnation here,we changed focus from T&M boxes to T&M Services and solutions for increasing the total pie the companies could address.Focus was on people: encouraging them to deliver better cash profit and finding more solutions created locally so the IP remains with us and we encash market ourselves.
Perhaps a similar approach can be tried at the Country level.Create industries for those very relevant to India.An example could be Power Regulation,and Household Power industry.Encourage them to find cheaper,innovative solutions which can be mass-marketed and the business can grow.Create more local applications in Healthcare,Education,mass entertainment,sprituality and anything which is mass marketable in India itself.There will be failures like Aakash(a hardware for Datawind) but there will be several others like Chhotukool and Portable ECG.Suppose we produce a BP and diabetes monitor at the cost of a small FM radio we will see the difference.Liewise we can leverage very smartly the products of such kind out of CSIR labs,DRDO labs for mass markets.
Fiscal Deficit can be tackled by removing exemptions on the Tax side,Divestment through the licensing auction for mining,water,port and similar natural resources and key profitable PSUs but not exceeding ten percent.Focus will shift from Licensing and control to Cooperative Sharing with Private Sector.Of course there are both Long term and short term measures are there,but the key point is innovation focus,priority to a few parameters which are essentil and ruthless execution aided by IT driven processes.
Both Businesses,Sports and the Government can learn from each other!
India is experiencing lot of despondency due to the Environment on the political economy and Governments lack of credibility on key issues,even though the overall banner policies are great.We have large number of people entering the job market and our fiscal deficit running high.We are not able to move on the good direction we had taken earlier.We have similar situation on the stagnating T&M industry.When there is stagnation here,we changed focus from T&M boxes to T&M Services and solutions for increasing the total pie the companies could address.Focus was on people: encouraging them to deliver better cash profit and finding more solutions created locally so the IP remains with us and we encash market ourselves.
Perhaps a similar approach can be tried at the Country level.Create industries for those very relevant to India.An example could be Power Regulation,and Household Power industry.Encourage them to find cheaper,innovative solutions which can be mass-marketed and the business can grow.Create more local applications in Healthcare,Education,mass entertainment,sprituality and anything which is mass marketable in India itself.There will be failures like Aakash(a hardware for Datawind) but there will be several others like Chhotukool and Portable ECG.Suppose we produce a BP and diabetes monitor at the cost of a small FM radio we will see the difference.Liewise we can leverage very smartly the products of such kind out of CSIR labs,DRDO labs for mass markets.
Fiscal Deficit can be tackled by removing exemptions on the Tax side,Divestment through the licensing auction for mining,water,port and similar natural resources and key profitable PSUs but not exceeding ten percent.Focus will shift from Licensing and control to Cooperative Sharing with Private Sector.Of course there are both Long term and short term measures are there,but the key point is innovation focus,priority to a few parameters which are essentil and ruthless execution aided by IT driven processes.
Both Businesses,Sports and the Government can learn from each other!
Saturday, January 14, 2012
T&M market in 2012 to be driven by large national projects!
For 2012 and beyond,the T&M market in India is largely dependent on large commercial projects to be executed.Some of these are driven by BWA and the associated deployment of LTE_TD equipment,and testers to be associated with Fiberisation of BSNL network under USOF.Of course the buys,or renting of these testers will be undertaken by the total ecosystems of these projects.This involves the Operators,the NEMpartner,system integrator and other downstream companies.The T&M companies have to build right relationship,solution proposal and other marketing collaterals beforehand.
Likewise the Defense market should perk up as the procurement of last years microwave and RF equipment is not yet over and on top of this the big fiber projects undertaken by BSNL on their behalf will also be initiated.The Special test equipments SMTs and STEs will also be purchased in this year to the extent of 25 to 40Cr.
These above two project folders will cover over 50% of the total purchases in the organised bulk buys.
Likewise the Defense market should perk up as the procurement of last years microwave and RF equipment is not yet over and on top of this the big fiber projects undertaken by BSNL on their behalf will also be initiated.The Special test equipments SMTs and STEs will also be purchased in this year to the extent of 25 to 40Cr.
These above two project folders will cover over 50% of the total purchases in the organised bulk buys.
Thursday, January 5, 2012
T&M Industry makes impact on Defense,Telecom and Internet plus Media markets!
Although the T&M industry serves other industries in improving their quality,productivity and profitability-like the Defense,Telecom and such like industries,the recent happenings are impacting these sectors due to web 2 plus technologies.Mostly the current impact has been due to data emphasis and the broadband (20 MHz rollout of BWA).Also the proliferation of many new devices getting attached to the network is affecting Communication Services.And because the testing and compliance of these networks influence services to different users,whole panaroma of sectors get influenced by T&M.
The devices which are appearing on the horizon are influenced by the Personal Technologies involved.The factors like Social Media,Mobility and Location Signalling are dictating the standards of testing.The different wireless standards in use are 4G and WLAN type with various conformities.And LTE 4G being more amenable to data usage is creating its influence on the users widely.Data Speed through LTE will make possible host of new devices attached to the network,and T&M services will have even bigger influence in future.Likewise the other wireless standard DLNA will be making difference to the Consumer and home networks.We will be free of tangled wires here!
The net technology or the IP based technology/business will meet the wireless at some point and blend to form either a common platform,or the compact interface of disparate worlds.The Key thing is to get advantage of T&M techniques into these user industries and make sure the users enjoy the super benefits.
As the T&M industry is meeting new challenges of testing and managing operating and business systems,the space is getting more exciting this running decade.Lot of fun is going to come our way and new businesses and startups will take off! Keep watching this space!
The devices which are appearing on the horizon are influenced by the Personal Technologies involved.The factors like Social Media,Mobility and Location Signalling are dictating the standards of testing.The different wireless standards in use are 4G and WLAN type with various conformities.And LTE 4G being more amenable to data usage is creating its influence on the users widely.Data Speed through LTE will make possible host of new devices attached to the network,and T&M services will have even bigger influence in future.Likewise the other wireless standard DLNA will be making difference to the Consumer and home networks.We will be free of tangled wires here!
The net technology or the IP based technology/business will meet the wireless at some point and blend to form either a common platform,or the compact interface of disparate worlds.The Key thing is to get advantage of T&M techniques into these user industries and make sure the users enjoy the super benefits.
As the T&M industry is meeting new challenges of testing and managing operating and business systems,the space is getting more exciting this running decade.Lot of fun is going to come our way and new businesses and startups will take off! Keep watching this space!
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