As I write this blog, Rupee has slipped to 56.50 against the Greenback.The deficit on both fiscal and current account keeps widening and the GDP for the current quarter not inspiring at all. Topping all this is the current Telecom Scenario where uncertainities loom large and the prospects of any relief news to operators look distant!
The question naturally confronting our industry is what will happen to the operators plans to buy the Capital Equipment and derivatively the T&M instruments,the Systems and Services to deploy all those fancy infrastructure equipment like LTE,LTE Advance,the EVDO and the OSS/BSS (now also called the SPIT by some ).? Whenever any capex is planned by the operator company,there is always questioning and the RoI etc is sought to be justified.Will the Capex on T&M equipment go up or go down if we compare the scenario today compared to pre 2G times? The answer is may be ,may be not!
However if we just go a little deeper and analyse the scenario from the Business Point of View,we find that the situation of high Spectrum Prices has happened not due to Government Policy creation.A high Spectrum Price percieved by the market is also creation of the players too, as they had paid very large (my assesment ) price for 3G.This perhaps had led to Government tasting the blood, seeing aggressive auction terms as a tool to get "below the line" revenues for its balnce sheet ,to tackle the deficit. Off Course the cascading effect of all this will ultimately show up in increased Capex.
As the operators face this heat of increased expenditure and resultant cost push,and margin shrinking,there will be internal pressure to find ways and means to find methods to reduce Capex, and/or convert to Opex as much as possible.So, in short term at least we will see T&M buys also being pushed back by the bean counters at the Service Providers.But as the time goes, with licences waiting for renewal and network infrastructures on higher frequency platforms Capex will increase (and definitely T&M services many many times ) without doubt !
Smart T&M companies can gear themselves up with right infrastructure to deliver all kind of Deployment Services,Asset Management Services, Lease/Rental, Logistics and Supply Chain services,Network optimisation, Synchronisation, Interface Test and Technology services etc etc. This means the WORKS for T&M Services!!
The question naturally confronting our industry is what will happen to the operators plans to buy the Capital Equipment and derivatively the T&M instruments,the Systems and Services to deploy all those fancy infrastructure equipment like LTE,LTE Advance,the EVDO and the OSS/BSS (now also called the SPIT by some ).? Whenever any capex is planned by the operator company,there is always questioning and the RoI etc is sought to be justified.Will the Capex on T&M equipment go up or go down if we compare the scenario today compared to pre 2G times? The answer is may be ,may be not!
However if we just go a little deeper and analyse the scenario from the Business Point of View,we find that the situation of high Spectrum Prices has happened not due to Government Policy creation.A high Spectrum Price percieved by the market is also creation of the players too, as they had paid very large (my assesment ) price for 3G.This perhaps had led to Government tasting the blood, seeing aggressive auction terms as a tool to get "below the line" revenues for its balnce sheet ,to tackle the deficit. Off Course the cascading effect of all this will ultimately show up in increased Capex.
As the operators face this heat of increased expenditure and resultant cost push,and margin shrinking,there will be internal pressure to find ways and means to find methods to reduce Capex, and/or convert to Opex as much as possible.So, in short term at least we will see T&M buys also being pushed back by the bean counters at the Service Providers.But as the time goes, with licences waiting for renewal and network infrastructures on higher frequency platforms Capex will increase (and definitely T&M services many many times ) without doubt !
Smart T&M companies can gear themselves up with right infrastructure to deliver all kind of Deployment Services,Asset Management Services, Lease/Rental, Logistics and Supply Chain services,Network optimisation, Synchronisation, Interface Test and Technology services etc etc. This means the WORKS for T&M Services!!
No comments:
Post a Comment