Simulación Cualitativa del Tráfico Urbano

Strengths

• Diversified geographical portfolio with strong mobile telecommunications operations in Europe, the Middle East, Africa, Asia Pacific and Australiasia

• Leading presence in emerging markets

• Strategic alliances with Apple iPhone

• Increasing the range of products we can offer to customers, in particular in enterprise, and providing us with the ability to compete with integrated competitors

• Value for money %u2013 in the past three years we%u2019ve reduced costs more than five times, which equates to savings of around 50% for our customers.

Opportunities

• Focus on cost reductions improving returns

• Majority stake in mobile sector in New Zealand

• Research and development of new technologies

• Focus on developing fixed landline and broadband market.

Reducing the impact of global warming by reducing their carbon foot print

Threats

• Ongoing price reductions due to competitive pressures

• New entrants: Growing range of providers of converged fixed and mobile services

• Expanding presence of mobile virtual network operators Weaknesses

• Total Telecommunication not nearly as strong as Telecom.

• Wholesaling the lines through Telecom thereby gaining less profit.

• Lack of systems and tools to backup the new processes.

• Lack of skilled employee (Technicians, engineers, accountants) availability in New Zealand Market.

3. Bharti –zain: $10.7 billion

Analyst community got a shocker when the Bharti group honcho Mr. Sunil Mittal dubbed analyst community criticism to the Bharti Zain deal as Fairy Tales. He insisted that the so called analyst cannot see the long term thinking behind this deal.

With the earlier attempt to acquire African telecom giant MTN failed, Bharti is really scouting hard for satisfying its global ambitions. The recent announcement of Bharti of

acquiring Zain Telecom’s African assets (another prominent telecom company) at

$10.7 billion invited analyst’s criticism that it is overpaying for snapping this deal.

Who’s right and who’s wrong only time will tell!

Dissecting the deal, the immediate reaction is that the deal would stress the balance sheet as the company is likely to borrow $9 billion, a hefty debt by any standards.

Information on Bharti group

• Bharti supposedly has $1.5B in cash – about 7,000 crores – and the African unit has around $2 billion in debt; so they have to pay about $8 billion – 35,000 crores.

Assuming they put in 5,000 cr. as equity, they have to raise 30,000 cr. as debt.

• Adding that to current debt will mean 39,000 cr in debt; say at 6% they will pay Rs.

2,400 cr as interest costs.

• For a set of assets that are at this point not even EBIDTA positive, this means Bharti will have to absorb it from its profitable India operations.

• The India operations will do about 10,000 cr. in net profits this year – that’s a hit of 25% on its profits (until the African operations scale to absorb the losses)

Information on zain Telecoms

• Zain’s entire operations have slumped – the first nine months of 2009 have seen a 17% drop in net profits from 235m KWD to 196m KWD.

• 9 months in USD: Revenue: $6.1B, EBIDTA: $2.6B, Net Profit: $677 million.

• 47-50% of all Zain revenue comes from non-African sources (source: Q3 presentation)

• In Nigeria, they lost 6% of their customers year on year as of September 2009

• The ARPUs for Africa lie between $3 and $13 – Nigeria is halfway at $7. In India it’s

• Zain has 42 million customers in Africa

SWOT analysis of bharti group strengths

• Bharti Airtel has more than 98 million customers. It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers.

• Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world.

• The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base

weakness

An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field.

Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally.

The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature

Opportunities

The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google.

Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions.

Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry

approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns.

The company is investing in its operation in 120,000 to 160,000 small villages every year.

It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy.

Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy

Threats

Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors.

The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into

recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market.

Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.

4. Hindalco-Novelis: $6 billion

Aluminium and copper major Hindalco Industries, the Kumar Mangalam Birla-led Aditya Birla Group flagship, acquired Canadian company Novelis Inc in a $6-billion, all-cash deal in February 2007.Till date, it is India's fourt-largest M&A deal.The acquisition would make Hindalco the global leader in aluminium rolled products and one of the largest aluminium producers in Asia. With post-acquisition combined revenues in excess of $10 billion, Hindalco would enter the Fortune-500 listing of world's largest companies by sales revenues.