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India Equity Research Reports, IPO and Stock News
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TELECOM
Current view
q With gross subscriber base reaching 770 million and revenues crossing USD 20
bn, Indian telecom sector has reached its maturity phase with incremental
growth coming from increasing penetration in rural/semi-urban areas.
q Industry has recorded significant out flow for 3G spectrum and network upgradation
this year. While this marks the beginning of the new phase of
growth, there prevail uncertainties on the tax front that has been causing
worries for the industry.
q Amidst hyper-competition in the sector that has been forcing telecom
companies to streamline their operations, consolidation appears to be a viable
and inevitable option. However, the restrictive provisions in Section 80IA(12A)
of the I-T Act denying tax holiday to undertakings in the event of amalgamation
has been deterrent to such consolidations in the sector.
q The telecom sector is also looking forward to extension of the tax holiday
benefits under Section 80IA of the I-T Act. Such extension would provide thrust
to the industry in the short to medium term.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TELECOM
Current view
q With gross subscriber base reaching 770 million and revenues crossing USD 20
bn, Indian telecom sector has reached its maturity phase with incremental
growth coming from increasing penetration in rural/semi-urban areas.
q Industry has recorded significant out flow for 3G spectrum and network upgradation
this year. While this marks the beginning of the new phase of
growth, there prevail uncertainties on the tax front that has been causing
worries for the industry.
q Amidst hyper-competition in the sector that has been forcing telecom
companies to streamline their operations, consolidation appears to be a viable
and inevitable option. However, the restrictive provisions in Section 80IA(12A)
of the I-T Act denying tax holiday to undertakings in the event of amalgamation
has been deterrent to such consolidations in the sector.
q The telecom sector is also looking forward to extension of the tax holiday
benefits under Section 80IA of the I-T Act. Such extension would provide thrust
to the industry in the short to medium term.
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