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India Equity Research Reports, IPO and Stock News
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Telecom & Media
No significant impact on earnings & US$3bn budgeted as “one time” telecom revenues
Increase in MAT from 18% to 18.5%; surcharge
reduced from 7.5% to 5%
No earnings impact for Telecom companies Bharti, Idea, RCom
which are currently in MAT following tax benefits u/s 801A#.
While reduction in surcharge income tax rate will be ~1%
earnings accretive for Media companies Zee, Sun, HT, DB due to
current full tax being paid.
US$3bn budgeted as one time Telecom revenues
Rs297bn/US$6.6bn budgeted as revenue from telecom sector
includes an estimated US$3bn in one time 2G spectrum
payments/penalties from incumbents & new operators of 2008
US$3bn budgeted “one time” revenues may not be reasonable if
litigations continue.
Rural broadband connectivity to all 250,000 villages
in three years
Not a new proposal and will be funded from USOF.
Unlikely private mobile operators will benefit from this proposal,
likely to be awarded to government owned BSNL.
Our top picks
Bharti Airtel and Zee Entertainment are our top picks in the
Telecom & Media sector respectively.
#80IA allows 100% tax deduction for 5 years and 30% deductions for next 5 years^ vs
current 7%-14%#MAT “paid” can be c/f for set-off against regular tax payable during
the subsequent ten years subject to certain conditions.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Telecom & Media
No significant impact on earnings & US$3bn budgeted as “one time” telecom revenues
Increase in MAT from 18% to 18.5%; surcharge
reduced from 7.5% to 5%
No earnings impact for Telecom companies Bharti, Idea, RCom
which are currently in MAT following tax benefits u/s 801A#.
While reduction in surcharge income tax rate will be ~1%
earnings accretive for Media companies Zee, Sun, HT, DB due to
current full tax being paid.
US$3bn budgeted as one time Telecom revenues
Rs297bn/US$6.6bn budgeted as revenue from telecom sector
includes an estimated US$3bn in one time 2G spectrum
payments/penalties from incumbents & new operators of 2008
US$3bn budgeted “one time” revenues may not be reasonable if
litigations continue.
Rural broadband connectivity to all 250,000 villages
in three years
Not a new proposal and will be funded from USOF.
Unlikely private mobile operators will benefit from this proposal,
likely to be awarded to government owned BSNL.
Our top picks
Bharti Airtel and Zee Entertainment are our top picks in the
Telecom & Media sector respectively.
#80IA allows 100% tax deduction for 5 years and 30% deductions for next 5 years^ vs
current 7%-14%#MAT “paid” can be c/f for set-off against regular tax payable during
the subsequent ten years subject to certain conditions.
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