3G auction by 30 September

The auction process for the third generation (3G)
spectrum service are likely to be over by September 30,
Telecom Secretary Siddhartha Behura said on Friday.
“The ideal time for the auctions will be between September and
October this year.”
“But the auctions should most likely be completed by
September 30,” he told reporters on the sidelines of the Energy
Efficiency Summit organised by Nokia-Siemens

India 3rd on commercial spend list

Annual commercial spending in India clocked $2.3 trillion in 2007, an increase of 23% from
2006, according to data released by Visa, the world’s largest retail electronic payments network.
As per Visa’s Commercial Consumption Expenditure (CCE) index, India was third largest nation in terms of
the size of total business and government spend and the fourth fastest growing in the Asia Pacific (APAC)
region.
The other top economies given the size of their commercial expenditure in the region included Japan ($5.2
trillion), China ($4.9 trillion), South Korea ($2 trillion) and Australia ($1.2 trillion).
The CCE index captures business to business purchases to acquire goods and services used in production,
wholesale and retail purchases of final goods, business capital expenditures and government spending on
goods and services.
It makes adjustments to exclude expenditures such as construction and durable defense spending.
According to the report, which considered 21 economies in the APAC region as a part of the global study,
commercial spending in the region grew by 13% to $18.9 trillion in 2007, while global annual commercial
spending grew 12.2% to an estimated $77.3 trillion from $68.9 trillion in 2006.
India emerged as the fourth fastest growing economy in APAC in terms of total business and government
spend, with an annual increase of 23%. The top three positions were taken by Myanmar (41%), Hong Kong
(36.5 %) and Singapore (35 %).
“The markets across Asia Pacific are varied in terms of their stages of development and usage of
commercial card products,” said Visa Commercial Solutions, Director (Asia Pacific), John Hazlewood

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India-Next mobile superpower

According to a Gartner report, after China, India would be fastest growing mobile telephony market in Asia Pacific with revenues slated to increase at a CAGR of 18.4% to reach $25 billion in 2011 from current $9 billion.

Cellular penetration would increase to 38.6% in 2011 with 58% of rural population and 95% of urban population possessing mobile phone. The market will be driven by prepaid connections, which will account for more than 93% connections. The voluntary churn rate is expected to reach 41% from current 30.6%.

Gartner reports expects that the penetration will be driven by an increased focus on rural market, cheap handsets, aggressive promotions and handset bundle offers. The low rural mobile pentration of 2% represents an immense opportunity for cellular players. The call rates will further drop to become closer to fixed-line rates, further lowering the entry barrier.

The revenues from data services will contribute to the revenue growth, however the bulk of the revenues will continue to come from voice services. Customers with low disposable incomes will increase as such the Average Revenue Per User will decline.

Large players will have an advantage as they expand their presence and take advantage of economies of scale. But they will face tremendous challenges owing to intensifying competition. With the entry of Vodafone, the market will become more dynamic.

However, scarcity of spectrum could impact expansion plans and the quality of service. Gartner report mentions that release of 3G spectrum will be essential to sustain growth in the industry and bridge the gap generated because of lower voice tariffs and handset subsidies.

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The Future of Indian Real Estate Market

Come next decade, Indian real estate landscape is expected to be dotted with SEZs, international standard warehouses and specialized industrial spaces. Large integrated developments can become a norm among the working population. The Indian Property Market is fast going through a learning-curve. Rising interest rates have impacted the credit availability to the sector, global economic conditions seem to have subdued the demand from investors and occupier’s alike, Indian real estate stocks are down by more than 50 per cent from their year long high and the once soaring real estate values appear to be plunging. This, no doubt is the reality. Nonetheless, it is hoped that this is a transitory phase and the picture that would emerge once the churn is over will be an embodiment of permanence that is bound to happen as the sector continues to move along a high growth curve.

The economic liberalization in the 1990s and the ensuing information technology revolution have been instrumental in giving the real estate market its present form. MNCs-led demand for quality office space resulted in modern buildings springing up in new suburban locations. Increased job creation and rising disposable incomes coupled with lower interest on housing loans, had in turn fuelled demand and affordability for residential space. The change in attitude and the spending habits of the consumers led to an increase in consumption and demand for retail malls.

Relaxing the FDI regulations for the real estate sector opened the floodgates for foreign capital inflow into realty sector. The much-required capital in the last few years has facilitated widespread development of residential, office, retail and hotel space in the country. It has also been instrumental in organizing the market to a large extent and bringing it closer to real estate markets in other developing countries around the world. We are excited about these developments as the growth that we witness today is a sign of the emerging far-reaching and long-term trends that will drive robust growth for the sector in the years to come.

Foremost would be the institutionalization of the sector and the definite change in the ownership structure. Instead of individuals, private equity funds, hedge funds, REIT funds, insurance companies, pension funds, banks and other financial institutions would own, invest or manage real estate assets in office, residential, hotels, industrial, retail space etc. Public sector organizations like Life Insurance Corporation of India, UTI, Public Provident Fund, other pension funds of central and state would hopefully become active investors in the real estate industry.

This will also lead to sophistication in the financial structuring of real estate investments. They will provide access to capital, both debt and equity capital from public and private sources. Apart from offering an exit route for the developers to revolve funds and improve their margins, REITs will also allow individuals investors to be a part of the real estate market.

On the product side, there will be further advancement in construction management and project management techniques in order to optimize costs, meet construction timelines and achieve environmental and health and safety guidelines, intelligent, energy efficient green buildings will become the norm of the day. Property and facilities management services will also undergo a facelift. The provision of a good working and living environment as well as the enhancement of the asset lifespan will be key considerations and these services will be outsourced much more to firms specializing in these functions.

Real estate activity will become more widespread and will take many smaller towns and cities in its fold. Improved infrastructure, the potential of untapped markets, increased access to capital together with the saturation and spiraling cost of metros will play a vital role in promoting new growth centers. Infrastructural projects including roads, airports, ports and inter-city connectivity will witness increased private sector participating and evolve as real estate play. This will significantly augment the availability as well as the quality of these services in the country.

Rental housing as well as rented office space can become common as corporate entities will look at reducing their fixed asset liabilities, change in ownership structure would also bring in standardized, accepted practices for property valuations. Property transactions will become easier due to availability of research data, computerized land records and simpler processes for transfer of land titles and taxation. Hopefully, all these would be the prerequisites for evolving transparency and uniformity in the market. After witnessing periodic highs and lows, the interest rates and real estate process will undergo a rationalization and will finally be market driven. The above listed trends are some key real estate events that are most likely to take shape in next decade.

What is WiMax?

WiMAX is a wireless digital communications system, also known as IEEE 802.16, that is intended for wireless “metropolitan area networks”.   WiMAX can provide broadband wireless access (BWA) up to 30 miles (50 km) for fixed stations, and 3 – 10 miles (5 – 15 km) for mobile stations.  In contrast, the WiFi/802.11 wireless local area network standard is limited in most cases to only 100 – 300 feet (30 – 100m).

With WiMAX, WiFi-like data rates are easily supported, but the issue of interference is lessened.   WiMAX operates on both licensed and non-licensed frequencies, providing a regulated environment and viable economic model for wireless carriers.

WiMAX can be used for wireless networking in much the same way as the more common WiFi protocol.  WiMAX is a second-generation protocol that allows for more efficient bandwidth use, interference avoidance, and is intended to allow higher data rates over longer distances.

The IEEE 802.16 standard defines the technical features of the communications protocol.  The WiMAX Forum offers a means of testing manufacturer’s equipment for compatibility, as well as an industry group dedicated to fostering the development and commercialization of the technology.

Soon, WiMAX will be a very well recognized term to describe wireless Internet access throughout the world.

India-270 million 3G subscribers by 2013′

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India likely to have 270 million 3G subscribers by 2013′

New Delhi: India is likely to have 270 million 3G subscribers by 2013, becoming the leading 3G market
among emerging countries. Research agency Strategy Analytics’ VP, Wireless Practice, David A Kerr said,
“In terms of subscribers, India is going to be the largest market for 3G users among all emerging
markets…India could have 270 million users subscribing to 3G services by 2013.”
Currently, the country’s overall mobile subscriber base is around 290 million.
The research agency informed that 3G subscribers would account for over one third of the total wireless
subscribers by 2013. In the beginning, most of the subscribers would be from metro and ‘A’ category cities,
with the user base mostly comprising of enterprises and business customers. “India has 700 million
untapped customers and it is very much possible to have 270 million 3G subscribers in next five years,”
revealed Kerr. “At the initial stage corporate and enterprise users as well as tech-savvy young generation
would drive this market,” he added.
The guidelines for 3G services have been issued, and the Government hopes to introduce the services by
December.

Mobile Subscriber In India

In Praise of India

WHAT WORLD SAY ABOUT INDIA

In 1835, even Lord Macaulay, the British historian and politician had to admit before the British Parliament: “I have travelled across the length and breadth of India  and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such caliber… the very backbone of this nation, which  is her spiritual and cultural heritage…..”

1. Will Durant, American historian: “India was the motherland of our race, and Sanskrit the mother of Europe’s languages: she was the mother of our philosophy; mother, through the Arabs, of much of our mathematics; mother, through the Buddha, of the ideals embodied in Christianity; mother, through the village community, of self-government and democracy. Mother India is in many ways the mother of us all”.

2. Mark Twain, American author: “India is, the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grand mother of tradition. our most valuable and most instructive materials in the history of man are treasured up in India only.”

3. Albert Einstein, scientist: “We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery could have been made.”

4. Max Mueller, German scholar: If I were asked under what sky the human mind has most fully developed some of its choicest gifts, has most deeply pondered on the greatest problems of life, and has found solutions, I should point to India.

5. Romain Rolland, French scholar : “If there is one place on the face of earth where all the dreams of living men have found a home from the very earliest days when man began the dream of existence, it is India.”

6. Hu Shih, former Ambassador of China to USA: “India conquered and dominated China culturally for 20 centuries without ever having to send a single soldier across her border.”

7. Mark Twain: “So far as I am able to judge, nothing has been left undone, either by man or nature, to make India the most extraordinary country that the sun visits on his rounds. Nothing seems to have been forgotten, nothing overlooked.”

8. Keith Bellows, VP – National Geographic Society : “There are some parts of the world that, once visited, get into your heart and won’t go. For me, India is such a place. When I first visited, I was stunned by the richness of the land, by its lush beauty and exotic architecture, by its ability to overload the senses with the pure, concentrated intensity of its colors, smells, tastes, and sounds… I had been seeing the world in black & white and, when brought face-to-face with India, experienced everything re-rendered in brilliant technicolor.”

9. Mark Twain: “India has two million gods, and worships them all. In religion all other countries are paupers; India is the only millionaire.”

10. A Rough Guide to India: “It is impossible not to be astonished by India. Nowhere on Earth does humanity present itself in such a dizzying, creative burst of cultures and religions, races and tongues. Enriched by successive waves of migration and marauders from distant lands, every one of them left an indelible imprint which was absorbed into the Indian way of life. Every aspect of the country presents itself on a massive, exaggerated scale, worthy in comparison only to the superlative mountains that overshadow it. It is this variety which provides a breathtaking ensemble for experiences that is uniquely Indian. Perhaps the only thing more difficult than to be indifferent to India would be to describe or understand India completely. There are perhaps very few nations in the world with the enormous variety that India has to offer. Modern day India represents the largest democracy in the world with a seamless picture of unity in diversity unparalleled anywhere else.”

11. Romain Rolland quotes (French writer, 1866-1944)If there is one place on the face of earth where all the dreams of living men have found a home from the very earliest days when man began the dream of existence, it is India.”

Luxury Market in India

A. V. Vedpuriswar

“Luxury brands are brands whose ratio of functional utility to price is low while that of intangible utility to price is high.”

luxury-market-in-india

With consumers for luxury goods more in numbers than adult population of several countries, luxury brands are setting up shops in India to tap the growing market.

: With its burgeoning High Net worth Individuals (HNI), Indian market for luxury goods is estimated to touch US$ 452 million in coming years making it the land of promise for global brands, says a survey on luxury goods and Indian consumers.

The survey, conducted by industry chambers FICCI and designed in consultation with leading advertising agency Ogilvy and Mather, was carried out among 80 HNIs across five cities of Chennai, Delhi, Jaipur, Kolkata and Mumbai.

On perception about luxury, 25 per cent of those surveyed rated exclusivity–something a few people can afford– as their definition of Luxury while an equal number felt it was indulgence in passion, hobbies and interests.

As much as 19 per cent of the surveyed felt, time to do what they want as their perception about luxury, the survey, released at the, revealed.

For the first-timers, purchasing automobile was considered their entry into the luxurious world and was endorsed by 27 per cent.

While “lifestyle luxury” of consumer durables was endorsed by 24 per cent as the first ever luxury product acquired.

Fashion labels and branded accessories as the first luxurious acquisition was stated by 17 per cent of those surveyed.

In accessories, the survey reveals that watches remain to be the most popular with 45 per cent votes followed by leather accessories 18 per cent and pens 17 per cent.

Luxury Market Statistics

The dazzling array of luxury goods available today is clearly catering to the growing number of Indians who are enjoying unprecedented level of affluence. Statistics show that in 2001-2002 there were 20,000 families in India with annual income of more than Rs 1 crore .By 2005 ,that number has increased to 53,000 families and by 2010 ,India will have an astounding 1,40,000 millionaires.

It is not just the big Indian cities like Delhi, Mumbai and Bangalore where the rich are located. A small town like Nagpur had nine millionaires in 1995-1996. By 2001, that figure increased to 425, with a growth rate of 91 percent. A high end luxury brand like Ermenegildo Zegna, whose customers include Bill Clinton, Pierce Brosnan, Shah Rukh Khan and Al Pacino, recently made a presentation in Ludhiana and Jalandhar.

In terms of population percentage, it may seen minuscule. The seriously rich and affluent represent just 1 per cent of the entire population, but with a base of one billion people, it still adds upto 10 million high end customers, a substantial number in any market.

They are what is being termed Global Indians, the ones who are traveling abroad at the drop of a barbour hat. They are acquisitive, brand conscious and, above all they want the best and they want it now. If they can buy in their city so much better. These brands include some of the world’s most celebrated: Fendi and Louis Vuitton, Canali and Bvulgari, Cartier and Hugo Boss, Dolce & Gabanna and every Swiss luxury watchmaker. Last year, Jaeger Le Coultre launched its grand Reverso watch priced at Rs 20.8 lakh.

Unlike a few years ago, when Indian consumers had to do their shopping in London, Paris and New York, the world’s most luxury merchants are realizing that they cannot ignore the Indian market. But if you compare to the western market India is still a niche market for luxury products, but it is one that is growing fast and producing aspiration life styles where, unlike the earlier decades of socialist populism, display of wealth and luxury are no longer a dirty word.

In today’s deluxe India, the children of your domestic staff are wearing Levi’s and lee. For the brand conscious and trendy, it has to be Swarovski encrusted Seven of all mankind jeans, specially made for the Indian market. In fact, if you have got the cash, there is no limit to the splash.

What has facilitated the entry of these brands is the lowering of duties in some cases and easier regulation for automobiles, inspiring luxury automakers to launch their vehicle in India or expand their existing range.

As for infrastructure, India’s congested urban centers and rent control has produced few shopping malls – so brands opened their first stores in five-star hotels. Carcelle scored a major coup when he convinced Biki Oberoi of the Oberoi Hotel in New Delhi to turn his office into the first Louis Vuitton shop.

While mall openings are proceeding rapidly – it is estimated that the country will have 300 new malls by 2010 – few of the original ones have had what it takes to attract luxury brands.

Emporio, from India’s construction giant DLF, set to open in March 2008 outside New Delhi and is the first to include a separate building devoted to luxury brands and a special space for watches. Emporio has attracted 130 brands, including 70 international names: Vuitton, Dior, Fendi, Armani, Dolce & Gabbana, Cartier, Versace, Hugo Boss, Escada, Tod’s, Paul Smith and the watch brands Piguet, Chopard and IWC.

Now, DLF has announced plans to develop Emporio malls in Southern Mumbai, Hyderabad and Chennai.

On the other side of the country in Bangalore, the UB City Mall, also is set to open next year. The project is on 10 acres, with five medium- and five high-rise towers and is the project of Vijay Malia, chairman of the United Breweries group and Kingfisher airlines.

But not everyone is jumping into India’s new malls. Hermès will open its first store in India next year at the Oberoi Hotel. “We see India as a completely atypical country because we consider their textiles and the way they produce as a model for us. India has its own artisans,” says Patrick Thomas, chief executive of Hermès.

Timelessness takes years, even decades to develop. Such a brand must have come to stand for something in the eyes of the world. A star brand has to remain current and fashionable. It needs sex appeal and has to be modern. It has to be so new that people would want to buy it. A star brand has to keep growing. Growth is a clear signal that the brand has consumer appeal. Last but not the least, a star brand has to be profitable. Profitability depends on both the price and the costs incurred. So even in case of star brands, operational excellence is important. That means sourcing of raw materials, manufacturing and distribution must be efficient.