Financial Daily from THE HINDU group of publications
Friday, Jan 25, 2002
Financial Daily from THE HINDU group of publications Friday, Jan 25, 2002 |
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Info-Tech
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Telecommunications Corporate - Outlook VSNL set to lose 45-50 pc market share: Study Our Bureau
MUMBAI, Jan. 24 VIDESH Sanchar Nigam Ltd will lose at least 45 to 50 per cent of its market share in international long distance telephony over the next three to four years, says a joint paper released by Crisil Advisory Services and PA Consulting Group. Incumbent operator VSNL's market share loss over certain profitable routes may be more significant, said a news release outlining the findings of the paper. Low entry barriers in the ILD business will lead to a huge influx of competition into the ILD arena, but only four or five players will survive in the long term, says the paper. "Integrated telecom operators who bundle their services will be successful.'' The projections are that ILD traffic will grow at a CAGR of 10 per cent over 2003-2010, from the current level of 2688 million minutes to 7500 million minutes. However, the overall market size will decline in the short tem due to falling tariffs and settlement rates, but over the long term, ILD revenues will grow at 2.5 per cent CAGR and will rise from the current level of Rs 7200 crore to Rs 9800 crore by 2010.
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