Companies & Sectors
Data pricing pressure pinching incumbents: Morgan Stanley
New Delhi : Even before Reliance Jio launches its 4G services in the country, Morgan Stanley believes the pricing pressures are already pinching the incumbents thanks to a tepid growth in the data market, warranting a cut in the revenue growth forecast.
 
"We cut our industry revenue growth forecast by 3 percent for fiscal years 2016 to 2018 and expect the industry revenue between fiscal 2015 and 2020 to grow at a 7 percent compound annual growth rate versus 8 percent previously," the investment banker said.
 
The report by Morgan Stanley said despite double-digit data volume growth, data revenues are now growing in the higher single-digits.
 
"Earnings before interest, tax, depreciation and amortisation (EBITDA) margins are under pressure, with rising opex. Leverage is up, with companies recognizing spectrum liability," it said.
 
Talking about Reliance Jio, the banker said: "Jio is testing 800 MHz in 10 circles and should get spectrum in eight more circles by mid-March as per spectrum trading with RCom (Reliance Communications)."
 
The analysis comes at a time when Anil Ambani's Reliance Communications is moving towards gaining control over close to 20 percent of the total spectrum with private companies in India along with plans for airwaves sharing pact with Jio in all 22 circles in the 800 MHz band.
 
It further said Reliance Jio and RCom are the only operators having an all-India footprint sub 1 GHz. "We expect to see an Reliance Jio pan-India launch in second half of 2016, thus intensifying competition further."
 
Recently Reliance Industries chairman Mukesh Ambani said Jio -- already being used by the company's employees -- will be ready for commercially launch in the second half of 2016 to offer high-speed mobile internet and voice services to 80 percent of Indians.
 
Regarding the upcoming spectrum auction in the middle of 2016, the report said: "Currently we do not build 700 MHz, however, incumbents typically underperform six months into the auction."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Forex scam: CBI conducts fresh searches in Delhi, NCR
New Delhi : The CBI on Sunday carried out searches at 10 locations in Delhi and the National Capital Region (NCR) as part of its investigation into the alleged Rs.6,000 crore Bank of Baroda forex scam.
 
Agency's spokesperson Devpreet Singh said the searches were conducted at the official and residential premises of certain people. 
 
"Rs.40 lakh in cash, rubber stamps of about 44 different companies, 15 PAN (permanent account number) cards and various incriminating documents, including pen-drives and hard discs, connected to the case were recovered during searches," the official said. 
 
In addition, foreign currencies of China, the US, Europe, the UAE, Nigeria, Hong Kong and Sri Lanka were also found, said the official, adding the documents recovered are being scrutinised.
 
The CBI officials privy to the investigation of the case, say the agency has so far found that around 8,500 foreign remittance transactions were made from 59 bank accounts of various firms against import of goods and software from Hong Kong and Dubai. 
 
"The investigation revealed further involvement of around 11 private persons or entities," the official said. 
 
The Central Bureau of Investigation (CBI) on October 9 registered a case under sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, dealing with criminal conspiracy and criminal breach of trust, against 59 current account holders along with "unknown" bank officials and private persons on a complaint from Bank of Baroda. 
 
It was alleged that 59 current account holders and "unknown" bank officials conspired to send overseas remittances, mostly to Hong Kong, of foreign exchange worth approximately Rs.6,000 crore in an illegal and irregular manner in violation of the established banking norms under the garb of payments towards imports that were suspected to be non-existent. 
 
Earlier, the CBI had conducted searches at 53 locations, including a Bank of Baroda branch in Delhi's Ashok Vihar, various companies and other accused persons. 
 
"It was also alleged that the amount remitted in each transaction would be kept at less than USD 100,000. All the remittances were made to Hong Kong," the official said. 
 
The official said the amount was remitted as advance for import and in most cases the beneficiary was the same. 
 
"Most of the foreign exchange related transactions were carried out in newly opened current accounts wherein heavy cash receipts were observed but the branch did not generate Exceptional Transaction Report (ETR) and did not monitor the high value transactions," the official said. 
 
Following the case, the CBI on October 13 arrested then assistant general manager and another officer (Foreign Exchange) of the Bank of Baroda's Ashok Vihar Branch for their alleged involvement in facilitating the foreign exchange remittances by violating the laid down guidelines of Bank of Baroda and thereby facilitating the accused persons in money laundering. 
 
The agency had also filed a charge sheet against the two employees of Bank of Baroda in December 2015.
 
"Further investigation is continuing with reference to the role of other accused persons, including bank officials as well as alleged 59 account holders and private persons," the official said. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Air India to fly 20 domestic flights with all-women crew
New Delhi : National carrier Air India will celebrate the International Women's Day on Tuesday by operating 20 domestic flights manned by all-women crew.
 
"Air India will fly 20 domestic flights with all-women crew on March 8 to observe the International Women's Day. The details regarding their routes and timings are expected to be disclosed by Monday evening," an airline official told IANS on Sunday.
 
Air India has already created a record by flying the world's longest flight operated by an all-women crew on Sunday. The airline's San Francisco-bound AI 173 took off from New Delhi on Sunday morning and will return to the national capital on Tuesday.
 
"The national carrier supports the cause of women in every area," Harpreet Singh Dey, president of the Indian Women Pilots' Association, said.
 
Air India celebrates the Day every year by deploying women crew on its select international and domestic routes.
 
The New Delhi-San Francisco flight saw women handling all operations ranging from cockpit to cabin crew, check-in staff, doctor, customer care staff, entire ground handling staff from operators to technicians, engineers and flight dispatchers and trimmers.
 
Air India has 3,765 women employees, including women pilots, cabin crew, engineers, technicians, doctors, security personnel and executives.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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