Archive for August, 2010

Spiking Merger and Acquisitions Activities in Telecommunications

Friday, August 27th, 2010

Merger and acquisition are two terms already identified as one in the business world. Merger and acquisition, or M&A in abbreviated form, refers to the combining of separate companies or entities. M&A is a form of a change in ownership and management done through buying and selling of the joining corporations, most of the time retaining the buyer’s name and omitting the seller’s. This is done for different reasons, but mostly to expand business.

Merger and acquisition is also present in the telecommunication sector. Recently, there has been an increase in the number of M&A between telecom corporations. Some of the more significant M&A in the sector includes Broadcom taking over Mobilink AT&T Inc. taking over BellSouth, and the taking over of Hutchison Essar by the Vodafone Group Telecommunications is a very profitable business. But not all new comers survive the competition. The major players in the market would then acquire the losers and use them to expand their already large market. Other companies are into merger and acquisition for the purpose of going global. They tie themselves up with international corporations and try to extend their market outside the local border.

Sometimes the smaller corporations spearhead the M&A. They want the larger corporations to adopt them in order for them to grow. They want to share the profit and support of the developed corporation while offering something new to ensure the continuous growth of both companies. But these M&A are not always successful. Sometimes, the lower corporation brings down the developed ones, and this is the case when insufficient information is made available or when bad decisions are made. Nevertheless, most merger and acquisition activities are done for the purpose of business expansion.

Merger and acquisition has their own pros and cons both to the buying and selling parties. Most companies would like to expand their reach of the market, and thus get themselves into M&A activities. M&A does not always indicate that one of the corporations involved is losing money, sometimes both parties simply agree that it would be best for both corporations to act as one. The main goal of a merger and acquisition activity is to expand the business opportunities of the parties involved.

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The Importance of a Well Planned Investment Strategy

Friday, August 20th, 2010

An investment is basically what gives life to a business. Investments to not simply come in the form of money, there are plenty other forms like the direct investment of an equipment or even labor is considered an investment. Investments are made for the purpose of getting back returns or incentives for these sacrifices one has made. But not all investments will generate returns; there are indeed risks associated with it, that’s why one needs a good investment strategy to ensure you get your expected return.

Having a well-planned investment strategy is a smart thing to do before any investment is made. The investment strategy must have the goals or the expected returns as well as the time or how long the capital is to remain in the investment. Of course, these goals are to be realistic and calculated, not generated randomly, as it is very crucial to be accurate so as not to make a wrong decision in the future.  It is also essential to put in mind the term risk aversion, some investment instruments that generate great returns will also have greater risks. When investing simply in equity, it is also good to have an investment strategy where the investor simply buys and holds on to the security, as proposed by the market efficiency theory. When undecided as to which forms of investments to make, it is advised that investors do simple researches on what’s hot in the market. This information may give one a good idea as to what to invest in and how the investment strategy will run. An investment strategy is made in order to prepare investors as to how they will react to the different events that will occur in the future of their investments.

Just like any other decisions, having a good strategy will always come in handy. When making investments, a well planned investment strategy is as good as the business plan of the business you invest on. It is what gives a bright future to your investment. If your investment strategy runs to a wrong direction, then your investments can go down the drain without you getting returns. On the other hand, a good investment strategy will make you a fortune out of your capital. There are key points to follow in investing, so always remember that a well planned investment strategy must always be accurate and not a random guess.

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Rapidly Developing Telecom Mergers & Acquisitions Industry

Friday, August 13th, 2010

Telecommunications is among the fastest moving industries in today’s economy, with technology as its catalyst. New technologies in the way we access voice, data and video are continually evolving, such as VoIP, IPTV and WiMax.

With the speed at which technology advances, telecom companies are scrambling to keep up. One of the fastest and most cost effective ways for companies to do this is to look into Mergers and Acquisitions. Landline and mobile phone operators, cable companies, internet service providers, and even companies in the telecom infrastructure, software and hardware sectors are ripe for consolidation. With the evolution of digital technology, finding companies who use related resources allow them to converge their technologies to become more efficient and diversified. It also allows them to bundle services under one roof driving up their competitive edge. Of course, there is also the aim of grabbing a bigger market share, be it in the local or transnational market.

The rate at which Mergers and Acquisitions are being transacted in the Telecom industry has also spurred the growth of an industry dedicated to facilitating it. Telecom Mergers and Acquisitions Specialists have responded to the need of both buyers and sellers in the industry. Their market, however, is not limited to telecom companies. There is a whole range of interested parties in this highly dynamic industry, including governments of developing markets who are opening their telecommunications industry to international players.

Armed with telecom industry expertise, these telecom Mergers and Acquisitions Specialists offer a wide range of services; from purely advisers, to a full range of service, from valuation, to finance sourcing, to closing the deal. Buyers and sellers can also join listings which act as a venue for networking and eventual business-matching.

Publications have also cropped up specializing solely in the coverage and analysis of the highly dynamic Telecom Mergers and Acquisitions; their developments, trends and outlook in the global arena. They also provide market intelligence to source out who are ripe candidates for mergers and acquisitions.

There is also the long list of Mergers and Acquisitions experts and advisers, from Certified Valuation Professionals and legal counsel to technological experts and stockholders’ independent advisers, who are cashing in on this lucrative business.

Telecom Mergers and Acquisitions are particularly expected to be aggressive in developing markets in 2010. The first quarter has already seen a total of $31.2 billion in deals, headed by the $23.8 billion consolidation of America Movil, Carso Global Telecom and Telmex International in Latin America owned by the world’s richest man to-date, Carlos Slim Helu. The Middle East is looking at a total of $30 billion worth of mergers and acquisitions within the year while India has seen a rise of 76% in telecom mergers and acquisitions in the first quarter, compared to the same period last year. The $10.7 billion acquisition of Zain Africa by Bharti Airtel Ltd. topped the 134 deals closed so far.

Although analysts do not expect the level of the 2005 boom in telecom mergers and acquisitions that reached $284 billion anytime soon, with the global economic recovery underway, the market is definitely on the rebound. This means more dough driving the industry behind telecom mergers and acquisitions.

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Telecom Sector Surprises

Friday, August 6th, 2010

In order to survive in the market, the telecom sector continues to provide new and quality services and products to the consumers. Innovation is the key to the sector’s continuous life, as telecom companies continue to invest in new technology and infrastructures, offering cheaper calls and text, and new services like giving customers access to the internet with their mobile devices and such. It all comes down to competition, to gain better public support so that further technology and innovation together with more investment capital can be made possible.

The telecom sector by nature is full of surprises. Who would have ever thought that such features like 3G and even 4G in your phone is possible? The future of the telecom sector still holds plenty of surprises in store for us. There may be no boundaries at all to what the telecom sector can offer us. There is as such an increasing demand in the market for telecom products and services. Whenever there is a telecom breakthrough in the market, the value of the telecom sector rises. More cash inflow makes for better telecom sector products in the near future. It becomes a chain, where the telecom sector continually attracts consumers and investors and makes more money by offering better services. That is just how the life of the sector continues to live. This month, the telecom sector saw an increase in value in India. Better 3G services were the main attraction there, the sector calling it premium 3G service. Earnings grew bigger, and so did EPS. This is an example of what the surprises in the telecom sector can do.

The telecom sector continues to provide us with new and state of the art technology. This is how they attract consumers and increase earnings. Over the years we were given not just call and text, but even WAP, GPRS, 3G, 4G and many other telecom services that became very helpful in the different ways of lives of people. There have been no boundaries to the services the telecom sector offers, and it is expected that we will continue to see more surprises from the sector in the future.

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Telecom Sales

Sunday, August 1st, 2010

Over the years, telecom sales have experienced a significant growth due to a rapid increase in demand. This growing hunger for telecom services is caused by the new quality services the telecom industry offers. The introduction of mobile phones meant a better telecom market, with each person needing his or her own mobile device. Better services provided by investments in better infrastructures and better research have led to increasing telecom sales every year.

In the first quarter of 2010, a very significant increase in mobile phone sales spiked telecom sales. Specifically, smartphones are to be pointed out as the main cause for this increase. As new smartphones are introduced, consumers tend to want the device more and more. New features as well as new vendors and better functionalities including operating systems, have also affected telecom sales. A wider range of mobile devices saw an increase in demand. The telecom industry requires the continuous investment of new infrastructures to continue to provide services. These new infrastructures also provide new services, improving old ones, and lowering service costs for telecom companies. Generally, as time passes in this technological era that we live in, the telecom industry has continuously found new services to offer and lower prices to ask, thus generating more and more telecom sales.

The continuous improvements in telecom services and the growing need for telecom services have led to increased telecom sales over the years. If these smartphones continue to give consumers the features they need for their every day tasks, the telecom industry will surely experience better business. Telecommunications have certainly made an impact in our lives. It is a necessity for us today. Because of this telecom sales are expected to grow continuously over the course of the next few years.

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