Summary
M&A: In any M&A tranparency and governance are key factor beside the valuation and revenue potential. 3G: The market, services and vendors are closely watching the move since the lot of action is expected by the end of year by which the overnment can go for auction of 3G spectrum.
Analysis
M&A: If the company is not giving enough the information then valuation may be faulty as well as being an non majority will further hazard the company with limited management control. In this view, company can be better off as project consultant or launching a JV with them.
3G: MTNL is putting Rs. 250 crore for roll out in Mumbai since #G is basically an overlay over their 2G network. Also they are able to get around $80-100 from the equipment vendors.
The roll out by MTNL will be closely watched by private service providers since it will help them negotiate better rates from technology vendors as well as look at service implmentation.
Looking at the West Europe experience, they will bargain hard for spectrum as well as go for active and passive infrastructure sharing since the ARPU in the intial two years will not be as high as expected and they use more of spectrum for 2G activities.
