May 2011

Strategy

Risks and return considerations for companies investing in foreign markets

Since the past few months, the telecom service provider Uninor has been under scanner on eligibility criteria for allocation of 2G spectrum, by the former telecom minister of India. India’s Department of Telecom (DoT) has imposed a penalty of Rs 6.35 crore for not complying with the roll-out obligations, of which Uninor has been directed to pay Rs 3.8 crore by the telecom tribunal TDSAT, following the company’s petition challenging the penalty imposed by the DoT. The cancellation of licences or even the imposition of penalties could severely hurt cash flows of Uninor and of some other telcos which were issued similar notices. Uninor is a joint venture between reality firm Unitech and telecom firm Telenor of Norway, of which the Norwegian government is a major shareholder. Telenor’s acquisition of 67.25% stake in Unitech Wireless of India was funded with a Rights issue in October 2008. Telenor’s share price had dropped by 25% on the announcement day and by 45% over the month. The negative market reaction could have stemmed from the fact that India was an unknown market for Norwegian investors and they had doubts regarding the future returns from investments in India.Now, with India’s Supreme court monitoring the 2G scam investigations, their future…

Education

An Year off from Job – Mid Career B School Program

‘The pen is mightier than the sword’ said the English author Edward Lytton. Taking a cue from this famous adage, it would not be out of place to say that in today’s world ‘The net is mightier than the jet’. Having completed a reputed program for senior executives from the top Business School in UK, I feel that blog would be a great medium of expression for reaching out to people and sharing my thoughts with those who might be interested in reading this. Since the last one year many people have approached me to find out what the Sloan experience has been like, with the obvious question at the back of the mind ‘Is it worth investing a huge  sum of money for a one year management program at a mid career stage in life?’. Honestly it is difficult to have a cookie cutter answer to the question because a whole lot of it depends on what a person aims to achieve in that one year and how he or she is able to leverage on the learning while building on the past professional experience. I will attempt to pen down the aspects that a person may want to consider before…

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