Saturday, November 29, 2008

ICICIdirect views on Midcap Telecom - Onmobile Global, Tulip Telecom

Onmobile Global

With its innovative product suite, the company has established market leadership in the highly fragmented Indian VAS industry garnering a market share of ~35% from under 25% in 2005. This give the company and unique advantage of below-the-line advertising of VAS making it the preferred VAS partner for major telcos. The company was formed in 2000 as an incubated start-up by Infosys Technologies.

Tulip Telecom

Tulip corporate data services business continues to impress each quarter. Bandwidth requirement of existing customers is also growing. Though, the intensity of competition is expected to increase with telcos deploying their wimax networks; they have a lag of three-six months. Tulip, in the mean time is looking to diversify into managed services, SWAN projects and data centres to de-risk itself.

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