Double-edged sword on Nokia

Currently Nokia is facing double whammy. Clearly with so many advertisements airing on the TV, online and print media, they are bearing huge costs to sell their phones. Also revenues are down from the previous high. Currently it is very short in losing the top position for top mobile makers. Stephen Elop joined Nokia as CEO from Microsoft. He is the first non-Finn to become so. Nokia is closing the Meego division, a joint venture with Intel. Thats also after launching a single phone (Nokia N9). Nokia is also shutting down the Symbian division and will be releasing only Windows phones from now on. They are transferring the Symbian division to Accenture They should follow what Samsung has done. Samsung is the lead Android phone maker apart from HTC. It is also making phones on Bada platform and on its own proprietary OS for lower end phones. So different phones at different price tags for different type of people. So is it all lost for Nokia. Will it see another bright rise. Well that is for time to tell. What do you think which strategy will work for Nokia. Or is it becoming a Titanic midway to the iceberg.

The Great Telecom Circus

The Great Telecom Circus Government of India is thinking for pan India license and also discussing the possibilities for companies who dont want to pursue mobile operations to surrender their license. This will lead to a potential mobile call rates escalation all over the country. Currently there are over 15 operators in some of the circles. Considering this move of Government, it will result in few bigger operators and will wipe out the smaller companies which currently have operations in some of the 22 circles of our great country. So who will be benefitting from this situation.Obviously Government. Lets see how. If the existing smaller telecom companies merge with the bigger companies, there will be tax benefits to Government. If they return the license to Government, Government will have additional spectrum which Government can sell at market rates given the hue and cry concerning the 2G scam. Also license fee is given by the companies. As competition will reduce, so the call rates in existing markets will go up. So is this the end of Great Indian Telecom circus.

Japan Quake on India

Today I and my friend were discussing a possible impact of the Japanese Earthquake and Tsunami on Indian shores and market.  Due to the blast in the nuclear reactor, Japan will be more cautious in the nuclear fuel and reactor treaty for India-US.  Japanese companies are deeply entangled with US and French companies which have the expertise to build nuclear plant.
Due to the destruction of nuclear plants there would be change in the pattern of power production in Japan.  Japan had 3 nuclear reactors on their land.  Currently due to blast at one of the reactor, there would be huge impact on  the power production at the island.  Lot of demand will be on the crude oil and natural gas.  So the world may observe a little hike in the prices of crude oil and gas in medium term.  India will be impacted due to the increased prices of crude oil and gas.

Many of us may not be knowing that Japan is the biggest lender to the Asian Development Bank (ADB), Manila, Philippines and India is one of the biggest borrower from ADB.  This year we may see a trend reversal and Japan may borrow some money from ADB for reconstruction and rehabilitation activity.  So the proportion of loan which India may be seeing from ADB this year would be less.  The proportion of investment by ADB in may see a decline for 2-3 years.

A good news may be for India would be the export of Steel and cement to Japan may rise for the reconstruction activity. It may result in mild rise of domestic prices of steel and cement but I suppose Government will take care of that.

With that I may rest my case.  If you agree or disagree please use the comment section.  If you think, there would be some more aftershocks, please share with others.
Bharat