Cell Phone

Exactly ten years ago, Jyoti Basu in Calcutta called Sukh Ram in Delhi in what was the first mobile phone call in India. Brick sized cell phones used to cost Rs. (Indian Rupee)
45,000 and each call cost Rs. 16.5/minute. At that time, cell phones were considered a status symbol. Today, there are over 60 million mobile connections in India (expected to double in number in next 12 months). A local call costs less than Rs 1/min and a cell phone can be purchased for less than Rs. 2000. Indian telecom industry is growing at a great pace and India is expected to become a manufacturing hub for telecom equipment. Indian telecom equipment manufacturing sector is set to become one of the largest sectors globally by this year. The rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunications, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector (Gaurav, 2005).
There are many regulations and government policies that will come into play in the years to come for the telecom and technology industries. There will be negative and positive externalities involved.   Examples of issues that will need to be addressed include, but are not necessarily limited to new companies entering the market, globalization that will affect price and price sustainability of profit and different types of mergers that will be described in this report. Management has assembled a team to address the potential issues relating to the technology market in the future.
The technology industry is a growing industry with various sectors included and with that brings many mergers with it. A major merger that is in the works in the telecom sector of the technology industry is dealing with a horizontal merger between Level 3 Communications and Time Warner Telecom. A horizontal merger is one which occurs between companies within the same industry. This type of merger is typically a consolidation of competing firms...