Wednesday, March 31, 2010

LTE- New Broadband Wireless Techology

The broadband wireless access (BWA) spectrum auction may ring in the entry of a new technology — long-term evolution (LTE). LTE, a fourth generation super-fast wireless communications technology, is a successor to 3G. With the universal service licence being technology-neutral, and the 2.3 Mhz BWA band being compatible with LTE, it is a matter of time before operators roll out 4G services, a quantum leap for India’s telecom sector. 3G auctions will start on April 9 and BWA auctions will start two days after 3G spectrum sale ends. LTE will be ready for commercial deployment in around 18 months, while spectrum winners have three years to roll out services. Those with existing WiMAX operations, such as Tata Communications (TCOM), may opt for LTE to avoid future upgradation costs. Also, players such as Bharti Airtel and Vodafone Essar are expected to overlay BWA networks over 3G. This will allow users to latch on to 2G or 3G for making voice calls and on BWA for data applications, said industry analysts and officials. TCOM has been implementing WiMAX, another BWA technology, since 2008, using the spectrum it received under an ISP licence. It is now planning to expand those services and also switch to LTE at a later date. According to Alok Shende, principal analyst at technology research firm Ascentius Consulting: The 3G and BWA auctions provide an excellent opportunity for savvy bidders to launch 4G services in the next two to four years, much ahead of Trai’s schedule. Trai has invited comments for a consultation paper on 4G launch. LTE offers tremendous increase in capacity and speed of mobile telephone networks The main advantages of LTE are high throughput, low latency and plug and play. Eleven players including Airtel, Vodafone, Reliance Communications, Qualcomm and TCOM have bid for two BWA slots. It is believed that 3G spectrum, being offered in blocks of 5 Mhz each, will be used for easing voice congestion and will not be adequate for offering data services. Qualcomm is already working on a technology that will allow consumers get access to 3G, GSM and LTE services using a single chipset. Mr Shende said a facilitator for the adoption of this model will be the availability of handsets that offer seamless blend across frequency bands between 3G and LTE.

Tuesday, March 30, 2010

Baap of all airports in Gujrat

The proposed international airport at Federa could well be the biggest in India. The Gujarat government has earmarked a massive 7,500 hectares of land, mostly wasteland, for the new airport at Navagam village near Dholera special investment region (SIR). The Airports Authority of India (AAI) has already cleared the site last month. Earlier, the state government had identified 1,700ha for the upcoming airport in Pachham-Valinda-Pipli stretch of Dhandhuka taluka. The new site falls under the influence of DMIC and is also close to three SIRs planned at Dholera, Sanand and Changodar. “The 1,700ha site notified for the project was not contiguous and had a large number of small land holdings. Hence, the new site has been shifted towards nearby Navagam,” said a senior official.

The land would be handed over to Gujarat Industrial Corridor Company Ltd, a nodal agency for Delhi-Mumbai Industrial Corridor (DMIC). Though the government is planning to use 2,800ha initially, additional land has been earmarked for future expansion of the airport as well as other aviation activities. Two different runways are part of the first-phase development. “A third runway would also be added as the need arises,” the official said. There is also a plan to connect the present Sardar Patel International Airport to the new one near Dholera through metro rail network. The state government has also carried out technical feasibility report for the Ahmedabad-Wataman-Dholera-Bhavnagar expressway.

Monday, March 29, 2010

New Bank Saving rate Calculation...Cheer for account holders!!!!!!!

just click on the image to read.

Bharti Clamps second biggest outbound deal

The BSE Sensex should see resistance on Monday after registering seven straight weekly gains, with mixed Asia markets providing little clear direction.

Bharti Airtel will be in focus after Zain chairman said over the weekend the Indian mobile operator's plan to buy most of the African assets of the Kuwaiti firm could take months to close
It’s only a matter of time Bharti Airtel will join an elite club of global telecom majors — a deal with Kuwaiti telecom firm Zain to buy its African assets is just round the corner. Once this $10.7 billion deal is sealed, India’s largest telecom firm by revenue and number of customers, will become the seventh largest telecom company in the world, and fifth in the cellular mobile segment.

Once the deal is done, Bharti Airtel will have a pan-African footprint, thanks to the Zain’s operations in 15 countries, and will remain be-hind only to a select telecom companies that includes China Mobile and Vodafone. It will also gallop ahead of other giants such as China Unicom, Sweden’s TeliaSonera, and Germany’s Tmobile.

Media reports on Saturday however said that the closing of the deal could take weeks or months, Zain’s chairman Asaad al-Banwan was quoted as saying. In fact, Mr Banwan who spoke about a possible delay in a television interview did not however mention any issues that may derail the talks. Not too long ago, Bharti made two separate bids to merge with South Africa’s MTN, but the deal fell through because of nationalism issues in the African country.

Bharti Airtel which is also bidding for 3G auction costing billions in license fees, has put in place a $8.5 billion warchest exclusively for its African sojourn. The company in an official statement said that banks like Standard Chartered and Barclays would lend it $7.5 billion, or the State Bank of India would offer a rupee loan equivalent to $1 billion, which will be used for transaction costs. No wonder, the financing was oversubscribed as international banks were committing to underwrite the total amount.

Also, Bharti has $1.5 billion of cash on its balance sheet, but that’s not sufficient in the backdrop of the company’s foray into the African market and its plan to consolidate its position in the home market through third generation mobile technology 3G. Already, there are speculations whether the Indian telecom major would be able to replicate its Indian success story of low-cost “minutes factory” model to 15 new markets in Africa.

As analysts have said, one of the main challenges for the Bharti Airtel in Africa after the deal is to evolve a new strategy to become a dominant player there. After all, Zain has been on the back-foot in key markets like Nigeria and Kenya, and the company needs to tackle its foreign exchange exposure efficiently as it has to buy equipment in dollars whereas revenue will come from local currencies.

Yes, there are challenges but for Bharti Airtel and its promoters including chairman Sunil Bharti Mittal, it’s more like chasing a global dream. A few years ago, Mr Mittal wanted to make a foray into infrastructure business, and then Bharti Enterprises and Singapore’s Changi Airport formed a consortium to bid for the development and management of airports in Delhi and Mumbai. But that was before two relatively low-profile companies from South, GMR and GVK, put an extra effort to make a mark in India’s political and financial capitals respectively. In this round, Mr Mittal may not like any dropped call.

Source: Economictimes,ruerters

Tuesday, March 16, 2010

Can Financial Planning be done by Self.....???

In the Present Scenario planning is a necessity for everyone. Many think planning is required for only big plans or it is a tool for corporate, but Planning is required for Individuals also, to plan their finances at every stage of their life. Financial planning is nothing but the process of meeting life goals through a proper planning and management of finances. It helps an individual as well as corporate to translate their dreams and aspirations in to reality. It also helps you to provide meaning and direction to your financial decisions. Financial planning has to be done in a proper way, so that it can be implemented effectively.

Financial planning includes Personal Financial Planning as well as Corporate Financial Planning.

Personal financial planning consists of
* Educational Planning
* Health or Medical Insurance
* Tax Benefits on Housing loan
* Tax Benefits on Educational loans

Corporate Financial Planning includes
* Income Tax planning
* Risk Management/Insurance Planning
* Investment Planning
* Estate Planning.

Financial planning is important because it helps to manage your income more efficiently. It is important to increase cash flow and to keep an eye on spending habits and expenses. Proper financial planning will help in determining what should be done to create cash flow in order to make investment possible. It helps to build a long term capital-base and shape your financial future in terms of savings. With a strong capital base, you can have a wider portfolio of investment and it will help you to increase the wealth and to reduce the risk of investment. It helps us to distinguish investment opportunities appropriate to your financial situation. Financial planning can help in assessing the best investment opportunities. A good investment planning can transform your dream goals into realities. It is very important for your family to have financial security. This is possible only through proper financial planning with proper coverage and taking right policies. A systematic and structured saving and investment plan can be provided to fund children education and to secure a comfortable retirement.

4 Important Steps to follow while Planning your Finances
* Analyzing Dreams
* Analyze your Financial status
* Proper Financial Planning
* Action the plan

Analyzing Dreams
In India most of the people have not analyzed their dreams and the ways of realizing the same. So it is very important for you to analyze your dreams so as to convert it into reality. Now you have to translate your dreams and aspirations in to money. Define the time frame within which you should be able to realize your dreams. If you think, it is difficult to meet all your goals within the specified time frame, prioritize your goals based on urgency and importance.

Analyze your Financial Status
It includes inventory of assets and liabilities (including securities holding, debts, insurance, etc), A description of the present arrangement for distribution of assets at death, Estimates of your income and expenditure, details of your insurance coverage and now analyzing Emotional status is very important, while designing a financial plan for you. It will decide your strength to take risk or not now. Develop a plan, the plan which you design, should take your present financial situation to the achievement of the objectives.

Proper Financial Planning
Based on the above steps, comprehensive financial plan should be framed which contain an analysis of all pertinent factors relating to your financial status. Your financial plan should consist of your personal data, goals and objectives, mention your issues and problems, specify assumptions, mention the balance sheet/ net worth for the financial year of your company, their should be proper cash flow management. Merely designing a plan, no matter how sound, does not constitute financial planning.

Action the Plan
A financial plan is useful to you only if it is put in to action. You have to ensure that the implementation is carried out in the manner and in accordance with the plan designed. Now it is very important to monitor the plan. Periodic reviews are the best form of monitoring. You should keep flexibility for a review if circumstances demand.

Tuesday, March 9, 2010

LIC Wealth Plus ULIP Review

LIC has launched a new plan called “Wealth Plus”, an unit linked insurance plan (ULIP) having a term of 8 years.

Our View :

This plan comes with an option of choosing from either of a single premium or 3 years payment term. LIC Wealth Plus plan will be available for three months from 9th February 2010. There after the funds collected will be invested in equity market, implying that the risk is only medium.

Let us take a look at the salient features of this plan:

  • § Gauranteed return of highest NAV of the first 7 years or the 8th year NAV, whichever is higher.
  • § 8 years of Policy term
  • § Either 3 years premium payment term or single premium as per client’s choice.
  • § Minimum single premium of Rs 40,000 and Minimum Yearly premium of Rs 20,000.
  • § Risk cover of 5 times of the annualized premium or 1.25 times of single premium.
  • § In case of death during policy term, the plan returns basic sum assured plus fund value
  • § Extended risk cover for 2 years even after term end.
  • § Partial withdrawal allowed at any time after 3 years.
  • § Accident Benefit Raider (EDAB) allowed at a nominal charge of Rs 0.50 per 1000

Age Limit:
People in the age group of 10 to 65 years can avail this plan by paying a minimum premium as mentioned above. Maximum premium has no restrictions.

Risk Cover:
Policy holder’s risk is covered for a minimum of 1.25 times of the premium paid through single premium mode. The maximum risk cover under single premium for age less than 40 years is 5 times the premium, while the same is 2.5 times if age is below 50 and 1.25 times for ages above 50. Under the regular premium mode the minimum risk cover is 5 times and the maximum cover is 10 times the annual premium for ages below 50 years.

This plan guarantees to pay the policy holder the higher of the highest NAV reached in the first 7 years of its term or the 8 th year NAV. But this guarantee of highest NAV can only be availed if the policy holder completes the term of the policy and of course, a charge is levied for this guarantee at the rate of 0.35% of the fund value.

The plan comes with an extended life cover for a period of 2 years after end of the term. You can surrender the plan even within three years, but the amount will be only paid after three years from date of the policy as per IRDA restrictions and there are no surrender charges.

As a maturity benefit policy holders are offered the highest NAV for units in the fund, provided the completion of a term of 8 years under the plan. Death benefit equals the sum assured plus the fund value during the term of the policy. For death during the first two years of the plan, and also after the term of the policy during the extended risk cover period the sum assured is only paid as the benefit.

Instead of charging higher premium for risk cover based on age every year, This plan charges only a level premium based on age at entry. But in the case of revival of a lapsed policy, the age at date of revival is used to arrive at the risk cover premium. Revival can be done only within 2 years from date of lapse and Rs. 500 is charged for revival.

Partial Withdrawals:
The plan does provide a feature of partial withdrawals wherein, withdrawals can be after three years from commencement of plan and the maximum withdrawal is restricted to twice in a year. Other condition to be satisfied to make a partial withdrawals is that there should be a minimum of one annual premium left in the fund, and the minimum amount to be withdrawn must not be less than Rs.2000.

Loan Facility:
Loan is not granted in this plan as one can avail the same via partial withdrawals. The plan also does not provide for payments of top up premiums.

* Allocation Charges:
Single Premium: 5% up to 4 lakhs and for above 4 lakh the charge is 4.5%.
Regular premium: 12% up to 2 lakhs on first year and thereafter 2.5% for remaining years of the policy term. For premium below 4 lakhs the charge is 11.75%, and 11.5% for less than 7 lakhs and above 7 lakhs, the charge would be 11.25%.
* Guarantee charges at the rate of 0.35% of the fund value.
* Fund management charges at the rate of 1% of the fund value.
* Policy administration charge at the rate of Rs 60 monthly for the first year. Rs. 25 for the second year, Thereafter escalates on Rs 25 at the inflating rate of 3% every year.
* An accident rider benefit is offered with this plan, by paying Rs.0.50 per thousand risk cover. But the accident raider can only be availed by individual’s within the age of 10 yrs to 62 yrs.

Our View :

Nothing New offered by LIC.

Our always view is keep your insurance and investment separate, which is always beneficial.

Gimmicks in the plan :

1. Highest Nav payable : This will push the fund to invest more in Debt funds, which will yield lower returns.

2. Debt portion protects your downside of portfolio as lower risk involved, but at the same time will not grow as much the equity portion grows.

3. Guaranteed return will push the portfolio again to a very tightly controlled, conservative stocks or rather money market instruments, which will not tend to lower returns compared to peers.

4. The insured amount on this is just Rs. 1-2 Lacs,

5. As investments ULIP products are not recommended.

Only positive side is , an extended insurance cover for 2 years after the policy term.

Charges look moderate when compared to similar plans in the market.