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Sample details Pages: 16 Words: 4898 Downloads: 1 Date added: 2017/06/26 Category Statistics Essay Did you like this example? A EUROPEAN POLICY ABSTRACT: This paper extends to test if the short and in the long run. Weak indica- the same short-run increase in cyclical tions are found that this may happen par- volatility arising from financial integration tially due to the anchoring of expectations is observed in this specific sample of Ã ¢Ã¢â ¬Ã âemerg-provided by the EU Accession, and to the ing markets. This work finds signs that, more robust institutional framework contrary to other emerging markets, this imposed by this process onto the countries in does not happen: for the future Member question. States, financial integration, similarly to the KEY WORDS: Enlargement, European outcome observed in mature market Union, financial liberalization, booms, 81 economies, reduces cyclical volatility both in busts, cycles, volatility. DonÃ¢â¬â¢t waste time! Our writers will create an original "Economic and financial integration in emerging markets" essay for you Create order 1. INTRODUCTION Financial and capital flows liberalization can play a fundamental role in increasing growth and welfare. Typically, emerging or developing economies seek foreign savings to solve the inter-temporal savings-investment problem. On the other hand, current account surplus countries seek opportunities to invest their savings. To the extent that capital flows from surplus to deficit countries are well intermediated and, therefore, put to the most productive use, they increase welfare. Liberalization can, however, also be dangerous, as has been witnessed in many past and recent financial, currency and banking crises. It can make countries more vulnerable to exogenous shocks. In particular, if serious macroeconomic imbalances exist in a recipient country, and if the financial sector is weak, be it in terms of risk management, prudential regulation and supervision, large capital flows can easily lead to serious financial, banking or currency crises. A number of recent crises, like those in Ea st Asia, Mexico, Russia, Brazil and Turkey (described, for example, in IMF (2001)), and, to some extent, the Argentinean episode of late 2001, early 2002, have demonstrated the potential risks associated with financial and capital flows liberalization. Central and Eastern Europe has a somewhat different experience, when compared to other emerging regions, concerning the financial liberalization process, as the process there seems to have been much less crisis-prone than in, for instance, Asia or Latin America. This maybe, at least partially, because the current high degree of external and financial liberalization in the Central Eastern European countries (CEECs), beyond questions of economic allocative efficiency, must be understood in terms of the process of Accession to the European Union. The EU integration process implies legally binding, sweeping liberalization measures-not only capital account liberalization, but investment by EU firms in the domestic financial services, and the maintenance of a competitive domestic environment, giving this financial liberalization process strong external incentives (and constraints). Those measures were implemented parallel to the development of a highly sophisticated regulatory and supervis ory structure, again based on EU standards. This whole process happened also with the EUs technical and financial support, through specific programs-like the PHARE one, for these so-called Accession, and the TACIS, for the former Soviet Union ones- and direct assistance from EU institutions, like the European Commission, the European Parliament and the European Central Bank (also, on a very early stage of the transition process, the influence of the IMF in setting up policies and institutions in several countries in the region-an intervention widely considered to haven been successful-was important: see Hallerberg et al., 2002). Additionally, EU membership seems to act as an anchor to market expectations (see Vinhas de Souza and HÃÆ'Ã ¶lscher, 2001), limiting the possibilities of self- fulfilling financial crises and regional contagion (see Linne, 1999), which had the observed devastating effects in both Asia and Latin America (even a major event, like the Russian collapse of 1998, had very reduced regional side effects). Several regional episodes of financial systems instability did happen (see Vinhas de Souza, 2002(a) and Vinhas de Souza, 2002(b)), but none with the prolonged negative consequences observed in other region (which was also due to the effective national policy actions undertaken after those episodes). This studys main aim is to expand the Kaminsky and Schmukler database (see Kaminsky and Schmukler, 2003), from now on indicated as KS, to include the Accession and Acceding Countries from Eastern Europe (namely, for Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Rom ania, Slovakia and Slovenia). In their original work, KS build an extensive database of external and financial liberalization, which includes both developed countries and countries from emerging regions (but not from Eastern Europe). With that, they create different indexes of liberalization (capital account, banking and stock markets: see Table I below) and using them individually and in an aggregate fashion, test for the effects and causality of this process on financial and real volatility, for the existence of differences between regions, and for the effects of the ordering of the liberalization process. One underlying hypotheses of this work is that the existing regulatory and institutional framework in Eastern Europe, plus a more sustainable set of macro policies, played an important role in enabling liberalization to largely deliver the welfare enhancing outcomes that it is supposed to. Such an Ã ¢Ã¢â ¬Ã âanchoring role of the European Union in the CEECs, through the process of EU membership, and through the effective imposition of international standards of financial supervision and regulation, may indicate that, beyond multilateral organizations like the IMF or the OECD, a greater, pro-active regional stabilizing role in emerging markets by regional actors, for instance, the United States, or by some regional sub-grouping, like Mercosur, may also be welfare enhancing for other Ã ¢Ã¢â ¬Ã âemerging regions. 2. CAPITAL ACCOUNT The achieving of capital account liberalization happened rather swiftly in most of the countries in our sample: by the mid 1990s, all bar Bulgaria and Romania had been declared Article VIII compliant (for those two countries, this happened in 1998: see Table II below). One of the main driving forces behind this was the process of European Integration, for which external liberalization is a pre-requisite: in the early to mid-1990s, all the countries had signed Association Agreements with the European Union (frequently preceded by trade liberalization agreements with the EU, also called Ã ¢Ã¢â ¬Ã âEurope trade agreements, usually with years given to the countries to prepare for their full implementation) and formally applied for EU membership. Another additional factor supporting liberalization was IMF and OECD membership: four of the larger countries in our sample became OECD members during the second half of the 1990s. Another factor to be considered, is the endogenous decision process to liberalize in a sustainable fashion. 3. BANKING SECTOR Financial integration, in the form of the opening up the banking sector to foreign banks, is seen as being positive, on a micro level, as foreign banks are usually better capitalized and more efficient than their domestic counterparts (of course, the domestic banking sector eventually catches-up: for an indication of this process at the ACs, see, among others, Tomova et al., 2003). Also from a macroeconomic perspective, financial integration maybe positive for the Eastern European countries, both for long run growth and, as there are indications that foreign banks do not contract either their credit supply nor their deposit base, in helping to smooth the cycle (see de Haas and Lelyveld, 2003: they find some indication that this is linked to the better capitalization base and prudential ratios, as better capitalized domestic banks behave similarly to foreign banks). Given the bank-centered nature of virtually all the financial systems of the future Member States, this is particularly important for them. In most of the member states, the initial stage of the creation of the two-tier banking system, modeled on the Western European Ã ¢Ã¢â ¬Ã âuniversal bank system, was characterized by rather liberal licensing practices and limited supervision policies (aimed at the fast creation of a de novo commercial, private banking sector: see Fleming et al., 1996, Balyozov, 1999, Enoch et al., 2002, SÃÆ'Ã ¶rg et al., 2003). This caused a mushrooming of new banks in those countries in the early 1990s. Parallel to this, a series of banking crises, of varied proportions, affected most of those de novo banking systems, due to this lax institutional framework, inherited fragilities from the command economy period (the political need to support state-owned, inefficient industries, with the consequent accumulation of bad loans and also the financing of budget deficits), macroeconomic instability, risky expansion and investment strategies and also sheer inexperience, both from the investors and from regulators. Progressively, the re-capitalization, privatization and internationalization of the banking system (mostly into the hands of EU financial conglomerates), coupled with the implementation of a more robust, EU-modeled institutional framework, did away with most of those problems. Two of the worst cases where the set of Baltic banking crises and the Bulgarian episode, which are described in more detail below. Other smaller banking crises happened in Estonia in 1994 and 1998, and in Latvia in 1994. Caprio and Klingebiel, 2003, report smaller episodes of Ã ¢Ã¢â ¬Ã âfinancial sector distress in the Czech Republic (94-95), Hungary (93), Poland (91-93), Romania (98-00), Slovakia (97) and Slovenia (92-94). The initial proliferation of banks was, quite naturally, followed by a process of consolidation and strengthening-parallel to the privatization of the remnant state-owned components of the financial system- of the banking sector in most of those economies (in Bulgaria, from 81 banks in 1992 to 35 in 2001, in the Czech Republic from 55 in 1995 to 38 in 2001, Estonia, from 42 in 1992 to 7 currently, while Hungary had 33 banks in 2002, showing only a very slight decrease from the early 1990s, Latvia from 56 in 1994 to 23, Lithuania from 27 in 1993 to 13, in Pola nd from 81 in 1995 to 71 in 2001, in Romania from 45 in 1998 to 41 in 2001, in Slovakia from 22 in 2000 to 19 in 2001, and in Slovenia, where the number fell from 25 to 21 during 2001 alone). This consolidation process was frequently led by foreign companies, which now hold the majority of the assets of the banking system in virtually all of them-contrary to the situation in the current EU Member States-bar Slovenia. This process now has a component of regional expansion of the Eastern European banks themselves, or, more precisely in most cases, the regional expansion of Western banks via some of their locally-owned subsidiaries (see SÃÆ'Ã ¶rg et al., 2003, ibid). The share of banking assets to GDP, nevertheless, is still far below the Euro area average (which stood at around 265% of GDP by end 2001), compared with 47% in Bulgaria, 136% in the Czech Republic, 72% in Estonia and Latvia, 32% in Lithuania, 63% in Poland, 60% in Hungary, 30% in Romania, 96% in Slovakia and 94% in Slovenia (data also for 2001). Another peculiar feature of the banking system in the region is that foreign currency lending -usually euro-denominated-to residents is very high, especially in the B altic republics: with 80% of total loans in Estonia, 56% in Latvia and 61% in Lithuania. Also, the Baltic countries have substantial shares of deposits by non-residents, with over 10% in Estonia and Lithuania and close to 5% in Latvia (Latvia, with its close trading ties to Russia, has a particular strategy of selling itself as a stable financial services center to CIS depositors: see IMF, 2003(b), ibid). The supervision system has also substantially improved, and, following recent international-and EU- best practice, is now centered in independent universal supervisory agencies in the most advanced of those countries (Reininger et al., 2002, ibid., estimate that the formal regulatory environment for the Czech Republic, Hungary and Poland is actually above the EU, and that its actual enforcement level is at its average;Liive, 2003, gives a description of the Estonian experience that culminated in the creation of the EFSA -Estonian Financial Supervisory Authority- in January 2002). 3.1 BANKING CRISES IN EASTERN EUROPE The Baltic bank crises were, to different degrees, linked to liquidity difficulties related tolerations with Russia (in the November 1992 Estonian case, by the freezing of assets held by some Estonian banks in their former Moscow headquarters, while the Latvian and Lithuanian episodes of, respectively, March and December 1995, were caused by the drying-up of lucrative trade-financing opportunities with Russia, whose export commodities, at that time, were still below world price levels) and regulatory tightening (Latvia, Lithuania), compounded by the elimination of credit opportunities with the implementation of the Estonian and Lithuanian CBAs (Currency Board Arrangements). In Lithuania, as in Bulgaria, the financing of the budget deficit also played a role. In the Estonian and Latvian cases, around 40% of the assets of the banking system where compromised, in the Lithuanian and Bulgarian cases, around a third. The Bulgarian 1996-1997 crisis eliminated a third of its banking sector, and led the country to hyperinflation (reaching over 2000% in March 1997, see Yotzov, 2002). Its roots lie in the political instability that preceded it (which, on its turn, led to inadequate real sector reform, with state-owned, loss making enterprises being financed via the budget deficit or through arrears with the, at the time, still mostly state-owned part banking sector: those arrears were, in turn, partially monetized by the Bulgarian National Bank -BNB- and the largest state bank, the State Savings Bank -SSB). Periodic foreign exchange crises (March 1994, February 1997) and bank runs (late1995, late 1996, early 1997) were part of this picture. The implementation of tighter supervisory procedures during 1996 (giving the BNB the power to close insolvent banks), and a tightening of policy actually led to more bank runs. A caretaker government in February 1997 (before a newly elected government took power in May) paved the way to longer lasting reform and the implementation of t he CBA, with its tighter budget constraints towards both the government and the banking sector. This reform process happened with the support from multilateral institutionsamely, (namely the IMF). 4. STOCK MARKETS The existence of stock markets is assumed to be beneficial for economic performance. In principle, it provides a way for companies to raise capital at lower costs than through simple banking intermediation, and because it is not as restricted a source of capital as internal financing. Also, it is assumed that the existence of alternative modes of finance may reduce the likelihood of credit crunches caused by problems with the banking sector (see Greenspan, 2000). Additionally, the existence of external ownership is (or was, given the recent problems with market-based governance in the US and the EU, and the shift towards a more regulated environment) assumed to provide better governance for the management of firms. The majority of economic analyses seem to support the position that a diversified financing mix is positive for economic growth and stability. As described in the previous section, all the financial sectors in the Member States are bank-centered, with stock markets playing marginal roles in most of them (and, in some, a very marginal role: in Bulgaria, Slovakia and Romania, their average market capitalization in GDP terms is below 5%: see Figure I below). All of these countries had (re-)established stock markets by the mid-90s (see Table III above). About half of the future Member States used them to drive the initial process of re-privatization, either via mass issues of voucher certificates for residents (the most famous case of this strategy was the Czech Republic), or via IPOs (Initial Public Offerings) re-privatization processes, to lock-in domestic and foreign strategic investors (see Claessens at al., 2000). In the voucher-driven privatization, the initial large number of investors and traded stocks in those stock markets was soon concentrated in a rather limited number of institutional investors-domestic and foreign- and Ã ¢Ã¢â ¬Ã âblue chip stocks. In the IPO-driven markets, the number of stocks and investors actually tended to increase with time, albeit from a rather concentrated base. Even in the largest ones, nevertheless, market capitalization, as a GDP share, was and remains rather low (see Figure I below), and far below the EU average (around 72% of GDP). Only in the Czech Republic, Estonia, Hungary and Slovenia the average market capitalization is above a 20% GDP share, while in Romania is below 1% in several years. Also, the average market turnover is equally below the one observed in comparable EU economies. Similarly to what is observed in the banking sector, the initial regulatory environment was deliberately lax, and the regulators were plagued by much the same problems of inexperience and limited number of staff and resources. This does not mean that domestic agents in those countries lack access to the financial services supposed to be provided by stock markets: the very process of opening up, the increase in cross-border trade in financial services, the harmonization of rules for capital trading with the EU (including the ongoing efforts of the Lamfalussy Committee towards a single European market for securities: according to the current proposal, small and medium size firms would be able to use a simplified prospectus valid throughout the EU and choose the country of its approval), plus the development of information technology, all imply that is not actually necessary-nor economically optimal, given economies of scale-for each individual country to have its own separate stock market. One must also recall that the current national stock markets in the mature developed economies are themselves the result of process of consolidation-and closing-of smaller regional stock markets (as was observed in Bulgari a in the early 1990s), which still today coexist with larger, dominant national stock exchanges even in some mature markets, like Germany and the US. Nevertheless, the observed tendency of domestic larger companies, with presumed better growth prospects, to list abroad (see Table IV below), due to the obvious cost and liquidity advantages of the larger international stock markets, does seems, on balance, to deprive those stock markets of liquidity (see Claessens at al., 2003). On the other hand, nonresidents seem to play a major role in most of those markets (accounting for 77% of the capitalization in Estonia, 70% in Hungary and half of the free-float capitalization in Lithuania). All the specific questions described above concerning the way those stock exchanges were founded and their later developments, plus their relative smallness and shallowness, affect the dynamics of their stock market indexes (SMI), and are clearly reflected by them (as one may see in Figure II, below). This, coupled with the rather limited duration of the series, may affect their adequacy as proxies of financial cycles. Source: Datastream, modified by the authors. The price indexes here were converted to US Dollars and re-based to a common reference period were they equal 100, May of 1998. The country codings are as described in the Annexes. 5. ESTIMATED INDEXES The construction of the index for this new sample of countries was the core of this work. A comprehensive effort was done to crosscheck the information collected from papers and publications with national sources. Below we present the estimated monthly index, for the period January 1990 to June 2003 (see Figure III). The base data for its construction was collected from IMF and EBRD publications, and then exhaustively verified both with national sources and with works written about the individual countries and the region. This is an index that falls with liberalization, where maximum liberalization equals one and minimum three (in this sense, one could actually see it as an index of financial repression). As an additional robustness check, the year-end value of the index here constructed was regressed on the combined EBRDs yearly indexes of banking sector reform and non-banking financial sector reform. The results from a panel regression with the index constructed here on the LHS and the EBRD index on the RHS yield a coefficient of .60, and correlations among the individual country- specific index series range from -0.91 to -0.35. As one may see from Figure III above, the process of integration and liberalization was almost continuous throughout the 1990s and early 2000s. The spikes in the Ã ¢Ã¢â ¬Ã âFull Liberalization Index in the early 1990s do not indicate reversals: the merely reflect the entry into the sample of the newly independent Baltic republics. As former members of the Soviet Union, they Ã ¢Ã¢â ¬Ã âenter the world as highly closed economies, but those countries introduced liberalization reforms almost immediately from the start. After this, a slight increasing trend, that does reflect a mild liberalization reversal, is observed, starting mid-1994 and lasting until early 1997, from when a continuous liberalization trend is observed. Noteworthy here is the fact that virtually none of the obvious candidates for a reversal of liberalization (the 1997 Asian Crisis, the collapse of the Czech monetary arrangement in 1997, the collapse of the Bulgarian monetary arrangement in 1996/97, the 1998 Russian Crisis, the 1999-2001 oil price shocks-as all those economies are highly dependent of imported energy sources) seems to have driven these mild liberalization reversals. Comparing the Full Index constructed here with the one constructed by KS, for similar time samples, one may observe that the ACs start substantially below the average level of other emerging markets- i.e., they are more liberalized, but both the Ã ¢Ã¢â ¬Ã âentry of the initially less liberalized former Soviet republics, plus continuous liberalization efforts in the emerging market KS set reverse this situation. A similar liberalization reversal trend in both the ACs and the merging market set is observed from early 1994, but it is actually slightly st ronger on the ACs sample, until its reversal in 1996. By the end of our sample, the ACs are clearly below the final value for the emerging set in KSs sample. This sort of remarkably fast pattern of the ACs Ã ¢Ã¢â ¬Ã âleapfroging towards best international practice is also observed in several types of institutional frameworks, like, for instance, monetary policy institutions and instruments (see Vinhas de Souza and HÃÆ'Ã ¶lscher, 2001): a process that virtually took decades for Western central banks was compressed in a half a dozen years in the Future Member States. Nevertheless, by the end of the sample, both emerging and ACs are still above the level of mature, developed economies. Analyzing the individual components of the index (see Figure V), one may see that, abstracting again from the initial spikes in the index, which are, as explained above, caused by the addition of new countries to the sample, the 1994/1997 reversal of liberalization was essentially driven by the Fi nancial Sector liberalization component. As will become clear with the country specific analysis below, this was related, in most cases, to-and here it must be stressed that those were rather limited reversals-to the banking crises that plagued several countries in our sample in the early to mid 1990s. Comparing now the individual components of the Full Index constructed here with the ones from KS, again for emerging and mature economies, it becomes clear that the reversals observed in Figure IV were driven by different sources in the emerging set (increase in capital account restrictions) and ACs set (financial sector): see Figure VI. All the indexes for mature economies are, again as one would expect, substantially lower. One could, in principle, aggregate the countries in our sample in three different groups: rapid liberalizers (the ones that followed a Ã ¢Ã¢â ¬Ã âbig bang early approach, without major reversals: Bulgaria, Estonia, Latvia, Lithuania), consistent liberalizers (the ones that followed a more delayed path, but also without major roll backs: the Czech Republic, Hungary, Poland) and cautious liberalizers (the ones whose liberalization path was either openly inconsistent or downright mistrustful: Romania, Slovakia, Slovenia). 5.1 COUNTRY-BY-COUNTRY LIBERALIZATION PATH. In Bulgaria, virtually no sign of a liberalization reversal is observed, even during the substantial stress experienced by the country during the banks runs of 1996/97 and the ultimate collapse of the floating regime in 1997 (beyond ad hoc restrictive measures adopted by the banks themselves). As in most of the countries in my sample, the stock market is the last one to liberalize, but does so in a faster fashion. Nevertheless, this is in most cases a data quasi-artifact that arises from the later (re-)constitution of the stock exchange itself. In the Czech Republic, a limited reversal of the financial sector liberalization is observed from late1995 to late 1997, namely, via the imposition of limits on banks short-term open positions towards on-residents, as a way to limit the exposure of the financial sector to the inflows brought about by the hard peg and the potential gains with interest rate differentials. After the peg was replaced by the current float regime, this restriction i s duly removed. In Estonia, again, virtually no sign of a liberalization reversal is observed, even during the bank runs of the early 1990s, the unwinding of the 1997 bubble, nor during the 1998 Russian crisis. Again, the stock market is the last one to liberalize, but one more time, this arises from the later constitution of the stock exchange. In Hungary, also no signs of any liberalization reversal are observed. Hungary was an early reformer, introducing some liberalization measures already during the late 1980s, but the profile of its reform path is much more discounted through time, as compared, for instance, with the Baltic countries. In Latvia, a rather limited reversal of the financial sector liberalization is observed from mid 1996all the way to early 2003: resulting from the 1996 banking crisis, specific aggregate lending limits to regions (i.e., limits on exposure to non-OECD countries, bar the other Baltic republics) are imposed. In Lithuania, a limited reversal of the f inancial sector liberalization is observed from early 1998, also resulting from the experienced banking crisis: reserve requirements on deposits on foreign accounts by non-resident are introduced; In Poland, no signs of any liberalization reversal are observed. Similarly to Hungary, the profile of its reform path is much more discounted through time; In Romania, no signs of any liberalization reversal are observed, but the reform path is a decidedly slow and cautious one: at the end of the sample, it has the highest (i.e., less liberalized) score for the Ã ¢Ã¢â ¬Ã âFull Index of all countries in the sample: 1.60 (see Table V). In Slovakia, no signs of any liberalization reversal are observed. Here, the reform path is characterized by a broad stagnation since the Czechoslovak partition till 1998/1999, when, after a change in the political leadership, reforms are re-started, reaching after that levels similar to the other Ã ¢Ã¢â ¬Ã âVise grad countries in a rather quick fash ion. In Slovenia, one of the most consistently cautious Member States concerning the advantages of integration and liberalization, reversals are indeed observed in all three indexes, since early 1995in the capital account and financial sector components, and from early 1997 in the stock market one. Since early 1999, with the entry in effect of the EU Association Agreement, across-the-board further (re)liberalization measures have been introduced. 6. FINANCIAL CYCLES AND LIBERALIZATION The financial cycle coding which is used by KS defines cycles as a at least twelve month-long strictly downwards (upwards) movement, followed by a equally upwards (downwards) 12-month movement from the through (peak) of a stock market index, measured in USD, as they should reflect returns from the point of view of an international investor. As described in the stock market section of this work, one must be warned that there are specific factors in the countries in our sample that may affect the effectiveness of a stock market index as an adequate proxy of financial cycles, at least for the sample here considered. Beyond that, these series have a rather limited time extension (our sample covers the 01:1990-06:2003 period). Adapting KS criteria to the limited time dimension of our sample, we use a less stringent definition of Ã ¢Ã¢â ¬Ã âcycle, the same algorithm as above but with a 3-month window for the cycle (Edwards et al., 2003, use a 6-month window). With this we get 118 obse rvations for all countries in our sample. Of these 118 cycles, 61 are upward, with an average of 7.51 months duration, and 57 are downward, with an average of 8.20 months of duration. 7. CONCLUSION The main aim of this paper was to extend the index developed by Kaminsky and Schmukler, 2003, for a specific sample of countries, namely, the previously centrally planned economies from Central and Eastern Europe, and to perform a similar analysis on them. Our results do lend some support to the basic assumption of this study: in spite of all the limitations of the time series used (their shortness, the fact that they were buffeted by several country-specific and common shocks), a re-estimation of KSs core regressions strongly supports the notion that financial liberalization does generate benefits both in the short and in the long run, measured via the extension of the amplitude of upward cycles and its reduction for downward cycles of stock market indexes. Importantly, these results diverge from KS, as in their work Ã ¢Ã¢â ¬Ã âemerging markets experience a relative short run increase in the amplitude of downward cycles. Another noteworthy feature is that only minor liberalizat ion reversals, led by the financial sector component, were observed in the aggregate index. Also, those reversals do not seem to be driven by Ã ¢Ã¢â ¬Ã âcontagion from shocks in other emerging markets (like the Asian or Russian crisis), but reflect country-specific shocks. When considering the individual components of the index separately, again signs of minor reversals in financial sector liberalization are observed, related to temporary reactions to the several banking crisis observed in the region. Concerning the importance of institutions and of the EU Accession, this papers initial assumption was that the mostly positive results above would come about due to the anchoring of expectation provided by the perspective of entry into the EU already by mid-2004 (or 2007, in the case of Bulgaria and Romania) for the countries here analyzed, and by the imposition of a more robust macro and institutional framework by the requirements of the Accession process itself. Signs of this ar e not found in the KS regressions, perhaps because the liberalization index itself captures the effects of the EU Accession process. Finally, using a different framework than KSs to assess the affects of liberalization on financial, real and nominal volatility, most of the econometric results seem to support the previous ones, but they seem to indicate that the capital account liberalization is the element that most consistently and significantly reduces volatility. On this final section, the majority the econometric results seem to support some specific role for the EU Enlargement process in reducing volatility.
Monday, May 18, 2020
Due to dramatic changes in organisational management, technology plays an important role in today business environment. According to Groomer Murthy (1989) incorporation of information technology solutions are becoming increasingly important for all businesses in order to operate successfully. One way that many businesses have implemented information technology on a large scale (Groomer Murthy, 1989) is by setting up Enterprise Resource Planning (ERP) systems to achieve their business transaction and data processing needs. According to the business need, selecting the appropriate information system such as Enterprise resource planning (ERP) will be appropriate and suitable because it improves efficiency. However it should be borne inÃ¢â¬ ¦show more contentÃ¢â¬ ¦And it is the tool that facilitates the business not only to nourish its operation but also flourish its profits and growth (Zhua et al., 2010). Additionally Kumar Hillegersberg (2000, p. 22) has defined ERP systems as Ã¢â ¬Å"configurable information systems packages that integrate information and information-based processes within- and cross-functional areas in an organizationÃ¢â¬ . Enterprise resource planning software such as Oracle and SAP is highly effective tools to manage and analyse the multidimensional aspects of businesses such as financials, operations and corporate services, human capital management, etc. (Priyadarshini, 2002). A company using the ERP financial products (Priyadarshini, 2002) can save a lot of money over the long term and the organizations productivity will be improved. Furthermore Morris (2011) suggested that those firms which are implementing ERP systems are less likely to report internal control weaknesses compared to non ERP implementing firms. However Kwasi Salam (2004) noted that ERP implementation is very risky as it requires large amount of investments and significant organisational resources. World of ERPs In the world of ERPs there are also intense rivalries that can easily be seen; there are lots of key player in this industry that are indulge to advertiseShow MoreRelatedEvaluate How To Communicate And Integrated Case Study991 Words Ã |Ã 4 Pagespractitioners we could incorporate and implement the use of technology to create a blended professional learning community across districts within our state to share knowledge with fellow faculty on how a deeper understanding of subject matter can enhance problem- solving, critical thinking, and other 21st-century skills. 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The proposed solutions include high-tech exploration, categorization of the disasters and theRead MoreDuring An Interview With AmazonÃ¢â¬â¢S Ceo Jeff Bezos Regarding1484 Words Ã |Ã 6 Pagesregarding their success, he stated Ã¢â¬Å"Put plainly, Amazon puts the customer at the center of everything they do.Ã¢â¬ This customer focus is what creates loyal and happy customers that are excited to shop at your retail store. First it is crucial to gather information from your customers to understand what their needs are, what they are happy with, and what can be improved. Ã¢â¬Å"Whether you engage with trained and certified mystery shoppers capable of providing detailed customer experience reports, a customer interceptsRead MoreA Study On Joint Venture1393 Words Ã |Ã 6 Pagesthat is concerned with the development of mutual consent for the limited rime period. Considering the bigger picture Xtech is the leading Extrusion technology incorporation and the CEO of this incorporation has visited China for the development of XTech. It is termed as the leading global manufacturer that is based on the wide range of mechanical solution that is usually used for the circuit boarding. After the numerous meetings in Xiamen Foreign investment board the top management has started makingRead MoreEssay on Cvs: the Web Strategy1042 Words Ã |Ã 5 Pages(Businesswire.com, 2006). The following online marketing strategies can be used in the process to attract volume and quality to the online drug store of CVS. CVS is apt at handling the online drugstore with efficient marketing techniques related to information recognition and spread. Click and Mortar delivery options: The marketing strategy at this point is to introduce several customer support options to address the customers issues related to timely delivery of the drugs. Other marketing strategyRead MoreRisk Assessment Audit ATT552 Words Ã |Ã 2 PagesRisk Assessment Audit ATT General company information ATT Incorporation is an American multinational company. The company is headquartered at Whitacre Tower in downtown Dallas, Texas. Alexander Graham Bell founded this company in 1876. Since then, the company has experienced steady growth and subsequently became a leader in the global telecommunication industry. Its common stock has been trading in the listed on New York Stock Exchange for many years. It forms part of the 30 stocks that usedRead MoreCriminal Justice Trends Evaluation1581 Words Ã |Ã 7 Pagesqualified. A future trend affecting the criminal justice system is related to personal dilemmas in criminal justice workforces, and organizations such as incorporation of Information Technology into work organizations. This will cause a more flexible and dynamic organizational structure. In addition to the incorporation of information technology, there is a need to produce both technically trained employees, and employees who are capable of adaptability, self-direction, motivation, and team communicationRead MoreEssay on Describe at least two benefits if using enterprise systems.916 Words Ã |Ã 4 PagesÃ¯ » ¿Describe at least two benefits if using enterprise systems. Enterprise system is an integrated enterprise-wide information system that coordinates key internal processes of the firm. Set of integrated modules for applications such as sales and distribution, financial accounting, investment management, materials management, production planning, plant maintenance, and human resources that allow data to be used by multiple functions and business processes. Enterprise systems
Tuesday, May 12, 2020
Walt WhitmanÃ¢â¬â¢s and Langston HughesÃ¢â¬â¢s view on the socio-political conditions of modernity What is a modern poem? What modern poets write in a society that is running very fast through the latest technologies? In a machinery time, modern poets write in new manner with new social subjects. They just cannot write about trees, river, cattle, and other natural resources. Their poems are now soak up with the essences of machines, and their effects on the society. Otherwise modern poetry cannot exit in todayÃ¢â¬â¢s busy world. Two modern poets Walt Whitman in his poem Ã¢â¬Å"I Hear America SingingÃ¢â¬ and Langston Hughes in the poem Ã¢â¬Å"Let America Be America AgainÃ¢â¬ attract us by paying close attention on social advancement. Whitman and Hughes are two modern poets who play an important role by sharing their knowledge with us and they are trying to change our old traditional thoughts. Their poems are the guide line for the society as they are focus on social equality, advancement of the society, and they are trying to make a new society with new ideas and new plan. Walt Whitman in the poem Ã¢â¬Å"I Hear America SingingÃ¢â¬ mentions that American people are joined together, and they are working together for future development. Even though they have different occupations, and according to their various languages they are Ã¢â¬ËsingingÃ¢â¬â¢ different songs. Also, their various professions helping to develop this country by modernizing the general condition of the country. Whitman focuses on each person, and his jobs.Show MoreRelatedThe Socio Political Conditions Of Modernity1377 Words Ã |Ã 6 PagesThe Socio-Political Conditions of Modernity in Poetry In modern era poetry, poets write about social subjects as opposed to outdated topics. They do not write on the subject of trees, river, cattle, and other natural resources. Their poems are now a reflection of the times, referring to the essence of machines and their effects on the society. Outdated poetry would not be able to exist in todayÃ¢â¬â¢s busy world if the topics were not updated. Walt Whitman s I Hear America SingingÃ¢â¬ and Langston HughesRead MoreContemporary Issues in Management Accounting211377 Words Ã |Ã 846 Pages Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this book in any other binding or cover and you must impose the same condition on any acquirer British Library Cataloguing in Publication Data Data available Library of Congress Cataloguing in Publication Data Data available Typeset by SPI Publisher Services, Pondicherry, India Printed in Great Britain on acid-free paper by
Wednesday, May 6, 2020
The goal of an architect is to design accordingly to the time with an understanding of the relationship between space and activity. In his essay Space and Events, Bernard Tschumi says, Ã¢â¬Å"There is no space without even, no architecture without program.Ã¢â¬ He then continues with, Ã¢â¬Å"Architecture cannot be dissociated from the events that Ã¢â¬ËhappenÃ¢â¬â¢ in itÃ¢â¬ (Tschumi, 139). Spaces have always been assimilated with past references, which create a type of familiarization and attachment to the past that prevents time from moving forward. Because of this assumption about the form, function, and meaning; thus architecture has been restricted by these familiarization and these assumptions. The history of architecture has been a history of styles. ThroughÃ¢â¬ ¦show more contentÃ¢â¬ ¦Even though geographical diversity and intellectual pluralism has characterized architecture, it Ã¢â¬Å"does not mean that the attempt at discerning broader patterns and longer lines of development should be abandonedÃ¢â¬ (Curtis, 657). As time proceeds, styles and ideas change, and new paradigms arise, crystalizing the underlying concerns of that period. Ã¢â¬Å"In the inner recesses of the mind time is telescoped;Ã¢â¬ deriving from inspiration from the past while also considering the significance of modern space, old and new idea are combined resulting in new unexpected re sults (657). For example in the Hong Kong and Shanghai Bank, Foster abandons the usual notion of stacked floors around a central core and exploded open it to accommodate a vertical atrium at the center which provided a new vision of the work space (659). Another example is how Toyo Ito suggests that Ã¢â¬Å"the skin of a building might be thought of as a screen upon various lights and shadows are projectedÃ¢â¬ (668).This followed TschumiÃ¢â¬â¢s idea of Ã¢â¬Å"manipulation of the known with its implicit mannerism,Ã¢â¬ which is using things and simultaneously disbelieving in them (666). While understanding of the relationship between space and event, the architect must also design accordingly to the time. The influence of phenomenology creates a familiarization toShow MoreRelatedCommunity Architecture : Architecture And Architecture1695 Words Ã |Ã 7 Pages What is Ã¢â¬ËCommunity ArchitectureÃ¢â¬â¢? The Ã¢â¬ËCommunity ArchitectureÃ¢â¬â¢ is kind of architectural practice between architects and users. Also, it can be described as architect follow the wish of users or community to design the building fit the requirement by using local materials and helps the residents to build the structure. Royal Institute of British Architects (RIBA) described Ã¢â¬ËCommunity ArchitectureÃ¢â¬â¢ should follow the idea about The aim of community architecture is to improve the quality of the environmentRead MoreArchitecture And Design Of Architecture1753 Words Ã |Ã 8 PagesArchitecture An architect plans, designs and construct structures. Architects can design many things like a shopping mall, a library, skyscrapers, and so much more. Architecture is a very interesting career that I would like to learn more about. I will be discussing why I chose to research this career and the different types of architects there are, the average annual salary an architect makes, what they do on a daily bases, how much education you need to be an architect, and the pros and cons aboutRead MoreArchitecture Vs. Buildings Architecture Essay884 Words Ã |Ã 4 PagesArchitecture vs. Buildings When I read the book Seven Lamps of Architecture, John Ruskin opened my mind to the idea that a Ã¢â¬Å"building does not become architecture merely by the stability of what it erectsÃ¢â¬ . Architecture is more than just a mere building. Ã¢â¬Å"Architecture is the art which so disposes and adorns the edifices raised by man, for whatsoever uses, that the sight of them may contribute to his mental health, power, and pleasure.Ã¢â¬ (John Ruskin) Even though all architectures is buildings notRead MoreCommunity Architecture And Cultural Architecture2046 Words Ã |Ã 9 PagesÃ¢â¬Ëcommunity architectureÃ¢â¬â¢ was not new, and it is related to our life. In relation to western and non-western architecture to analysis Ã¢â¬Ëcommunity architectureÃ¢â¬â¢ has a huge difference. For relatively affluent Western countries, the spirit of Ã¢â¬Ëcommunity buildingÃ¢â¬Ë will be how to build a better environment and conditions to make residents feel comfortable, but for non-Western coun tries, Ã¢â¬Ëcommunity architectureÃ¢â¬â¢ often represents public buildings. This dissertation will discuss what is Ã¢â¬Ëcommunity architectureÃ¢â¬â¢, whyRead MoreGothic Architecture : Architecture And Architecture906 Words Ã |Ã 4 Pagesvery little to do with the architecture that was predominantly used from the twelfth to the sixteenth century. In fact the term Ã¢â¬Å"GothicÃ¢â¬ was coined by Renaissance Italians as a derogatory term referring to the Goths or Visigoths who were vanquished by Clovis in the sixth century and left no monumental trace of their invasion and therefore had no influence on what is now remembered as Gothic architecture. Despite the negative connotation behind this style of architecture, it has had an enormous impactRead MoreThe Importance Of Architecture1512 Words Ã |Ã 7 PagesHowever, architecture is much more than just the design of buildings and houses. It is a vital part of the construction process, which is a main component of the Gro ss Domestic Product, and can effect or be effected by local or national economies. Its importance is undervalued in the workforce, and its effect on the economy is underrated. Architecture is effected by the amount of raw materials, and the willingness of people to spend money on new developments or buildings. Architecture affectsRead MoreThe Architecture in Brazil1418 Words Ã |Ã 6 Pages The architecture in Brazil is amongst the worlds most progressive and multicultural construction, creating a visual melting pot. The diversity and multicultural ideas resonate within the architectural designs of each specific architect designing in the country. Brazilians have vastly different architectural styles that are unique to their culture, especially modern styled buildings, utilizing cultural aspects from a mixed background. There are plenty of examples of various architects, fromRead MoreArchitecture : Online Architecture858 Words Ã |Ã 4 PagesIn a traditional three-tier arch itecture is a client-server architecture in a company data center which consists of presentation tier, business logic tier and data tier. Each tier is developed and maintained as an independent tier. Presentation Tier: The Top-most level of the application is the user interface. The main function of the interface is to translate tasks and results to something the user can understand. In simple term, it is a layer which user can access directly such as web-based applicationRead MoreThe Profession of Architecture2117 Words Ã |Ã 9 PagesWrite an argumentative essay of at least 2000 words on an issue related to the role of the profession of Architecture or Interior Architects The role in architecture in order to combat the possibility of natural disasters is varied when it comes to rebuilding and housing before, after and during the natural disasters. Their essential knowledge and invaluable skills about, building materials, design and attention to detail is imperative in the prevention of damage to buildings. However, unlessRead MoreThe Psychology of Architecture Essay1004 Words Ã |Ã 5 PagesArchitecture is a fascinating business that encompasses the art and science of designing with the construction of buildings. An architect designs all kind of buildings, such as schools, churches, houses, restaurants, and more. This profession has been around since the 1st century CE when Vitruvius, a Roman architect, called it De architectura. Architects have to have a wide range of knowledge. For example they need to have good communications skill, so they can take the information of what a client
Options for dealing with risk WalmartÃ¢â¬â¢s hiring practices could improve the situation by managing the hiring practices at the managerÃ¢â¬â¢s level. Even though the company has a Ã¢â¬Ëno discriminationÃ¢â¬â¢ policy, giving full responsibility to the manager at the local level may promote prejudices that the managers themselves are not aware of . These prejudices might include providing higher salaries to male workers and a tendency to promote men over women. We will write a custom essay sample on Walmart Risk Management or any similar topic only for you Order Now In the wake of the recent developments, Walmart has initiated several steps to win back the support of the women. Women comprise 70% of WalmartÃ¢â¬â¢s work force at the floor level. Yet, women only comprise 33% of WalmartÃ¢â¬â¢s management. There is no doubt that Walmart has to put policies in place that encourage and promote female employees. We propose the following options for dealing with the issue: 1. The statistics presented at the court hearing have shown that women were paid 80% of wages that men were paid for doing the same job. The difference of pay has to be leveled immediately. Walmart can make no excuses for paying differently for the same job. If the manager at the local level is responsible for hiring and compensation, policies should strictly reinstate the need for equal pay. 2. Walmart need a woman CEO or atleast 50% women on the board of directors and 50% women in the management. Walmart is a company that is comprised mostly of women at the floor level. The customers who shop most at Walmart are also women. The company cannot but take seriously the group that comprises its largest consumer group. In the wake of the recent developments, Walmart has realized that a company is only as good as its last good deed. Walmart has used . In a New York TImes article dated September 14, 2011, Walmart announced that it planned to spend $ 20 billion over the next five years trying to source materials from women owned businesses. The article made headlines under the name Ã¢â¬Å"Walmart to Announce women friendly plansÃ¢â¬ as the company faced the possibility of being sued by independent plaintiffs after the class action law suit had been dismissed. How to cite Walmart Risk Management, Essay examples
Effective leadership is putting first things first, is a strong phases to shows our responsibility to choose a good leadership. And we as citizens, it is our very first job in determine which leadership is the best for our country. In recent days, we were exposed in the media a lots about the internally arguments within a country or a fighting between two countries for special purposes. Tie to the audience/ reason to listen Behind all these stories, I believe that effective leadership presence is a must and very important. How old are you? Are you already registered for voting? Do you know when our next national election is? Credibility statement/ material Ask question: Today I will persuade my audience the importance of voting with a speech entitled Why do we have to vote for effective leadership? Preview of main points/ central idea In conjunction with our national 13th Public Election that will held in just around the corner, I do believe there are so many youngsters out there still do not concern when is the election date, and even worst most of them are still havent registered as voters yet. According to a survey held by Malaysia Election Commission or Suruhanjaya Pilihan Raya (SPR), almost 6300 out of 7000 people are not registered as electorate and most of them are in the range of 22 to 30 years old. I hereby stand that effective leadership are relies on the people votes. Transition to body of speech Therefore, I urge that this speech will allow me to explain the problems that we might face if we are still not concern about election and voting the right leadership. II. BODY Main point 1: To Voice Our Opinions. Ã¢â¬Å"One vote can make a differenceÃ¢â¬ . Voting is one of the most important activities individuals can engage for their country. Who an individual votes for, can have an enormous impact on the lives of our own. Election is all about selection. The right selection will represent our voices. Supporting details 1: We must vote because the importance of elections in a democratic country is seen through the opportunity where citizens have to pick leaders of their choice to represent them in governance structures such as Parliament. Supporting details. Sadly, wrong leadership will bring many disadvantages such as internal corruption, political conflict, or tension between different races. This is what happened in Thailand, they didnÃ¢â¬â¢t manage to elect the best leadership and as a result it brings chaos and lives in fear Transition to main point 2: Therefore, I persuade all of the youngsters realize it is essential for us to vote in order for them to hear our voices. Main point 2: To Guarantee Quality Life of Citizens. One of the importance of elections is to guarantee quality life that most of the citizen in this world desires. I believe most of you satisfy and agree that Malaysian are mostly live in peace and joyful. Malaysians are lucky to have a good leader such as YBhg. Dato Seri Najib Bin Razak who concern and love his citizens Supporting detail 1: Dato Seri Najib and his ministry team are always providing solutions for problems and issues that terrorize in Malaysia for the sake of quality life to be enjoyed by all multi races. Supporting details 2: For example, we can see our leader is emphasizing his effort to strengthen the unity of our citizen by Ã¢â¬Å"1 MalaysiaÃ¢â¬ campaign. Through 1 Malaysia campaign, there are lots facilities will be provided such as 1 Malaysia minimarket, 1 Malaysia economical houses and so on Transition to main point 2: Therefore, voting from us will determine what kind of life that we desire? A quality life or bad life? Main point 3: The right election will provide the right path to bring those resurrection issues to be discussed on the higher level and it is important for us to elect so that our vision is clearly heard of. Supporting detail 1: With a proper administration and a team of good governance, an effective leadership is another factor that contributes to translate citizenÃ¢â¬â¢s vision into reality. In addition, a leadership that we have chosen will always ensure to fulfill our needs, interests and serve the best services for society, citizens and our country itself. Supporting detail 2: In terms of protection, our Malaysian Government offers shelter and no legal alternative to repatriation for victim who face hardship or retribution in their country. The majority trafficking victims were rescued because of requests by foreign embassies. Supporting detail 3: What most important is they have the time to consider citizen voices and put an effort to provide solutions to our problems Example For example, in Malaysia itself, we can see there are so many developments in progress whereas the objective is to achieve our 2020 visions. As we can see the Mass Rapid Transit (MRT) project, our government translate the vision most of Kuala Lumpur population desire to have a better transportation system. This project is will link from Sg. Buloh to Kajang with approximately 60 km and it is estimated almost 50% of population will use the service. Transition to conclusion: Thus, voting the right leader will bring us as citizenÃ¢â¬â¢s vision to reality. III. CONCLUSION Summary of main points: As for conclusion, voting is a huge responsibility for an individual can engage and it also considered as good contribution towards country. Besides that, a good leaderships are relies in our vote, thus we must aware the consequences if we ignore voting. Close with impact/ call for action: As young teenagers and lover to our country, we should be aware and take responsible to overcome human trafficking problems.
Friday, May 1, 2020
[emailprotected] co. in SUMMER TRAINING REPORT [pic] Ã¢â¬Å"COMPARATIVE STUDY OF CHANNEL SATISFACTION SERVICES OFFERED BY DIFFERENT TELECOM PROVIDERS TO THE RETAILORÃ¢â¬â¢SÃ¢â¬ . INDEX ? ACKNOWLEDGEMENT ? HISTORY OF TELECOMMUNICATION ? INDUSTRY PROFILE ? HISTORY OF RELIANCE COMMUNICATION ? RELIANCE ADA GROUP ? RELIANCE COMMUNICATIONS ? RELIANCE CAPITAL ? RELIANCE MUTUAL FUND ? RELIANCE HEALTH ? RELIANCE ENERGY LTD. ? RELIANCE GENERAL INSURANCE ? RELIANCE COMMUNICATIONS ? COMPANY PROFILE ? CHAIRMAN PROFILE ? PROJECT PROFILE ? BSNL ? TATA INDICOM ? AIRTEL HUTCH ? RELIANCE ? BRAND CHANGE ACTIVITY ? RESEARCH METHODOLOGY ? PROBLEM DEFINITION ? RESEARCH PROBLEM ? RESEARCH OBJECTIVE AND SUBOBJECTIVE ? INFORMATION REQUIREMENT ? CHOICE OF RESEARCH DESIGN ? RESEARCH INSTRUNMENT USED ? SAMPLING TECHNIQUE ? FIELD WORK METHOD ? LIMITATIONS ? QUESTIONNAIRE ? ANALYSIS ? SAMPLE PROFILE ? PRIMARY DATA TABULATION INTERPRETATION ? INTERPRETATION AND FINDINGS ? CONCLUSION ? SUGGESTIONS ? BIBLIOGRA PHY acknowledgment With great pleasure, , I extend my deep sense of gratitude towards my project head Mr. Vibhas shukla under whose valuable guidance, constant interest and encouragement, which have devoted his ever-precious time from his busy schedule and his thus in completing the project. This co-operation is not only useful for this project but will be a constant source of inspiration for us in future life. I am also thankful to all employees who helped me intellectually in preparation of this project directly or indirectly. History of Telecommunication Ã¢â¬ ¢ The kings used human messengers to communicate to their people in various states within their kingdom or to people in other kingdoms. Julius Caesar, the emperor of Rome, more than 200 years ago, used pigeons to send messages back home battle. Ã¢â¬ ¢ Pigeons were even used during World War II as war messengers. Ã¢â¬ ¢ The Ã¢â¬ËDawkÃ¢â¬â¢ (pounced as Dak) system was started in India in the year 1688, when the first office of the company post was established in Mumbai (then known as Bombay) and Chennai (then known as Madras). Ã¢â¬ ¢ In 1876 Alexander Graham Bell spoke the first words on the telephone Ã¢â¬Å"Mr. Watson come here, I want to see youÃ¢â¬ . Ã¢â¬ ¢ In 18887-1902, the first patents for the pa y telephone with a slot for coins were filed. Mr. Bell once again used the phrase Ã¢â¬Å"Mr. Watson come here, I want to see youÃ¢â¬ in 1915 when he was invited to the opening of the complete transcontinental telephone line connecting the west coast and the east coast. However, this time, Mr. Watson responded saying that it would take him a week to get there as he was in San Francisco. Ã¢â¬ ¢ In 1915, the first wireless voice transmission between New York and Sans Francisco signaled the beginning of the convergence of radio and telephony. Ã¢â¬ ¢ In the mind-1960Ã¢â¬â¢s the original concept underlying the Internet was developed. It was on August 15th 1995 that VSNL provided us with freedom to information gateway- the INTERNET. TELEPHONY Ã¢â¬ ¢ Telephony is the traditional voice communication over a wired/wireless network. Ã¢â¬ ¢ It is communication facilitated by telephones Mobile Telephony Ã¢â¬ ¢ In the landline, communication happens between two fixed points, the receiver and speaker. There is a fixed medium, a line o r connection, in between. Ã¢â¬ ¢ In mobile telephony either one or both the points can be mobile. Unlike a landline, there is no physical wire connecting them. Cell phone Technology is an umbrella term used to describe technologies that enable people to access networks services any place, any time and anywhere. Ã¢â¬ ¢ It is supported by several technologies such as GSM, CDMA etc. each with its own advantage and disadvantages. Cellular Approach Ã¢â¬ ¢ In cellular approach, each city or area is covered by a number of hexagonal cells on a big hexagonal grid. The hexagonal cells overlap at the outer boundaries. Ã¢â¬ ¢ A hexagonal shape is maintained as it helps in maximum transmission/reception. Each cell has a base station that consists of a tower and a small building containing the radio equipment. The transmitterÃ¢â¬â¢s span of coverage is called a cell. Ã¢â¬ ¢ The mobile telephone interacts with the closest cell. Introduction The evolution of internet has led to the convergen ce of telecommunications networks and computers. Benefits associated with World Wide Web (WWW) are of great importance now-days: people are able to communicate via e-mail, perform data transfers, online shopping, online auctions, etc. Traditionally internet services have been provided by Internet Service Providers (ISPs) using modems, with data rates limited to 56. 6kbps. With the need for higher speed internet services, Broadband ISPs emerged providing faster data rate based on Cable and DSL technologies. In the United States, the Federal Communications (FCC) defines as broadband internet service the one operating in 200 kbps in both directions. According to a December 2004 report, the U. S. broadband penetration is at 53. 6%, far behind the penetration rate in other developed countries, e. g. Japan and Korea . Recently evolved IEEE 802. 11x technologies have opened a whole new era accessing the Internet wirelessly, giving traditional users the advantage of mobility. The majority of existing technologies are localized, difficult to deploy in accessible areas, time consuming, and expensive. The increasing demand for wireless packet data services has opened a new market segment in the wireless industry: the Wireless Internet Services (WIS). The WIS market provides excellent opportunities to telecom operators and entrepreneurs to become Wireless Internet Service Providers (WISP). WISs can provide high-speed services in remote areas and over cost elective solutions, overcoming the limitations of wired and short-range wireless services. The commercial wireless industry was built in a span of three decades. It has evolved from circuit switched voice service to IP based voice and data services. The importance of mobile services grew in peopleÃ¢â¬â¢s day to day life, since the first service was launched. The fundamental idea behind launching mobile services, was voice communication with an added feature of short messaging services (SMS). Thanks to continuous growth in mobile subscriberÃ¢â¬â¢s base and the use of internet, and the need for information retrieval Ã¢â¬Å"anywhere anytimeÃ¢â¬ is now a reality. During this period, many new competing technologies have emerged. For example, we are witnessing operators integrating their 2. 5G networks with Wireless LANs (WLANs) to provide data services. With voice service fully deployed, operators are not able to make additional revenue. The only additional revenue operators can make is when subscribers switch service providers. In order to enhance their average revenue per user (ARPU), operators started powering data services. The need for higher data rates and new applications has led the industry to think about future network configurations. Since wireless companies already have stabled voice subscriberÃ¢â¬â¢s bases, provision of Internet services opens a new segment for business and additional revenue. This presents a challenge to the operators to re-design their business strategy and enhance their capability. Our paper deals with third generation wireless technologies (3G), i. e. Global System for Mobile Communications (GSM) family (GPRS, EDGE and UMTS), Code Division Multiple Access (CDMA) and alternative technologies especially, Wi-Fi. We try to answer very general, yet popular, questions among operators, not only in developed countries but emerging markets as well. We approach the case as follows: (1) we compare and differentiate the above next generation wireless technologies focusing on their bro adband internet services capabilities; (2) we identify and propose technological, economical and behavioral factors that accept the selection of wireless technologies for migration paths; 3) We study the case of the national incumbent operator in India, and the options this operator has in migrating to 3G systems; (4) we view the case from the perspective of vendor, service provider and users; and finally, (5) we use real options to value the most suitable to the operator migration path towards 3G. We find that capital expenditure, future subscriber growth that directly effects the revenue stream, and average revenue per user (ARPU) as the key explanatory variables in the analysis. We believe that given that uncertainty around high technological investments plays a key role in the deployment and success of wireless networks. Therefore, the wireless industry is a suitable domain to apply real options for investment analysis. Wireless Technology Overview Historical Overview of Mobile Communications Before we explain what constitutes third generation (3G) mobile technologies, it is worthwhile to take a look at the history of mobile communications. The evolution of mobile systems was based on common themes across different standards: mobility, security, roaming, and improved voice service. First generation (1G) mobile networks were designed with primary focus on voice communications, analog in nature, and provided localized wireless services. Examples of major 1G systems are: AMPS (Advance Mobile Phone System), TACS (Total Access Communications System), and NMT (Nordic Mobile Telephone). By the late 1990Ã¢â¬â¢s, The second generation (2G) systems were deployed. 2G systems were digital in nature, had enhanced voice capability in comparison to analog systems, better spectrum management, wider coverage area, circuit switching, and better mobility. 2G technology was composed of: GSM (Global System for Mobile-communications), TDMA (Time Division Multiple Access), and CDMA (Code Division Multiple Access). The primary objective of 2G was to offer voice with added capability of SMS (Short Messaging Service) and text delivery. 2G technologies were deployed in 800, 900, 1800, and 1900 MHz bands, offering data rates in the range of 9. 6Kbps to 14. 4Kbps (speed of a dial-up modem). During this time period, the market experienced the emergence of internet. The first equipment used to connect to the internet provided data rates of 9. 6Kbps to 14. 4Kbps. With the advancement in telephony industry, new technologies started offering broadband services over 200Kbps using Cable and DSL (Digital Subscriber Line). The possibility of offering the same data service issuing wireless technology was far from reality at that time. By the end of 2000, wireless voice services were already matured. The focus of wireless companies shifted to enhance data rates and make available the very same applications of wired networks to the wireless community. Advancements were made to 2G technologies to meet the market expectations. By 2001, 2. 5G technologies were introduced; High Speed Circuit Switched Data (HSCSD), General Packet Radio Services (GPRS), Enhanced Data Rate for GSM evolution (EDGE), and CDMA2000-1xRTT were introduced. . 5G technologies were digital in nature, offering circuit and packed switched data services. 2. 5G technologies offered data rates in the range of 28. 8/56. 6Kbps to 384Kbps (in ideal conditions), and services like: voicemail, email, location based services (LBS), web surfing using WAP (Wireless Application Protocol), and other e-commerce services. Third Generation (3G) Wireless Th e mobile industry follows two major standards: the GSM developed by ETSI, and the CDMA developed by TIA (Telecommunications Industry Association). Currently, there are two major partnership project groups: the 3GPP (3rd Generation Partnership Project) and 3GPP2 (3rd Generation Partnership Project 2), that undertook the development of these technologies [35, 2, 3]. 3GPP is standardizing GSM based systems, whereas 3GPP2 is standardizing CDMA based systems. Under the IMT-2000 umbrella, UMTS (Universal Mobile Telecommunications Systems) based on WCDMA (Wideband Code Division Multiple Access) and CDMA2000 constitute the 3G systems. According to ITU, 3G systems should provide data rates of 144Kbps for vehicular, 384Kbps for pedestrian and 2Mbps for indoor environment. [pic] pic] [pic] [pic] [pic] History of reliance communication Reliance Communication Ventures Limited (the Ã¢â¬Å"Telecommunication Resulting CompanyÃ¢â¬ ) was originally incorporated on July 15, 2004, under the Companies Act, 1956 as Reliance Infrastructure Developers Private Limited. The status of the Company was changed to Public Limited Company on July 25, 2005 a nd the name was changed to its present name, viz. Reliance Communication Ventures Limited, under Fresh Certificate of Incorporation consequent on change of name dated August 3, 2005. Main Objects of the RCVL as set out in Memorandum of Association of the Company are as under. ) To carry on and undertake the business of finance, investment, loan and guarantee company and to invest in acquire, subscribe, purchase, hold, sell, divest or otherwise deal in securities, shares, stocks, equity linked securities, debentures, debenture stock, bonds, commercial papers, acknowledgements, deposits, notes, obligations, futures, calls, derivatives, currencies and securities of any kind whatsoever, whether issued or guaranteed by any person, company, firm, body, trust, entity, government, state, dominion sovereign, ruler, commissioner, public body or authority, supreme, municipal, local or otherwise, whether in India or abroad. The Company will not carry on any activity as per Section 45 1A of RBI Act, 1934. ) To carry on and undertake the business of financial services like financial restructuring / reorganization, investment counseling, portfolio management and all activities and facilities of every description including all those capable of being provided by bankers, stockbrokers, merchant-bankers, investment bankers, portfolio managers, trustees, agents, advisors, consultants, providing other financial or related services and to carry on the activities of hire-purchase, leasing and to finance lease operations of all kinds, purchasing, selling, hiring or letting on hire all kinds of plant and machinery and equipment and to assist in financing of all and every kind and description of hire- purchase or deferred payment or similar transactions and to subsidize, finance or assist in subsidizing or financing the sale and maintenance of any goods, articles or commodities of all and every kind and description u pon any terms whatsoever and to purchase or otherwise deal in all forms of movable property including plant and machinery, equipments, ships, aircrafts, automobiles, computers, and all consumer, commercial, medical and industrial items with or without security and to lease or otherwise deal with them including resale thereof, regardless of whether the property purchased and leased is new and/or used and from India or abroad. 3) To carry on and undertake the business of acting as agent of any person, public or private sector enterprises, financial institutions, banks, central government and state governments and to do financial research, design and preparation of feasibility study reports, project reports and appraisal report in India and abroad. ) To carry on, manage, supervise and control the business of telecommunication, infrastructure, telecommunication system, telecommunication network, and telecommunication services of all kinds including and not limited to setting up telephon e exchange, coaxial stations, telecommunication lines and cables of every form and description, transmission, emission, reception through various forms, maintaining and operating all types of telecommunication service and providing data programmes and data bases for telecommunication. Change in Memorandum of Association since the CompanyÃ¢â¬â¢s inception |Date |Particulars | |July 21, 2005 |Increase in Authorized Capital from Rs. 100,000 to Rs. 500,000 | |July 25, 2005 |The status of the company was changed from Private Limited to Public Limited Company. |July 26, 2005 |Alteration of Main Object Clause | |August 3, 2005 |Change of name of the Company from Reliance Infrastructure Developers Private Limited to | | |Reliance Communication Ventures Limited | |August 11, 2005 |Alteration of Authorized Capital of the Company by subdividing the then existing Authorized Capital of| | |Rs 500000 divided into 50,000 equity shares of Rs. 10 each in to 1,00,000 equity shares of Rs. 5 each | | |Alteration of Main Object Clause. | |December 24, 005 |Increase of Authorized Capital of the Company from Rs. 5,00,000 to Rs. 6,500,000,000 | INDUSTRY PROFILE The Indian Telecom Industry Structural Reforms to Accelerate Economic Growth The Indian economy is on the path of resurgence. The gradual opening up of the economy ensured steady growth even at a time when other countries were in the grip of a massive slowdown. Progressive reforms such as the removal of restrictions on foreign investment and industrial delicensing are responsible for this growth. Tailoring the EXIM policy to promote exports and aligning the import duties to meet WTO commitments further contributed to this development. This trend is expected to continue in the next five years, driven by a favorable business policy environment in terms of tax cuts, broadening tax base, and reduced interest rates on borrowings. Such structural changes have had a positive impact on the telecommunications sector and a compound annual growth rate (CAGR) of 13. 42 per cent is estimated for 2002-2006. The future of the industry lies in the mainline and cellular segments and constant technological innovations such as Internet Protocol (IP)-based services. Revenues from voice services will experience sustained growth even as those from data services are expected to increase sharply due to a surge in usage. The telecommunications industry in India is likely to see consolidation among major operators and privatization of many Government companies. The Country Industry Forecast for the Indian telecom industry studies the country-specific factors such as politics, business policy, and macroeconomic indicators that have an impact on this sector and its main segments. This report provides incisive analysis of the industry for 1996-2001 as well as forecasts for 2002-2006. Proactive Policies: Key to Future Growth Indias move toward globalization, especially in the telecom sector, has to be driven by transparent policies and better market conditions to attract foreign investments. According to this report,Ã¢â¬ The recent policy stance of opening of the international long distance (ILD) segment and legalization of Internet telephony should result in huge investment in the industry. However, the Government, on its part, should ensure an environment conducive to foreign participation by increasing the FDI limit and following transparent policies. Cellular Subscribers and Revenues for Robust Growth The entry of new operators and the introduction of novel services coupled with the increasing importance of wireless communication are factors that are likely to contribute to the growth in the number of subscribers in the cellular segment. As the report says, In the last quarter of 2001, the number of subscribers had reached the 5 million mark due to the continuous fall in airtime rates, achieving 0. percent mobile penetration in India. Revenues from cellular phones are expected to grow at a CAGR of 37. 29 percent during the forecast period with higher data usage a nd multimedia services. Reliance An Informal Organisation Reliance has organized to leverage knowledge for growth. It is generally accepted by now that the traditional command-and-control structure of organizations is not conducive to the process of sharing of knowledge. At Reliance, decision makers and knowledge workers talk directly to each other. Reliance has maintained a flat organization structure, and an informal work culture, which have kept it nimble-footed, despite itÃ¢â¬â¢s size. Reliance works by assigning teams of self-motivated, specialists, endowed with the right skill sets, to specific tasks, and facilitating their interaction to achieve cross-fertilization of ideas and knowledge. Innovative solutions emerge, because as a management process, Reliance puts the challenge on the table, and call upon team members, drawn from diverse backgrounds, with a wealth of individual experience, and each having different thinking styles and approaches, to constructively debate various options and find the answers. Reliance has found that this entire process of putting the organizationÃ¢â¬â¢s collective knowledge into a melting pot, and stoking the fires to deliver solutions, has always produced results. This approach also eliminates the convoluted, and bureaucratic, decision making processes, which widen the gap between knowledge and action, and destroy organizational morale. Reliance Leveraging Knowledge for Growth It is important to know that how Reliance leveraged knowledge of the global chemicals industry, and the international financial markets, to achieve higher growth. When economic reforms began in India in 1991, Reliance saw the opportunity to achieve a global scale of operations, enhance our overall competitiveness, and ensure consistent growth in the future. At that time, the domestic institutional markets lacked adequate depth. RelianceÃ¢â¬â¢s global peer group enjoyed significant competitive advantages, through easy access to large amounts of international capital, with extended maturities, at optimal costs. Reliance quickly developed itÃ¢â¬â¢s knowledge of the international capital markets, which had till then been completely closed to the Indian corporate sector. Reliance then leveraged this knowledge to mobilize over US$ 2 billion from the international equity and debt markets over the next few years, and became pioneers enabling it to implement itÃ¢â¬â¢s major expansion plans. Reliance established an international benchmark yield curve for India, with maturities ranging from 7 years to 100 years, which was then used for subsequent transactions of other Indian corporate, and public sector undertakings. Reliance has the distinction of being the only company from Asia to issue 100-year bonds in the international capital markets. The 100-year Bonds offering in itself was a unique achievement, considering that Reliance was domiciled in India, with all the attendant sovereign constraints. What was a greater achievement (and what is not so widely known), is the fact that Reliance actually concluded this landmark transaction, in less than 100 minutes of obtaining the relevant government approvals. RelianceÃ¢â¬â¢s investment bankers had then remarked this elephant cannot only dance, it can actually tango!! In the future, Reliance intends leveraging itÃ¢â¬â¢s entire knowledge base, and itÃ¢â¬â¢s core competencies of complex roject management, motivation and retention of knowledge workers, and unique financial engineering capabilities, to enhance itÃ¢â¬â¢s leadership in existing businesses, and capture growth opportunities in new areas. Reliance will be playing a leadership role in the creation of a world-class digital infrastructure in India, which will pave the way for rapid economic growth in the country, and transform the dream of generating tens of billions of dollars of revenues from IT enabled services into reality. Reliance will achieve this, by leveraging the knowledge and expertise developed in setting up itÃ¢â¬â¢s world class manufacturing complexes, to create nationwide, all optic, broadband IP networks, with terabit capacity, connecting the countrys top 115 cities and towns, which will serve as the lifeline for the Indian infocom industry. Reliance Ã¢â¬â ADA Group [pic] |[pic] | | | | |[pic] |[pic] | | | | |[pic] |[pic] | RELIANCE CAPITAL Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. RCL was incorporated as a public limited company in 1986 and is now listed on the Bombay Stock Exchange and the National Stock Exchang e (India) With a net worth of Rs 4,123 crore and over 165,000 shareholders, RCL has established its presence as a leading player in the financial services sector in the country. On conversion of outstanding equity instruments, the net worth of the company will increase to over Rs 4,568 crore. RCL ranks among the top 3 companies in the private financial services and banking sector in the country, in terms of net worth. RCL sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. Business Overview RCL is registered as a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996. RCL has sponsored the Reliance Mutual Fund within the framework of the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996. RCL primarily focuses on funding projects in the infrastructure sector and supports the growth of its subsidiary companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee Co. Limited, Reliance General Insurance Company Limited and Reliance Life Insurance Company Limited. As of March 31, 2005, the companyÃ¢â¬â¢s investment in infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of RCL is structured in a way that realizes the highest post-tax return on its investments RELIANCE MUTUAL FUND Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee. RMF has been registered with the Securities Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBIs letter no. IMD/PSP/4958/2004 date 11th. March 2004. Reliance Mutual Fund was formed to launch various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. The main objectives of the Trust are: To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unit holders; To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings and To take such steps as may be necessary from time to time to realize the effects without any limitation is RCLÃ¢â¬â¢s asset management company which is amongst the top five private sector mutual funds in the country in terms of Assets under Management. (Rs. 10,129 Crores as on May 31, 2005). It is one of the fastest growing mutual funds in India, offering a well rounded portfolio of products to meet varying investor requirements. RMF was the first mutual fund in the country to launch sector specific schemes for the banking, power, media entertainment sectors. RMF has pioneered retail investing in the country by reaching out to investors and d istributors in more than 60 cities in the country. They have a strong investor base which stands at more than 5, 00,000. RELIANCE HEALTH Reliance Health is the outcome of the late visionary Dhirubhai Ambanis (1932-2002) dream to herald a health revolution in India by leveraging technology and delivering the healthcare to the doorsteps of Indias vast population. He saw in the potential of healthcare in India once-in-a-lifetime opportunity for India to leapfrog over its historical legacy of backwardness and underdevelopment and to provide better, efficient and cost effective healthcare services. Reliance Health sees immense potential in the rapidly growing Health services sector in India and aims to become a dominant player in this industry and offer fully integrated health services. Reliance Health is set to transform the Healthcare Landscape of India by venturing into: Ã¢â¬ ¢ Managed Care Administration Ã¢â¬ ¢ Health care Delivery and Integrated Health Ã¢â¬ ¢ Health Informatics and KPO Ã¢â¬ ¢ Consumer Health Reliance Health believes that above health initiative of Reliance ADA Group will refurbish the Indian Health industry to compete with best in the world while meeting the basic healthcare needs of Indian population. Focused on the high-growth health care market, Reliance Health has a broad suite of products and services that span the health services value-chain. With our unparalleled resources, expertise and service offerings, we will deliver integrated solutions that are innovative and practical. To our customers and partners, this means we help them focus on what matters most to them i. e. to remain in control of their primary goals. Led by experienced healthcare and technology teams, Reliance Health is directly addressing issues confronting Indian Healthcare. Reliance Health envisions developing into an integrated healthcare environment with broader interests across ancillary (supporting) industries and services delivery models. Reliance Health is a healthcare services company which aims at providing cutting edge healthcare solutions to Indians at affordable prices. In a country where healthcare is fast becoming a booming industry, Reliance will provide services that will compare with the best in the world. It also plans to venture into diversified fields like Insurance Administration, Health care Delivery and Integrated Health, Health Informatics and Information Management, Consumer Health. Reliance Health aims at revolutionizing healthcare in India by enabling a healthcare environment that is both affordable and accessible through partnerships with government and private businesses. Reliance Energy Ltd Powering Progress, Energising the Economy: Reliance Energy Ltd is Indias leading integrated power utility company in the private sector. It has a significant presence in generation, transmission and distribution of power in Maharashtra, Goa and Andhra Pradesh. With the ushering in of the power sector reforms and in the new environment of opportunity for the power sector, REL is a key player in this transformation process. Reliances gas finds in KG-D6 block in Krishna Godavari basin which constitutes 60% of Indias present total gas production, will provide an enormous opportunity to scale up power generation capacities in India. With the new gas find, REL has the unique advantage of integration from well head to wall socket. This will help the company position itself as a global integrated energy player under the Reliance banner. REL and its affiliate power companies rank among the top 25 listed private sector companies on major financial parameters. REL is part of the Reliance industries-Indias private sector company ranked among the worlds 175 largest companies in terms of net profit and the 500 largest companies in terms of sales. REL is committed to creating superior value for all its stakeholders and be amongst the most admired and trusted utility companies in the world by setting new benchmarks in standards of corporate governance, operational and financial excellence, responsible corporate citizenship and profitable growth. Reliance General Insurance Reliance General Insurance, a Subsidiary of Reliance Captial, is one of the first non-life companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance products that covers most risks including Property, Marine, Casualty and Liability. Vision To be an insurer of World Standards and the most preferred choice for clientele at the domestic and global level. Mission Our Mission is to keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value Corporate Governance. Objectives Ã¢â¬ ¢ Make affordable insurance accessible to all Ã¢â¬ ¢ Keep customer as focal point for all operations Ã¢â¬ ¢ Protect policy holders interests Ã¢â¬ ¢ Adopt best international practices in claims, underwriting and policy servicing Ã¢â¬ ¢ Be the most innovative in product development [pic] COMPANY PROFILE INTRODUCTION Reliance Infocomm is the outcome of late Dhirubhai AmbaniÃ¢â¬â¢s dream of bringing about a digital revolution in India that will bring to every IndianÃ¢â¬â¢s doorstep an affordable means of information and communication. Make the tools of Infocomm available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility, was how Dhirubhai, as he was fondly called, spelt out Reliance Infocomm mission in late 1999. He firmly believed the country could use information and communication technology to overcome its backwardness and underdevelopment. It was with this belief that Reliance Infocomm began laying its 60,000 route kilometers of pan-India fiber optic backbone in 1999. The backbone was commissioned on December 28, 2002, DhirubhaiÃ¢â¬â¢s 70th birth anniversary, first since his sad demise on July 6, 2002. Reliance Infocomm network is a high-capacity, integrated (wireless and wire line), and convergent (voice, data and video) digital network. The network is designed to offer services hat span the entire Infocomm value chain infrastructure, services, both for enterprises and individuals, applications, and consulting. The network is designed to deliver services and applications that will change the way we Indians live. It will harb inger a New India. Vision Reliance Infocomm envisions a digital revolution that will bring about a New Way of Life. A Digital Way of Life. For a New India. With mobile devices, net ways and broadband systems linked to powerful digital networks, Reliance Infocomm will usher fundamental changes in the social and economic landscape of India. Reliance Infocomm will help men and women connect and communicate with each other. It will enable citizens to reach out to their work place, home and interests, while on the move. It will enable people to work, shop, educate and entertain themselves round the clock, both in the virtual world and in the physical world. It will make available television programmes, movies and news capsules on demand. It will unfurl new simulated virtual worlds with exhilarating experiences behind the screens of computers and televisions. Users of Reliance Infocomms full range of services would no longer need audiotapes and CDs to listen to music. Videotapes and DVDs would not be necessary to see movies. Books and CD ROMs would not be needed to get educated. Newspapers and magazines would not be required to keep abreast of events. Vehicles and wallets will become unnecessary for shopping. Reliance Infocomm will disseminate information at a low cost. Make a telephone call cheaper than a post card. These prophetic words of Dhirubhai Ambani will be a metaphor of profound significance for Reliance Infocomm. Reliance Infocomm will regularly unfold new applications. Continually adapt new digital technologies. Create new customer experiences. Constantly strive to be ahead of the world. Reliance Infocomm will transform thousands of villages and hundreds of towns and cities across the country. Above all, Reliance Infocomm will pave the way to make India a global leader in the knowledge age. Business Reliance Infocomm will offer a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications that will enhance productivity of enterprises and individuals. Reliance India Mobile, the first of Infocomms initiatives was launched on December 28, 2002, the 70th birthday of the Reliance group founder, Shri. Dhirubhai H. Ambani. This marks the beginning of Reliances dream of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. It aims to achieve this by putting the power of information and communication in the hands of the people of India at affordable costs. Reliance Infocomm will extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for Indias farmers, businesses, hospitals, government and public sector organizations. Network Telecommunication networks are the infrastructure for provisioning Infocomm services. All businesses today are dependent on telecom to continue their day-to-day operations. The range and quality of services that can be provisioned is determined by the quality of the network deployed. The Reliance Infocomm network consists of 60,000 kilometers of optical fibre cables spanning the length and breadth of India. These cables can carry thousands of billions of bits per second and can instantly connect one part of the country with another. This physical network and its associated infrastructure will cover over 600 cities and towns in 18 of the countrys 21 circles, 229 of the nationÃ¢â¬â¢s 323 Long Distance Charging Areas (LDCAs) and broadband connectivity to over 190 cities. This infrastructure will be backed by state-of-the-art information management systems and a customer-focused organization. An interesting aspect of the network is the manner in which these fibers are interconnected and deployed. Reliances architecture is so fault-tolerant that the chances of failure are virtually nil. Reliances ring and mesh architecture topology is the most expensive component to implement, but assures the highest quality of uninterrupted service, even in the event of failure or breakage in any segment of the network. Reliance has 77 such rings across the country with at least three alternative paths available in metros. Connected on this topology, the service has virtually no chance of disruption in quality performance. Reliances objective is to create value for our customers. Reliance will innovate ceaselessly so that state-of-the-art technology can be leveraged to create products and services that are affordable. Access networks determine the services that can finally be delivered to customer. Our network has wire line access technologies based on fiber as well as copper. Fiber in the access network makes broadband services easy to deploy. The wireless access network deployed for CDMA 1X is spectrum efficient and provides better quality of voice than other networks and higher data rates. CDMA 1X also provides an up gradation path to future enhancements. Technology Infocomm is the synergy of information and communication services brought about by the digitalization and convergence. In the fast moving and competitive knowledge era, Infocomm is not only a driver of growth but also competitiveness. Reliance Infocomm is revolutionizing telecommunication in India by provisioning services that would match with the leading operators of the most developed countries. These services are the outcome of state-of-the-art network technologies that have been inducted in the Reliance Infocomm network. Their network consists of the latest switching, transmission and access technologies. The core of the network consists of fiver deployed throughout the country. Deployed over the fiber media are the DWDM and SDH transmission technologies in ring topology to provide ultra-high bandwidth capacity and failure proof backbone. Beside circuit switched technologies, the backbone also has IP architecture and user MPLS technology to carry data on an overlay network. In addition gigabit Ethernet will provide broadband services on wireless access. The switching technology deployed in our network is based on a combination of wire line and wireless switches, While stat-of-the-art digital feature-rich wire line switches will meet the growing needs of Indian corporate the CDMA IX based wireless switches are advanced enough to provision not only quality spectrum efficient voice services but also 144 kbps of data rates besides SMS and MMS services CDMA IX provides an in-built connectivity to internet , which gives user the power technologies will enable us to provide high quality of voice and data services to give a new experience to user. Rational For demerger of Reliance infocom: SCHEME OF ARRANGEMENT Rationale for demerger as set forth in the Scheme of Arrangement with respect to Telecommunication Services Business of Reliance Industries Limited The business carried on by Reliance Industries Limited (the Ã¢â¬Å"Demerged CompanyÃ¢â¬ ) by itself and through its subsidiaries and affiliate companies and through strategic investments in the Telecommunication Undertaking, has significant potential for growth. The nature of risk and competition involved in each of the businesses undertaken by the Demerged Company, including the Telecommunication Undertaking, is distinct from others and consequently each business or undertaking is capable of attracting a different set of investors, strategic partners, lenders and other stakeholders. In order to enable distinct focus of investors to invest in some of the key businesses and to lend greater focus to the operation of each of its diverse businesses, the Demerged Company proposes to re-organize and segregate by way of a demerger, its business and undertakings engaged in wireless and wire line telecommunication services, which comprises the Telecommunication Undertaking. The Telecommunication Undertaking has tremendous growth and profitability potential and is at a stage where it requires focused leadership and management attention. Hence, simultaneously, with the re-organization and segregation of the business, the Demerged Company also intends to e-organize the management of the business and undertaking to provide focused management attention and leadership required by the business which is to be segregated and demerged. In particular, Anil D. Ambani, the erstwhile Vice Chairman Managing Director of the Demerged Company would take responsibility for providing such f ocused management attention and leadership to the Telecommunication Undertaking whereas Mukesh D. Ambani, Chairman Managing Director of the Demerged Company would continue to lead the businesses retained by the Demerged Company including, in particular petrochemicals, refining, oil and gas exploration and production, textiles and other businesses. Under the Scheme of Arrangement, the Demerged CompanyÃ¢â¬â¢s undertakings comprising its interests and strategic investments in the telecommunications business be segregated and demerged, pursuant to a Scheme of Arrangement under Sections 391 to 394 of the Act, and transferred to the Company for achieving independent focus in these areas. The Demerged Company will continue its interests in the businesses of petrochemicals, refining, oil and gas exploration and production and textiles and develop new areas in the economic development of the country. Clause 19 of the Scheme reads as under: Ã¢â¬Å"19. Agreements The Resulting Companies will have the right to use the Ã¢â¬Å"RelianceÃ¢â¬ brand and logo and suitable agreements will be entered into in this regard. Further, suitable arrangements would also be entered into in relation to (i) non-competition in relation to the businesses of the Demerged Undertakings and the Remaining Undertaking; (ii) supply of gas for power projects of Reliance Patalganga Power Limited and REL with the Gas Based Energy Resulting Company; and (iii) Transfer of leasehold rights of RIL to the relevant Resulting Company with respect to the relevant Demerged Undertaking. Ã¢â¬ Clause 12. 2 of the Scheme reads as under: |12. 2 |(a) |Pursuant to the provisions of Clause 12. 1 above, each of the Resulting Companies shall issue to the | | | |Depository representing the holders of GDRs of the Demerged Company, shares of the Resulting | | | |Companies in accordance with the relevant Share Entitlement Ratio. Subject to Clause (b) below, the | | | |Depository of the Demerged Company shall hold such shares of the Resulting Companies on behalf of the | | | |holders of GDRs of the Demerged Company; | | |(b) |(i) |Each of the Resulting Companies may, on or before expiry of 150 (One hundred and fifty) days from | | | |the Record Date, in consultation with the Depository for the GDR holders of the Demerged Company | | | |and by entering into appropriate agreements with the said Depository or any other Depository | | | |(appointed by the Resulting Companies) for the issuance of GDRs, (whether listed or otherwise), | | | |instruct such Depository to issue GDRs of the Resulting Companies, or any of them, to the holders of | | | |GDRs of the Demerged Company and any such issue of GDRs shall be irrevocably put in motion | | | |within the said period. Subject to sub-clause (ii) below, if the Resulting Companies have not had such | | | |GDRs issued as aforesaid, the Bank of New York as the Depository for the Demerged Company shall, | | | |without reference to the Resulting Companies, sell the shares of the Resulting Companies in the open | | | |domestic market and distribute the net sale proceeds to such GDR holders on a proportionate basis. | ii) Notwithstanding anything contained in sub-clause (i) above, any holder of GDRs of the Demerged Company may at anytime after the Record Date, but prior to the issuance of GDRs by a Resulting Company, instruct the Depository to transfer the underlying shares of such Resulting Company to such GDR holder. In such case, the relevant Resulting Company shall obtain such permissions as may be necessary. (c) The holders of GDRs of the Demerged Company who wish to directly receive shares of the Resulting Companies may surrender the GDRs of the Demerged Company held by them before the Record Date in exchange for shares of the Demerged Company. Such GDR holders holding shares of the Demerged Company on the Record Date shall then be entitled to rec eive shares of Resulting Companies in accordance with the Share Entitlement Ratio under Clause 12. 1 above. Approvals with respect to the Scheme of Arrangement The Honorable High Court of Judicature at Bombay, vide Orders dated December 9, 2005 have approved the Scheme of Arrangement amongst Reliance Industries Limited (Ã¢â¬Å"RILÃ¢â¬ ) and Reliance Communication Ventures Limited (Ã¢â¬Å"RCVLÃ¢â¬ ), Reliance Energy Ventures Limited, Global Fuel Management Services Limited (since named as Reliance Natural Resourcs Limited), and Reliance Capital Ventures Limited and their respective shareholders and creditors (the Ã¢â¬Å"SchemeÃ¢â¬ ) pursuant to this Scheme the investment held by RIL in Reliance Communications Infrastructure Limited, Reliance Telecom Limited, Reliance Infocomm Limited and WorldTel Holding Limited has been transferred to and vested in RCVL w. e. f. September 1, 2005 (i. e. the Appointed Date under the Scheme) under Section 391 to 394 of the Companies Act, 1956. In accordance with the said Scheme, the Equity shares of RCVL issued pursuant to the Scheme, subject to applicable regulations shall be listed and admitted to trading on the Bombay Stock Exchange Limited (Ã¢â¬Å"BSEÃ¢â¬ ) and the National Stock Exchange of India Limited (Ã¢â¬Å"NSEÃ¢â¬ ). Such listing and admission for trading is not automatic and will be subject to such other terms and conditions as may be prescribed by the Stock Exchanges at the time of application by RCVL seeking listing. The aforesaid Order of the Honorable High Court of Judicature at Bombay was filed by RIL and RCVL with the Registrar of Companies (Ã¢â¬Å"ROCÃ¢â¬ ), Maharashtra on December 21, 2005, which is the Effective Date of the Scheme. Subsequently, SEBI, vide its letter CFD/DIL/SC/58120/2006 dated January 19, 2006 has granted relaxation from the strict enforcement of the requirement of Rule 19(2)(b) of the Securities Contract Regulation (Rules), 1957 (SCRR) for the purpose of listing of shares of RCVL subject to the transferee company, viz. , RCVL, complying with all the provisions of Clause 8. 3. 5 of the SEBI (DIP) Guidelines, 2000. RCVL has submitted its Information Memorandum, containing information about itself, making disclosures in line with the disclosure requirement for public issues, as applicable, to BSE and NSE for making the said Information Memorandum available to public through their websites. This Information Memorandum is made available on the website of RCVL (www. rcovl. com), website of BSE (www. bseindia. com/ipo/schema. asp) and website of NSE (www. nseindia. com/content/equities/RCVLIM. pdf). RCVL will publish an advertisement in the newspapers containing its details in line with the details required as per clause 8. 3. 5. 4 of SEBI (DIP) Guidelines. The advertisement will draw a specific reference to the availability of this Information Memorandum on the website of RIL as well as the Stock Exchanges. RCVL also undertakes that all material information about itself shall be disclosed to stock exchanges on a continuous basis so as to make the same available to public, in addition to the requirements, if any, specified in Listing Agreement for disclosures about the subsidiaries. The entire network is seamlessly integrated with the deployment of a range of operations and business support systems (OSS / BSS). These systems help make our operations more efficient and customer friendly. In addition, the state-of-the-art NOC helps us monitor our entire network at one place. Call center technology deployed would help us give the best customer service. Finally, the most important aspects of our services are the range of feature rich CDMA IX handset with wider color display at attractive prices. All handsets are data enables that will permit users to access our bouquet of services [pic] [pic] Mr. Anil D. Ambani, 46, is the Chairman of Reliance Capital, Reliance Communications and Chairman Managing Director of Reliance Energy Limited. Till recently he also held the position of the Vice Chairman and Managing Director of Reliance Industries Limited. The Reliance group is Indias largest business house, founded by late Shri Dhirubhai H. Ambani (1932-2002). Mr. Anil D. Ambani is a Bachelor of Science from the University of Bombay and an MBA from The Wharton School, University of Pennsylvania, USA. He joined Reliance in 1983 as Co-Chief Executive Officer. He has to his credit many financial innovations in the Indian capital markets and has pioneered Indias first forays into the overseas capital markets with international public offerings of global depository receipts, convertibles and bonds. He has directed Reliance in its efforts to raise, since 1991, around US$2 billion from overseas financial markets; with the 100-year Yankee bond issue in January 1997 being the high point of his endeavors. He has steered the Reliance Group to its current status as Indias leading textiles, petroleum, petrochemicals, power and telecom player. He is a Member of the Wharton Board of Overseers, The Wharton School, USA. Education : Bachelor of Science, University of Bombay MBA from The Wharton School, University of Pennsylvania, USA Career : Joined Reliance in 1983, as Co-Chief Executive Officer. Has to his credit many financial innovations in the Indian capital markets. Pioneered Indias first forays into overseas capital markets with international public offerings of global depository receipts, convertibles and bonds. Directed Reliance in its efforts to raise, since 1991, around US$ 2 billion from overseas financial markets; with the 100-year Yankee bond issue in January 1997 being the high point of his endeavors. With an investment of over Rs 36,000 crore (US$ 9 billion) in petroleum refining, petrochemicals, power generation, telecommunication services and a port terminal, in a three-year time frame, he has steered the Reliance Group to its current status as Indias leading textiles-petroleum-petrochemicals-power-infocom-telecom player. Member : Wharton Board of Overseers, The Wharton School, USA Central Advisory Committee, Central Electricity Regulatory Commission Board of Governors, Indian Institute of Management, Ahmedabad Board of Governors of Indian Institute of Technology, Kanpur Achievements : Adjudged as the CEO of the Year at the prestigious Platts Global Energy Awards for 2004. Voted as Indias most admired Chief Executive for the year 2004, for the sixth year in succession, in the Business Barons (Indias leading business magazine) Taylor Nelson Sofres Mode Survey; and ranked at the top in 3 out of 4 qualities: leadership, integrity and vision. Ranked No. 1 for the second consecutive year in The Power List 2004, published by India Today, March 2004. Voted MTV Youth Icon of the Year in September 2003. Conferred The Entrepreneur of the Decade Award by the Bombay Management Association in October 2002. Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas in December 2001 Named amongst The Power 50 Indias 50 most powerful decision-makers in Politics, Business Finance by Business Barons in August 1999 Selected by Asia week magazine for its list of Leaders of the Millennium in Business and Finance and was introduced as the only new hero in Business and Finance from India in June 1999. Leading business magazine Business Barons included him in its list of Indias 25 Most Influential Business and Financial Leaders in June 1998. Conferred the Businessman of the Year 1997 award by Indias leading business magazine Business India in December 1997. His Inspiration The strongest influence in Anils life is his father, Shri Dhirubhai Ambani. Here are a few quotes from the legend himself. Give the youth a proper environment. Motivate them. Extend them the support they need. Each of them have infinite source of energy. They will deliver. Growth has no limit at Reliance. I keep revising my vision. Only when you dream it you can do it. Anil Ambani creates new Reliance1 identity ANIL Dhirubhai Ambani Group embarked on a new corporate identity with its Chairman terming the new logo and look as a leap forward to reflect the spirit of new resurgent India. Addressing the groups employees through a web cast on the eve of the launch of the new logo and unveiling of new corporate entity, an exercise that may see a spending of over Rs 400 crore, ADAG Chief Anil Ambani said: Our new corporate colors blue and red convey values of integrity, confidence, energy and passion. Our new symbol, Reliance Apex, is an embodiment of hope, optimism and success, he said. The new identity for the third largest group in India came in less than a year of ownership settlement in Reliance empire between Anil and elder brother Mukesh on June 18, 2005 through an intervention by mother Kokilaben First Dhirubhai Ambani Memorial Lecture July 6, 2003 Good afternoon, youÃ¢â¬â¢re Excellency, the President of India, Dr. Abdul Kalam, other distinguished speakers, ladies and gentlemen. It is not without reason that people across the length and breadth of this country yearn to hear you speak, your Excellency. One, of course, is the singular honors of being in the presence of the President of India. But even more so, as we have all experienced here today, it is because of what your Excellency says and the manner in which you say it. The Reliance family is deeply honored that you have graced an occasion, which for all of us will always be cherished. Your presence here has filled us with great pride and contributed to our immense learning. I am also thankful to Shri Amitabh Bachchan, Shri Chhagan Bhujbal, Dr. Murli Manohar Joshi, Shri Narendra Modi, Shri Sushil Kumar Shinde, Shri Arun Shourie, Shri Digvijay Singh, Dr. Manmohan Singh and Shri Mulayam Singh Yadav for being present with us here today in remembrance of Dhirubhai. With your permission, your Excellency I would like to narrate in all humility a small incident that took place just over a year ago. And that had a deep impact on me. This event was known only to Papa, you, your Excellency, Mukesh and I. And it occurred at a time when your Excellencys name had just been announced as a candidate for the office of President. I vividly remember it was Sunday, 23rd of June 2002. I was going to Hyderabad to attend the first convocation of the Indian School of Business. Your Excellency was the Chief Guest. As always before I left Mumbai, that morning, I went to meet papa and I told him I would be meeting with your Excellency and it would be nice if he wished you on the phone while I was with you, he of course, very readily agreed. When I met your Excellency in Hyderabad after the convocation ceremony was over, I requested you to spare a moment to speak to my father on the phone. You very graciously agreed and I got my father on the line. I thought to myself it would be a brief call, where you would speak to papa for perhaps a minute simply accepting his greetings. After all that is how these calls usually are. When two people who have never ever met before, speak on the phone without any agenda. But as I watched the call went on for a minute, two minutes, five minutes, ten minutes, nearly fifteen minutes! I was amazed. I asked your Excellency, what papa had discussed with you. You gave me a very thoughtful smile and only said, Mr. Anil, you are a very lucky person. Your father is a great man. You were also kind enough to communicate that when you assumed office as President, papa was amongst the first people you would like to invite to meet with you in Delhi. On my journey back to Mumbai, that evening I kept w ondering, what papa could have said to you, which had made such an impact? When I reached home, I went straight to papas room and asked him what he had discussed with you for nearly fifteen minutes. He said, in his characteristic fashion, with a wave of his hand, I spoke to Dr. Kalam of all the things which concern India. I said to him let us do everything we can to make India one of the worlds leading economic superpowers. Let us link up all the rivers in this country to provide water to all. Let us use our huge stocks of food grains to feed millions of hungry people. Let us ensure high quality education for our children. Let us create millions of jobs for our youth. And let us make our country a land of plenty. These are the kinds of the goals we must achieve in our lifetime. That was the kind of man, papa was, your Excellency. He did not have the benefit of a formal education himself. But he was able to strike an instant chord that too on a brief phone call with an eminently learned person like you, your Excellency. Someone he had never even met before! He was looking forward to meeting you in person. Your Excellency but fate intervened. Within the next 24 hours he was to fall ill. And just two weeks later he departed for his heavenly abode. That conversation he had with you, your Excellency was in fact his last such conversation with any eminent public figure. This is what we all miss so much about you today papa! Your big ideas, your inspiring thoughts, your enthusiasm, your passion, your warmth, your simplicity, your humility, your sincerity. Your ability to give endlessly of yourself to others with not a thought to yourself. We miss your guiding hand papa. We will miss your loving nature. And, we always will. Thank you, Ladies and Gentlemen Chairman message on launch of our new corporate identity May 27, 2006 5pm Dear Colleagues, Today, is a special moment in the life of Reliance Anil Dhirubhai Ambani Group. It is a day when we take yet another leap forward in our long and exciting journey of learning and growing togetherÃ¢â¬ ¦ Today, the entire family of the Reliance ADA Group, cutting across the length and breadth of our vast country, comes together to celebrate a unique moment Ã¢â¬â the launch of our new corporate identity. It is an occasion to remind ourselves, once again, of who we are, what we stand for, and what we aim to achieve in the days and years aheadÃ¢â¬ ¦ It is a coming of age for our young family. Today is momentous in other ways too. It is a time of great transition in the life of our nation Ã¢â¬â a time when India is undergoing rapid transformation. This change is not just about our physical environment, it is not just about technologyÃ¢â¬ ¦ This change goes deep within Ã¢â¬â it is a change in attitude, in mindset, in belief, in dreams, hopes and expectationsÃ¢â¬ ¦ Today, we live in a world where the challenge is not merely to meet basic human needs, but to match and exceed rising human aspirationsÃ¢â¬ ¦ Ã It is a world which is reaching higher, dreaming bigger, and demanding more; A world that is pushing the boundaries of hope, challenging the limits of possibilityÃ¢â¬ ¦ Nowhere is this change more dramatically evident than in India Ã¢â¬â a country that wakes up every morning, a little younger in age, and infinitely more ambitious in spirit. New India shows the impatience of youth; the desire for real and rapid transformation Ã¢â¬â for world-class products and services, for a quality of life that is second to noneÃ¢â¬ ¦ Reliance ADA group embodies the spirit of this new resurgent India. Our goal is not just to build a great enterprise for our stakeholders, but, more importantly, a great future for our country, to give millions of young Indians the means to fulfill their dreams, the power to shape their own destiny, and to realize their true and diverse potentialÃ¢â¬ ¦ Communications. Energy. Entertainment. Financial Services. Healthcare. Infrastructure. Media and more Ã¢â¬â our businesses span the entire landscape of emerging human aspirations. Our new corporate identity reflects this belief and commitment Ã¢â¬â to give shape and direction to the consumerÃ¢â¬â¢s fast growing aspirations for a better life. Our new corporate colors Blue and Red convey values of integrity, confidence, energy and passion. Our new symbol, Reliance Apex, is an embodiment of hope, optimism and success. It represents the human urge for progress, the desire to reach higher, the will to succeed, the resolve to shape a better futureÃ¢â¬ ¦ The Reliance typeface is a unique combination of upper and lower case characters, representing our essential openness and accessibilityÃ¢â¬ ¦ Our multi dimensional look conveys our deepest appreciation for the rich diversity of human life and aspirations Ã¢â¬â the unifying basis for our varied business interestsÃ¢â¬ ¦ Our new identity is our common inspiration and binding forceÃ¢â¬ ¦it expresses our commitment to bridge the gap between quality and quantity; to leverage our strength in managing large-scale operations even as we create best-of-class products and services. It depicts our resolve to surpass the rising expectations of our young consumers. This is New RelianceÃ¢â¬ ¦ The New Reliance for the New WorldÃ¢â¬ ¦ It is a fundamental change in the way we relate to ourselves, to the world, and to one anotherÃ¢â¬ ¦ It is a change in the way we work, the way we respond to stakeholders, the way we look at competitionÃ¢â¬ ¦ The success of this process requires us to look at ourselves not as individuals with limited roles and responsibilities, but as members of one team, one family, one collectivity Ã¢â¬â in one word, to work not as mere employees but as