Analysts do give a company sometime before they react on recommending a stock and the amount of time Tata Communications got was more than anybody expected. What is really commendable is the report released by HSBC Telecom Analysts – Sharma and Grinnan who have openly expressed their views against Tata Communications WiMax Broadband.
The authors say,
We have a sceptical view on WiMax, especially as an effective solution for retail broadband. Furthermore, the recently announced broadband policy is ambiguous and near-term release of broadband spectrum looks unlikely. In our view, WiMax faces a variety of technical challenges, including global spectrum fragmentation, performance issues relating to TDD operation, technical power management and sub-optimal mobility and voice support. Given this, we believe raising finance to fund WiMax initiatives would lead to value destruction.
It is only now that the management really wakes up to fix issues as Investors began to question them. E-Mail sent to Tata Communications went unanswered [Thanks to Google Apps, I still have the mail in my archive]. Maybe with the departure of laidback President [Broadband & Retail] Shankar M. Prasad, services will improve in the company. Also, WiMax as a technology is yet to mature and deliver its best, hopefully it will.
Any idea as to where Shankar is currently headed. I am a long lost friend of his and have lost touch. Is there any chance that I can get the contact details.