Hello Elisse,
I hope this email finds you well.
Here is my report for our client company: Company X regarding whether they should expand their
product offerings to include handset leasing. My recommendation is that they should proceed with
investing in handset leasing because it will increase EBIDTA margin on an average by about 2.5
percentage points in a year.
Below are the reasons why I recommend this move:
Leasing is a concept familiar to many people as a result of its widespread use in industries such as
automobiles and consumer products.
In the telecom industry leasing has been available for expensive equipment to enterprise and
business clients for many years, but the concept of offering leased handsets to consumers is
relatively new.
Current Growth Scenario and Future:
India is currently the world’s second-largest telecommunications market with a subscriber base of
1.20 billion and has registered strong growth in the past decade and half. Total telephone subscriber
base and tele-density reached 1,195.24 million and 90.52 per cent, respectively, at the end of
September 2019.Gross revenue of the telecom sector stood at Rs 61,535 crore (US$ 8.93 billion)
