A Magnetic field around the Telecom Companies

At a time when most of the sectors are reeling under the recessionary pressure around the globe, there are very few industries which seem to be sustaining their growth in comparison to others. One amongst very few sectors is the telecom industry which has stood apart from the other industries amidst the global economic meltdown. The sector has witnessed robust growth due to the nature of the products made available by the companies which have been witnessing increasing demand y-o-y.

Indian telecom sector too, has been growing at a brisk rate during a period when most of the companies in the world are filing under Chapter 11. India added 113.26 million new customers in 2008 which is the largest globally. The revenue from India's telecom industry is projected to reach USD 43 billion in 2009-10 and USD 54 billion in 2012 from USD 31 billion in 2008.

Owing to the sustained upbeat progress, the companies in this arena have been open to sponsoring sports in particular, cricket, rugby and football for many teams in the countries like India, South Africa, England and Australia. The corporates undertake this as a part of exercising brand visibility, building on the customer loyalty and an avenue to earn revenues. This trend has been followed by many Telecom companies round the globe and it has assumed tremendous velocity since recent times. 

Since companies in many sectors are cash strapped, even the sporting associations and teams have been focusing on tapping the telecom companies for sponsorships. Sporting events too, since recent times, have attracted and given out huge bucks which make it a win – win situation at both the ends.

Since the past two years, Indian sport, especially cricket, has been attracting sponsorship from many telecom companies. Cricket is considered as a religion in India and the hype that it has created since recent years coupled with the acceptance of the game among the masses has attracted many companies to invest in this big extravaganza. Cricket is a valued proposition of business for many and this business potential is being tapped by the telecom companies at a much quicker rate. The trend is witnessing an upswing since the return on investment for these companies is huge. 

The outlook of this sector seems to be bullish in India and is forecasted to remain buoyant during the bleak period and even in the years to follow. It is a ray of hope of lucrative business opportunities for the telecom companies in this precarious scenario and the trend will remain persistent or may even go further in the years to come.