Indian companies have been procuring high-value equipment in power, telecom and manufacturing sectors at competitive prices, and are now even raising commercial loans at favorable rates in China.
It was cut off for a while, but then private mobile companies moved in and found that the collapsed state provided a curious competitive advantage.No government means no state telecoms company to worry about, no corrupt ministry officials to pay off (there is no ministry), and the freedom to choose the best-value equipment.
We valued equipment using the WHO-CHOICE estimates on price (2009 international dollars) [ 24].
Equipment billings, a measure of the value of equipment accepted by customers and booked as revenue, was $1.05 billion in October, up 1percentt above the September level of $1.04 billion and up 18percentt from the $896 million posted a year earlier, the report said.
Companies get less value from equipment than real estate because, unlike real estate, equipment depreciates over time, and lenders tend to value it at what is known as forced liquidation value, a lowball price based on what it would fetch at auction.
Each of its planes contains about 40% by value of equipment imported from America.
This package forces the company to make assumptions -- essentially, educated guesses -- as to the comparative value of equipment sales and maintenance contracts.
The distinction is highly significant in dollar terms because changes in technology often lead to severe decreases in the value of equipment over time.
It had a loss of $498 million after $1.2 billion in costs for writing down the value of equipment it will not use.
"We know how to value critical equipment, such as copiers or cars, for resale", says Rich Laxer, head of GE Capital's business in Europe.
