TELECOM RIVALS
Airtel and Jio expected to log steady growth, Vi may falter
Reliance Jio and Bharti Airtel are expected to show steady growth in the June quarter, driven by strong broadband user additions, while Vodafone Idea (Vi) is likely to experience a dip in revenue due to ongoing customer losses. Airtel is anticipated to outperform Jio in terms of average revenue per user (ARPU) due to 2G-to-4G conversions and rising postpaid adoption. Vi's ARPU is expected to remain stagnant amidst limited 4G user gains.
Telecom competition takes a breather, may recharge Vodafone Idea
Voda Idea's financial health is expected to improve with a projected increase in ARPU, revenue growth, and a slowdown in market share loss after the tariff hike. Vi is seeking external debt funding to bolster network expansion and 5G rollout after a recent capital raise.
Spectrum auction: DoT to issue demand note to Airtel, Vodafone Idea and Jio this week for payment
Telcos receive a demand note for spectrum payment this week after the two-day auction. Airtel led the bidding, with Reliance Jio and Vodafone Idea also participating. The note outlines upfront or instalment payment options, due within ten days.
After Jio, Airtel and Vi answer revenue call, dial up tariffs
While Airtel and Jio - which dominate the market - say they need to improve returns after paying high prices for 5G airwaves in 2022, Vi is looking to back up its recent ₹23,000 crore equity fundraising efforts as it strives to become more competitive, stem user losses and repair a stressed balance sheet to pay vendors and statutory dues. Analysts said the three telcos will see a 13-17% rise in ARPU with the main effect being felt in second and third quarters of this fiscal year.
Tariff hikes signal better profitability for telecom industry going forward: ICRA
Bharti Airtel and Reliance Jio announced significant tariff hikes, impacting consumers. The industry is set to experience improved financial metrics and operating profits, allowing for deleveraging and funding capex. ICRA forecasts strong industry revenue growth and debt level moderation, with expectations of enhanced Return on Capital Employed for FY2025.
ET Explains: All about vRAN and what it means for Vi
Vodafone Idea (Vi) has completed trials using Samsung's virtualised RAN (vRAN) technology, which is expected to bring substantial cost savings to the telco compared to legacy hardware infrastructure. vRAN is a technology that allows for the complete running of baseband functions as software on commonly available hardware, reducing server or processor capacity at sites. It also allows for the centralisation of some processing functions to local nodes, reducing server or processor capacity at sites.
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5G spectrum auctions: Bharti Airtel likely largest bidder, govt mops up around Rs 11,300 crore
India's second 5G spectrum auction concluded around Wednesday noon after seven rounds, lasting just over a day, with the government collecting approximately Rs 11,300 crore. Bharti Airtel is likely the largest bidder, acquiring airwaves in the sub-GHz 900 MHz band as well as in the 1800 and 2100 MHz bands. Market leader Reliance Jio likely bought 5G bandwidth in the 1800 MHz band.
Vodafone Idea acquires Rs 3,510 crore worth of airwaves in 11 circles
India's Vodafone Idea has spent Rs 3,510 crore to acquire 50MHz of spectrum in 11 circles, strengthening its 4G portfolio and launching 5G services. The acquisition will enable the use of dedicated sub-GHz spectrum for advanced technologies and customer experience. Vodafone Idea has also held 5G trials in three network circles using Samsung's virtual Radio Access Network (vRAN) solutions.
US probing China Telecom, China Mobile over internet, cloud risks
The Biden administration is investigating China Mobile, China Telecom, and China Unicom over concerns they could misuse access to American data through their U.S. cloud and internet services by sharing it with Beijing. The Commerce Department is leading the probe, which has completed "risk-based analyses" of China Mobile and China Telecom. These companies, despite being barred from providing certain services, still offer cloud and internet routing services in the U.S., posing potential national security risks. The investigation aims to close any remaining avenues for Chinese firms to access U.S. data, amid ongoing tech tensions.
Vi completes minimum 5G rollout requirements
Vodafone Idea (Vi) has announced completion of its Minimum Rollout Obligations (MRO) across all 17 circles where it acquired 5G spectrum in August 2022. This step is essential for commencing 5G services, although Vi has yet to announce detailed rollout plans due to financial constraints. Unlike its competitors Reliance Jio and Bharti Airtel, which have almost completed nationwide 5G rollouts, Vi plans to gradually expand its network starting with equipment orders to vendors like Nokia and Ericsson.
Buoyed by ₹18,000 crore fund-raise, Vi beefs up 4G coverage, network in UP, Uttarakhand
The company plans to add a 900 MHz band layer, which will significantly enhance indoor network experience for its customers in the two circles. “The deployment of L900 coverage will be beneficial in urban areas with dense building infrastructure, as well as suburban and rural areas where signal penetration is a challenge,” Vi said in a statement Thursday.
Telco revenues surged to Rs 2.3 lakh crore in FY24: CLSA
The Indian telecom industry's gross revenue surged 87% to Rs 2.39 lakh crore in FY24, driven by the launch of services by Reliance Jio. Jio and Bharti Airtel gained subscribers at the expense of Vodafone Idea. The two top telcos now control 78% of sectoral revenue, expected to rise to 83% by FY26. Vi's revenue market share fell to 15.7%, while Airtel and Jio saw revenue growth, with Jio leading at 41.4% RMS.
Jio outpaces Airtel in 4G/5G user additions during April
Active, or visitor location register (VLR) data put out every month by Trai indicates the number of mobile users regularly using a mobile network. As a result, Jio’s active user base jumped to 433.42 million users, while Airtel and Vodafone Idea’s active user base declined to 383.32 million and 192.64 million users respectively.
Telecom industry AGR in FYQ4 grew 1.9% on-quarter, Airtel narrows RMS gap with Jio: ICICI Securities
The report said that Bharti Airtel has been continuously narrowing its market share gap with Reliance Jio. Bharti Airtel’s revenue market share rose to 37.9%, up 35 basis points (bps) sequentially and 139 bps on year, in the fiscal fourth quarter. This compared with Reliance Jio’s AGR of 42.1% in FYQ4, up 3 bps and 49 bps on year.
Telcos now targeting T20 cricket world cup to boost data usage, ARPU
Telecom companies are capitalizing on the cricket fever post IPL by launching low-priced data packs and bundled subscriptions for the upcoming World Cup to boost data usage and revenue per user.
RIL's Mukesh Ambani set for African safari with 5G tech solutions
Radisys, a company owned by RIL's subsidiary Jio Platforms Ltd (JPL), is collaborating with Tech Mahindra and Finland's Nokia, to team up with Next-Gen Infrastructure Co. (NGIC). NGIC, in which the Ghanaian government, Ascend Digital, and K-Net have equity stakes, is positioned as the first neutral 5G shared infrastructure provider in Africa. The company's initial focus will be on offering 4G and 5G network support in Ghana before expanding its services across the continent.
Ratan Tata was unfazed even in the face of death; AIRCEL founder C Sivasankaran reveals how he & Tata had a near death experience
In a podcast titled 'Figuring Out With Raj Shamani', C Sivasankaran, the founder of Aircel, shared a harrowing experience when he and the former chairman of Tata & Sons faced a life-threatening situation. During a flight from Singapore to Seychelles, they received alarming news: one of the plane's engines had failed. A secretary from Tata disclosed that if the second engine also failed, the plane could crash within 30 minutes.
Vi fundraising may not click until new govt comes online
Vi’s lenders are seeking clarity on future equity conversions by the government, as well as the outcome of the telco’s curative plea in Supreme Court over an earlier order on its arrears based on adjusted gross revenue. These issues, according to bankers, will ultimately determine the cash-strapped company’s future regulatory payment obligations, especially after the moratorium on the payment ends next year.
Bidding wars back? Reliance Jio move signals a spectrum of possibilities
Mukesh Ambani's Reliance Jio leads with a Rs 3,000 crore deposit for the June spectrum auction, while Airtel and Vi follow with Rs 1,050 crore and Rs 300 crore, respectively. Despite no license renewals, Jio's hefty deposit earns it top eligibility points. The auction targets Rs 96,317.65 crore in 5G airwaves.
Airtel to deploy FWA on SA network, full scale impact likely in FY2Q: Gopal Vittal
Bharti Airtel is deploying fixed wireless access (FWA) services in 25 cities. The full-scale impact is anticipated in the second quarter, crucial for 5G monetization and follows a standalone architecture approach like Reliance Jio.
Your phone bill could rise by up to 25% post election
The report said while the quantum of hike may appear large, it should be manageable for both urban and rural users, especially as data usage is sticky. For urban households, subscribers' spending on telecom would go up to 3.6% of total expenditure from 3.2%, it said, while for rural subscribers spending would increase to 5.9% from 5.2%.
Vodafone Idea cash Ebitda seen growing 32% CAGR during FY24-28
Analysts predict Vodafone Idea's cash EBITDA to grow at a 32% compounded annual rate from FY24-28, aided by customer additions and average revenue per user (ARPU) growth driven by potential tariff increases. Following a targeted fundraise of Rs 45,000 crore, Vi is expected to achieve around 3.3% and 10% compounded annual growth in customer additions and ARPU respectively over FY24-28. However, caution is advised as Vi may need to provide about Rs 22,000 crore in bank guarantees to the government post the completion of the payment moratorium on regulatory payouts in September 2025.
Vi expects to clear all vendor dues in FY26, say analysts
According to Vodafone Idea management, proceeds from Rs 18,000 crore FPO and proposed Rs 25,000 crore debt funding would enable telco to also upgrade network, say analysts.
MNP number shows competition intense as Jio, Airtel fight for Vi users
Telecom companies compete fiercely for market share. Vodafone Idea struggles without 5G. Airtel and Jio focus on service quality and rural expansion. Broadband users increase, with Jio leading the growth.
Top Indian fund bullish on telecom stocks amid tariff hike bet
Mukesh Ambani’s Jio disrupted the market in 2016 with cheap 4G data services, sparking a price war that reshaped the sector into a near-duopoly dominated by Jio and Bharti. Average revenue per user plunged, burdening telecom operators with massive debts.
Vi 2.0: Vodafone Idea's Rs 18,000 crore fundraise a 'fresh lease of life', says Kumar Mangalam Birla
Aditya Birla Group chairman Kumar Mangalam Birla expressed optimism about Vodafone Idea's future after the company raised Rs 18,000 crore. Birla called it a "fresh lease of life" for the telco, which has been facing challenges from competitors like Reliance Jio and Bharti Airtel. The funds will be used to improve the network, densify it, and selectively introduce 5G services, marking the beginning of 'Vi 2.0'. The company's overall debt now stands at Rs 4,000 crore, which Birla considers low.
FPO to put Voda Idea on growth path: SBI chairman
SBI chairman Khara credited Vi's FPO success to Birla's leadership, highlighting the telco's funding programs and competition goals. The retail investor trust in the Aditya Birla Group reflects confidence in Vi's future growth in the telecom sector.
Three pvt telecom operators ideal for India: Sunil Mittal
A market with three private telecom companies is optimal for India, Bharti Enterprises chairman Sunil Mittal said on Thursday as debt-laden Vodafone Idea (Vi) got a financial lifeline allaying fears of a duopoly in the telecom sector. "My position has been consistent that three private operators are ideal for India," Mittal told ET. His comments come in the backdrop of Vi moving to secure its much-delayed funding.
A laggard is trying to gallop into two-horse telecom race
India's telecommunications industry is primarily dominated by Bharti Airtel and Reliance Jio, with Vodafone Idea (Vi) striving to catch up. Vi has initiated a fund infusion plan, starting with a preferential share issue to raise Rs 2,075 crore from an Aditya Birla Group entity, essential for its financial revitalization. Vi aims to raise a total of Rs 45,000 crore through a combination of equity and debt, offering a glimmer of hope for the struggling telco
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