TELECOM SECTOR
Airtel, Jio help telecom industry record 3.87% sequential growth in AGR in last quarter of FY24 to Rs 70,462 cr
The telecom industry saw a 3.87% sequential growth in adjusted gross revenue in the last quarter of FY24, driven by Airtel and Reliance Jio. Vodafone Idea and BSNL faced declines in mobile services AGR. Private telecom operators raised headline rates, leading to increased revenue. The Department of Telecommunications reported higher licence fee and spectrum usage charge collections. Broadband subscribers increased to 924.07 million, with wireless Arpu at Rs 153.54. Overall sectoral minutes of consumption and telephone subscribers also showed growth.
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 tariff hike: Govt, regulator won't intervene in matter
The government and the telecom regulator do not plan to intervene in telecom companies' decisions to raise prices, stating that tariffs in India remain among the lowest globally. Authorities, however, want the companies to enhance the quality of services.
Rahul Shah on 2 stocks that can be continuous compounder for next 2-3 years
They are still invested and their thought is that India will continue to do well and so they think that I think the banking which has been in terms of valuation cheaper than vis-a-vis a lot of other sectors and sector has been underperformer except for PSU banks.
India best emerging market story; haven't ever seen valuations and fundamentals so attractive: Mihir Vora
The US economy has been much better than expected. It has been stronger for longer and of course, then it also translates to higher interest rates for longer, probably, but the fact is that the US economy is doing quite well.
Reliance Jio takes the lead, hikes tariff by 12-25 per cent; Airtel & Vi likely to follow suit
Mobile phone bills are set to increase as Reliance Jio Infocomm announced a 12-25% hike in tariffs starting July 3. This marks the first major rate increase by a telecom company since 2021. Bharti Airtel and Vodafone Idea are expected to follow suit. The hike aims to boost average revenue per user (ARPU) in light of significant 5G investments. Jio’s rate hikes will affect most plans, but not JioBharat or JioPhone users.
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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 could help telcos see through 5G, infra spends...
Recent tariff hikes by telcos aim to boost ARPU, improve financial performance, and support tower installations for 5G rollouts. The industry seeks increased cash flows through regular tariff revisions to justify investments in new technologies like 5G.
Extent and frequency of tariff revisions crucial for financial health of telcos
Following the increase in tariffs, the stock of Reliance Industries rose by 2.3% on Friday to close at Rs 3,131.9. On the other hand, stocks of Bharti Airtel and VIL were under pressure, falling by 1.8% to Rs 1,445.4 and by 3.4% to Rs 17.9 in that order amid profit booking after a recent surge in their prices.
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.
Rate hikes for 5G monetisation to push Jio, Airtel ARPU by 16-17% - Analysts
Reliance Jio emphasizes 5G monetization and premium plans, focusing on ARPU growth. With new tariff plans boosting prices, the telco aims for strategic revenue enhancement. Balancing subscriber additions and network monetization, Jio navigates the evolving telecom landscape with confidence, while industry competition and market dynamics drive further strategic decisions.
Hold on to M&M; wait for the split in Tata Motors: Nischal Maheshwari
Cement sector consolidation will help in creating efficiency and sustainability. Stable prices despite inflation as the industry transitions to green cement. Key players are expanding capacity for future market dominance, focusing on EBITDA growth and improved financial performance. In auto, M&M in your portfolio, hold on, there is no hurry to take away profits from there, but Tata Motors should be looked at, says Nischal Maheshwari
Be cautious in power stocks; take some money off PSU banks: Nischal Maheshwari
There has been over-exuberance in the power sector. Whether it is the equipment, the supplying company, whether it is the generation guys, all have done well in the last year. So, Centrum Broking's Nischal Maheshwari recommends caution on the whole sector per se and says one should be very stock-specific.
Telcos bid for 5G worth ₹11,000 crore on first day of India's second spectrum sale
All three private carriers — Reliance Jio, Bharti Airtel and Vodafone Idea – are believed to have bid for sub-GHz (900 MHz) and select mid-band airwaves (1800 MHz, 2100 MHz) as they look to bolster their respective 5G spectrum holdings. High-band 5G airwaves in the 26 GHz band appear to have been given a miss on the opening day of the airwaves sale. In this year’s auction, the government has put 10.5 GHz of 5G spectrum in eight bands — 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3.3 GHz and 26 GHz — worth around Rs 96,238.45 crore at reserve prices on sale.
5G wave spectrum sale kicks off today
Private sector telecom operators Reliance Jio, Bharti Airtel, and Vodafone Idea are set to compete for 5G airwaves worth about ₹96,320 crore in India's latest spectrum auction. The sale, expected to conclude soon, may see muted bidding with lower proceeds compared to the previous auction in 2022.
Trai invites views on norm for transferring ownership of machine-to-machine SIMs
The telecom regulator, Trai, is seeking industry views on allowing critical M2M communication services on unlicensed airwaves. It has identified 20 critical M2M services, including those for connected & autonomous vehicles, remote surgery, and smart grid operations.
Government can take control of all telecom networks in times of emergency under new Telecom Act
The Telecommunications Act will establish Digital Bharat Nidhi for funding research and development instead of just supporting rural telecom services. It supersedes existing telecom rules under the Indian Telegraph Act, 1885, and the Wireless Telegraphy Act (1933).
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.
Telecom sector revenue surges 87% to Rs 2.4 lk cr in FY24: Report
Telecom sector revenue in FY24 reached Rs 2,39,900 crore ($29 billion), an 87% increase from its FY19 low following Reliance Jio's market entry and about 40% higher than FY16 figures, according to a CLSA report. This surge reflects the continuing subscriber gains by Jio and Airtel at Vodafone Idea's expense, with Jio and Airtel now controlling 78% of the sector's revenue combined, a figure CLSA expects to rise to 83% by FY26.
WhatsApp business calling service won't disrupt traditional toll-free channels: Experts
WhatsApp's recent introduction of calling features for businesses is not expected to significantly impact traditional telecom voice calling. Experts in the communications sector believe it will focus on "contextual calling" rather than disrupting toll-free customer service lines used by large enterprises.
TRAI broadens scope of telecom consumer education fund
The Telecom Regulatory Authority of India (Trai) on Friday amended regulations 6 and 13 of the Telecommunication Consumers Education and Protection Fund (TCEPF) principal rules to enable utilisation of the fund for expenses relating to preparation, maintenance, audit of accounts, and for the participation of representatives of consumer groups attending meetings of the Committee for Utilisation of Telecommunication Consumers Education & Protection Fund (CUTCEF).
Trai meets BFSI regulators, companies to use 160 series for voice calls
The telecom regulator has collaborated with financial sector regulators and top banks to discuss the efficient use and implementation of the newly allocated 160-series numbering series for transactional and service calls. This series aims to reduce pesky calls and prevent fraud by providing easy identification of the calling entity. Entities regulated by RBI, SEBI, IRDAI, and PFRDA will use the 160-series, with central and state government entities using 1600ABCXXX and financial entities using 1601ABCXXX. Additionally, measures like migrating the 140 series to the DLT platform and implementing digital consent scrubbing are expected to control spam calls from 10-digit numbers.
Jyotiraditya Scindia is new telecom minister
Jyotiraditya Scindia, the Minister of Communications in the Modi Cabinet 3.0, faces key challenges in overseeing the 5G spectrum auction, ensuring the survival of Vodafone Idea, and implementing new telecom rules. His role also involves making decisions on satellite spectrum usage and improving the quality of telecom services for consumers. Scindia's return to the Cabinet marks a significant political journey from the Congress to the BJP, highlighting his academic background and past political affiliations.
Modi 3.0: Industry seeks roadmap to cement India's lead in global digital arena, vows support
The Digital Infrastructure Providers Association (DIPA) has expressed full support for India's digital and telecom transformation under the new government, emphasising the need for a clear roadmap to solidify the country's leadership in digital infrastructure. DIPA highlighted the success of initiatives like Digital India and PM WiFi Access Network in enabling broad digital adoption, with Director General Tilak Raj Dua stressing the industry's readiness to collaborate with the government.
Trai reviewing norms for inactive landline and mobile connections, seeks feedback
The telecom regulator is seeking input on defining inactive landline and mobile connections as part of a discussion paper for a revised national numbering plan. It also seeks industry suggestions on reusing numbering resources from inactive connections.
Airtel, Jio free cash flow seen rising amid falling capex spends, growing ARPU
Analysts predict Bharti Airtel's and Reliance Jio's free cash flows to rise in FY26, reaching approximately Rs 56,000 crore and Rs 38,500 crore, respectively. This growth stems from reduced capital expenditures and higher average revenue per user (ARPU). Both telcos expect a surge in ARPU driven by tariff hikes and increased data usage amid 5G deployments
5G spectrum auction put off again till June 25
This is the second time the spectrum sale has been pushed back. It was originally scheduled on May 20, and was initially deferred to June 6, in the wake of the general elections. Now, mock auctions will be conducted on June 13 and 14, the DoT said in its official notification amending the auction rules. This time round, 5G airwaves in eight bands — the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3.3 GHz and 26 GHz bands — worth over Rs 96,000 crore at base prices, will be on sale.
Telecom sector at an inflection point, outlook stable for FY25: Ind-Ra
The ratings firm added that the Indian telecom industry was at an inflection point in fiscal 2024 with their investments in 5G networks and spectrum renewal having peaked to almost $20 billion. Thereafter, telcos would keep their investments subdued while possibility of tariff increase remains uncertain.
Vi's Rs 18,000-cr fundraise will increase competition, but it's good for Indian telecom, says Airtel's Gopal Vittal
The Airtel managing director said that the telecom industry urgently needs substantial tariff repair, ideally via multiple rounds of price hikes to boost average revenue per user (ARPU) to the Rs 300 level as the current returns are way too low.
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