TELECOM SECTOR LEADER
Tariff hikes, 5G monetisation moves hint Jio’s headed for IPO
Reliance Jio Infocomm is raising tariffs and monetising its 5G business, potentially leading to an IPO next year, with clarity expected at Reliance Industries' AGM. Valued at $133 billion, it could be India's largest IPO. Improved ARPU aims to attract investors. RIL, Meta, and Google are significant stakeholders. Financial improvements expected FY24-27. Bharti Airtel and BSE mentioned.
What made Nomura turn bullish on Indian IT sector? Abhishek Bhandari answers
Nomura's bullish stance on Indian IT credits G2000 data stabilization, benefiting midcaps like Persistent, Coforge, and Birlasoft. Wipro's new CEO Srini stabilizes leadership and growth. Discretionary cuts stabilize; US rate cuts expected. Coforge-Cigniti deal boosts testing. Annuity-driven businesses grow. Banking portfolios, large deals vital. FY24 saw midcaps grow 10%+. QoQ growth set to improve.
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.
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.
Chakri Lokapriya on stocks to pick in cement, banking sectors
UltraTech is very well positioned. It is still the market leader. Adani on the other hand with ACC and Ambuja, is far more acquisitive. They can move on deals much faster. So, in terms of where will growth come faster from, it will be ACC and Ambuja, says Chakri Lokapriya.
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.
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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.
IT sector: As the global interest rate cycle changes, time to shed the bias against them? 7 software stocks with upside potential of upto 32 %
In the last few days, there have been trading sessions where all of sudden IT stocks have started to do well. This is coming at a time when there is nothing positive which either companies from the sector have said or there is anything else which can be seen as signs of things changing for better. Is this an first indication that global risk on trade is back on the table. There is enough evidence to show when US interest rates are high, there is a risk off mode globally and tech stocks both in India and globally don't outperform, rather they at times under perform. As soon as there is an indication that interest rates in the US are likely to come down, the risk on trade tends to make a comeback and tech stocks start to do well globally. But incase of Indian IT stock, there is probability that this risk on trade is helpful but another factor is adjustment of valuations and finally the fact that some money is going to move toward a strong and stable balance sheet.
Payoneer Elevate empowers 500+ service export SMBs on their global expansion journey
Payoneer Elevate 2024 marked the 8th edition of Payoneer’s global flagship event in India, empowering entrepreneurs, founders, and growth leaders of service export businesses on their journey towards global expansion. Held on April 18, 2024, in the capital city, Payoneer Elevate 2024 delivered domain-focused knowledge sessions for over 500 Indian Small- and Medium-sized Businesses (SMBs) aiming for global growth. Here's how Payoneer is leading the transformation of cross-border payments to support Indian SMB exports.
Jyotiraditya Scindia takes charge as Minister of Communications
Union Minister of Communications Jyotiraditya Scindia has emphasized the importance of the telecom division and India post division on both a global and local level. Scindia, who has previously served as civil aviation minister in the Modi cabinet, pledged to deliver according to the Prime Minister's aspirations and the 140 crore people of the country. He also highlighted the challenges of overseeing India's 5G spectrum auction, retaining India's three-private player telecom market structure, and ensuring the survival of Vodafone Idea, the government's largest stakeholder.
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.
Anshul Saigal on sectors where investors can deploy fresh money
You could find opportunities in banking space in the 5 to 10 times price to earnings rate. I would not call that expensive by any measure. So, there are reasonable opportunities in the market to take advantage of.
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.
Can Vodafone Idea stock trade above Rs 20 in next one year? Hemang Jani answers
I think there is a growth in terms of volume, given the kind of appetite that people have for jewellery and also, we feel that you will see stable margins once there is a little bit of stability in the gold prices. So, valuations, I do not think is too much of an issue. It is all about how big the opportunities and how Titan can deliver growth. We have a positive view. I think it is a part of the core portfolio.
PSUs in these 5 sectors have a long growth runway: Siddhartha Khemka
Siddhartha Khemka of MOFSL highlights the value of PSUs like Bharat Electronics and discusses various trends including Zomato, urban and rural consumption, two-wheeler sector, shipyard names, Vodafone, and Bharti Airtel. Khemka further says: "Among the PSUs, those in the capital goods space, defence, railways, power, utilities, metals definitely have a runway of growth."
Digital India sparks rush for new-age software engineers
Demand for software engineers trained in emerging technologies is rising, creating 9-10 lakh additional jobs in the next 18 months. The surge is fueled by advancing technology and digital adoption, leading to fresh opportunities in AI and related fields like AI specialists and data scientists. GenAI is enabling non-technical employees to become citizen developers.
India needs Rs 4.2 lakh cr investment to connect 24 cr households with broadband by 2030
According to the break-up provided by Prashant Singhal, fibre deployment will need investments in the range of Rs 2.7-3 lakh crore, passive infrastructure Rs 90,000-96,000 crore, WiFi and in-building solutions Rs 6,600-Rs 9,000 crore, data centres Rs 9,700-Rs 14,100 crore and satellite broadband services Rs 26,000-29,000 crore.
Metal, PSU & pharma to lead market; FMCG showing signs of bottoming out: Sandeep Tandon
Sandeep Tandon identifies metal, pharma, PSU as emerging market leaders. Recommends buying dips for growth potential. Holds significant positions in Jio, Reliance, and Adani Power. Tandon says: "India tended to suffer a bit from a very near term or short term perspective, but from a long-term perspective, I think India is a structural bull run story for them also."
Has the worst been priced in for Indian IT sector? 7 stocks with upside potential of up to 39%
Both globally and in India, there is an old principle in the stock market. When stock prices stop reacting negatively to bad news, probably the worst has been priced in or one can say that the stocks have bottomed out. When the stock stops reacting positively to good news, that is probably an indication that stock has topped out as all the good news has been priced. Look at what has been happening with the IT sector. Large cap companies are announcing their Q4 results, literally everyone is showing hardly any growth. Not giving any great guidance for the current year. Now look at the stock price reaction. When Infy announced its result post market, its ADR dipped sharply by 5 % but within less than two hours it was trading with a cut of less than 2 %. Same is the case with Wipro, bad results but stock price did not fall, infact it moved up. Now take the case of smaller IT companies, they declared slightly better than expected results, stocks jumped by 7 to 8 %. Is stock price movement indicating that the street has priced in all bad news or rather bad expectations? Does this warrant that long term investors should ignore the noise on the street about how AI will kill the Indian IT sector.
Voda Idea a national asset, FPO sets stage for 2.0: KM Birla
“Vi is not just a telecom company. It’s a national asset with 215 million users and about 8000 MHz spectrum. That so many marquee investors participated in this equity issuance is a testament to the government’s vision of a digital India,” Birla said in an official statement following Vi’s FPO listing on the NSE Thursday.
Spectrum auction starts May 20, 5G airwaves worth Rs 96,317.65 crore on sale
India's next spectrum auction, scheduled for May 20, will offer airwaves in eight bands worth Rs 96,317.65 crore. The auction includes 5G frequencies in various bands, and companies seeking to purchase spectrum can apply until April 22. The upcoming sale is expected to be muted, with top telcos not requiring additional airwaves for 5G.
DoT, telcos officials get training on standards process ahead of global telecom meet in India
The workshop by the National Institute of Communication Finance (NICF) and the International Telecommunication Union (ITU) Secretariat concluded with a brief overview of the WTSA-24 which is being hosted in Delhi from October 14-24, 2024.
Govt exploring ways to extend trusted device rules to critical sectors, IoTs: NCSC
The government is exploring ways to expand trusted source norms beyond telecom networks to critical sectors, devices and the IOT ecosystem, a senior government official said on Tuesday. While speaking at an Assocham event on AI, National Cyber Security Coordinator M U Nair said while using artificial intelligence, industry needs to invest in a robust cybersecurity ecosystem for strengthening industrial and commercial ecosystems given India is one of most targeted nations in the cyber security domain.
Indian telecom sector may see FDI revival from FY25
India's telecom sector anticipates a surge in foreign direct investment (FDI) over the next two years following recent policy changes. The opening of satellite communications and the introduction of the Telecommunications Act are expected to attract investment and enhance sectoral appeal. Despite a recent FDI decline due to domestic funding availability and sporadic investments, experts foresee increased FDI inflows with these regulatory reforms, signaling potential growth opportunities for the industry.
Centre likely to achieve ₹1.2 lakh crore revenue target from telecom sector
The government is expected to achieve its revenue target of ₹1.2 lakh crore from the telecom sector in the next financial year, even without a major spectrum auction. The increasing financial health of the telecom sector, resulting in higher licence fees and spectrum charges, along with significant payments from state-run Bharat Sanchar Nigam (BSNL) for its 5G spectrum, is anticipated to contribute to the revenue goal. While a spectrum auction is planned, the response is predicted to be subdued as operators acquired sufficient airwaves in the August 2022 sale to meet their 5G requirements.
E-commerce, telecom, BFSI most sought-after sectors by freshers: Survey
A survey by apna.co reveals that E-commerce, Telecommunications, BFSI, and IT are the preferred sectors for freshers due to promising career growth, favorable work environments, and work-life balance. The e-commerce sector sees a notable 22% increase in applications, followed by BFSI with 18%, and telecommunications and IT with 13% and 5%, respectively.
Govt wants India's telecom service to remain most affordable in entire world: Telecom Minister Ashwini Vaishnaw
Union Telecom Minister Ashwini Vaishnaw expressed the government's commitment to keeping India's telecom services the most affordable globally. While the telecom sector in India has the lowest ARPU among large economies, analysts suggest that telecom operators need to raise ARPU to sustain their investments in 5G networks.
India will become world leader in telecom technology: Telecom minister Ashwini Vaishnaw
The country has selected 100 educational institutes where 5G test beds will be established, he said. All of these labs will have at least 10 professors, 10 micro, small, and medium enterprises and students who will get to work on the advancements in 5G technology, Vaishnaw said, adding that these test labs would eventually become the bedrock for new use cases and solutions in 5G.
Dial T for telco tax: Supreme Court rings in tweaks
The Supreme Court ruled that license fees payable by telecom companies will be treated as capital in nature, potentially leading to additional tax liabilities of about $1 billion for the sector this fiscal year. The ruling overturns a Delhi High Court order that categorized license fees before and after July 31, 1999, differently. This decision is a setback for older telcos like Bharti Airtel and Vodafone Idea, as well as Reliance Jio, as they will need to reassess their financial structures and potentially face increased tax liabilities. The tax implications will be calculated since 1999.
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