VODAFONE INDIA
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.
Vodafone UK may offer Rs 2,000 crore equity topup to Vi
Vi may also make more substantial payments to Indus towards cutting its dues after the telco raises debt of ₹23,000-25,000 crore through term loans as planned, analysts added. After the recent sale of its 18% stake in Indus, UK's Vodafone holds 3.1% of the tower company and is said to be in talks with Bharti Airtel to sell these shares, people familiar said.
Jio, Airtel pricing strategy shows they still target Vi’s 2G users: Analysts
Analysts suggest that Vodafone Idea could encounter difficulties in retaining its 2G subscribers, as recent tariff increases indicate that competitors like Reliance Jio and Bharti Airtel remain focused on attracting Vi's low-end customers. Reliance Jio has maintained its rates for 4G feature phones, while Bharti Airtel has made minimal adjustments to its basic plans, highlighting their strategies to capture Vi's 2G user base.
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.
Airtel hikes tariffs by 11-21%, a day after Jio
Bharti Airtel announced on Friday that it will raise tariffs for all its prepaid and postpaid users starting July 3. This move follows a similar hike by rival Reliance Jio, which increased its rates by 12-15%. The primary objective of these changes is to improve the average revenue per user (ARPU).
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Vodafone Idea's 'big' spectrum spend to help plug user exodus
Analysts added that Vi's spectrum spends of about Rs 3,510 crore - almost 12 times its Rs 300 crore earnest money deposit (EMD) - on the heels of a recent fundraise of about Rs 23,000 crore suggests the telco is preparing for network rollouts and plans to use its fresh 900 MHz spectrum to enhance 4G experience and rein in customer losses.
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.
Vodafone Idea in talks with Samsung to expand 4G networks, roll out 5G
Vodafone Idea (Vi) has initiated 5G trials in three network circles using Samsung's virtual Radio Access Network (vRAN) technology on a non-standalone architecture. The trials, aimed at expanding its 4G and introducing 5G services, took place in Chennai, Karnataka, and Bihar. Despite its financial challenges and lagging behind rivals Airtel and Jio in 5G rollout, Vi fulfills its 5G spectrum obligations from the 2022 auction with these trials.
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 auction: All you need to know about Rs 96,000 crore spectrum battle
5G auction: India is gearing up for its latest 5G airwaves auction starting Tuesday, valued at over Rs 96,000 crore. Telecom giants like Reliance Jio, Bharti Airtel, and Vodafone Idea will compete for crucial radio frequencies essential for 5G services. The previous auction in August 2022 set a record with the government earning Rs 1.5 lakh crore.
Auction of 5G spectrum worth over Rs 96,000 cr starts
India's second 5G spectrum auction began on June 25, 2024, with bids from Reliance Jio, Bharti Airtel, and Vodafone Idea. The auction, offering spectrum worth Rs 96,238 crore, excludes pricey sub-GHz bands. Analysts anticipate a low-key affair with modest government revenue, as telcos plan limited purchases.
Rs 96,000-crore spectrum auction of 5G airwaves to kick off today
India's 5G airwaves auction starting Tuesday is expected to be subdued, with telecom giants having adequate holdings and low consumer 5G adoption. Analysts predict Reliance Jio, Bharti Airtel, and Vodafone Idea will collectively spend around Rs 12,500 crore, focusing on renewals and selective acquisitions. Interest costs for deferred payments are higher this year, with Airtel likely to be the top spender.
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.
ET Graphics: A look at telecom industry's top carriers ahead of India's second 5G spectrum sale
India’s second 5G spectrum sale starts on Tuesday, featuring bids from top carriers Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi). This sale is expected to run for a day or a day-and-a-half and is anticipated to be a low-key affair. Only 10.5 GHz of 5G airwaves are available this time, significantly less than the 72 GHz offered in the country's first 5G spectrum auction in July 2022.
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.
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.
Vodafone Idea's Indus stake sale could speed up repayments to towerco, which may issue dividend: JP Morgan
Vodafone Group's potential stake sale in Indus Towers may generate $2.3 billion in cashflows, prompting accelerated repayment to vendors and a special dividend to shareholders. The sale could clear past dues and benefit Vodafone Plc's lenders. An equity infusion might lead to a special dividend in FY25 for Indus Towers.
Vi dials lenders for Rs 23,000 cr term loans, seeks Rs 10,000 cr in bank guarantees
Vodafone Idea (Vi) proposes borrowing Rs 23,000 crore in term loans and seeks Rs 10,000 crore in bank guarantees to enhance its telecom infrastructure and compete with Reliance Jio and Airtel.
Amid delays in clearing dues, Vodafone Idea confident of support from operational creditors
Vodafone Idea (Vi) remains optimistic that its operational creditors, including network equipment suppliers Nokia and Ericsson, as well as tower vendor Indus, will maintain their support despite payment delays. Vi expects its forthcoming 4G and 5G initiatives to generate new business opportunities for these partners. According to Bharti Airtel chairman Sunil Mittal, Vi must settle all outstanding dues with Indus to continue using the tower company’s infrastructure for future services like 5G.
Vodafone Idea may offer more shares to vendors to clear dues
Vi is saddled with around ₹20,000 crore of overall payables (including ₹13,731 crore trade payables) and proposes to use the ₹24,000 crore equity capital recently raised only for fresh capex to expand 4G coverage and roll out 5G networks. Trade payables, typically, reflect Vi's dues to vendors such as network gear suppliers and tower firms.
Trai won’t charge users for multiple SIMs
The Telecom Regulatory Authority of India has denied reports of planning to charge consumers for multiple SIMs. Trai clarified that there are no proposals for fees on numbering resources, emphasising efficient allocation. Trai's discussion paper aims to enhance telecom services through effective use of telecommunications identifiers.
Vodafone looks to sell entire $2.3 bn stake in Indus Towers
Vodafone Group plans to divest its entire $2.3 billion stake in Indus Towers through stock market block deals next week to reduce debt. The British telecom giant currently owns 21.5% of Indus, with the final stake size dependent on market demand. Bank of America, Morgan Stanley, and BNP Paribas are managing the sale
Vodafone Idea prefers stock as payment for Nokia and Ericsson bills
The board of directors of VIL approved a preferential allotment of 1.66 billion equity shares at Rs 14.80 per share to Finland’s Nokia and Sweden’s Ericsson, for a total of up to Rs 2,458 crore, the company said in a statement Thursday. Nokia will invest up to Rs 1,520 crore and Ericsson up to Rs 938 crore. The issue price is 35% higher than that in the April follow-on offer (FPO) of Rs 11 a share and comes with a lock-in period of six months.
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.
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 adoption on a roll in India, yet tariff upside may be minimal: India Ratings
India's 5G subscriber base is expected to rise to 20-25% within a year, but significant tariff hikes remain uncertain, says Ind-Ra. While telcos are better positioned for tariff increases, global trends show no major premium for 5G over 4G. Ind-Ra maintains a neutral sector outlook, noting investment peaks and potential market share shifts towards Reliance Jio and Bharti Airtel.
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