Telecom Sector 📲📶
India telecom industry is second largest in the world with a subscriber base of over 1.17bn users which is majorly dominated by Jio, Airtel and Vodafone Idea.
Industry 4.0, Mobile payments, 4G 5G ecosystem, PLI schemes, FDI inflows are some of the factors that influence this industry.
Recent highlights form this sector:
• Airtel acquires 19,800 MHz spectrum in 5G auction for Rs 43,084 Cr, plans to launch 5G starting with key cities.
• Vodafone Idea buys spectrum 3300 MHz & 26 GHz bands, to strengthen 4G experience & 5G rollout.
• Reliance Jio made a cumulative bid of Rs 88,078 Cr for 24,740 MHz across 5 bands capable of offering speeds 10 times faster than 4G.
• Government has approved a Rs 1.64 lakh crore package for the revival of state-run BSNL. BSNL has a debt burden of Rs 33,000 Cr.
Important inference from the table below is that Airtel despite having a higher Average revenue per user couldn’t generate as much net profit that Jio generates. Vodafone Idea generated losses in the past quarters mainly due to the debt dependency in capital. Interest burden is main factor that is affecting the net profit of Vodafone Idea and Airtel.
