Telecom Stocks Outlook for the week – 17 to 21.07.2017
Telecom Stocks Outlook for the week – 17 to 21.07.2017
( www.rupeedesk.in )
Stocks of most telecommunication companies are likely to consolidate next week after Reliance Jio Infocomm Ltd hiked its tariff, easing some pressure on the sector amid intense competition from the new Entrant. Reliance Jio on Tuesday announced new prepaid and post-paid tariff plans priced at 349 rupees and 399 rupees. In a move that effectively increased average revenue per user, the telecom arm of Reliance Industries Ltd also brought down the validity of its most popular plans. A 309-rupee recharge for Reliance Jio Prime users now offers 1 GB data per day for 56 days, instead of 84 days earlier. Similarly, a 509-rupee pack offers 2 GB data per day for 56 days instead of 84 days earlier. However, the trouble for the sector is far from over and earnings of operators are expected to decline for the next few quarters. The pressure on the sector has also triggered consolidation among operators. Vodafone India Ltd and Idea Cellular have announced a merger, which is pending regulatory approvals. Bharti Airtel, too, has announced two separate acquisitions, of Tikona Digital Networks Ltd and the Indian arm of Norway's Telenor ASA. Taking cognizance of the pressure, the government has set up an inter-ministerial panel to recommend ways to improve the financial health of the sector. The panel has met operators and banks, and is expected to come out with its report soon.
Source : Cogencis Information Services Ltd.
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Telecom Stocks Outlook for the week – 17 to 21.07.2017
( www.rupeedesk.in )
Stocks of most telecommunication companies are likely to consolidate next week after Reliance Jio Infocomm Ltd hiked its tariff, easing some pressure on the sector amid intense competition from the new Entrant. Reliance Jio on Tuesday announced new prepaid and post-paid tariff plans priced at 349 rupees and 399 rupees. In a move that effectively increased average revenue per user, the telecom arm of Reliance Industries Ltd also brought down the validity of its most popular plans. A 309-rupee recharge for Reliance Jio Prime users now offers 1 GB data per day for 56 days, instead of 84 days earlier. Similarly, a 509-rupee pack offers 2 GB data per day for 56 days instead of 84 days earlier. However, the trouble for the sector is far from over and earnings of operators are expected to decline for the next few quarters. The pressure on the sector has also triggered consolidation among operators. Vodafone India Ltd and Idea Cellular have announced a merger, which is pending regulatory approvals. Bharti Airtel, too, has announced two separate acquisitions, of Tikona Digital Networks Ltd and the Indian arm of Norway's Telenor ASA. Taking cognizance of the pressure, the government has set up an inter-ministerial panel to recommend ways to improve the financial health of the sector. The panel has met operators and banks, and is expected to come out with its report soon.
Source : Cogencis Information Services Ltd.
