Telecom Sector Weekly Report – 06.11.2017 To 10.11.2017
Telecom Sector Weekly Report – 06.11.2017 To 10.11.2017
Telecom Sector stocks of most telecommunication companies are seen rising next week as sentiment for the sector has turned slightly positive after Reliance Jio Infocomm Ltd recently raised tariffs and as Bharti Airtel Ltd's Jul-Sep results beat the expectations. Bharti Airtel on Tuesday posted consolidated net profit of 3.4 bln rupees for Jul-Sep, down 6.6% on quarter, but beat consensus estimate of a 2.97-blnrupee net profit.
On Wednesday, the stock had hit its highest level in a decade as investors bet on a turnaround in the company's fortunes because of a rise in data tariffs and subscriber addition. The last one year has been turbulent for telecom operators after the entry of Reliance Jio, which offered free services for almost seven months and later announced rock-bottom tariffs. However, we believe that Bharti Airtel's leadership in the telecom industry will hold it in good stead once the dust settles from the Reliance Jio-led disruption. Meanwhile, the government aims to soon send an inter-ministerial panel's report on steps to ease financial stress in the sector for the approval of Cabinet.
The government expects the additional solicitor general's opinion in a week's time, after which the
report will be sent to the Cabinet. To boost liquidity for telecom operators, the Telecom Commission
in September had approved increasing the time period for operators to pay for the spectrum bought
in auctions to 16 years from 10. It also approved a cut in the interest rate on penalty for delayed
payment on spectrum usage charges and license fee payment, in line with the suggestion of the
inter-ministerial panel.
The current consolidation in the sector is also expected to lead to a more efficient industry; as ultimately, it is seen resulting in three strong private entities and a government-run public sector company.
While Idea Cellular and Vodafone India have announced a merger, Bharti Airtel last month
announced that it will take over the telecom operations of the Tata group. Bharti Airtel has already
completed the acquisition of Tikona Digital Networks, while the approval process for the merger with
Telenor India is expected to complete by Jan-Mar.
Source : Cogencis Information Services Ltd.
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Telecom Sector Weekly Report – 06.11.2017 To 10.11.2017
Telecom Sector stocks of most telecommunication companies are seen rising next week as sentiment for the sector has turned slightly positive after Reliance Jio Infocomm Ltd recently raised tariffs and as Bharti Airtel Ltd's Jul-Sep results beat the expectations. Bharti Airtel on Tuesday posted consolidated net profit of 3.4 bln rupees for Jul-Sep, down 6.6% on quarter, but beat consensus estimate of a 2.97-blnrupee net profit.
On Wednesday, the stock had hit its highest level in a decade as investors bet on a turnaround in the company's fortunes because of a rise in data tariffs and subscriber addition. The last one year has been turbulent for telecom operators after the entry of Reliance Jio, which offered free services for almost seven months and later announced rock-bottom tariffs. However, we believe that Bharti Airtel's leadership in the telecom industry will hold it in good stead once the dust settles from the Reliance Jio-led disruption. Meanwhile, the government aims to soon send an inter-ministerial panel's report on steps to ease financial stress in the sector for the approval of Cabinet.
The government expects the additional solicitor general's opinion in a week's time, after which the
report will be sent to the Cabinet. To boost liquidity for telecom operators, the Telecom Commission
in September had approved increasing the time period for operators to pay for the spectrum bought
in auctions to 16 years from 10. It also approved a cut in the interest rate on penalty for delayed
payment on spectrum usage charges and license fee payment, in line with the suggestion of the
inter-ministerial panel.
The current consolidation in the sector is also expected to lead to a more efficient industry; as ultimately, it is seen resulting in three strong private entities and a government-run public sector company.
While Idea Cellular and Vodafone India have announced a merger, Bharti Airtel last month
announced that it will take over the telecom operations of the Tata group. Bharti Airtel has already
completed the acquisition of Tikona Digital Networks, while the approval process for the merger with
Telenor India is expected to complete by Jan-Mar.
Source : Cogencis Information Services Ltd.
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