A rare bonhomie among three private telecom companies in raising tariffs coming on the back of a bailout package by the government may have helped the telecom sector avert a crisis but the challenges haven't ceased to exist as the industry faces a cash-guzzling task of rolling out 5G networks in the coming months. The sector that provides direct and indirect employment to millions is projected to see Rs 1.3 lakh crore to Rs 2.3 lakh crore of investments in the coming years in creating robust infrastructure and building telecom and network products that have been incentivised by the government through PLI and other initiatives. After years of cut-throat competition and the apex court ruling on payment of past statutory dues left some players in the lurch, billionaire Sunil Mittal's Bharti Airtel and struggling Vodafone Idea almost in tandem raised tariffs, taking the plunge they had long been talking about.
The recent Indian telecom spectrum auction will hasten industry consolidation, strengthen tariffs and reduce regulatory risks.
The script was triggered by today's kids who seem so comfortable with gadgets and the Internet right from infancy.
The interconnection charge has been reduced.
Market breadth was weak with 1239 losers and 1078 gainers on the BSE.
Banks have Rs 10 trillion in stressed assets - Rs 7.8 trillion of bad loans and Rs 2.2 trillion of restructured ones.
DoT had raised the demand on December 22 and asked RCom to pay within a month.
India's largest-ever spectrum auction kicked off on Saturday with major telecom operators placing bids worth Rs 53,531 crore across bands, even as the premium 700 Mhz and 900 Mhz frequencies did not find any buyer.
Telecom Regulatory Authority of India, on October 15, gave its recommendation on spectrum auction for premium 900 Mhz band and 1800 Mhz band that are presently being used for 2G GSM mobile services by Airtel, Vodafone, Idea Cellular and Reliance Communications.
Midcap stocks continued to remain on buyers' radar with BSE Midcap index up 0.1%.
TRAI may recommend the DoT to levy one-time non-refundable fee of Rs 50,000 per operator for each service area in which they opt for spectrum sharing.
Most of the steep rate cuts announced might also not translate into bill savings for subscribers
The freebies are now over, but Jio will need to notch up subscriber numbers and margins to prove its sceptics wrong.
Apex telecom industry body COAI has asserted that spectrum pricing should be kept conducive to market conditions as 5G entails upfront capital investments with monetisation spread over a long-haul, and pricing radiowaves high will only push the players up against the wall. The stage is set for Telecom Regulatory Authority of India (TRAI) to come out with its recommendations on 5G spectrum pricing and other modalities for upcoming auctions, and the announcement from the sector watchdog is expected anytime now. Norms will also be worked out for new frequencies such as 526-698 MHz and millimetre band, that is 24.25 - 28.5 GHz, in addition to bands such as 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3670 MHz.
Telecom industry body COAI has approached the information technology ministry for removal of fake and misleading messages from social media platforms like Facebook, Whatsapp and Twitter linking spread of COVID-19 to 5G technology. The Cellular Operators Association of India (COAI), whose members include Reliance Jio, Bharti Airtel and Vodafone Idea, said the claims linking 5G with coronavirus are baseless as 5G networks have not yet been installed in the country and even 5G trials are yet to be started by the telecom operators. In a letter dated May 15 to MeitY additional secretary Rajendra Kumar, COAI director general S P Kochhar said: "To safeguard the national interest, we request your good office to kindly instruct all the social media platforms such as Facebook, Watsapp, Twitter, etc, to remove all such posts and misleading campaigns from their platforms on an urgent basis." People have been sharing audio and video messages on social media platforms in which 5G towers are being blamed for rise in casualties across the country even though none of the companies have installed 5G technology anywhere in India.
Sensex, Nifty end the day in red ahaead of F&O expiry.
Some leading Indian companies are likely to see their earnings declining if the Indian currency depreciates further, analysts and finance heads say.
The telecom spectrum auction entered the 33rd round of bidding today after starting off from the Rs 52,689 crore (Rs 526. 89 billion) mark this morning.
Both the indices ended at their highest levels since February 1.
More than 87 per cent of the spectrum has been allocated to bidders.
Premiumisation, improving demand aid realisation growth at most large firms
Govt is set to garner Rs 1 lakh crore from sale of radiowaves.
In the broader market, the S&P BSE Midcap added over 1% to finish at record closing high
Dividend payouts seem recession-proof.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
The big advantage that Jio is able to garner currently is its low cost of operations.
BSE Smallcap index outperformed the frontline indices to rise 0.6%, while the BSE Midcap was flat
Most Asian stock markets steadied on Wednesday.
Markets ended lower on Tuesday, snapping a two-day winning streak, as investors turned cautious and booked profit in financials.
Country accounts for 38% of telco's global user base, 10% of total revenue
'Unless India Inc's earnings offer promise in March 2017 quarter, sentiment may not reverse in a hurry.'
Ambani's $15 bn bet will upend Indian telecom
The 30-share Sensex ended up 1 point at 27,459 and the 50-share Nifty ended down 1 point at 8,341.
According to rating agency Fitch, India can in the long run support five-six profitable telecom operators.
The amount generated so far is about 86 per cent of what the 3G auction fetched in 2010.
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Reliance, Birla Group, Airtel eye small finance banks.
Domestic market is losing its trend to rate sensitive stocks post the announcement of the new RBI governor who is likely to maintain a cautious stance on interest rate cut
Pammi Aunty's gappe-shappe sessions with Sarla Bahenji have made Ssumier S Pasricha an internet star, says Manavi Kapur.
The fall in metal and mining stocks comes on the back of weak Chinese trade data
The dispute over the tax payable for its purchase in 2007 of the 67 per cent stake in Hutch is on an amount of Rs 11,200 crore (Rs 112 billion).
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