Telecom Stocks Outlook for the week – 24 to 28.04.2017
Telecom Stocks Outlook for the week – 24 to 28.04.2017
( www.rupeedesk.in )
The Movement in shares of telecommunication companies is likely to be stock specific next week. We expect shares of Tata Communications Ltd and Bharti Airtel Ltd to rise, while those of Idea Cellular Ltd to witness price correction. The Reserve Bank of India on Tuesday asked banks to give immediate attention to the telecom sector, and asked them to review their exposure by Jun 30. Bharti Airtel and Idea Cellular shouldn't see much impact. As much as 60% of their debt is related to spectrum and the rest is foreign debt. The sector has been witnessing pressure on tariff and revenue after the entry of Reliance Jio Infocomm Ltd. The subsidiary of Reliance Industries Ltd offered free data and voice services for over five months before announcing aggressive tariffs. Incumbent telecom operators have also announced matching tariff plans to compete. The sector is also in the midst of a legal battle between operators. Bharti Airtel has moved Telecom Disputes Settlement and Appellate Tribunal against the partial rollback of Reliance Jio Infocomm Ltd's 'Summer Surprise' plan. Just a day after withdrawing this plan for new users, Reliance Jio announced a new one-time 'Jio Dhan Dhana Dhan' offer to sweeten the deal for subscribers who could not avail of the withdrawn scheme. Rising competition in the sector has also led to consolidation. Bharti Airtel has announced two separate acquisitions of Tikona Digital Networks Pvt Ltd and the Indian arm of Norway's Telenor ASA. Vodafone India and Idea Cellular have also announced a merger, which is pending regulatory approvals.
Source : Cogencis Information Services Ltd.
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Telecom Stocks Outlook for the week – 24 to 28.04.2017
( www.rupeedesk.in )
The Movement in shares of telecommunication companies is likely to be stock specific next week. We expect shares of Tata Communications Ltd and Bharti Airtel Ltd to rise, while those of Idea Cellular Ltd to witness price correction. The Reserve Bank of India on Tuesday asked banks to give immediate attention to the telecom sector, and asked them to review their exposure by Jun 30. Bharti Airtel and Idea Cellular shouldn't see much impact. As much as 60% of their debt is related to spectrum and the rest is foreign debt. The sector has been witnessing pressure on tariff and revenue after the entry of Reliance Jio Infocomm Ltd. The subsidiary of Reliance Industries Ltd offered free data and voice services for over five months before announcing aggressive tariffs. Incumbent telecom operators have also announced matching tariff plans to compete. The sector is also in the midst of a legal battle between operators. Bharti Airtel has moved Telecom Disputes Settlement and Appellate Tribunal against the partial rollback of Reliance Jio Infocomm Ltd's 'Summer Surprise' plan. Just a day after withdrawing this plan for new users, Reliance Jio announced a new one-time 'Jio Dhan Dhana Dhan' offer to sweeten the deal for subscribers who could not avail of the withdrawn scheme. Rising competition in the sector has also led to consolidation. Bharti Airtel has announced two separate acquisitions of Tikona Digital Networks Pvt Ltd and the Indian arm of Norway's Telenor ASA. Vodafone India and Idea Cellular have also announced a merger, which is pending regulatory approvals.
Source : Cogencis Information Services Ltd.
