Data battle could hurt Idea more than Airtel
Most firms will face margin pressure but Idea, with higher leverage and capacity shortage, will feel the heat
The aggressive rate plans of Reliance Jio (Rjio) are expected to worsen the operational and financial metrics of incumbent telecom majors, impacting cash flows and aggravating their debt positions. The fall in data realisations and margins would be further compounded by the need to invest in upgrading networks and bidding for spectrum to match service quality of competitors.
Among incumbents, Idea Cellular is expected to be impacted the most, given its lower network investments, say analysts at Motilal Oswal Securities. While data prices are expected to fall 30-35 per cent from ...
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard
First Published: Fri, September 02 2016. 21:36 IST