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Reliance Jio's success is still a long distance call

Despite the seemingly sharp discount at which Reliance Jio is offering its products, analysts have just reduced the profitability of the two existing telcos

Reliance Jio

AsthedustbeginstosettleafterRelianceJio’stariffcardwasmadepublic,analystsandtelecomexpertsareseparatingthewheatfromthechaff. WhatwasexpectedfromReliancewasthatitwouldcometothemarketwithabang,anditdidnotdisappoint.PrimafaciethetariffslookdisruptiveresultinginanalystsreducingearningforecastofotherplayersinthesectorlikeBhartiAirtelandIdeaCellular.BrokingfirmCLSAhasreducedBhartiAirtel’sFY17-18EPSby9-16percent,whilethatofIdeaCellularby13-19percentduringthesameperiod. So ...