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

As the dust begins to settle after Reliance Jio’s tariff card was made public, analysts and telecom experts are separating the wheat from the chaff. What was expected from Reliance was that it would come to the market with a bang, and it did not disappoint. Prima facie the tariffs look disruptive resulting in analysts reducing earning forecast of other players in the sector like Bharti Airtel and Idea Cellular. Broking firm CLSA has reduced Bharti Airtel’s FY17-18 EPS by 9-16 per cent, while that of Idea Cellular by 13-19 per cent during the same period. So ...