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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

Data battle could hurt Idea more than Airtel

TheaggressiverateplansofRelianceJio(Rjio)areexpectedtoworsentheoperationalandfinancialmetricsofincumbenttelecommajors,impactingcashflowsandaggravatingtheirdebtpositions.Thefallindatarealisationsandmarginswouldbefurthercompoundedbytheneedtoinvestinupgradingnetworksandbiddingforspectrumtomatchservicequalityofcompetitors. Amongincumbents,IdeaCellularisexpectedtobeimpactedthemost,givenitslowernetworkinvestments,sayanalystsatMotilalOswalSecurities. Whiledatapricesareexpectedtofall30-35percent ...