Nitin Soni of Fitch Ratings emphasizes Vodafone Idea s necessity for tariff hikes to improve cash flow amid upcoming payments. Government debt-to-equity conversion and inadequate capex investment pose challenges for Vodafone Idea s weak balance sheet.
India recently became the fastest 5G rollout nation in the world. The countrys top two carriers, Reliance Jio and Bharti Airtel, have collectively splurged around $25 billion in buying 5G airwaves and launching their next-generation wireless broadband services. Between them, they have 165 million 5G customers. But neither of them has seen any serious monetisation of their 5G businesses even 18 months after they introduced next-gen networks.
Nitin Soni of Fitch Ratings expects a tariff hike for Indian telcos due to low return on investment and ARPU. Competition is likely to remain subdued, allowing Bharti Airtel and Reliance Jio to increase ARPU. Investment in a larger fibre network is needed for future 6G readiness and data offloading.
Nitin Soni of Fitch Ratings expects a tariff hike for Indian telcos due to low return on investment and ARPU. Competition is likely to remain subdued, allowing Bharti Airtel and Reliance Jio to increase ARPU. Investment in a larger fibre network is needed for future 6G readiness and data offloading.
Reliance Jio: Sunil Mittal-led Airtel, whose overall tariffs are already at a 20% premium to Jio, has also beefed up its OTT offerings to counter Jio’s new prepaid plans. Last week, the telecom operator bundled a basic Netflix subscription into its Rs 1,499 prepaid plan, with an 84-day validity period, which also offers 3GB of data per day.