Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) have confirmed their participation in the upcoming spectrum auction in India, with a total reserve price of Rs 96,317 crore ($13.2 billion).
The collaboration between Reliance-Disney may lessen the prospects for companies like Zee Entertainment, Sun TV Network, Bharti Airtel, Vodafone, and other content providers. This venture is expected to increase Reliance-Disney’s negotiating power with advertisers and content providers, while also improving Jio’s content access.
India’s largest company by market capitalisation, Reliance Industries, saw its shares rally 3% to reach a new 52-week high. The sharp rise in stock price was supported by increased trading volume. The company also announced the upcoming commissioning of a green energy complex in Jamnagar and a carbon fibre facility in Hazira. These developments are expected to boost Gujarat’s position in the green products and circular economy sectors. Top brokerages continue to recommend buying Reliance Industries shares.
Fitch Ratings predicts that the 5G capex investments of Reliance Jio and Bharti Airtel will taper to 35% of revenue in FY24. While the sector’s average Ebitda margin is expected to expand, Fitch cautions that the free cash flow generation will remain limited due to high 5G investments. The competitive landscape is also expected to be dominated by Jio and Airtel, with the two operators projected to add millions of subscribers in 2024. However, Fitch highlights the risks of a slow 5G adoption and the need for an evolved device ecosystem in the Indian market.
Analysts reveal that Airtel’s selling and distribution costs are much higher compared to Jio. This article discusses the possible reasons behind this difference and its implications for both telecom companies.
