Snehal khanna Blog

Industry shows signs of stabilisation, as incumbent operators manage to expand their wireless broadband user base LATEST NEWS :  Reliance Jio is witnessing continued momentum in subscriber additions even after the company raised tariffs in July. The company added 5.9 million customers, the highest among all telecom operators, in September to take its user base to 138.61 million. The Mukesh Ambani-owned company had added 4.1 million subscribers in August. According to a report by UBS, Reliance Jio’s active subscriber base grew by 7.3 million in September after slowing down to 2.2 million in August. Reliance Jio’s market share increased to 11.7 per cent at the end of September. The incumbent operators have also been able to expand their wireless broadband user base, indicating the industry is stabilising. The Telecom Regulatory Authority of India (Trai) has put out data that shows Airtel gained one million subscribers in September and its market share increas...

Indian telecom industry is at a critical juncture & improvement is crucial for its long-term health Breaking news : The Indian Telecom sector has been under pressure for the last 8 years because of rising competitive and capex intensity. During this period the contribution of telecom services to GDP has declined from 2% of GDP in FY09 to just 1.2% in FY17. The return ratios for the telecom players has also consistently declined during the period and all the telecom companies do not manage to earn their cost of capital because of continuous investments in spectrum purchases. While competitive intensity has changed with entry and exit of players, the capex intensity has consistently risen because of spectrum auctions. The industry at this juncture is at its weakest because of the high degree of financial leverage and margins impacted by rising competition from new player Reliance Jio . In the current state, the industry has insurmountable challenges which are leading to h...