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...

Key challenge to come from the launch of 4G feature phones by the RIL subsidiary, say analysts LATEST NEWS :  The share prices of Bharti Airtel and Idea Cellular gained on Wednesday, on the expectation of the new rate plans announced by Reliance Industries’ (RIL) telecom subsidiary, Reliance Jio (Jio), leading to improvement in their operating metrics. The price plan announced by Jio on Tuesday is estimated to be 30-57 per cent higher than earlier promotional offers. Brokerages say this is positive and a clear indication of rationalisation of pricing. Analysts at UBS say the first Jio price increase in almost 12 months supports the brokerage view that sector revenues are close to bottoming out, with the top three operators and Jio expected to incrementally take share from smaller entities. Credit Suisse in a note said the new Jio rates would start the process of normalising these from the current discounted levels. Also indicating that RIL is looking at monetising its...

Apart from Jio price war, rising losses, increase in interest payments are other reasons RELIANCE JIO - The woes of Tata Teleservices continue to mount with its net worth eroding by Rs 11,653 crore at the end of the financial year ended March 2017, on rising losses and interest payments. The company announced a loss of Rs 4,617 crore for FY17, compared to a loss of Rs 2,023 crore in FY16. This is a bad news for its promoter, Tata Sons, which will have to keep investing in the company’s equity so that it can meet its liabilities, bankers said. But, the company’s debt stood reduced almost five per cent from Rs 30,192 crore in FY16 to Rs 28,766 crore in FY17. Because of the price war in telecom spurred by the entry of Reliance Jio, the Tata group company’s turnover declined to Rs 9,419 crore in FY17 from Rs 10,588 crore in FY16. The Tata group company is not the only one which struggled during the year. Aditya Birla Group’s Idea Cellular also reported losses of Rs 400 ...