Telecom News
Telco revenues surged to Rs 2.3 lakh crore in FY24: CLSA
The Indian telecom industry's gross revenue surged 87% to Rs 2.39 lakh crore in FY24, driven by the launch of services by Reliance Jio. Jio and Bharti Airtel gained subscribers at the expense of Vodafone Idea. The two top telcos now control 78% of sectoral revenue, expected to rise to 83% by FY26. Vi's revenue market share fell to 15.7%, while Airtel and Jio saw revenue growth, with Jio leading at 41.4% RMS.
Telecom sector revenue surges 87% to Rs 2.4 lk cr in FY24: Report
Telecom sector revenue in FY24 reached Rs 2,39,900 crore ($29 billion), an 87% increase from its FY19 low following Reliance Jio's market entry and about 40% higher than FY16 figures, according to a CLSA report. This surge reflects the continuing subscriber gains by Jio and Airtel at Vodafone Idea's expense, with Jio and Airtel now controlling 78% of the sector's revenue combined, a figure CLSA expects to rise to 83% by FY26.
Jio outpaces Airtel in 4G/5G user additions during April
Active, or visitor location register (VLR) data put out every month by Trai indicates the number of mobile users regularly using a mobile network. As a result, Jio’s active user base jumped to 433.42 million users, while Airtel and Vodafone Idea’s active user base declined to 383.32 million and 192.64 million users respectively.
UK’s Vodafone Group sells 18% in Indus for Rs 15,300 crore
The stake sale proceeds will be used to clear bulk of the UK company’s existing lender dues relating to $1.8 billion of borrowings secured against its Indian assets.
Bharti Airtel buys extra 1% in Indus, boosts stake in towerco to Rs 48.95%
Bharti Airtel acquires 1% stake in Indus Towers, increasing ownership to 48.95%. Airtel aims to strengthen Indus amidst Vodafone Idea's financial challenges.
WhatsApp business calling service won't disrupt traditional toll-free channels: Experts
WhatsApp's recent introduction of calling features for businesses is not expected to significantly impact traditional telecom voice calling. Experts in the communications sector believe it will focus on "contextual calling" rather than disrupting toll-free customer service lines used by large enterprises.
Reliance Jio down: Users report issues with JioFiber & mobile internet
Reliance Jio is currently experiencing a widespread service outage across India, impacting access to communication applications and affecting remote employees. According to Downdetector, there is a notable issue with both fiber and mobile internet connectivity. Complaints surged to about 2,300 reports around 1:41 pm, subsided briefly by 2:11 pm, but then increased again with over 1,900 complaints.
Telecom industry AGR in FYQ4 grew 1.9% on-quarter, Airtel narrows RMS gap with Jio: ICICI Securities
The report said that Bharti Airtel has been continuously narrowing its market share gap with Reliance Jio. Bharti Airtel’s revenue market share rose to 37.9%, up 35 basis points (bps) sequentially and 139 bps on year, in the fiscal fourth quarter. This compared with Reliance Jio’s AGR of 42.1% in FYQ4, up 3 bps and 49 bps on year.
Vodafone Idea's Indus stake sale could speed up repayments to towerco, which may issue dividend: JP Morgan
Vodafone Group's potential stake sale in Indus Towers may generate $2.3 billion in cashflows, prompting accelerated repayment to vendors and a special dividend to shareholders. The sale could clear past dues and benefit Vodafone Plc's lenders. An equity infusion might lead to a special dividend in FY25 for Indus Towers.
Vi dials lenders for Rs 23,000 cr term loans, seeks Rs 10,000 cr in bank guarantees
Vodafone Idea (Vi) proposes borrowing Rs 23,000 crore in term loans and seeks Rs 10,000 crore in bank guarantees to enhance its telecom infrastructure and compete with Reliance Jio and Airtel.
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Amid delays in clearing dues, Vodafone Idea confident of support from operational creditors
Vodafone Idea (Vi) remains optimistic that its operational creditors, including network equipment suppliers Nokia and Ericsson, as well as tower vendor Indus, will maintain their support despite payment delays. Vi expects its forthcoming 4G and 5G initiatives to generate new business opportunities for these partners. According to Bharti Airtel chairman Sunil Mittal, Vi must settle all outstanding dues with Indus to continue using the tower company’s infrastructure for future services like 5G.
EU proposes anti-dumping duty on Indian optical fibre cable manufacturers
The European Commission has proposed a 8-11.4% anti-dumping duty on Indian optical fibre cable (OFC) manufacturers exporting to Europe. Sterlite Technologies, Birla Cables, Universal Cables, Vindhya Telelinks, and others are among the companies facing this duty.
Jio’s technology & telecom industry collaboration with TM Forum saw 80% surge in resource contribution from members: Akash Ambani
ChatGPTReliance Jio has collaborated with TM Forum to enhance technological advancements in the telecom industry, notably through the Innovation Hub in Mumbai. Akash Ambani, chairman of Reliance Jio, highlighted an 80% increase in resource contributions from members since the Hub's launch in September. He emphasized progress in generative AI and the Open Digital Architecture (ODA), along with the addition of new members like Microsoft.
Vodafone Idea may offer more shares to vendors to clear dues
Vi is saddled with around ₹20,000 crore of overall payables (including ₹13,731 crore trade payables) and proposes to use the ₹24,000 crore equity capital recently raised only for fresh capex to expand 4G coverage and roll out 5G networks. Trade payables, typically, reflect Vi's dues to vendors such as network gear suppliers and tower firms.
Airtel prepays Rs 7,904 crore to clear 2012, 2015 spectrum dues
Bharti Airtel has prepaid Rs 7,904 crore to the telecom department, clearing the remaining part of the payment relating to spectrum bought in 2012 and 2015 auctions. This move will lead to interest cost savings and help Airtel save on interest costs annually and boost cash flows as its nation-wide 5G rollout nears completion.
TRAI broadens scope of telecom consumer education fund
The Telecom Regulatory Authority of India (Trai) on Friday amended regulations 6 and 13 of the Telecommunication Consumers Education and Protection Fund (TCEPF) principal rules to enable utilisation of the fund for expenses relating to preparation, maintenance, audit of accounts, and for the participation of representatives of consumer groups attending meetings of the Committee for Utilisation of Telecommunication Consumers Education & Protection Fund (CUTCEF).