Huge investments are required to roll out 5G. Companies with high capex needs are undervalued during investment phase and valuations will increase once the capex phase is over and visibility is established for positive revenue flows and increasing margins. Bharti has a long way to go.
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reliance jio: In-depth: What does 5G spectrum auction delay mean for India?, Telecom News, ET Telecom (indiatimes.com)
“5G has already been adopted and deployed in 57 countries with 228.7 million subscribers, commercially launched by more than 150 operators (as per GSA), and various use cases have been established, there is surely no longer need for trials in India. We can learn and benefit hugely from the experience of the others into building more robust networks and improved customer experience, and directly go into commercial launch of 5G,” says TV Ramachandran, President, Broadband India Forum (BIF).
Experts believe that the delay is unlikely to result in any real revenue loss for the country. “Our research shows that there is only a slight ARPU [Average Revenue Per User] uplift of 9% to 10% because of 5G. Further, 5G use cases open up only with Standalone (5G SA) version which any away wouldn’t have happened even if Indian telcos had launched 5G this year,” says Ashwinder Sethi, Principal at Analysys Mason
Delay in 5G spectrum auction helps the Government push for acceptability of the homegrown 5G standard, 5Gi, which allows for wider coverage and is especially relevant for rural coverage. There is strong resistance from the private telcos in using this standard allegedly because of interoperability issues. The telcos also say that 5Gi is likely to increase the cost of network deployment.
From Bharti Airtel’s perspective, it has maintained that India will be ready for 5G only in 2022, so the delay is in line with its timeline. For Jio, the delay impacts its vendor ambition to sell its homegrown 5G solution globally. By the time it is able to test the solution in its network, the mature and developed markets would have adopted 5G, leaving little opportunity for the telco.
While overall, the delay is beneficial for the service providers, there is little doubt that 5G would have allowed the telcos to provide a better network experience to the users, especially so in these times when our dependency on the communications networks is high
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Too much happening in Telecom, it seems.
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I think, this investment, would give better ROI to Airtel :
Bharti Airtel Share Price Today: Bharti Group To Invest Additional Rs 3,700 Crore In OneWeb, Stock Edges Higher -
Alongwith comes rise in prices, in bits & pieces, which is a good sign :
https://telecomtalk.info/bharti-airtel-revising-postpaid-plan-price-data/372203/ -
On the other hand, Airtel Ads, beta testing its products on 100+ brands is a +ve sign indeed.
Airtel Ads is beginning to clock meaningful revenues: Gopal Vittal - Exchange4media -
Youstory talks about the benefits of Microservices on Cloud:
https://yourstory.com/enterprise-story/2021/06/airtel-digital-transition-microservices/amp -
With all always comes competition & this times, its from a PSU, which is very interesting. The is taking things to different tangent :
RailWire promises tough fight to Jio, Airtel
All in all, looks like Airtel trying to become a SuperApp of telecom & related products.
Disc - Invested in Airtel & RIL.
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My understanding is that OneWeb investment is through parent parent Bharti enterprises.
Thanks for details to you. Few thoughts here - Does Airtel plan to hive off the digital/platform part and later list it as an IPO? If its IPO route, existing Airtel shareholders may not gain much and I think telecom companies are always in need of money so chances are it will be an IPO rather than a demerger route. I maybe wrong…
Secondly, if we like digital assets, data and Enterprise part, we have a pureplay in terms of Tata Communications…which can prove to be a Airtel digital & Airtel business sans the cash burning (at moment, and in future need of spectrums endlessly) telecom part…is that a better investment (valuations aside) in case one is interested in digital/business assets or there is some deep value in the pure telecom part of Airtel business that isint present in tata communications…just trying to understand that for the liking of one part of the business, we are getting the capex heavy, spectrum dependent telecom as legacy and is it worth the investment? @nav_1996 - your thoughts also would be good to have…
I have a question on OneWeb.
The investments in OneWeb are made by Bharti Enterprises and not Bharti Airtel. It was always Mr. Sunil Mittal who spoke to media about OneWeb and never Mr. Gopal Vittal. I am just curious to understand how OneWeb can impact Bharti Airtel’s revenues?
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OneWeb will not be a competitor to Airtel broadband business, if that’s what you meant. Satelite internet will be much more costlier than the broadband services and I expect them to target customers where broadband services are very hard to reach, where its not feasible for OFC cables to be laid. Nettle Infrastructure a wholly owned subsidiary of Airtel is having 100% stake in One Web India communications Pvt Ltd. So I expect One Web to conduct its India operations through this subsidiary. Network Access associates Ltd ( One Web group company) is in the process of seeking FDI approval for investments in Oneweb India communications Pvt Ltd.
I know that OneWeb is going to be B2B and it would just complement the existing telecom services. I was just confused as to how this would directly benefit ‘Bharti Airtel’, the company.
But if One Web’s India business can boost Airtel’s revenue, then it would be a game changer for all the investors of Bharti Airtel.
Airtel Launches-all-in-one-Plan-for-Mobile-Broadband-DTH- Services
I had availed this service few months back during the Soft launch period , Now they have officially launched this service with multiple options suitable to various customer requirements…overall it is a great product which will make them unique in their offerings…
None of the competitors such as Jio, Idea or Tata sky have such a product.
You may also read this post
Still looking for the Gaps 
As per the report, Airtel & Voda both lost huge mobile subscribers in May.
Just Jio was able to inc. its share. Where did these 62.7 lakhs+ (Airtel+Voda) subscribers went.
Can anyone help me in this. What am I missing?
Disc : Invested in Airtel & RIL.
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Just sharing some additional updates
" Airtel’s Africa business reported a net profit of $142 million in the fiscal first quarter, which more than doubled on-year on the back of strong growth in data and mobile money revenues along with stable finance costs."
Airtel Africa: Airtel Africa Q1 net profit more than doubles on year, Telecom News, ET Telecom (indiatimes.com)
" Airtel loses 46.1 lakh mobile subscribers in May, Jio adds 35.5 lakh users: Trai data"
bharti airtel: Airtel loses 46.1 lakh mobile subscribers in May, Jio adds 35.5 lakh users: Trai data, Telecom News, ET Telecom (indiatimes.com)
The same article mentions that the overall mobile subscriber numbers in India fell by 62.7 lakhs.
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Voda-Idea’s loss is Airtel’s gain?
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News feed:
Disclosure: Invested
When things were starting to look good
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Is anybody here applying for Rights issue? I’m trying to do so but the rights issue is not reflecting in my asba bank account…I have account in Axis bank.
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Same here. With other broker accounts also. It should reflect by today if I am not mistaken.
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