Any thoughts on the impact to Bharti Airtel regarding the news that broke last night. Adani’s entering the telecom spectrum bidding race.
Adani planning to enter telecom spectrum race; to face Jio, Airtel: Report
Adani wants to get into every nook and corner of Indian Economy but I don’t think they will be successful here. First of all, their acquisitions, new investments and all have been financed through debt. Not a single investment has any capital infusion, that itself makes it a very risky investment. This puts an unnecessary burden on the entity they are buying or investing in, even before the operations start.
Secondly, it is unlikely that all their investments will turn fruitful. We all know, in any portfolio many stocks do not perform that well and most of the gains come from few select stocks. I think same will happen with Adani’s investments. Now as far as the spectrum auction is concerned, even if they buy the spectrum, what will they use it for? They don’t have a single business that needs this kind of investment and given it’s past history of over paying outrageously for certain investments, just because they have easily available credit, they might over pay for this project too. But I doubt this will affect Bharti in any way.
Bharti survived JIO, AGR dues blow and now is doing better than ever in the telecom space. I have written about this in detail in one of my posts. I’ll put the link here or you can read their recent concall. They are diversifying into so many other growth engines, that harming them in any way would take huge investments.
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CLSA has assigned a “buy” rating to Bharti Airtel’s stock, indicating a positive outlook. The rating is based on factors such as the company’s growing post-paid subscriber base and the potential of its 5G services. CLSA has set a target price of ₹1,015 for Bharti Airtel’s stock, suggesting potential upside. The report highlights the positive prospects for the company in the telecom sector, considering its subscriber growth and future expansion into 5G services.
Airtel is focusing on small and medium-sized enterprises (SMEs) and government projects to expand its cloud business. The company aims to tap into the growing demand for cloud services in these sectors. Airtel plans to leverage its extensive network infrastructure and data center capabilities to provide a range of cloud-based solutions to SMEs and government organizations. By targeting these segments, Airtel aims to capitalize on the increasing adoption of cloud technologies and establish itself as a key player in the Indian cloud market.
Bharti + Smart Meters
Smart meter are already SIM enabled so thesis has always been there behind the core thesis
Airtel & Data Center
Indus tower investment augers well for Bharti
Nxtra is a data center play 10% right now. They might look to ipo this in future.
Bloom Energy partnership for Airtel Nxtra (Data Center arm)
East india largest Data center by Nxtra Airtel
Data center awards for Bharti
Nxtra
#BHARTIARTL: Nxtra by Airtel joins RE100, commits to becoming a 100% renewable energy data center company.
Bharti Airtel - No Data Breach - Airtel
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Bharti Airtel fined Rs. 258,000
The telecom giant has been slapped with a penalty by the Department of Telecommunications (DoT) for allegedly violating subscriber verification norms. The fine was imposed based on a CAF audit conducted for May 2024.
These are quite regular. It’s happening more than once almost every month.
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