I think all the negatives are priced in. Can understand if someone wants to make an exit cause the industry is totally stressed and I don’t see an industry wide revival anytime soon at least as long as RIL is there. Any positions are risky. Jio is also looking at using more and more captive towers so I doubt the future looks great…Valuations are cheap as heck and that’s the only reason I am invested with a very low allocation (less than 2%)
With regards to recent 5g auctions,
Jio has gone for standalone 5 g network and 700MHZ spectrum which has range till 10 km, reducing tower needs.
Bharti and Voda has opted for non 700 MHz bands and NSA 5g which will require greater tower density to compete with Jio network.
IMHO, this should be positive for Indus.
Moreover, to compensate for higher upfront 5g cost, tariff hikes may be needed which shall again be positive for Voda and Bharti.
Another question I am wondering is whether this a writeoff or prudent provisioning for doubtful receivables. If just a prudent provision, there maybe a reversal later.