Category: Telecom

Reliance Jio Q3 results preview: 10 mn subscribers addition to drive growth in Dec quarter, say analysts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reliance Industries is all set to report its quarterly earnings for the October to December 2023 period on January 19 with its telecom division Reliance Jio Infocomm expected to deliver a stable quarter. Analysts polled by CNBC-TV18 suggest that the telco’s revenue growth will be driven by a 10 million subscriber addition and a moderate increase in average revenue per user (ARPU).

The data released by the Telecom Regulatory Authority of India (TRAI) for October 2023 shows Jio added 3.1 million subscribers during the month. Following this, the CNBC-TV18 poll of analysts expects the firm would have expanded its subscriber base by 10 million during the third quarter of the 2023-24 fiscal.

If the numbers are in line with estimates, Jio would have a total of 470 million subscribers at the end of the quarter ending December 2023 as against 459.7 million in the preceding quarter.

Meanwhile, each Jio user is expected to have spent an additional ₹1.3 on average in the quarter gone by as analysts see ARPU for the period under review at ₹183 versus ₹181.7 in the September ended quarter, analysts said. They also pointed out that the ARPU increase has been modest for the industry.

As per the CNBC-TV18 poll, Jio will see a 2.5% sequential growth in its revenue at ₹ 25,360 crore from ₹ 24,750 crore in the previous quarter. The profit after tax (PAT) is likely to go up 1.8% at ₹ 5,150 crore compared to ₹ 5,058 crore in the second quarter.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA), analysts believe will come in at ₹ 13,450 crore for the December quarter, up from ₹ 12,953 crore in the last quarter. The poll projects a margin rise in EBITDA percent at 53% from 52.3% earlier.

Among the other factors, analysts expect the Street to track 5G rollout and adoption. As of the second quarter, Jio’s 5G data traffic accounted for more than 15% of overall data traffic. The rollout of Jio AirFibre and the hike in 4G prepaid tariff will also be key to watch, analysts said.

Also Read: Reliance Jio launches prepaid plan bundled with Swiggy One Lite subscription — check all details

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Telecom outlook 2024: Experts weigh in on key sector drivers, Vodafone’s debt woes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sanjay Kapoor, former CEO of Airtel, and Balaji Subramanian, Vice President of IIFL Securities discussed the major trends from tariffs to new technologies that could drive the telecom sector in 2024.

They also shared their view on Vodafone Idea’s debt pile in the context of the spike in its stock. Shares of the telecom service provider were up 10% on January 2 after having gained 21% on Friday, December 29.

The shares gained as the Vodafone management had earlier said that the promoters plan to infuse up to ₹2,000 crore by the end of the December quarter. There were also media reports that the government could sell its 33% stake in Vodafone Idea to Elon Musk, the owner of “X” and Tesla. However, Vodafone denied any such discussions in a stock exchange filing. 

“The moot question here is what happens to Vodafone Idea given the huge amount of debt that they carry. From a business perspective, I actually don’t see a business case where somebody from any part of the world will come and say, I am willing to fund this company, and bear all the debt burden that this company has, and catch up with the market players and compete with them and make a business virtue out of this going forward, I actually don’t see that happening,” Kapoor said.

Read Here | Vodafone Idea shares up 30% in two sessions; Fund raising clarity awaited

Read Here | Vodafone Idea Shares In 2023: Fund raise remains elusive with no clarity on 5G timelines

Subramanian said there is potential for promoters to inject equity into Vodafone Idea. However, there is still need for substantial investment, considering the looming moratorium on spectrum and adjusted gross revenue (AGR) payments until late 2025.

“…the government also has got an option to convert the principal during the moratorium into equity, which means that whoever enters the stock right now sees a significant dilution potentially. So that is why It makes things a little tricky,” he noted.

Also Read |Bharti Airtel Services to acquire 97.1% stake in Beetel Teletech

The telecom experts also shed light on the challenges for the telecom sector. Kapoor believes the biggest dilemma that most telecom companies face now is whether to double down on 5G or try and cover up the investments that have made since it’s become tough to monetise 5G. “There are more newer technologies coming in we are talking AI, we are talking IoT, we are talking storage,” he noted.

Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea issues clarification, says not in any talks with Elon Musk’s Starlink

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom operator Vodafone Idea Ltd. has clarified that the company is not in any discussions with Elon Musk’s Starlink.

“We are not aware of the basis of the said news item,” the company said in an exchange filing. “The company is not in any such discussion with the named party,” it said.

The company clarified on a report published in the Mint newspaper, which also cited news reports claiming that the government could sell its 33% stake in Vodafone Idea to the Musk, the owner of “X” and Tesla.

Clarification was sought from the telecom service provider after the stock had risen nearly 30% over the last two trading sessions.

Shares of Vodafone Idea have given up gains and are currently trading 4.4% lower at ₹16.3.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea shares up 30% in two sessions; Fund raising clarity awaited

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Vodafone Idea Ltd., the telecom service provider, are up another 10% during Monday’s trading session after having gained 21% last Friday.

However, the street is still awaiting clarity on the company’s fund raising plans on which the management had shed light during the September quarter earnings call.

The management had mentioned that the company’s promoters will infuse a sum of up to ₹2,000 crore by the end of the December quarter, which ended on Sunday.

“In the last quarter, we had gotten a letter from the promoters that they will support us to the extent of ₹2,000 crore. Till date they have not actually contributed anything. We had gotten some bank funding to tide over the short term mismatch that we had in the last quarter. The promoters’ commitment is there. They have said that they will support as and when required. And we expect that this promoters’ contribution should also come alongside the tie up with the external investor,” CEO Akshaya Moondra had said during the earnings call.

“Most likely this will conclude in this quarter. That’s our expectation,” he had added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Telecom Bill sparks concerns over surveillance powers, experts call for reform

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Parliament recently cleared the Indian Telecommunications Bill 2023,  which grants the government temporary control over telecom services in the interest of national security. However, the legislation has sparked heated reactions, particularly regarding the powers of interception outlined in the bill.

In a discussion with CNBC-TV18, Nikhil Pahwa, Founder of MediaNama, expressed grave concerns, stating that the surveillance regime remains unreformed. Pahwa revealed that an average of 300 interception orders are signed daily, raising questions about the proportionality and transparency of such actions.

Pahwa emphasised the potential threats to privacy, particularly in the context of end-to-end encrypted software like WhatsApp and Signal. He noted the government’s historical non-denial of using powerful surveillance tools such as Pegasus. The absence of accountability for bureaucrats involved in surveillance and the lack of parliamentary oversight further intensified the debate.

Deepro Guha, Senior Manager at The Quantum Hub, added his perspective, noting that the government itself is subject to oversight through interception rules mandating a monitoring committee. However, Guha expressed reservations about the current Telecommunication Bill, which delegates the responsibility of implementing safeguards.

“Current Telecommunication Bill delegates the issue of putting in place safeguards…National security should be a defined in a manner to explain things like public order, sovereignty,”  he said.

The real threat, according to Pahwa, lies in the fate of end-to-end encrypted software like WhatsApp and Signal. Expressing skepticism, he noted the government’s non-denial of the use of sophisticated surveillance tools such as Pegasus in the past.

Referring to a Supreme Court directive, Pahwa stressed the need for proportionality in surveillance activities, emphasising concerns about potential overreach. He highlighted that in 90% of cases, departments seek information on communication patterns between individuals, revealing a broader scope of surveillance beyond specific threats.

Watch the accompanying video for the full interview

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lok Sabha passes Indian Telecommunications Bill 2023

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Lok Sabha has cleared The Indian Telecommunications Bill 2023 on Wednesday (December 20). The Bill was introduced by Minister of Communications Ashwini Vaishnaw on December 18.

#WinterSession2023 #LokSabha passes The Telecommunications Bill, 2023.@DoT_India @AshwiniVaishnaw

Watch Here: https://t.co/Pk9usqVF1t pic.twitter.com/t05QX4p5qn

— SansadTV (@sansad_tv) December 20, 2023

The legislation is slated to replace three existing Acts — the Indian Telegraph Act, 1885; the Indian Wireless Telegraphy Act, 1933; and the Telegraph Wires (Unlawful Possession) Act, 1950. The government aims to modernise India’s regulatory framework in the digital age through this Bill, which empowers the Centre to establish rules for the protection of telecommunication networks.

“The Bill (seeks) to amend and consolidate the law relating to development, expansion and operation of telecommunication services and telecommunication networks; assignment of spectrum; and for connected matters,” Vaishnaw said while introducing it

The Bill also seeks to amend the Telecom Regulatory Authority of India (TRAI) Act, 1997 to bring cable television network providers as licensees under it.

The Bill was received well by the industry. The Internet and Mobile Association of India (IAMAI) lauded the government’s effort and expressed happiness over exclusion of certain services. The Bill excludes email, internet-based communication services, broadcasting services, machine to machine communication services, and over the top (OTT) communication services.

There were concerns in certain quarters of the industry over the possible inclusion of internet-based communication platforms such as WhatsApp, Zoom, Signal, Virtual Private Networks (VPNs), among others.

The Bill further seeks to simplify the current licensing regime for telecom networks. As of now, the Telecom Department issues more than 100 types of licences, registrations, and permissions.

The Bill will now make its way to Rajya Sabha for discussions and deliberations.

Also Read:Telecommunications bill tabled in Lok Sabha — All you need to know

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government re-invites application for Trai Chairman post

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Department of Telecom on Friday invited applications for the post of Trai chairperson, which has been lying vacant since October 1, again. Earlier, the DoT had issued an advertisement on June 26.

“The government of India, Department of Telecommunications proposes to fill up the post of Chairperson, Telecom Regulatory Authority of India (Trai), New Delhi which is vacant since October 1, 2023,” the advertisement said.

Also Read: Broadband forum welcomes TRAI recommendations on telecom equipment manufacturing

Candidates who have applied for the position in response to the advertisement issued earlier are not required to apply afresh, according to the fresh advertisement.

The DoT in the advertisement issued on Friday fixed December 22 as the last date for submitting applications. The position of Trai chairperson has been vacant since October 1 after the completion of the tenure of P D Vaghela.

Trai member Meenakshi Gupta is handling the additional charge of chairperson of the regulatory body.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

FY24 Telecom Crackdown | Minister Devusinh Chauhan reveals unearthing of as many as 65 illegal setups

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As many as 65 illegal telecom setups, that allowed international calls with spoofed Indian numbers, were busted during FY2023-24, Parliament was informed on Wednesday.

The Department of Telecommunications (DoT) has directed the International Long Distance Operators (ILDOs) to drop incoming calls with no Calling Line Identification (CLI), or improper CLI or having certain prefixes.

Moreover, DoT is blocking the apps allowing the origination of spoofed calls. Such apps are also blocked at Google Play Store and iOS App Store, Minister of State for Communications, Devusinh Chauhan said in a written reply in Lok Sabha.

DoT in coordination with Law Enforcement Agencies and Telecom Service Providers (TSPs) is unearthing illegal telecom setups that allow international calls with spoofed Indian numbers.

Such illegal setups are used to bypass the ILDOs for anti-national activities, cyber-crimes and financial frauds, Chauhan said. “So far, 65 such illegal setups during FY 2023-24, 62 in FY 2022-23 and 35 in FY 2021-2022 have been unearthed.”

“Further, to prevent the incoming international calls with spoofed Indian landline numbers, DoT has directed the ILDO to drop international incoming calls with no CLI, improper CLI or having CLI prefixes such as +11, 011 & 11, +911 to +915,” he informed.

DoT has launched citizen-centric Sanchar Saathi portal, which facilitates the citizens to report international calls received with Indian CLI, and to check mobile connections taken in their name and report the mobile connections which are not taken by them.

“Telecom Service Providers are disconnecting such reported mobile connections after necessary subscriber reverification. Around 13.08 lakh such mobile connections have been disconnected,” the minister said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel share price crosses ₹1,000 for the first time: What’s next for the telco?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bharti Airtel share price crossed the ₹1,000 mark for the first time ever, nearing a market capitalisation of ₹6 lakh crore. The telco’s scrip opened at ₹990.90 on NSE and hit the intra-day high price of ₹1,007.10.

Bharti Airtel shares have gained street attention since CNBC-TV18 reported that the Sunil Bharti Mittal-led telco has started the process of taking its subsidiary Bharti Hexacom public. Bharti Airtel has given positive double-digit annual returns on share price since 2019.

CNBC-TV18’s Reema Tendulkar discusses five key factors that have pushed the telco’s stock to new highs, the next targets from brokerages, and why JP Morgan is underweight on Bharti Airtel, taking a contrarian position despite a general bullish view on the Street.

Steady increase in ARPU

Bharti Airtel’s average revenue per user (ARPU) has steadily increased from Rs 163 in the third quarter of FY22 to crossing the ₹200-mark in the first quarter of the current fiscal. It further increased by ₹3 to ₹203 in the second quarter of FY24.

All-time high revenue market share

Bharti Airtel’s revenue market share was at an all-time high of 37.2%.

Strong postpaid subscriber additions

Bharti Airtel added a million postpaid subscribers in the second quarter of the current fiscal, which was at an all-time high. The previous quarterly run rate was around 400,000 until the first half of FY23.

Healthy India Mobile EBITDA margin expansion despite ongoing 4G and 5G investments

Bharti Airtel’s mobile EBITDA margin expansion has been healthy despite the ongoing 4G and 5G investments.

Healthy FCF generation despite high capex spend

Global investment firm Goldman Sachs says “Bharti’s India business generated US$1 billion in free cash flow (FCF) in 1HFY24 (excluding spectrum prepayment), and we forecast US$1.5 billion in FCF in FY24E, rising to US$3.5 billion in FY25.”

Brokerage view

Barring JP Morgan, all major brokerages have a ‘buy’ rating on Bharti Airtel with a target price ranging between ₹1,070 to ₹1,110. JP Morgan has an ‘underweight’ stance with a target of ₹785. The bearish view is based on three factors:

• We do not expect any tariff hikes to come through in CY23, given the focus of both Jio and Bharti on rolling out 5G services.
• We expect capex to increase significantly for Bharti, as it will have to defend market share vs Reliance Jio.
• Bharti won’t be able to monetise its significant 5G investments over the next three years.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow