Business Standard

5G auction, flat subscriber growth may weigh on Airtel, Voda Idea stocks

With organic cash flow, ongoing rights issue, strategic stake sale, improved market structure in India wireless, and easier 5G spectrum payment terms, Bharti remains well-placed to compete with R-Jio

Mobile tower, telecom sector, telecom tower
Web Exclusive Premium

Nikita Vashisht New Delhi
Amid flattish subscriber growth, and cost-heavy 5G auction, analysts believe the near-term stock performance of Bharti Airtel, and Vodafone Idea, may remain subdued. The stocks, including Reliance Industries (Reliance Jio), however, remain a medium-to-long play.

“While one can expect the Indian telecom industry to set out on an exemplary path of expansion over the next couple of years, the sector’s immediate prospects appear underwhelming. However, the sector holds enough promise to over-compensate in the medium-to-long term,” said Nirav Karkera, Head-Research at Fisdom.

Data from Telecom Regulatory Authority of India (Trai) shows that industry-active subscriber base dipped 7.8 million month-on-month (MoM)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 21 2022 | 11:26 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com