Airtel leads Sensex today after company adds 6 lakh users in July despite competition from Reliance Jio
Shares of India’s largest telecoms operator have advanced more than 2 percent in initial trade on Wednesday after the company added 6 lakh new users in July 2017, according to data released by the IBOC India).
The Bharti Airtel heavyweight stock has increased to 2.85% day rise at Rs 433.7 and was the first winner at the Sensex benchmark today.
Airtel shares contributed about 14 points to the 150-point increase in the barometer at 30 points, the share rose 16.64% to Rs 433.7 in the last three months.
Earlier yesterday, four private telecoms operators including Idea Cellular and Vodafone lost 43.7 lakh customers while Bharti Airtel added 6 lakh new users in July 2017, according to data released by the industry body IBOC Hoy showed.
In a recent development, Bharti Airtel to contradict Jiance Phone Jio, would have planned to launch its own 4G mobile. According to several reports, Airtel will launch the Android 4G-based phone just before Diwali in early October.
While the total base of five-member mobile accesses including IBOC Aircel and Telenor fell 37.74 lakh rupees in July to 82.6 from 83 crore by the end of June.
“… the extreme financial strain experienced by the industry today is likely to show its impact on these figures. The industry is experiencing hyper-competition phase and when it deforms under a debt of more than Rs 4.5 lakh crore,” Said IBOC Director General Rajan S Mathews in a statement.
He said the industry still needs an additional investment of more than Rs 2.5 lakh rupees for the deployment of infrastructure and expansion is needed, especially in the more advanced areas of the country. Bharti Airtel’s subscriber base hit 28.12 million rupees in July. Idea lost more than 23 lakh customers during the month, followed by Vodafone which lost 13.89 lakh customers.
Recently, the Interministerial Group (IMG) has relieved telecom operators that they focus more time on telecom companies in deferred payment of spectrum. The IMG set up to examine the financial problems of telecommunications may suggest the increase in the delayed payment period of the spectrum at age 16, as it is the proposal in which the panel has reached a “consensus”, according to several officials.
In June, the inter-ministerial group held an in-depth dialogue with all telecommunication operators and major banks on the financial difficulties of the industry. With a debt burden exceeding Rs 4.6 lakh crore, telecom companies are seeking immediate policy intervention to overcome the crisis.
United against the newcomer Reliance Jio, established telecommunications companies marked the pressure on profitability and increase revenue and reduce license fees, the use of spectrum, in addition to relaxation of Deferred payment rules for the spectrum acquired.
The Jio unit, backed by India’s wealthiest person Mukesh Ambani, attributed financial stress to existing telecom operators such as Bharti and the idea of corporate debt management and strong investment in independent areas, a burden This was rejected by the big operators.