Telecom Stocks Outlook for the week – 02 to 05.05.2017
Telecom Stocks Outlook for the week – 02 to 05.05.2017
( www.rupeedesk.in )
Movement in stocks of telecommunication companies is likely to be stock specific next wee and expectstocks of Tata Communications Ltd to rise, Bharti Airtel Ltd to trade in a broad range, while those of IdeaCellular Ltd to fall.The sector has witnessed heavy pricing pressure after the entry of Reliance Jio Infocomm Ltd. OnMonday, Reliance Industries Ltd announced that its telecom subsidiary had 108.9 mln subscribers as onMar 31, of which 72 mln were Prime members. Subscribers under Prime membership, the telecomoperator's premium paid services model, have access to more data usage compared to non-Primemembers. “108.9 mln is a strong number”Bharti Airtel will announce its earnings for the quarter ended March on May 9. Investors will watch out
for management's comments on the impact of Reliance Jio on the company's performance. Multiple freedata and voice services offered by Reliance Jio for over five months before announcing aggressive tariffsforced incumbent telecom operators to announce matching tariff plans to compete.In a recent report, ratings agency ICRA said the ongoing pricing pressure, stress on operating metrics inthe sector, and rising debt levels were seen weighing on the financial performance of telecom operators.
The Reserve Bank of India last week asked banks to give immediate attention to the telecom sector, andasked them to review their exposure by Jun 30. The sector is also in the midst of a legal battle betweenoperators. Bharti Airtel has moved Telecom Disputes Settlement and Appellate Tribunal against RelianceJio's tariff plans. The hearing in the matter is scheduled for Wednesday.Rising competition in the sector has also led to consolidation. Bharti Airtel has announced two separate
acquisitions of Tikona Digital Networks Pvt Ltd and the Indian arm of Norway's Telenor ASA. VodafoneIndia and Idea Cellular have also announced a merger, which is pending regulatory approvals.
Source : Cogencis Information Services Ltd.
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Telecom Stocks Outlook for the week – 02 to 05.05.2017
( www.rupeedesk.in )
Movement in stocks of telecommunication companies is likely to be stock specific next wee and expectstocks of Tata Communications Ltd to rise, Bharti Airtel Ltd to trade in a broad range, while those of IdeaCellular Ltd to fall.The sector has witnessed heavy pricing pressure after the entry of Reliance Jio Infocomm Ltd. OnMonday, Reliance Industries Ltd announced that its telecom subsidiary had 108.9 mln subscribers as onMar 31, of which 72 mln were Prime members. Subscribers under Prime membership, the telecomoperator's premium paid services model, have access to more data usage compared to non-Primemembers. “108.9 mln is a strong number”Bharti Airtel will announce its earnings for the quarter ended March on May 9. Investors will watch out
for management's comments on the impact of Reliance Jio on the company's performance. Multiple freedata and voice services offered by Reliance Jio for over five months before announcing aggressive tariffsforced incumbent telecom operators to announce matching tariff plans to compete.In a recent report, ratings agency ICRA said the ongoing pricing pressure, stress on operating metrics inthe sector, and rising debt levels were seen weighing on the financial performance of telecom operators.
The Reserve Bank of India last week asked banks to give immediate attention to the telecom sector, andasked them to review their exposure by Jun 30. The sector is also in the midst of a legal battle betweenoperators. Bharti Airtel has moved Telecom Disputes Settlement and Appellate Tribunal against RelianceJio's tariff plans. The hearing in the matter is scheduled for Wednesday.Rising competition in the sector has also led to consolidation. Bharti Airtel has announced two separate
acquisitions of Tikona Digital Networks Pvt Ltd and the Indian arm of Norway's Telenor ASA. VodafoneIndia and Idea Cellular have also announced a merger, which is pending regulatory approvals.
Source : Cogencis Information Services Ltd.