Analysts expect private telcos to leverage the fall in consumer-level telecom spends to 0.73% of GDP in the September quarter of FY20 from 1.25% just over three years ago, saying the scenario offers adequate headroom to push through a second round of price hikes.
ARPU is a key performance metric closely linked to the profitability in a capital-intensive sector like telecom where companies need to invest a lot on infrastructure.
The country’s mobile user base is set to fall for the first time in eight years this calendar with many people likely to give up their second or third connections due to rising cost of ownership.
The QIP is likely to be priced at Rs 445 a share against the base price of Rs 435 per unit.
Jio is likely to report December quarter results around the third week of this month.
The focus now shifts to the quality of services. Delivering a genuine video-grade 4G experience with rich digital content to ensure true bang for the buck for India’s growing legion of data-hungry mobile users will hold the key, say experts.
“A finance ministry notification, dated December 30, has assigned a new harmonised system (HS) code (No: 8517 62 90) for routers to continue their zero customs duty status,” said a senior executive with direct knowledge of the matter. ET has seen a copy of the notification issued by the revenue department.
Increasing basic customs duties on tech products such as routers listed under (the rechristened) ITA-1, he said, would hit expansion of 4G networks, prevent cost-effective deployment of the upcoming 5G ecosystem and make mobile broadband services unaffordable to users.
No government nod to merger, Bharti Infratel sets February 24, 2020 as new deadline for Indus merger
The proposed merger of Bharti Infratel with Indus Towers aims to create one of the world’s largest telecom tower companies with more than 163,000 towers.
On Friday, Digital Communications Commission (DCC), the highest decision-making body in the telecom department, cleared the country’s largest-ever spectrum auction likely around March-April 2020. The auction can fetch the government at least Rs 5.22 lakh crore if telcos bid for all the 8,300 units of 4G and 5G airwaves on offer.
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