1. Telcos on track?

Telcos on track?

With the government giving the go-ahead for spectrum sharing and trading, the Indian telecom space is getting set for consolidation.

By: | Updated: September 19, 2015 12:57 AM
Telecom companies

With the government giving the go-ahead for spectrum sharing and trading, the Indian telecom space is getting set for consolidation.

With the government giving the go-ahead for spectrum sharing and trading, the Indian telecom space is getting set for consolidation. As the cap on spectrum holdings—currently at 50% of spectrum in a band and 25% of all spectrum in a circle—is raised, that could well be a reality. While call drops is a problem today, the real test will be when data demand zooms. As the 3G subscriber base gets close to 100 million, at least  3-4 operators will start offering 4G services by the year-end. Operators are meanwhile working to reduce their debt burden.

telecom1

Rising subscribers: While the total base is a shade under 1 billion, it is the rising 3G base that will push data usage
(in millions)

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Healthy growth in revenues: As revenues rise, the rate of growth has been slowing
(Rs, crore)

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No space for small players: The big four account for almost 80% of total revenues
(in %)

Investing on the network:  Despite the rise in spectrum prices, the spend on infrastructure during FY11-FY15 has
not stalled (in Rs crore)*

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Debt on the rise: Operators are looking to reduce their debt burden driven by rising spectrum prices (Rs crore )

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ARPU up on data usage: After falling for years, data has started to drive ARPU ( in Rs)

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Profits under stress: Rising expenditure leads to lower PAT (Rs crore )

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