Telecom sector is in focus now and the BSE Telecom Index is now down 2%. Key industry majors like Bharti Aitel are Jio are grabbing headlines on the back of individual deals signed with Elon Musk’s SpaceX to bring Starlink’s satellite-based high speed broadband services to the country.
Let’s break down the latest updates and how they could impact telecom stocks in the days ahead.
Bharti Airtel joins hands with SpaceX
In a major announcement, Sunil Mittal-led Bharti Airtel announced on March 11 that it has signed an agreement with SpaceX to bring Starlink’s high-speed satellite internet to India. The deal will also position Airtel as a key player in satellite broadband.
“Airtel and SpaceX will explore offering Starlink equipment in Airtel’s retail stores, Starlink services via Airtel to business customers, opportunities to connect communities, schools, and health centers, among many others, in even the most rural parts of India,” added the company in the exchange filing on March 11.
Jio enters the race
Mukesh Ambani’s Reliance Jio, India’s largest telecom operator, wasn’t far behind. Shortly after Bharti Airtel’s announcement, Jio Platforms Limited (JPL) announced its own agreement with SpaceX to offer Starlink broadband services. However, the deal is subject to regulatory approvals. The partnership will allow Jio to integrate Starlink solutions into its existing service portfolio, potentially giving it an edge in the market.
“Through this agreement, the parties will leverage Jio’s position as the world’s largest mobile operator in terms of data traffic and Starlink’s position as the world’s leading low Earth orbit satellite constellation operator to deliver reliable broadband services across the country, including the most rural and remote regions of India,” said the company in a media release.
Interestingly, apart from this, there are also reports suggesting that Reliance Jio is also gearing up for a much-anticipated IPO this year, though no official confirmation has been made.
The rivalry between the two telecom giants is set to intensify as they race to dominate India’s satellite internet space.
Stock market spotlight: Bharti Airtel’s performance
With these latest developments, telecom stocks are expected to remain in focus. Bharti Airtel’s share price opened at Rs 1,690 in today’s trading session. The company boasts a market capitalisation of Rs 9.97 lakh crore, with a 52-week high of Rs 1,779 and a 52-week low of Rs 1,151.70.
Looking at its recent performance, in the past five trading sessions, Airtel’s stock has gained 4%.
Over the last month, the stock saw a slight dip of 3% and in the one-year period, it has delivered an impressive 38% return. Year-to-date (YTD), the stock is up by 4%.
With two of India’s biggest telecom players in a high stakes competition to offer cutting edge satellite internet services, investors and market watchers will be keenly observing stock movements.