Tariff Hikes “Big Positive” for Telecom Industry
Religare Broking highlighted that the Indian telecom industry observed “challenging times” since the entry of Reliance Jio due to rise in “competitive intensity.” Despite the rise in “competitive pressure,” Religare Broking said that Airtel has managed to steadily increase its customer base. In terms of the finances, Religare Broking highlighted that Airtel has managed to rise Rs 21,500 crore for the payment of AGR dues. The firm said that the telecom operator’s ability to raise the money has eased concerns “over the sustainability of its business.” Further, Religare Broking said that the tariff hikes implemented by the telecom operators in the last quarter has been a “big positive for the industry.” Crucially, the firm said that the Airtel’s valuation will be re-rated further due to the expected growth in its finances driven by the higher average revenue per user and strong customer base. The continuous addition of 4G subscribers and “improved traction” of Airtel’s other business segments is also tipped to aid in the re-rating of telecom giant’s valuation.
Bharti Airtel Providing Free Installation of Airtel Xstream Fiber Services
While it remains to be seen if Airtel’s finances improves in the upcoming quarters, the company has been aggressively expanding its customer base. Similar to its rivals Vodafone and Jio, Airtel has enabled the users to purchase postpaid and prepaid connections online and through its Airtel Thanks app. The company promises free delivery of SIM cards and enables users to “schedule doorstep KYC” that lets users complete the entire process of purchasing SIM cards from their homes. In the broadband space, the company is offering free installation and discount upto 15% on long term plans in several cities across India.
