<\/strong><\/em>
How concerned are you about whether or not the 5G rollout is going to be additional pain for the telcos?
<\/strong>The big concern has been that the round of tariff hikes which was expected in November, December of 2022, has not come yet. We did see that there was a small pricing experiment that Bharti conducted in two of its circles with respect to its 2G plans.
Having said that, the company is yet to extend that across the country. Basically what has happened is that there is concern whether the tariff hike story and the ARPU increase story which was supposed to play out is getting delayed a little bit.
On the other hand, the companies have been saying they have been quite rapid on their 5G rollout speed. Both Bharti and Jio are rolling out their 5G network<\/a>s in new cities almost every day and they have reiterated that-- in the case of Jio, they would like to have a pan India 5G network in place by the end of this calendar; Bharti has said that its 5G network will be there in 5,000 towns and cities by the end of FY24.
So, it is the worry that one is going to see a wave of capex cycles playing out without commensurate ARPU increases in the near term. That is what has probably spooked the markets in the last couple of days.
Is there any reason to believe that 5G capex is going to be higher than what was earlier anticipated? Secondly will the companies have to take higher tariff hikes?
<\/strong>I do not see any reason to believe that the 5G capex requirements have gone up in the last couple of weeks or last one month because this is something which companies have announced and they have plans for in past interactions with the investor community as well as public. I do not see any reason for a 5G capex acceleration to happen in any case. I think it is more the worry that how one would kind of make a decent return on all the extra capital that is getting deployed in 5G, especially if there is no visibility of tariff hikes in the near term.
The concern is more around achieving the same return on capital in the absence of or at least in the absence of visibility of tariff hikes and not so much of the capital deployed itself going up higher than what was initially anticipated.
How is this entire sector panning out? It was said that 2023 is going to be the year when we will get to know whether Vodafone<\/a> could be the third player or not in the industry<\/a>. What is your take with respect to that and how Vodafone is expected to scale up this year?
<\/strong>As far as Vodafone-Idea is concerned, the position is largely unchanged. We have seen that there has been a delay in the conversion of government dues into equity. Vodafone had exercised this option almost a year back and on the last earnings call, the company made it clear that they have not heard back from the government since April 2022. So, it has been quite some time since there has been any news flow on this front.
I think the markets are getting a little jittery as to what has led to such a significant delay and what is the way forward because there are no easy ways about it. It is more of a chicken and egg situation. Maybe the government is waiting for some clarity on Vodafone-Idea’s equity raising plans in future while on the other hand, any potential equity investor into Vodafone-Idea would probably like to have the comfort of knowing that the entity is getting some government ownership. I am not too sure how this is going to play out going forward.
So is a downgrade on Bharti justified then?
<\/strong>In the long run, Bharti’s prospects are quite healthy because the industry structure is improving and eventually at some point in time, a tariff hike has to happen because with these kind of investments, both the top telecos would struggle to make double digit returns on capital employed. So unless there is a significant increase in ARPU, that is going to happen. The long-term prospects for Bharti look quite solid but it is more of a near-term concern whether a price hike can happen anytime in the near future, considering pockets of consumption spending weakness in the economy.
<\/body>","next_sibling":[{"msid":96953056,"title":"Cognizant appoints Ravi Kumar as CEO, replaces Brian Humphries","entity_type":"ARTICLE","link":"\/news\/cognizant-appoints-ravi-kumar-as-ceo-replaces-brian-humphries\/96953056","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"96928667","title":"Balaji Subramaniam-1200","entity_type":"IMAGES","seopath":"markets\/expert-view\/is-5g-rollout-going-to-be-an-additional-pain-for-telcos-balaji-subramanian-answers\/balaji-subramaniam-1200","category_name":"Is 5G rollout going to be an additional pain for telcos? Balaji Subramanian answers","synopsis":false,"thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-20184\/96928667.cms?width=150&height=112","link":"\/image\/markets\/expert-view\/is-5g-rollout-going-to-be-an-additional-pain-for-telcos-balaji-subramanian-answers\/balaji-subramaniam-1200\/96928667"},{"msid":"96927523","title":"Buy Bharti Airtel if it falls further, look into telecom ancillaries: Sandip Sabharwal","entity_type":"ARTICLE","seopath":"markets\/expert-view\/buy-bharti-airtel-if-it-falls-further-look-into-telecom-ancillaries-sandip-sabharwal","category_name":"Expert Views","synopsis":"\"Bharti has been stuck around at a certain level for a long time and it did not correct in the market correction also. I do not know who takes these brokerage downgrades seriously but it could be because of general profit taking. If the stocks come down further, I would be more of a buyer than looking to get out of them.\"","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-15892\/96927523.cms?width=150&height=112","link":"\/news\/markets\/expert-view\/buy-bharti-airtel-if-it-falls-further-look-into-telecom-ancillaries-sandip-sabharwal\/96927523"},{"msid":"96927967","title":"Diversify some allocations to bond market on a 1-2 years\u2019 basis: S Krishnakumar","entity_type":"ARTICLE","seopath":"markets\/expert-view\/diversify-some-allocations-to-bond-market-on-a-1-2-years-basis-s-krishnakumar","category_name":"Expert Views","synopsis":"\u201cCapital goods and engineering is a space that we should be positive on from a three years\u2019 perspective as is banks. Other than that, the auto component space has a lot of pent-up growth that will come through over the next two years and the EV market is also opening up. Batteries has been a huge underperformer for the last five years and will see demand recovery.\u201d ","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-30390\/96927967.cms?width=150&height=112","link":"\/news\/markets\/expert-view\/diversify-some-allocations-to-bond-market-on-a-1-2-years-basis-s-krishnakumar\/96927967"},{"msid":"96884547","title":"Tariff hike-led revenue growth, 5G key events for telecom in 2023, decisive year for VIL: Report","entity_type":"ARTICLE","seopath":"industry\/telecom\/telecom-news\/tariff-hike-led-revenue-growth-5g-key-events-for-telecom-in-2023-decisive-year-for-vil-report","category_name":"Telecom News","synopsis":"According to CLSA's outlook, 2023 will have three trends to watch out for when it comes to India's mobile market. Among them will be 5G rollouts and monetisation led by top-end subscribers.","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-162396\/96884547.cms?width=150&height=112","link":"\/news\/industry\/telecom\/telecom-news\/tariff-hike-led-revenue-growth-5g-key-events-for-telecom-in-2023-decisive-year-for-vil-report\/96884547"},{"msid":"96917633","title":"Reliance Jio expands 5G coverage to 101 cities","entity_type":"ARTICLE","seopath":"industry\/telecom\/telecom-news\/reliance-jio-expands-5g-coverage-to-101-cities","category_name":"Telecom News","synopsis":"Industry estimates say that both telcos would aim to capture 100-150 million early adopters of the new technology by March 2024. So far, Airtel has not announced any 5 G-specific pricing. Existing 4G users of Airtel can upgrade to 5G on their existing 4G plan as long as they have a 5 G-enabled device. The only difference is that on 5G, the users have unlimited data allowance.","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-194688\/96917633.cms?width=150&height=112","link":"\/news\/industry\/telecom\/telecom-news\/reliance-jio-expands-5g-coverage-to-101-cities\/96917633"}],"msid":96953139,"entity_type":"ARTICLE","title":"Is 5G rollout going to be an additional pain for telcos? Balaji Subramanian answers","synopsis":"\"I do not see any reason to believe that the 5G capex requirements have gone up in the last couple of weeks or last one month because this is something which companies have announced and they have plans for in past interactions with the investor community as well as public. I do not see any reason for a 5G capex acceleration to happen in any case.\"","titleseo":"telecomnews\/is-5g-rollout-going-to-be-an-additional-pain-for-telcos-balaji-subramanian-answers","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":298,"shares":0,"engagementtimems":1490000},"Alttitle":{"minfo":""},"artag":"ET Now","artdate":"2023-01-13 07:35:52","lastupd":"2023-01-13 07:36:19","breadcrumbTags":["5G","telecom sector","vodafone","balaji subramanian","iifl securities","5g network","expert view","Stock Market","et now","iifl securities","Industry"],"secinfo":{"seolocation":"telecomnews\/is-5g-rollout-going-to-be-an-additional-pain-for-telcos-balaji-subramanian-answers"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2023-01-13" data-index="article_1">
- Telecom乐动扑克News
- 4分钟阅读
是5 g推出电信公司将是一个额外的痛苦呢?巴拉萨勃拉曼尼亚的答案
“我看不到任何理由相信5 g资本支出需求上升在过去的几周或一个月,因为这是哪些公司已经宣布,他们计划在过去与投资者互动社区以及公众。我看不到任何理由5克资本支出加速发生在任何情况下。"
读到
“我看不到任何理由相信5克资本支出需求已经在过去的几周或一个月,因为这是哪些公司已经宣布,他们计划在过去与投资者互动社区以及公众。我看不到任何理由5 g加速度资本支出发生在任何情况下,“说巴拉萨勃拉曼尼亚副总裁-机构的股票,IIFL证券
如何关心你是否5 g推出电信公司将是额外的痛苦吗?
圆形的大问题是,关税上涨,预计11月,2022年12月,还没有来。我们看到,有一个定价进行实验,Bharti的两圈就其2 g计划。
尽管如此,该公司还没有扩展,在全国。基本上是关心是否发生了什么关税提高ARPU增加故事应该发挥出越来越推迟一点。
另一方面,公司一直说他们在5克相当快速推出速度。Bharti和Jio都推出自己的5 g网络年代在新城市几乎每天都和他们重申——Jio而言,他们想要一个锅印度5 g网络在年底这个日历;Bharti曾表示,其5 g网络将在5000年年底城镇FY24。
所以,担心人会看到一波又一波的资本支出周期上演不相称的ARPU增加在短期内。那就是有可能令市场在过去的几天里。
有理由相信,5克资本支出要高于早期的预期是什么?其次公司采取高关税上涨吗?
我看不到任何理由相信5 g资本支出需求已经在过去的几周或一个月,因为这是哪些公司已经宣布,他们计划在过去与投资者互动社区以及公众。我看不到任何理由5克资本支出加速发生在任何情况下。我认为它更担心一个如何让一个体面的所有额外资本回报率是部署在5克,特别是如果没有关税上涨在短期内的可见性。
关心的是更多的在实现相同的资本回报率在缺乏或者至少没有能见度的关税上调,与其说首都部署本身上升高于最初的预期。
整个部门的成功吗?据说,2023年将是当我们会知道沃达丰(Vodafone)可能是第三个球员还是不在行业。你的花,和沃达丰(Vodafone)预计今年扩大规模如何?
Vodafone-Idea而言,这个职位在很大程度上是不变的。我们已经看到有推迟政府费转化为股本。沃达丰已经行使这个选项近一年过去的有关收益的电话会议上,该公司明确表示,他们没有听到从2022年4月以来的政府。所以,它已经很长一段时间,因为在这方面任何消息流。乐动扑克
我认为市场是有点紧张,导致了这样一个重要的延迟和什么是前进的方向,因为没有简单的方法。这是一个鸡和蛋的情况。也许政府正在等待一些明确Vodafone-Idea权益提高计划在未来,而另一方面,任何潜在的股权投资者进入Vodafone-Idea可能要知道实体越来越舒适的一些政府所有权。我不太确定这是如何上演。
那么是Bharti的降级合理?
从长远来看,Bharti的前景相当健康,因为产业结构改善,最终在某个时间点上,关税上调与这类投资,是因为这两个顶部电讯业将难以使两位数的资本回报率。所以除非有显著增加ARPU,会发生。Bharti的长期前景看起来相当坚实,但更多的是一种短期关注是否涨价可以随时发生在不久的将来,考虑到口袋的消费支出疲软的经济。
如何关心你是否5 g推出电信公司将是额外的痛苦吗?
圆形的大问题是,关税上涨,预计11月,2022年12月,还没有来。我们看到,有一个定价进行实验,Bharti的两圈就其2 g计划。
尽管如此,该公司还没有扩展,在全国。基本上是关心是否发生了什么关税提高ARPU增加故事应该发挥出越来越推迟一点。
另一方面,公司一直说他们在5克相当快速推出速度。Bharti和Jio都推出自己的5 g网络年代在新城市几乎每天都和他们重申——Jio而言,他们想要一个锅印度5 g网络在年底这个日历;Bharti曾表示,其5 g网络将在5000年年底城镇FY24。
所以,担心人会看到一波又一波的资本支出周期上演不相称的ARPU增加在短期内。那就是有可能令市场在过去的几天里。
有理由相信,5克资本支出要高于早期的预期是什么?其次公司采取高关税上涨吗?
我看不到任何理由相信5 g资本支出需求已经在过去的几周或一个月,因为这是哪些公司已经宣布,他们计划在过去与投资者互动社区以及公众。我看不到任何理由5克资本支出加速发生在任何情况下。我认为它更担心一个如何让一个体面的所有额外资本回报率是部署在5克,特别是如果没有关税上涨在短期内的可见性。
关心的是更多的在实现相同的资本回报率在缺乏或者至少没有能见度的关税上调,与其说首都部署本身上升高于最初的预期。
整个部门的成功吗?据说,2023年将是当我们会知道沃达丰(Vodafone)可能是第三个球员还是不在行业。你的花,和沃达丰(Vodafone)预计今年扩大规模如何?
Vodafone-Idea而言,这个职位在很大程度上是不变的。我们已经看到有推迟政府费转化为股本。沃达丰已经行使这个选项近一年过去的有关收益的电话会议上,该公司明确表示,他们没有听到从2022年4月以来的政府。所以,它已经很长一段时间,因为在这方面任何消息流。乐动扑克
我认为市场是有点紧张,导致了这样一个重要的延迟和什么是前进的方向,因为没有简单的方法。这是一个鸡和蛋的情况。也许政府正在等待一些明确Vodafone-Idea权益提高计划在未来,而另一方面,任何潜在的股权投资者进入Vodafone-Idea可能要知道实体越来越舒适的一些政府所有权。我不太确定这是如何上演。
那么是Bharti的降级合理?
从长远来看,Bharti的前景相当健康,因为产业结构改善,最终在某个时间点上,关税上调与这类投资,是因为这两个顶部电讯业将难以使两位数的资本回报率。所以除非有显著增加ARPU,会发生。Bharti的长期前景看起来相当坚实,但更多的是一种短期关注是否涨价可以随时发生在不久的将来,考虑到口袋的消费支出疲软的经济。
评论
现在评论 阅读评论(1)所有评论
找到这个评论进攻?
下面选择你的理由并单击submit按钮。这将提醒我们的版主采取行动