1. 14
Indian Telco Industry
Voda
B2B B2C
What I can Pay
What I can Sell for
Agree on this Price
Law of one price is still missing with 4 players, but could be worsen if consolidation is allowed
Jio Tata Tele Airtel
5G roll out will be impacted – required for growth of services sector and e-commerce
Direct and Indirect Impact on GDP by at least 50 BPS – rise in CAD & unemployment
Give rise to another twin balance sheet issue - banks have exposure to debt
Brand Modi and India will suffer - political and strategic (foreign) challenges
Cant afford to fail this sector, this is the back bone of services sector & digital transformation
FY 20 - Oligopoly to Triopoly
Declining
EBITDA
Rising Debt
=
Spectrum
Fees +
Revenue
Share +
Others
Source: HT, LiveMint, ET, CNNIBN