Jio and Airtel Likely to Witness Speedy Revenue and Subscriber Growth Post 5G Spectrum Auctions

The two major telecom operators in India – Reliance Jio and Bharti Airtel are all set to witness speedy growth in revenue as well as the subscriber count after the 5G spectrum auctions. According to the analysts, this growth for the two telcos will come at the cost of Vodafone Idea in the medium term. Even though Vi is raising Rs 10,000 crore capital, analysts believe that most of it will be utilised to enhance the 4G network of the cash-strapped telco.

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Jio, Airtel to Grow at Vi’s Expense

As per a report from ET Telecom, an estimation from the analysts suggests that Reliance Jio and Bharti Airtel are expected to acquire somewhere around 150-to-200 basis points (bps) gains over two years after the upcoming 5G airwaves sale whereas Vi is most likely going to concede some points. Notably, the basis point is 0.01%. TRAI has already shared its recommendations and we can expect the auction to be held in May or June as the government is planning to roll out the 5G network in August around Independence Day.

According to the senior director at the global rating agency Fitch, Nitin Soni, Airtel and Jio should see an acceleration in revenue and subscriber market share gains at Vi’s expense in the medium-term after the 5G auction. He added that both telcos will definitely target pan-India 5G airwaves to invest in this future broadband technology which financially struggling Vi won’t be able to match.