Last updated: 16 Sep, 2021 | 03:05 pm
In order to reduce the stress on the telecom sector, the government has announced a slew of measures. Analysts view the latest measures as being largely positive for the incumbent players Vodafone Idea, Bharti Airtel and Reliance Jio, with Vodafone being the biggest beneficiary. We have tried to provide a summary of the relief package, and also the impact on each of the players.
Major highlights from the telecom relief package:
Impact of the announcements: Overall
The 4-year moratorium is the most note-worthy announcement of all. It alleviates the concern around whether the telecom industry would remain a 3-player market. However, It is important to note that the government has not reduced the liabilities of players. Even though the cash flow problem has been solved, for now, the onus shifts to these incumbent players to raise capital and improve their balance sheets.
A look at what this means for Vodafone Idea, Bharti Airtel and Reliance Jio