TELECOM VENDOR
Telecom competition takes a breather, may recharge Vodafone Idea
Voda Idea's financial health is expected to improve with a projected increase in ARPU, revenue growth, and a slowdown in market share loss after the tariff hike. Vi is seeking external debt funding to bolster network expansion and 5G rollout after a recent capital raise.
After Jio, Airtel and Vi answer revenue call, dial up tariffs
While Airtel and Jio - which dominate the market - say they need to improve returns after paying high prices for 5G airwaves in 2022, Vi is looking to back up its recent ₹23,000 crore equity fundraising efforts as it strives to become more competitive, stem user losses and repair a stressed balance sheet to pay vendors and statutory dues. Analysts said the three telcos will see a 13-17% rise in ARPU with the main effect being felt in second and third quarters of this fiscal year.
ET Explains: All about vRAN and what it means for Vi
Vodafone Idea (Vi) has completed trials using Samsung's virtualised RAN (vRAN) technology, which is expected to bring substantial cost savings to the telco compared to legacy hardware infrastructure. vRAN is a technology that allows for the complete running of baseband functions as software on commonly available hardware, reducing server or processor capacity at sites. It also allows for the centralisation of some processing functions to local nodes, reducing server or processor capacity at sites.
Vodafone Idea acquires Rs 3,510 crore worth of airwaves in 11 circles
India's Vodafone Idea has spent Rs 3,510 crore to acquire 50MHz of spectrum in 11 circles, strengthening its 4G portfolio and launching 5G services. The acquisition will enable the use of dedicated sub-GHz spectrum for advanced technologies and customer experience. Vodafone Idea has also held 5G trials in three network circles using Samsung's virtual Radio Access Network (vRAN) solutions.
Vi completes minimum 5G rollout requirements
Vodafone Idea (Vi) has announced completion of its Minimum Rollout Obligations (MRO) across all 17 circles where it acquired 5G spectrum in August 2022. This step is essential for commencing 5G services, although Vi has yet to announce detailed rollout plans due to financial constraints. Unlike its competitors Reliance Jio and Bharti Airtel, which have almost completed nationwide 5G rollouts, Vi plans to gradually expand its network starting with equipment orders to vendors like Nokia and Ericsson.
Vodafone Idea may offer more shares to vendors to clear dues
Vi is saddled with around ₹20,000 crore of overall payables (including ₹13,731 crore trade payables) and proposes to use the ₹24,000 crore equity capital recently raised only for fresh capex to expand 4G coverage and roll out 5G networks. Trade payables, typically, reflect Vi's dues to vendors such as network gear suppliers and tower firms.
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What clearing vendor dues via equity means for firms
Vodafone Idea's board approved preferential allotment of equity shares to Nokia and Ericsson to clear dues. Vi's vendor ATC Telecom also benefitted from stock market gains. Vi's move to dilute equity for debt repayment is uncommon in listed companies.
Modi 3.0: Industry seeks roadmap to cement India's lead in global digital arena, vows support
The Digital Infrastructure Providers Association (DIPA) has expressed full support for India's digital and telecom transformation under the new government, emphasising the need for a clear roadmap to solidify the country's leadership in digital infrastructure. DIPA highlighted the success of initiatives like Digital India and PM WiFi Access Network in enabling broad digital adoption, with Director General Tilak Raj Dua stressing the industry's readiness to collaborate with the government.
GX Group to make telecom gear in India for the world
GX Group plans to establish a new Rs 100-crore manufacturing facility in India to export FTTH equipment globally, supporting the Atmanirbhar Bharat initiative. This will be their second plant, following a 2021 Haryana unit. The new facility will produce Wi-Fi routers and GPON equipment for Indian and international markets, including Europe and Africa.
Another Ambani vs Mittal battle? A look into Airtel's African empire
Bharti Airtel's African venture has been a rollercoaster ride, starting with a bold move by chairman Sunil Mittal in 2008. Despite initial struggles, Airtel Africa has managed to establish a strong presence in 14 countries. Meanwhile, Mukesh Ambani's Reliance Industries is making inroads into the African telecom market with 5G infrastructure solutions. As Airtel Africa faces currency woes, the stage is set for a potential showdown between the two telecom giants.
RIL's Mukesh Ambani set for African safari with 5G tech solutions
Radisys, a company owned by RIL's subsidiary Jio Platforms Ltd (JPL), is collaborating with Tech Mahindra and Finland's Nokia, to team up with Next-Gen Infrastructure Co. (NGIC). NGIC, in which the Ghanaian government, Ascend Digital, and K-Net have equity stakes, is positioned as the first neutral 5G shared infrastructure provider in Africa. The company's initial focus will be on offering 4G and 5G network support in Ghana before expanding its services across the continent.
D2M tech pioneer takes on DoT arm
The Telecommunications Engineering Centre (TEC) report has suggested that 3GPP 5G broadcast standards - backed by global chipmakers Qualcomm and Samsung, telecom equipment vendors Nokia and Ericsson as well as Indian telecom operators - have superior ecosystem readiness for direct-to-mobile (D2M) broadcasting compared with the ATSC 3.0 protocols.
Ericsson mulls telecom equipment export from India in future; expects 5G use cases to emerge locally
Ericsson India Managing Director Nitin Bansal, at a company's event to showcase 5G technology, said the company is actively engaging with academia, partners, and ecosystem players to develop relevant India-specific use cases.
Ericsson hopeful of securing Vi deals: Nitin Bansal
Ericsson, the Swedish telecommunications equipment manufacturer, anticipates securing 4G/5G contracts from Vodafone Idea (Vi) in the near future, following the recent successful equity raise of over Rs 20,000 crore by the struggling telecom company. Nitin Bansal, Managing Director of Ericsson India, expressed this optimism in an interview with ET. Bansal also mentioned that Ericsson is considering the possibility of exporting its 5G equipment from India.
DoT reassures telcos over data shift to Amazon Web Services
The Department of Telecommunications (DoT) faced backlash from mobile phone companies over plans to migrate its digital intelligence platform (DIP) to Amazon Web Services (AWS) from servers run by BSNL and C-DoT. The move was criticized for compromising consumer privacy. However, DoT clarified that critical subscriber database records won't be stored on AWS, easing concerns. The DIP is crucial for fighting cybercrimes and fraud, facilitating real-time intelligence sharing among stakeholders. The shift aims to address data surge challenges, with AWS being an approved vendor of MeitY, hosting CoWIN data.
Vi investment focus on 4G and 5G: CEO Akshaya Moondra
Vodafone Idea CEO Akshaya Moondra has announced plans to invest in 4G services expansion and 5G rollouts, announcing the successful completion of a ₹18,000-crore follow-on public offer (FPO) subscribed seven times. The telco is committed to customer satisfaction and aims to deliver high-quality service. The joint venture between Vodafone and Aditya Birla Group has set aside over ₹12,000 crore for 4G expansion and 5G rollouts, with ₹5,720 crore allocated for 5G rollouts.
Vi expects to clear all vendor dues in FY26, say analysts
According to Vodafone Idea management, proceeds from Rs 18,000 crore FPO and proposed Rs 25,000 crore debt funding would enable telco to also upgrade network, say analysts.
Centre leaning on startups, academia for telecom IPRs
The government has been stressing on becoming self-sufficient in telecom technologies, including both software and hardware, amid geopolitical uncertainties. It can be done by developing the complete ecosystem in the country, officials said, pointing to the focus on research and development, including industry-academia tie-ups.
India must close gap with China on fibre deployment: Sterlite Tech exec
"If you look at China, they are deploying 240 million kms per year, which is nearly 12 times that of India with a population of comparable size. In Europe and the US, 8Gbps speed is becoming a norm," Sterlite Technologies (STL) managing director Ankit Agarwal said.
Talk of the Tower: Airtel eyes Vodafone's 21.05% in Indus
Airtel is the biggest shareholder in Indus, with 47.95%; Vodafone Group has 21.05% and 30.97% is with the public, according to the tower company's latest filing with the BSE. A buyout of the Vodafone stake will boost Airtel's shareholding to 69%. Indus shares ended 2.9% higher at ₹359.65 on the BSE on Tuesday, giving it ₹96,923.41 crore market capitalisation.
Nokia India net sales fall 69% in Q1 as Jio, Airtel lower 5G investments
Nokia experienced a 69% decline in India sales to Rs 265 million in the March quarter, largely due to moderating 5G rollout. The company's net sales in Asia Pacific (APAC) also declined, mainly due to lower spending levels in India and North America.
Most investors convinced about India's telecom story: Akshaya Moondra, Vodafone Idea
Now, in terms of the discussions with these investors, I believe, everybody is convinced about the India story. Everybody is convinced about the India telecom story because the industry today has a very right structure with three private players.
A laggard is trying to gallop into two-horse telecom race
India's telecommunications industry is primarily dominated by Bharti Airtel and Reliance Jio, with Vodafone Idea (Vi) striving to catch up. Vi has initiated a fund infusion plan, starting with a preferential share issue to raise Rs 2,075 crore from an Aditya Birla Group entity, essential for its financial revitalization. Vi aims to raise a total of Rs 45,000 crore through a combination of equity and debt, offering a glimmer of hope for the struggling telco
D-St punishes Vi amid skepticism over fundraising
The telco has made several efforts to raise capital in the past. Its board had in September 2020 given approval to raise ₹25,000 crore including in equity, and the company had held talks with banks for debt funding. But these efforts have not been successful so far.
With new fund infusion, does Vodafone Idea stand a chance of revival?
Vodafone Idea, struggling under debt, has announced a refinancing plan of up to Rs 45,000 crore. The capital infusion aims to pay off dues, expand 4G and roll out 5G. However, challenges like debt servicing and government payouts remain. Survival is crucial for India's telecom sector.
Vi focus on clearing dues bodes well for network vendors, banks
Vodafone Idea's limited repayment needs in the next 12 months provide relief for network vendors like Indus Towers and lenders. The telecom operator focused on clearing external dues and reducing vendor overdues in Q3 2023. Vodafone Idea repaid ₹1,900 crore of external dues and ₹1,300 crore of vendor overdues, easing cashflow constraints. With ₹5,400 crore repayment outstanding over the next 12 months, the telecom company's cashflow constraints are expected to ease significantly. This comes as Vodafone Idea aims to strike a balance between deploying future cash flows for capex and clearing substantial vendor dues.
Telecom secretary meets US Deputy NSA to launch OpenRAN plan
The agreement came during Neeraj Mittal's, secretary of the Department of Telecommunications (DoT), visit to the United States starting January 12, 2024, addressing critical aspects of "India's technological prowess and global collaboration", the ministry said.
BSNL to award Rs 1,000-crore contract to Nokia, homegrown vendors fume
State-run BSNL is likely to award a Rs 1,000-crore order to Nokia for optical transport network (OTN) equipment and deployment via a local system integrator. Financial bids have been opened, and the advance purchase order is expected to be issued to the successful bidder soon. The contract, part of BSNL's Phase-4 project, involves supplying, installing, and commissioning OTN on a pan-India scale.
AMD working with India telecom gear makers on telecom tech
Advanced Micro Devices, or AMD, has partnered with Indian 4G and 5G equipment makers to offer telecommunications solutions in the country where it has 10,000 employees working on research and development, validation, software development and chip architecture design. AMD will invest $400 million in India over the next five years.
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