Telecom share: After yesterday’s strong boom, the mood of consolidation is seen in the market today. With a slight increase, the Nifty is showing an increase for the fourth consecutive day. However, flat business is being done in the bank Nifty. Also, midcap and smallcaps are visible at the upper level of the day. Today, action is being seen in telecom shares. RIL shares are trading Rs 1417.20 with a gain of Rs 36.30 i.e. 2.63 per cent. At the same time, Bharti Airtel is trading around Rs 1918 with a rise of Rs 25.70, or 1.36 percent. At the same time, the Indus Tower is trading around Rs 338 with a rise of Rs 0.40, or 0.12 per cent.
Causes of action in telecom shares
Jio increased its base price and has increased to other companies. Jio has increased the base tariff from Rs 249 to Rs 299. 1 GB has been discontinued by the daily entry plan. Now 1 GB plan will be available in the store, not online. The plan of 22 days of 209 and 249 rupees for 28 days has been discontinued. Analysts say that this will lead to 11-13/month or 6-7 percent in Jio’s ARPU.
Morgan Stanley on Telecom
Jio has increased Indirect tariff plans by 20 per cent. Entry plans with 1 GB of 249 have been closed. The new plan with 299 will get 1.5 GB/day data instead of 1 GB. Airtel and VI’s 28 -day plans are available for Rs 299. The 1.5 GB plan of Rs 199 has been discontinued. Morgan Stanley says that Jio’s move will help increase income and ARPU. In FY27, prepaid prices of 4G/5G may increase by 15 per cent. Efforts are being made to increase revenue by increasing tariffs or changes in plan.
Jafferies on telecom
Q1 has seen a strong average revenue growth of 16 per cent per annum in the telecom sector. The market share of Bharti and Jio continues to increase. Lack of tariff hike is possible softening in Q2 revenue growth. Vodafone’s capex can show lethargy. Jeffaries in telecom sector Bharti Airtel and Hexacom Likes
IIFL and Axis Capital on Jio’s decision
On Jio’s decision, IIFL says that the plan of Rs 249 is less popular. 20 percent tariff hike can see an increase of up to 2 percent in revenue. On Jio’s decision, Axis Capital says that this decision in FY26E expects a gain of 4 to 5 percent in revenue and ARPU.
What is trigger for the telecom industry now?
Experts say that the ARPU may see further moves. Further, the announcement of high data service is possible. There is a big announcement in the Bharat Net Project. There may be further improvement in 5G coverage.
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