India’s public telecom firms generally have lagged the performance of the whole market, says Mobis Philipose of LiveMint.
Intense competition, which has resulted telecom firm return on equity (RoE) that is generally a bit lower than the overall market, with the exception of Bharti Infratel, the tower leasing company that does not directly compete in the retail mobile services market.
Competitive pressure in the key voice market seemed to abate in the first quarter of 2016. Airtel voice traffic grew in double digits, for the first time in over 12 quarters, for example.
Reliance Jio Infocomm’s entry into the market poses a risk that price wars will intensify, again, however.
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