That Idea Cellular has lost ground vis-à-vis Bharti Airtel both in terms of subscriber/revenue market share as well as share of profits shows that the constraints on capex has hurt. The silver lining is that Idea, like Airtel, has aggressively cut costs to offset the impact of lower tariffs and other headwinds. Of course, it remains to be seen how long Jio’s forbearance lasts, considering the large difference between its current market share and its desired market share. “(To expect) Jio to take up tariffs consistently (as the Street seems to expect) may conflict with its market share aspiration. As such, to assume a continued rise in tariffs and a considerable easing of pressure on margins may be foolhardy.

Source: Mint November 14, 2017 02:14 UTC