Jio, Airtel balance sheets can absorb costs despite spectrum buys: Moody’s

Spectrum renewals in the recently-held auction will boost telcos’ market position and there may not be a significant impact on their balance sheets, as pricing competition abates and profitability improves, Moody’s Investors Service said on Thursday.

The spectrum renewals and additional purchases will help the incumbents – Jio and Airtel – strengthen their radio wave holdings and improve their network coverage.

At the same time, as some telcos have large cash holdings while others recently raised debt to fund the purchases, there will not be a significant impact on their balance sheets particularly, as pricing competition abates and profitability improves across the sector, Moody’s said in its report.