Telcos debt to rise, but Jio, Airtel unlikely to face strain due to strong balance sheet: Analysts

Kolkata: Reliance Jio and Bharti Airtel’s higher-than-expected spectrum spends in the just concluded 5G auction will push up their respective debt and leverage levels. But analysts said this won’t strain their finances as both telcos have strong balance sheets, further helped by comfortable auction payment terms and sizeable savings on spectrum usage charges (SUC) going forward.

Analysts, though, expect cash-strapped Vodafone Idea’s sharply elevated spectrum spending to further add to its colossal debt and increase leverage to uncomfortably high levels. This could hinder its ability to compete with its financially stronger rivals on the 5G turf, likely resulting in more revenue and customer market share losses.