Telcos seen reviving after 3 years of price wars: Report

New Delhi, After a prolonged period of pain, the Indian telecom sector has got a fresh lease of life, thanks to the recent unprecedented tariff hikes and the government’s efforts to revive profitability, a brokerage firm report said on Tuesday.
“We believe the recent tariff hike is a beginning of trend reversal with more price hikes to come in 2020. The incremental price hike is a function of support for VIL (Vodafone Idea Ltd) and the needed profitability boost to RJio and Bharti. This could be a turning point for the industry, wherein incremental capital commitment would decline with players agreeing on better tariffs,” a Motilal Oswal report said.
“With the recent positive developments in the industry and potential trigger points, we believe that the sector offers strong operating, financial and valuation leverage. While Vodafone Idea would need more measures for its survival, RJio and Bharti stand to benefit significantly from further relief measures”, it said.