Why Airtel and Vodafone are keeping close watch on Coronavirus

Kolkata: Bharti Airtel and Vodafone Idea could be staring at costlier 4G network expansions and rollouts if China fails to overcome impacts of the ongoing coronavirus outbreak in another three months as the telcos would be compelled to procure equipment from non-Chinese suppliers.
The mobile phone operators are keeping a close watch on the scale of the epidemic as they have only a few months back-up inventory for tackling exigencies, industry insiders said.
“If the coronavirus outbreak lingers beyond another three months, the incumbent operators would need to look at buying more from European suppliers, which can possibly increase their network gear procurement costs by around 10-15% for key items in selective circles such as 4G switches, radio equipment and massive MIMO systems,” said Rajiv Sharma, research head at SBICap Securities.