Advertisement


Advertisement

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
General News Competition in telecom sector to remain intense over the next 12-18 months: Moody's
Advertisement
#1
[Image: all-network-19-1500484388.jpg]

According to Moody's, competition in telecom sector to remain intense over the next 12-18 months as leading operators will look to protect and grow market share.

While consolidation activity is positive for the industry in the long-term, we still expect competition to remain intense over the next 12-18 months as leading operators -- like Bharti, Vodafone India, and Reliance Jio Infocomm Limited - look to protect and grow market share," the firm said.

Last week, Bharti Airtel Limited announced that it had agreed with Tata Teleservices Limited (TTSL) and Tata Teleservices Maharashtra (TTML).

"The acquisition will strengthen Bharti's spectrum holdings and add around 40 million subscribers to the company's leading market position in India's highly competitive mobile telecommunications market, a credit positive," says Annalisa Di Chiara, a Moody's Vice President, and Senior Credit Officer.

Bharti will take over Tata's mobile operations in 19 circles, including the transfer of all assets (including spectrum) and customers, on a debt-free cash-free basis.

This is a non-cash deal and although Bharti will take over a small portion of deferred spectrum payments we do not expect it will have a material effect on the company's consolidated leverage. According to the announcement, Tata will retain its stake in Viom Networks, an independent telecommunications infrastructure company, and take care of the associated liabilities,"added Di Chiara, also lead analyst for Bharti.

However Moody pointed out that, the rating outlook is negative as we expect adjusted debt/EBITDA to remain elevated through 31 March 2018, barring any further significant debt reduction from additional efforts to monetize its assets.

Furthermore, any unexpected adverse regulatory developments in any of Bharti's key markets will also be negative for the rating.

We would also view negatively any event risk associated with a sizeable debt-financed acquisition or other corporate activity that negatively impacts the company's existing or targeted leverage ratios.

Source:
___________________________________________
Airtel Digital HD Recorder / Kerala Vision Digital TV
Reply
Thanks given by:
Advertisement
Advertisement




Possibly Related Threads...
Thread Author Replies Views Last Post
  General News: BSNL offering 2GB daily data for 7 months with latest Rs 998 prepaid recharge plan nairrk 0 334 11-17-2019, 02:46 PM
Last Post: nairrk
  General News: BSNL unveils Rs 599 prepaid plan with unlimited calling, 6 months validity nairrk 0 462 04-22-2019, 10:15 AM
Last Post: nairrk
  General News: Airtel offering a total discount of Rs 300 over six months for Rs 399 postpaid plan nairrk 0 597 09-09-2018, 12:55 PM
Last Post: nairrk
  General News: Amid competition from Jio and Vodafone, Airtel launches Rs 299 plan with no data nairrk 0 566 07-22-2018, 06:23 PM
Last Post: nairrk
  General News: Telecom operators have been telling you this lie all this while. Guess what nairrk 0 390 05-15-2018, 07:35 PM
Last Post: nairrk
  General News: Reliance Jio says Prime to remain free for existing users; Rs 99 for new users nairrk 0 561 03-30-2018, 07:31 PM
Last Post: nairrk
  General News: BSNL extends its Sunday free voice calling offer for another three months nairrk 0 530 02-05-2018, 12:43 PM
Last Post: nairrk
  General News: Airtel to migrate all 3G users to 4G VoLTE network in the next few months: Report nairrk 0 793 10-18-2017, 12:26 PM
Last Post: nairrk
  General News: Vodafone RED Postpaid Plans Now Offer 60GB Welcome Gift for Six Months nairrk 0 758 08-06-2017, 01:55 PM
Last Post: nairrk
  General News: BSNL to offer 4G services in 6 months nairrk 0 523 01-02-2017, 09:02 AM
Last Post: nairrk

Forum Jump:


Users browsing this thread: 1 Guest(s)
Advertisement