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RIL entry may trigger a tariff war in broadband
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Quote:The fierce bidding in the broadband wireless auction that ended on Friday is not likely to trigger further value destruction in the already troubled domestic telecom sector. However, the entry of Reliance Industries (RIL) in the broadband telephony may give rise to a tariff war in this highly lucrative segment of the domestic telecom sector.

The impact of immediate cash outflow post-bidding will be limited since big listed players have either opted out of the process or participated only in a few circles. Bharti Airtel, the country’s largest telecom player, has won licences in four circles for a total of Rs 3,314 crore. Its peers Reliance Communications (RCOM) and Idea Cellular decided to give it a pass.

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