Telecom Industry Heading Towards Duopoly, Reliance Jio, Airtel To Rule: Report


It seems that Vodafone-Idea is in deep trouble as it is not in a position to pay salaries and give bank guarantees. In fact, the telecom operator has recently cleared its stand in front of the Supreme Court that it is unable to clear its spectrum expenses.

Telecom Industry Heading Towards Duopoly, Reliance Jio, Airtel To Rule

"We are not in a position to give bank guarantees. We don't have money to pay salaries to our employees and meet our expenses. Spectrum is very valuable and can be the best guarantee for payment of our dues," Vodafone-Idea lawyer's Mukul Rohtagi was quoted by PTI. Adding to that, "The value of spectrum can be the best security for payment of dues, and license and spectrum can be canceled if the dues are not paid." However, a new report from BofA Securities claims only two operators, i.e. Reliance Jio and Airtel will remain in the Indian telecom industry.

"We view SC verdicts negative for Vodafone Idea as it stated it doesn't have money to give bank guarantees. Even in a scenario, VIL gives a guarantee, we see telcos market gravitating towards a dominant two-player," BofA Securities said in a report.

The report comes after the Supreme Court asked Vodafone-Idea to give a timeline, as 20 years is a very long time to clear the dues. On the other hand, the report suggested that Airtel is doing well, and it is in a better place to clear its dues.

Meanwhile, Fitch Ratings believes that the Vodafone-Idea might not survive if they don't inject further money in the Indian operations. Besides, it will keep losing its market share in the country.

Vodafone-Idea Revises Rs. 98 Prepaid Plan

Apart from that, the operator has recently revised its Rs. 98 prepaid plan, and now it is offering more data. After the revision, Rs. 98 is now offering 12GB data for 28 days. Earlier, it used to offer only 6GB data for 28 days. The updated plan is already listed on the company's website.

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