New Delhi: The Indian telecom sector will require one more year for complete revival, according to a Jefferies report on Wednesday. Noting that telecom companies plan to raise around Rs 1 lakh crore in the first half of 2019-20, the report said although the fund flow would reduce leverage of Bharti Airtel and Reliance Jio, it would not be adequate for Vodafone Idea.
Vodafone Idea and Bharti Airtel have recently announced rights issues of Rs 25,000 crore each along with other monetisation steps. “With Jio’s focus remaining on subscriber addition, market repair is still 12 months away. As we expect VodaIdea’s market share to go below 25 per cent over the next 18 months, it will require additional funding in FY21,” it said. (IANS)
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