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Gaurav Malhotra, Executive Director at Axis Capital, believes India's telecom industry structure will continue to remain a three-player market, despite the Bombay High Court's recent ruling providing relief on additional spectrum charges.
The Bharti Airtel has set aside the Centre's 2012 order imposing a One-Time Spectrum Charge (OTSC) on spectrum holdings exceeding 6.2 MHz, benefiting Vodafone Idea and Vodafone Idea. The Bombay High Court is likely to bring relief of over ₹20,000 crore for Airtel and Vodafone Idea, combined.
According to Malhotra, the court's decision is a bigger positive for Reliance than for Bharti Airtel. While the relief is not large enough to alter the industry's competitive landscape, any reduction in liabilities could improve lender confidence and support Vodafone Idea's fundraising efforts.
Axis Capital has long maintained that India's telecom industry will remain a three-player market, with Bharti Airtel and Indus Towers Jio as the dominant operators and Vodafone Idea as the third player. The brokerage said the latest court ruling does not change that view.
He noted that while the ruling is favourable, the matter could still be challenged in the Supreme Court.
Axis Capital has built a tariff increase of around 10% into its estimates. It expects telecom companies to push through tariff increases later this year.
Earlier expectations of a hike in the first half of calendar 2026 have been delayed, but the brokerage still sees an increase happening within the next few months.
The brokerage believes the increase is unlikely to be deferred significantly, as the impact on consumers would remain relatively small and telecom services account for only a limited share of the inflation basket.
The brokerage also sees a positive read-through for Indus Towers. Faster fund raising and network expansion by Vodafone Idea could support tower additions, with a significant portion of the incremental demand expected to benefit Indus Towers.
However, Axis Capital said these assumptions are already reflected in its forecasts for both companies.
Watch accompanying video for more Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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The Bharti Airtel has set aside the Centre's 2012 order imposing a One-Time Spectrum Charge (OTSC) on spectrum holdings exceeding 6.2 MHz, benefiting Vodafone Idea and Vodafone Idea. The Bombay High Court is likely to bring relief of over ₹20,000 crore for Airtel and Vodafone Idea, combined.
According to Malhotra, the court's decision is a bigger positive for Reliance than for Bharti Airtel. While the relief is not large enough to alter the industry's competitive landscape, any reduction in liabilities could improve lender confidence and support Vodafone Idea's fundraising efforts.
Axis Capital has long maintained that India's telecom industry will remain a three-player market, with Bharti Airtel and Indus Towers Jio as the dominant operators and Vodafone Idea as the third player. The brokerage said the latest court ruling does not change that view.
He noted that while the ruling is favourable, the matter could still be challenged in the Supreme Court.
Axis Capital has built a tariff increase of around 10% into its estimates. It expects telecom companies to push through tariff increases later this year.
Earlier expectations of a hike in the first half of calendar 2026 have been delayed, but the brokerage still sees an increase happening within the next few months.
The brokerage believes the increase is unlikely to be deferred significantly, as the impact on consumers would remain relatively small and telecom services account for only a limited share of the inflation basket.
The brokerage also sees a positive read-through for Indus Towers. Faster fund raising and network expansion by Vodafone Idea could support tower additions, with a significant portion of the incremental demand expected to benefit Indus Towers.
However, Axis Capital said these assumptions are already reflected in its forecasts for both companies.
Watch accompanying video for more Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
Live stock market updates—follow our blog
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