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MOSL: TELECOM AND MEDIA (AGIC 2018)- Telecom still WIP-Digital Media gaining steam

Telecom and Media (AGIC 2018): Telecom still WIP; Digital Media gaining steam

 

We hosted various telecom and media sector companies at the Annual Global Investor Conference (AGIC) 2018. In this report, we detail key sector- and company-specific takeaways:

 Telecom sector takeaways

• The telecom market in India is undergoing a radical change with the bigger companies going for acquisitions/mergers to complement or supplement their capabilities. In general, telecom companies expect competition in the sector to remain intense until the Vodafone-Idea merger integration concludes.
• The rapid consolidation will ensure survival of the fittest, leaving only a few viable players in the industry. Thus, the ARPU and pricing trend is likely to improve in around three quarters once the market consolidates.
• There have been ~10m smartphone additions monthly in the country.

 Media sector takeaways

• Broadband network roll-out is difficult in the country due to multiple reasons, particularly the high funding requirement. Media companies, thus, do not foresee disruption in the TV space as seen in the telecom sector.
• The TRAI’s tariff order for the TV broadcasting sector is expected to be implemented as per schedule in January 2019.