There are too many imponderables in the telecom space. It is a combination of regulatory as well as financial uncertainty. Firstly, the Supreme Court has said that telecom companies need to pay 10 percent of their AGR dues upfront. There is still no clarity on whether it subsumes the amount telecom companies have already paid or will they need to pay an incremental amount.
Secondly, will telecom companies filed a curated petition, they had only 30 days from judgement day to file their petition and that clock was ticking.
Thirdly, as Reliance Jio's ramps up its presence in the post-paid market, will it hurt the incumbent telecom company’s revenues?
More importantly, will this aggression shown by Jio in the post-paid market delay the expected prepaid hike that is the big fear and finally, if you look at the Telecom Regulatory Authority of India (TRAI) data for the last four months you have seen that Bharti Airtel as well as Vodafone Idea have been rapidly losing subscribers.
CNBC-TV18's Reema Tendulkar has more on this.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.