Stay away from the telecom space at least for the next couple of years as there is plenty of pressure there, said Gautam Trivedi, co-founder and managing partner of Nepean Capital.
In an interview to CNBC-TV18, Trivedi said that Jio’s own network utilisation is only 20 percent on an aggregate basis.
According to Trivedi, telecom companies had four years to prepare for Reliance Jio's entry, but they were completely caught unaware of the tariffs.
Trivedi said, "If you look at history of Reliance Industries Ltd as a company, any product category that they have gone into they have made that product a mass market product. They have brought down prices substantially, which has significantly benefited the end consumer."
"Reliance Jio has redefined the ARPU business. So, if people are expecting that ARPUs will start inching up anytime soon, I don’t think that is going to help given the fact that utilisation of the networks is only 20 percent," Trivedi added.
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