Airtel admitted on its earnings call previously that its capex has to be linked to market realities (which we interpret as capex needed for sustaining robust data growth, meeting the challenge of Reliance Jio, decongesting the busy data sites/clogged networks, laying out a lot more fiber on a much larger scale, and now to tackle the call-drop issue etc.).
The incumbent players have already fast tracked their 4G plans to counter RJio ahead of their previous plans. Bharti has already accelerated it 4G roll-out and launched in 296 cities/towns. Idea has also changed its stance and plans to launch 4G in 10 circles starting early 2016. The company has increased its capex guidance materially. Vodafone is also planning to launch LTE services in key circles in 2016. We would watch for further comments on the incumbents? 4G strategy.
