In the Indian Telecom Sector, as telcos ride the J-curve of data penetration (43% in FY19E vs 25% now), data traffic will surge 4x. This demands spectrum capex, where Airtel and RJio are much better placed than Idea and Vodafone given: (a) pan-India 4G-LTE footprint, and (b) focus on metros.
Unlike voice, data isn?t stonewalled by regulations; entry of content/platform owners in connectivity infrastructure challenges the B2C premise of telcos, making them utilities. Telcos are cognizant of this but are taking only halfhearted steps (content partnerships, setting up payment banks), leaving them ill-prepared against deep-pocketed ?global-thinking-disruptors.?
Reliance Jio could match the funds but hasn?t displayed anything on customer centricity except for nearly free data (repeat of its past entry strategy).
