Telecommunication industry

I would say that telecommunication industry can be called a duopoly now.

Airtel and Jio has almost 70 % market share and Vodafone Idea is continuously losing market share every month.

I agree that the industry is capex intensive. But the last cycle was unique. No of players has come down significantly and only 2 players has the capacity to make the necessary investments. I would say that the industry has come to a point where they can make regular tariff hikes without any difficulty and the intensity of competition among the 2 major players has come down. Their individual market shares has largely stabilised. They are sharing spectrum as well. There is significant increase of ARPU for both the companies over the last few years.

The telecom industry had a tough time only because of Jio’s predatory pricing. I don’t think any new player will ever be able to do the same. There will be considerable capex moderation going forward. Both the companies are building significant digital capabilities and this will be significant contributors in the near future. I think both airtel and Jio will be much more stronger in the next 10 years.