Telecom stocks trade lacklustre; Bharti Airtel, Vodafone Idea shares fall 1% each
Telecom consumer base in the country dipped to around 116.36 crore in May but service providers were able to narrow the loss of subscriber base to 57.6 lakh as compared to the previous month.
August 27, 2020 / 10:19 AM IST
Telecom stocks traded lacklustre in early trade on August 27, a day after the data released by sector regulator TRAI showed telecom consumer base in the country dipped in May.
Telecom consumer base in the country dipped to around 116.36 crore in May but service providers were able to narrow the loss of subscriber base to 57.6 lakh as compared to the previous month, according to data released by the sector regulator TRAI on August 26.
The telecom subscriber base had declined 85.3 lakh in April, when the country was under complete lockdown, to 116.94 crore.
Major loss in subscriber base was recorded in the mobile telephony segment, with Bharti Airtel and Vodafone Idea losing around 47 lakh mobile customers each in May. The total wireless customer base of Airtel and Vodafone Idea dipped to 31.7 crore and 30.9 crore, respectively.
Reliance Jio continued to grow its subscriber base with a net addition of over 36 lakh new connections and led the market with a total subscriber base of 39.2 crore.
State-owned BSNL also added over 2 lakh new mobile subscribers, taking its total wireless customer base to 11.9 crore.
Shares of Reliance Communications fell almost 5 percent while those of Vodafone Idea and Bharti Airtel fell over a percent each.
BSE Telecom index was 0.20 percent lower at 1,224 around 09:50 hours, with 7 stocks in the green and the same number of stocks in the red.
The telecom sector appears to be facing difficulty in terms of revenue and profitability.
The top boss of Bharti Airtel has warned that the telecom sector in the country could come down to only two companies due to the financial stress faced by the sector.
Speaking to CNBC-TV18, Mittal said that the AGR payments are huge which has put an extraordinary load of penalties and interest. These large amounts which are sucked of the industry would rather go into building 4G, 5G network.