According to a recent report by ICICI Securities, Bharti Airtel and Vodafone Idea are expected to lose 2 million and 10 million subscribers, respectively, in the first quarter of 2021. This loss in subscriber is being caused by Covid-19 led disruption.
Further, as per the report, Indian wireless revenues are expected to record a 2.2 per cent quarter on quarter (QoQ) decline at Rs 126.65 billion. Further, Airtel is expected to see a 2 per cent QoQ decline in ARPU at Rs 151. This decline can be attributed to the recent decision of the telcos to extend their prepaid validity for low-cost users during the COVID-19 induced lockdown.
Meanwhile, Vodafone Idea will also observe a sequential decline of 5 per cent in ARPU at Rs 115 due to subscriber churn.
Apart from this, the report highlighted some other notable Q1FY21 trends. This includes, weak international roaming revenues, higher adoption of digital recharges, superior broadband traction and relatively slower 4G adoption impacted by low smartphone sales.
Moreover, as per ICICI Securities, Airtel will see net tenancy addition of 1,000 and its ndia EBITDA margins will remain sequentially flattish at 42.7 per cent. This is because higher network operating cost will be offset by lower admin and S&D expenses.
In addition, owing to residual impact of exits (equipment removal) during previous quarters by Vodafone Idea, Bharti Infratel’s rental revenues are expected to decline 1 per cent sequentially to reach Rs 22.29 billion.