The Indian telecom sector witnessed a significant revival in its financial health during 2021, with most players reporting positive net profits. A major development on the telco front was the government’s relief package that gave telcos the option to choose a four-year moratorium on payments of their adjusted gross revenue and spectrum dues. The move was beneficial for telcos as it enabled them to redirect their funds towards network expansion, undertake investments in 5G, and partner with network and equipment providers for 5G trials, which continued in full swing during the year. Among the telcos, Vodafone Idea Limited and Bharti Airtel opted for the moratorium while Jio chose not to. Financially, Jio continued on its profitability track quarter after quarter during 2021, even though its average revenue per user fell below Airtel’s.
In the telecom infrastructure space, most network and equipment provider companies witnessed a substantial improvement in their financial health during the year, with the demand for fixed broadband and fibre-to-the-home services continuing to increase in the wake of the Covid-19 pandemic.
A look at the financial performance of select companies in the Indian telecom space…
