badwhitevision
Disciple
The budget was presented in the parliament today. While there were several things I didn't agree with, there is one issue that stood out for me and might be significant here on the forum.
The Union government has decided to hike the import duty of telecom gear by 5%. This means that setting up of mobile radio towers and associated infrastructure is going to be more expensive.
This comes at a time when both BSNL and Vi are rapidly expanding their footprint. (4G for the former and 5G for the latter) (Significant to note that Vi has only completed minimum rollout obligation for 5G).
The unnamed phone company allegedly belonging to Adani might also be affected.
While market leaders Jio and Airtel have already finished the majority of their infrastructure setup and claim 100% 5G coverage.
I see this as a move to hinder the growth of Vi and to a much lesser extent BSNL. (Funds have been infused to BSNL in the budget.)
It also opens the service providers to increase price hikes citing this as a reason.
The market reacted by pulling telecom stocks down into the gutters.
What do y'all feel about this?
The Union government has decided to hike the import duty of telecom gear by 5%. This means that setting up of mobile radio towers and associated infrastructure is going to be more expensive.
This comes at a time when both BSNL and Vi are rapidly expanding their footprint. (4G for the former and 5G for the latter) (Significant to note that Vi has only completed minimum rollout obligation for 5G).
The unnamed phone company allegedly belonging to Adani might also be affected.
While market leaders Jio and Airtel have already finished the majority of their infrastructure setup and claim 100% 5G coverage.
I see this as a move to hinder the growth of Vi and to a much lesser extent BSNL. (Funds have been infused to BSNL in the budget.)
It also opens the service providers to increase price hikes citing this as a reason.
The market reacted by pulling telecom stocks down into the gutters.
What do y'all feel about this?
Last edited: