Mukesh Ambani-run Jio did not reply to ET’s queries while an Airtel spokesperson said the PoI issue is “a bilateral one between the two operators”.
Brokerages Goldman Sachs and Morgan Stanley, however, are a tad more cautious and expect a combination of the auctions and Jio’s disruptive pricing model.
Jio has increased salaries of the top performers among its junior and middle level managers by 15% while highfliers have got a 10% raise.
Such a scenario would typically mean Idea and Vodafone would have to borrow more, increasing their debt-equity ratios further, said a top executive at a Big 4 firm.
Analysts foresee a reduction in call drops with a sizeable chunk of voice capacity getting freed up as more folks upgrade to the faster data standard.
The coveted 700 Mhz (4G) band will be offered for the first time but starting prices are high. No. 1 telco Bharti Airtel and newcomer Reliance Jio Infocomm could spend $1 billion each to augment data capacity.
Telcos have different business models for MVNOs, and the price primarily depends on volumes, commitment, circle/geography and their own network fill factor in the geography.
Analysts and experts said there are ample 4G airwaves on offer and India’s second largest telco has already indicated needs and appetite through a Rs 2,745-crore earnest money deposit (EMD) filing.
The removal of a senior managerial layer between the COO and the business heads of Vodafone’s biggest ‘direct’ markets was aimed at greater agility in decision-making .
MNP could be the next contentious issue between the two sides after the telecom regulator last week resolved the issue of points of interconnect.
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