Graphic: Naveen Kumar Saini/MintThe general impression is that the woes of Indian telecom companies are largely because of Reliance Jio Infocomm Ltd’s cut-throat pricing. But according to an analyst at another institutional brokerage firm, Reliance Jio also carries about two times the data traffic these three companies manage between themselves. As such, Reliance Jio too needs to augment capacity to support growth, which it indeed is busy doing. Idea generated next to nothing in terms of cash last quarter, and that was before a series of tariff cuts by Reliance Jio in January. Idea has diluted equity, while Reliance Jio is raising over $2 billion (Rs13,000 crore) in debt to fund capital expenditure.

Source: Mint March 23, 2018 02:26 UTC