BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Modification in spectrum usage charge, issued by the Department of Telecom, will significantly reduce spectrum pay-out burden for operators from the upcoming 5G spectrum auction, and also restrict return on invested capital compression.
As per our calculation, access SUC rate (% of adjusted gross revenue) as on Q4 FY22 for Bharti Airtel Ltd./ Vodafone Idea Ltd. / Reliance Jio was 3.2% / 2.9% / 3.1%, respectively (adjusted for SUC on microwave spectrum, which is not a part of the modification issued).
This is expected to dip to 0.4%/ 0.3%/0.4% for Airtel/Vodafone/RJio if each operator buys 100 megaHertz pan-India in 3300 MHz band, and 500 MHz pan-India in 26 GHz band.
The total spectrum payout at reserve price is Rs 352 billion, and annual instalment is Rs 33.7 billion. However, SUC rate cut will save Rs 21 billion for Airtel, Rs 10 billion for Vodafone Idea and Rs 23 billion for RJio on Q4 FY22 annualised AGR.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR