Telecom operator Bharti Airtel crossed 10 million unique 5G users since it started rolling out its network from October 2022. It said that its 5G services are present across all states and that it is well poised to cover every town and key rural areas with its 5G services by the end of March 2024.
The telco has created 5G experience zones across all its retail stores, where customers can walk in and experience high speeds. It ended the December quarter with 332.24 million subscribers, with 6.4 million 4G users added in the quarter.
Airtel outpaced Reliance Jio for the second time in a row and grabbed more revenue market share (RMS) in the third quarter of the current fiscal, on the back of a sharp hike in base prepaid rates it took last November in Odisha and Haryana along with share gains in rural markets, according to experts.
Meanwhile, Vodafone Idea languished, it continued to lose RMS share in the third quarter of FY23, unable to fight its financially-stronger rivals, in both urban and rural markets. This indicates a potential telecom duopoly in India. Airtel and Reliance Jio have hiked their minimum recharge plans and therefore will earn more from every subscriber that leaves Vodafone Idea.
Brokerage firm Motilal Oswal has a buy call on the shares of Bharti Airtel with a target price of ₹ 985 apiece. This translates to an upside of 31.95% as compared to its share price of ₹ 746.45 apiece at 11:27 AM on Monday.
It highlighted that Airtel has slowed down 4G adds, and has increased capex intensity towards 5G rollout and rural coverage. It added that the company is well poised to gain from sector tailwinds in the next two years, with an EBITDA CAGR of 13% over FY23-25E, driven by a combination of market share gains, improved ARPU led by premiumization of customers and tariff hikes and non-Wireless segments.
Written by Simran Bafna
