InvestorQ : Did the telecom companies like Bharti Airtel, Vodafone Idea and Reliance Jio benefit from the lockdown post the COVID-19?
indhumathi Sayani made post

Did the telecom companies like Bharti Airtel, Vodafone Idea and Reliance Jio benefit from the lockdown post the COVID-19?

Answer
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shrinidhi Rajan answered.
5 months ago


While the AGR came as a big blow to Bharti Airtel and Vodafone, all the telecom companies had reasons to cheer from the lockdown. Bharti stock price bottomed after the AGR order as the uncertainty surrounding the issue was put to rest. Not only has Bharti been one of the top gainers, but it has also been the most preferred buying pick for mutual fund managers in April. While Vodafone Idea had a bigger problem of AGR and Jio hardly had a AGR problem, the fact is all had the opportunity to gain from the lockdown. Here is why the lockdown was a blessing. The lockdown led to intensive usage of data as people started juggling office work from home. Companies and employers also invested more in voice, data and conferencing as WFH became the norm. But the biggest advantage for telecom players was that it led to a greater willingness on the part of consumers to pay for high quality voice and data networks. Telecom players saw their ARPUs increasing as a result.