Preparation of another tariff war in telecom sector, Jio and Airtel raising Rs 36 thousand crore
Since Jio’s entry, the war broke out in the telecom sector. The two companies have raised around Rs 36.5 thousand crores by selling bonds in the last few days, which can be used for next tariff war. Geo Infocom is a Reliance Group company with Mukesh Ambani being the leader, while Bharti Airtel chief Sunil Mittal Bharti is the head of the company.
Both companies have raised money from Bond Market
Bharti Airtel has raised Rs 3 thousand crores in bond market last month. In the regulatory filing of the stock market, the company has said that the company board has approved the collection of 16.5 thousand crore rupees. At the same time, Reliance Jies announced the sale of bonds to raise Rs 20,000 crore on the next day. These two companies are preparing to raise money from the bond market. This market has increased sharply after 20 months.
Preparation for next-generation service
The amount of money the two companies are accumulating with the bond market is equal to 78 percent of the other 4 top telecom companies. It is being speculated that both the companies are preparing to provide Next Generation Service. Geo started its service in 2016 and after that, the competition has started, due to which many small companies have settled their work.
Raj Kothari of London-based company Jai Capital Ltd says that the battle in the nearly four ongoings Telecom Sector has now come to an end. Now big players will be saved in the field and this will cost a lot of money.
Airtel has raised money because of
Airtel has stated in regulatory information about raising the money that it is used in the tragedy operation, including refinancing. Apart from this, money will also be paid to the spectrum. However, Geo has not yet disclosed why he will use the money.
Companies are in debt
Out of the listed telecom companies in the country’s market, Bharti Airtel, Idea, Reliance Communications, and Tata Teleservices, Maharashtra, have increased about 55 percent in debt during this period. By March 2016, these companies had a debt of 34.81 thousand crores above.
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