Bharti Airtel is entering a new FCF Generation Capability Zone
Also, the mgmt. on concall said - "With the 5G Auctions concluded, we will not need to spend anything big for many years to come on the spectrum"
A thread on India's 5G Launch & Bharti Airtel -
Please retweet :)
Also, the mgmt. on concall said - "With the 5G Auctions concluded, we will not need to spend anything big for many years to come on the spectrum"
A thread on India's 5G Launch & Bharti Airtel -
Please retweet :)
1/n
Bharti Airtel -
- EBITDA growth translated into a strong FCF generation and deleveraging which was missing in the last few quarters
- Reiterated the thought that ARPUs need to move up to Rs 200 and then to Rs 300 from Rs 183 in Q1FY23
Bharti Airtel -
- EBITDA growth translated into a strong FCF generation and deleveraging which was missing in the last few quarters
- Reiterated the thought that ARPUs need to move up to Rs 200 and then to Rs 300 from Rs 183 in Q1FY23
2/n
Decadal Shift in FCF Generation Capability -
- Bharti is entering a phase of high FCF growth. During FY19-22, Bhartiβs EBITDA jumped over 2x adding Rs 32000 cr as against average CAPEX(ex-Spectrum) of Rs 23000 cr (flat over the period) translating into a significant FCF
Decadal Shift in FCF Generation Capability -
- Bharti is entering a phase of high FCF growth. During FY19-22, Bhartiβs EBITDA jumped over 2x adding Rs 32000 cr as against average CAPEX(ex-Spectrum) of Rs 23000 cr (flat over the period) translating into a significant FCF
3/n
- During the last 3 years, EBITDA addition has been 1.4x of the annual CAPEX of Bharti (ex-Spectrum).
- Expected Free cash flows (post-interest) of Rs 25000 cr in FY23 and 37000 cr in FY24 (post-Ind-AS 116)
- During the last 3 years, EBITDA addition has been 1.4x of the annual CAPEX of Bharti (ex-Spectrum).
- Expected Free cash flows (post-interest) of Rs 25000 cr in FY23 and 37000 cr in FY24 (post-Ind-AS 116)
4/n
Now let's talk about the recent 5G launch in India -
- India is on course to have one of the fastest rollouts of 5G as our honorable PM launched services within 2 months of the spectrum auction
Now let's talk about the recent 5G launch in India -
- India is on course to have one of the fastest rollouts of 5G as our honorable PM launched services within 2 months of the spectrum auction
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What is 5G?
- 5G is the next-gen mobile network capability that can facilitate the transmission of a large set of data at a high speed.
- It has low latency (efficiency to process a certain volume of data with a minimal delay) as compared to 3G and 4G
What is 5G?
- 5G is the next-gen mobile network capability that can facilitate the transmission of a large set of data at a high speed.
- It has low latency (efficiency to process a certain volume of data with a minimal delay) as compared to 3G and 4G
6/n
- Potential to be up to 10x faster than 4G.
- 5G rollout is also expected to bring more progress in remote data monitoring in sectors such as mining, warehousing, telemedicine, and manufacturing, edge computing, among others.
- Potential to be up to 10x faster than 4G.
- 5G rollout is also expected to bring more progress in remote data monitoring in sectors such as mining, warehousing, telemedicine, and manufacturing, edge computing, among others.
7/n
Why is 5G important?
- Being the second largest mobile internet base, India has already cemented its place in the global telecom space
- The next-gen digital services are expected to transform the way consumers connect, enterprises digitalize businesses, citizens consume
Why is 5G important?
- Being the second largest mobile internet base, India has already cemented its place in the global telecom space
- The next-gen digital services are expected to transform the way consumers connect, enterprises digitalize businesses, citizens consume
8/n
- 5G is set to become a connectivity fabric that connects people, devices, machines, and ecosystems in a time of hyperconnectivity and quick technological advancements.
- 5G is set to become a connectivity fabric that connects people, devices, machines, and ecosystems in a time of hyperconnectivity and quick technological advancements.
9/n
- The cumulative economic impact of 5G on India is expected to reach $450 Billion by 2035.
- A report says - a 10% increase in mobile adoption increases GDP by 1%. This rises to 15% when connections are upgraded from one mobile network to another
- The cumulative economic impact of 5G on India is expected to reach $450 Billion by 2035.
- A report says - a 10% increase in mobile adoption increases GDP by 1%. This rises to 15% when connections are upgraded from one mobile network to another
10/n
- Health tech is going to get many benefits from the launch of 5G services in India - Real-time patient remote monitoring, fitness tracking, diagnostics through internet medical devices, virtual home care systems, and complex clinical data analysis are just some examples
- Health tech is going to get many benefits from the launch of 5G services in India - Real-time patient remote monitoring, fitness tracking, diagnostics through internet medical devices, virtual home care systems, and complex clinical data analysis are just some examples
11/n
Let's look at the companies associated with 5G and what role they are playing in it -
Jio - India may have started late, but we will finish first by ensuring 5G rollout across India said, Mukesh Ambani. He also said Jio will be present in every taluka, tehsil by Dec 2023
Let's look at the companies associated with 5G and what role they are playing in it -
Jio - India may have started late, but we will finish first by ensuring 5G rollout across India said, Mukesh Ambani. He also said Jio will be present in every taluka, tehsil by Dec 2023
12/n
Airtel - Working with Nokia, Samsung, and Ericsson as network partners to set up and deliver 5G services in the country. It also said that towns and key rural areas will be covered by the end of March 2024. Airtel aims for complete 5G coverage by March2024
Airtel - Working with Nokia, Samsung, and Ericsson as network partners to set up and deliver 5G services in the country. It also said that towns and key rural areas will be covered by the end of March 2024. Airtel aims for complete 5G coverage by March2024
13/n
Tech Mahindra - Going big on 5G solutions β its next growth charter. 5G revenue grew from $125 million in FY21 to over $600 million in FY22. It has invested more than $300 million in developing its 5G capabilities over the last two years.
Tech Mahindra - Going big on 5G solutions β its next growth charter. 5G revenue grew from $125 million in FY21 to over $600 million in FY22. It has invested more than $300 million in developing its 5G capabilities over the last two years.
14/n
Tejas Network - Their 4G LTE base station has been designed to be upgradable for 5G
They see a multi-year CAPEX spend cycle for building both wireline and wireless infra. Deployment of next-gen radio products, 5G will also require a significant increase in cell-site
Tejas Network - Their 4G LTE base station has been designed to be upgradable for 5G
They see a multi-year CAPEX spend cycle for building both wireline and wireless infra. Deployment of next-gen radio products, 5G will also require a significant increase in cell-site
15/n
fiberization and augmentation of optical backbone capacities which augur well for their business
Vodafone Idea - They have spent Rs 18,800 crore on the 5G auction which includes radiowaves in the mid-band and spectrum in the 26GHz band.
fiberization and augmentation of optical backbone capacities which augur well for their business
Vodafone Idea - They have spent Rs 18,800 crore on the 5G auction which includes radiowaves in the mid-band and spectrum in the 26GHz band.
16/n
However, a recent report suggests that the service provider plans to charge a premium for the service, but will also provide more data.
They are yet to officially announce 5G but some subscribers in the Delhi-NCR region have received an SMS
However, a recent report suggests that the service provider plans to charge a premium for the service, but will also provide more data.
They are yet to officially announce 5G but some subscribers in the Delhi-NCR region have received an SMS
17/n
indicating that the service will be available in the region in the coming days
Sterlite Tech - Unveiled 5G Cosmos β an optical solution for towers and small cells for speedy 5G rollout.
indicating that the service will be available in the region in the coming days
Sterlite Tech - Unveiled 5G Cosmos β an optical solution for towers and small cells for speedy 5G rollout.
18/n
They said tower fiberisation must increase from about 35% to 80% to provide high-quality 5G services. Additionally, 5G will require upto 4X small cells, backhauled with fiber, Sterlite Technologies said.
They said tower fiberisation must increase from about 35% to 80% to provide high-quality 5G services. Additionally, 5G will require upto 4X small cells, backhauled with fiber, Sterlite Technologies said.
19/n
TCS β
Getting 5G-ready: The company has created a network solution and services unit (NSS), under the communications and media vertical, to cater to 5G rollout and engineering solutions. TCS has been vocal about industry access to the 5G spectrum.
TCS β
Getting 5G-ready: The company has created a network solution and services unit (NSS), under the communications and media vertical, to cater to 5G rollout and engineering solutions. TCS has been vocal about industry access to the 5G spectrum.
20/n
The development comes at a time when TCS is in the final stages of closing a potential $2 billion - 4G network rollout deal with BSNL. The deal will also help the Tata Group consortium of TCS and Tejas Networks to take their 5G rollout offerings to global telecom operators
The development comes at a time when TCS is in the final stages of closing a potential $2 billion - 4G network rollout deal with BSNL. The deal will also help the Tata Group consortium of TCS and Tejas Networks to take their 5G rollout offerings to global telecom operators
Please note, stock names are just taken for reference.
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We have many more threads in store for you, follow us at @Compcircle to keep learning with us :)
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