Mukesh Ambani, Sunil Mittal may deal with an unfinished agenda after Lok Sabha elections
Billionaires Mukesh Ambani and Sunil Mittal may wait for the Lok Sabha elections to finish before increasing telecom tariffs in the second half of 2024. Jefferies expects a 20% tariff hike in the second quarter of fiscal year 2025. The government, which owns 33% stake in Vodafone Idea, may also favor tariff hikes to support the telco's survival. CLSA estimates that Bharti Airtel will lead tariff hikes to an Arpu of Rs 257 by fiscal year 2026. Key Points
Economic TimesReliance Jio unlikely to hike tariffs before FY25, ARPU may remain range-bound
Tariff hike is the biggest catalyst for investors in the telecom sector. Jio's ARPU, which has grown from Rs 130 in FY20, is seen growing to Rs 202 in FY26. Analysts from Kotak Institutional Equities see the possibility of a tariff hike only after the Lok Sabha elections in April-May 2024. Key Points
Economic TimesIncreased competition likely to prompt telcos to delay tariff hikes to next fiscal
Private telcos Reliance Jio, Bharti Airtel, and Vodafone Idea are expected to defer the next round of prepaid tariff increases until April 2024, following intense competition to acquire higher-paying customers and a weak consumption environment. This delay is amid heightened competition as telcos acquire high ARPU customers and aggressive 5G roll-out plans, with low probability for tariff hikes in the near term. Key Points
Economic TimesExplained | Calculating electricity tariff in Karnataka
The Hindu explains how electricity tariff is calculated in Karnataka, what are the components of an electricity bill, why June’s bill was exponentially higher than previous months’ and more. Subscribe to read the exclusive story. Key Points
The HinduConsumers can now save upto 20% in electricity bills with the new tariff rule
India's power tariffs are set to be up to 20% lower during solar hours and up to 20% higher during peak hours under new amendments to electricity rules. The changes are aimed at increasing the use of renewable energy and introduce time-of-day tariffs effective from April 2025 for all consumers except those engaged in agriculture. The move comes as solar power hits tariff parity with traditional electricity sources, and the costs of hydro, thermal and gas are shown in the varying prices of the new tariff structure. Key Points
Economic Times
New electricity tariffs kick in, leave consumers in shock
As the new tariff revisions, which were approved by the Karnataka Electricity Regulatory Commission (KERC) in May, came into effect and started reflecting in the bills generated this month, many citizens were left in a state of shock or confusion. Many took to social media to air out their confusion about seeing over a 30-50% increase in their Bangalore Electricity Supply Company (Bescom). Key Points
The HinduVi, Airtel back tariff plan to make consumers pay as per their usage
But that could be difficult to implement on ground as market leader Reliance Jio is believed to be opposed to the tiering of price plans - where data allowance is linked to the tariff plan - as it feels such an exercise can complicate tariff structures, confuse consumers and eventually hurt data usage. Analysts said while the pay-as-you-use model or tier-based pricing model can boost telco revenue, it can work only if implemented collectively by all operators. Key Points
Economic TimesKerala High Court dismisses AIDCF's petition against TRAI's NTO 3.0
The Kerala High Court has rejected the writ petition filed by the All India Digital Cable Federation challenging the Telecom Regulatory Authority of India's (TRAI) New tariff Order (NTO) 3.0. Last month, AIDCF-aligned MSOs signed interconnection agreements with broadcasters based on NTO 3.0 after the HC failed to provide interim relief. Key Points
Economic TimesReliance Jio posts slowest profit, revenue growth in six quarters
Reliance Jio Infocomm, the telecom arm of Indian billionaire Mukesh Ambani's Reliance Industries (RELI.NS), reported its slowest profit and revenue growth in six quarters on Friday, hit by higher expenses and a lack of recent tariff hikes. Key Points
ReutersMukesh Ambani's attempt to crack a hard nut new headache for Airtel investors
Kotak has a buy rating on RIL with a target price of Rs 3,000 and an add rating on Airtel with a target price of Rs 875. Airtel remains a consensus pick on Dalal Street with 25 out of 30 analysts covering the stock giving it a buy rating. Key Points
Economic Times
Uniform tariff for renewable energy on the anvil
The Indian government is working on finalizing procedures to pool tariffs of renewable energy capacities, aiming to make electricity tariffs uniform for power distribution companies. This plan involves creating separate pools for different types of renewable energy projects, such as solar, wind, and hybrid, based on their technologies. The weighted average of tariffs from these pools will be determined and could be revised monthly. Key Points
Economic TimesAirtel preparing for tariff hike post elections, Jio to focus on greater data usage: Report
Jio is expected to focus on initiatives that encourage greater data usage, enticing users to transition to higher-tier packages. This strategy is anticipated to enhance Jio's average revenue per user. Key Points
mintReliance Jio phone push may delay tariff hike: Analysts
They added that Jio's sharp focus on subscriber adds will continue to help it gain a wider user base but will further challenge average revenue per user (ARPU) growth in the absence of hikes. The JioBharat platform is ready to scale up with a successful initial trial of 1 million devices, brokerage firm BNP Paribas said in a report after the telco's fiscal first-quarter (Q1FY24) results announced Friday. Key Points
Economic TimesTelcos restricting calls, number of data top-ups to improve ARPU
Indian telecom operators, Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi), have implemented measures to increase their average revenue per user (ARPU), including blocking incoming calls once the plan period ends. Telecom industry analysts suggest that ARPU will only significantly increase when tariffs are raised, which is not expected until after India's general elections next year. Key Points
Economic TimesHC dismisses cable body’s plea against Trai’s new tariff order
The Kerala High Court on Tuesday dismissed the writ petition filed by the All India Digital Cable Federation (AIDCF) challenging the Telecom Regulatory Authority of India’s (Trai) New tariff Order (NTO) 3.0. The members of AIDCF include Reliance-owned cable companies such as Hathway, Den and GTPL, the Hinduja-group-owned NXTDigital and Asianet Digital Network, which is […] Key Points
Financialexpress
Analysts see market share gain for Jio post Bharat phone launch; lower probability of tariff hike in near-
Reliance Jio's launch of internet-enabled Jio Bharat phones at an affordable price could lead to a gain in market share for the company in the lower end of the market at the expense of rival companies such as Airtel and Vodafone Idea (VIL). The phone's monthly plan of INR 123 ($1.70) for unlimited voice calls and 14 GB of data aims to accelerate the 2G Mukt Bharat vision. Key Points
Economic TimesIndia notifies 8,606 tonnes of raw cane sugar exports to US under TRQ
Nearly 8,606 tonnes of raw cane sugar exports under the tariff-rate quota (TRQ) scheme to the US for the fiscal year 2024 has been notified by the government. Shipments under the TRQ enjoy relatively lesser customs duties. After the quota is reached, a higher tariff applies to additional imports. Key Points
Economic TimesPower bills to be dearer by ₹2.89 per unit for Bescom consumers in June
The electricity tariff for Bescom consumers for June will be up by ₹2.89 per unit, owing to fuel and power purchase cost adjustment, as well as arrears from April. Key Points
The HinduFunding talks picked up pace in last month: Vi CEO Akshaya Moondra
The company has been trying to raise Rs 20,000 crore to be able to improve its capital expenditure and compete efficiently in the market. However, those interested in providing funding to the company wanted to make sure that the reforms package from the government was implemented in total, he added. Key Points
Economic TimesElectricity prices up by 5-10% in Mumbai and suburbs from today
The Maharashtra Electricity Regulatory Commission (MERC) has approved a 10% electricity tariff increase for domestic consumers from 1 April, followed by an additional 17% hike from 1 April 2024. Four electricity distribution companies - Tata Power, Adani Electricity, Maharastra State Electricity Distribution, and Brihanmumbai Electricity Supply - will increase charges. Each company's tariff rates will increase by varying percentages between FY 2023-24 and 2024-25. Residential electricity rates will increase by up to 21% following the increases. Industrial electricity rates will increase by up to 17% in the same period. Key Points
Economic Times
We were expecting tariff to be Rs 5-6 more than what PNGRB approved, will go back for review: Rakesh Kumar
The Petroleum and Natural Gas Regulatory Board (PNGRB) has issued higher tariffs for GAIL's nine physically interconnected pipelines at Rs 58.61, up from Rs 46 per MMBtu for similar pipelines, which will result in an increase of around Rs 1,600 crore in revenue. However, GAIL was expecting a tariff Rs 5-6 higher than the approved rates, as PNGRB has considered a substantially lower fuel gas price for internal consumption. Key Points
Economic TimesEurope Votes to Slap China-Made EVs With Tariffs—but Tesla Gets Off Easy
Despite opposition from Germany, the European Union will start imposing tariffs as high as 45 percent on Chinese-made electric vehicles. Elon Musk’s marque takes the smallest hit. Key Points
WIREDHere's how India's $100 billion trade pact with EFTA will benefit Indians; Swiss watches, chocolates to ge
India has signed a trade agreement with the European Free Trade Association (EFTA) countries, including Switzerland, aiming to boost trade and investments. The agreement will lead to the phasing out of custom duties on imported goods, allowing Indian consumers access to high-quality Swiss products at lower prices. Notably, gold imports are excluded from tariff concessions. Key Points
Economic TimesIndiGo, Godrej Consumer among top 6 investment ideas from Kotak Securities
Kotak sees Indian markets trading at premium valuation with most of the sectors and stocks looking quite “overvalued”. As its top investment ideas for March, this brokerage is betting on six stocks — with ‘four buy recommendations and 2 ‘add pitches. Key Points
Economic TimesProvide insurance cover to staff travelling in employers' vehicle: Irdai tells insurers
New Delhi, Oct 18 (PTI) Insurance regulator Irdai on Wednesday asked general insurers to provide cover to employees travelling in employer’s vehicle. The Madras High Court had directed Irdai to make IMT-29 compulsory as an in-built coverage for employees while issuing a private car policy for such vehicles. IMT stands for India Motor Tariff. “All […] Key Points
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