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Why the World's Looking at Indian Telecom?

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While COVID-19 has painted a morose economic outlook across the country, Indian telecommunication companies (“telcos”) have largely been immune. Not only has data consumption shown an uptick, telco services have also been critical during the pandemic for a wide-ranging set of reasons. Their ubiquitous and utilitarian status has never had a stronger endorsement. The Indian telco sector is now essentially a three-player market (Jio, Airtel and Vodafone Idea) characterised by lofty consumer demand, fierce competition and regulatory complexity. Add the recent investment activity from marquee investors such as Silver Lake Partners, KKR, Facebook coupled with the grapevine of potential interest from Abu Dhabi Investment Authority, Microsoft and Google, the sector truly finds itself in the midst of an interesting period, one warranting almost elevated levels of intrigue. With telecom making flashy news on a regular basis, we touch over the key themes in the sector with a snapshot of how things stack up.

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