N.U 3 Rise in Administrative cost of Telecom companies

Reasons for the rise

• Airtel and Jio have seen a rise in their administrative cost for acquiring and retaining high value customer
• This cost are also rising because the companies are spending to incentivize Mobile number portability through higher channel payouts
• Airtel have a double administrative cost as compared to jio because of its premium branding and pricing strategies to retain its high value customers

Key Metrics

• Airtel and jio administrative cost have risen to 4.2% and 3.2% respectively
• Vi administrative cost has declined by 3.2%

Stocks in focus

1. Bharti Airtel

CMP: 1473.25 Market Cap: 8.80 trillion INR

2. VI

CMP: 15.83 Market Cap: 1.10 trillion INR

Rishabh Kale