The shares of Bharti Airtel surged over four percent to hit a fresh 52-week high on Wednesday after reports suggested the telco is mulling collaboration with handset makers to bring down the effective price of a smartphone.
According to an Economic Times report, Airtel is considering co-branded deals with handset makers and bundled data and voice offers to bring down the effective price of a smartphone, as the company seeks to solidify its 12 crore 2G subscribers ahead of Reliance Industries’ JioPhone Next launch.
“Airtel has been in a very significant rerating move of its own. The news development that the Jio smartphone is probably going to be delayed is going to give it another window to take on some sort of market share gains that it has been steadily inching upon,” market expert Prakash Diwan told CNBC-TV18.
The telecom company is also preparing to roll out 5G services in India. The services will be launched next year, and the company has started trial sessions already.
“The second thing you can look at is the internet solution through satellite route. And the 5G start, something they are preparing themselves for, along with this rights issue is going to be a significant war chest. It kind of very clearly gives out call that Bharti is going to take the fight head-on and for once everybody is starting in the same way for 5G developments,” Diwan added.
“So my sense is Bharti will probably see a very significant rerating going forward,” he said.