Shares of Indus Towers Ltd shares fell 8% intraday on Wednesday as Starlink's entry influences market dynamics in telecom sector. The downturn coincides with partnerships formed by Jio Platforms and Bharti Airtel with SpaceX, aiming to introduce Starlink's satellite internet services in India. Starlink's technology, which utilises Low-Earth Orbit satellites, presents a competitive challenge to traditional telecom infrastructure, potentially affecting Indus Towers' market prospects.
Later, Indus Towers shares ended 4.89% lower at Rs 324.80 against the previous close of Rs 341.50 on BSE. Market cap of the firm fell to Rs 85,687 crore.
Vodafone Idea stock also slipped 3.54% to Rs 7.08 against the previous close of Rs 7.34 on BSE. The stock fell 6.40% on an intraday basis to Rs 6.87 on BSE. Vodafone Idea's challenges are compounded by a continuous decline in its subscriber base, losing 1.71 million users as of December. Analysts from Motilal Oswal suggest that stabilising these losses is crucial for the company's long-term survival.
"However, we believe that Vodafone Idea's capex plans are contingent on a debt raise and further relief from the government," Motilal Oswal noted. The company is embarking on a substantial capital expenditure cycle to close the network gap with competitors, a strategy seen as essential yet reliant on financial restructuring and regulatory support.