India’s mobile sector got a share-price bounce recently. Bharti Airtel and Vodafone India, the country’s two biggest operators, reported encouraging top-line numbers for the quarter ended June. With voice and data revenue climbing, is it possible that the Indian mobile market – so long plagued by razor-thin margins and a volatile investment climate – has turned a corner?
The short answer is no. While increases in service revenue are welcome, helped by a growing 3G subscriber base, there are still too many market uncertainties to say with any conviction that India’s operators – many of which are carrying heavy debt – are out of the woods. (more…)