OXG secures new shareholder and funding

Jio Platforms, a unit of Reliance Industries Ltd, launched India's largest share sale, aiming to raise 302bn rupees ($3.2bn) in an IPO. The funds will repay loans for Reliance Jio Infocomm Ltd. Institutional investors showed strong interest, bidding 30 times the reserved shares. Analysts highlight Jio's scale and infrastructure but note regulatory risks and competition.

Vodacom's 55% stake in Safaricom remains pending an appeal. Vodacom, a subsidiary of Vodafone (traded in NY), bought the stake from Kenya's government for $1.57B. A Kenyan court voided the sale, citing lack of public consultation, but Vodacom plans to appeal. A loss could reduce Vodacom's stake to 40%.

Barclays downgraded Vodafone to 'underweight' and cut its price target to 105p from 115p, citing AI threats to earnings and exposure in Germany. The bank estimates a 5.9% revenue decline over five years due to AI and satellite broadband competition. Vodafone's high consumer revenue share and weaker customer ties in Germany increase its risk. Barclays sees potential upside to 150p or downside to 80p based on various factors.

The EU proposes fees for satellite spectrum rights as Deutsche Telekom, Orange, Telefónica, and Vodafone consider a joint bid. The operators aim to extend mobile coverage to underserved areas. The proposal includes an initial payment and annual fees for spectrum rights holders. The selection process has three routes, with one prioritizing new EU entrants. The current rights expire in May 2027.

Deutsche Telekom, Orange, Telefónica, and Vodafone are exploring a joint bid for European satellite spectrum to reduce reliance on Starlink. They aim to build ground infrastructure for a satellite network, with a partner to be selected for satellite operations. The spectrum, currently held by Viasat and EchoStar, is set to be reallocated in 2027. The EU proposes dividing the 2 GHz band to enhance competitiveness and security.

SpaceX's Starlink, owned by Elon Musk, acquired spectrum licenses for $27.6 billion to launch a mobile service in the US by 2025, sparking sell-offs in telecom stocks. Starlink has 13 million broadband customers, with 100,000 in the UK. Analysts debate its long-term threat to traditional providers like BT and Vodafone, citing capacity and pricing challenges.