Govt must act fast to address the sector's woes
With the telecom sector grappling with aggressive price strategy of new entrant Reliance Jio and government losing out on its revenues, industry body Cellular Operators Association of India (COAI) seeks immediate steps to address the matter before banks stop lending.In an interaction with Business Standard, Rajan S. Mathews, Director General COAI said, of the Rs 4.6 lakh crore exposure in the telecom industry, 80% is held by domestic banks and with this situation the banks are getting nervous.Mathews said that the issue raised by Telecom Secretary J. S. Deepak should be viewed from the perspective of the Telecom Commission and not Department of Telecom (DoT)."He (J S Deepak, Telecom Secretary) did not write the letter, Telecom Commission Chairman did. The members include Secretary IT, Secretary level person from finance and other government representatives and unless he takes a majority view, Telecom Secretary suo moto cannot write a letter to TRAI complaining about the telecom ...
Vodafone and Idea have already said they are considering merging their businesses in India
The report said free cash flows will be negative due to double whammy of weaker eanings and capex
Talk of consolidation is partly due to Reliance Jio, which started a price war with its tariffs
Telenor, Tata Tele (Mah), Aircel likely to face price pressure, as industry heads for consolidation
If the merger happens, Airtel will be relegated to a distant second
FDI which was $1.3 billion in 2014-15, $2.9 billion in 2015-16 has jumped up to more than $10 billion in the first eight months of 2016-17
Analysts indicated the telecom sector is likely to see greater pain in the coming weeks, as a fallout of demonetisation
The telecom PSU has suggested that a 5 MHz block in 700 Mhz band be assigned to it by government through equity route
Reliance Jio expected to gain 2% revenue market share in 2017
RJio launch and data expansion are expected to improve prospects but there could be a few bumps on the way
Jio makes data on call drops public, says 121 mn calls failed in a day
A report by Assocham and KPMG says India likely to have 180 million smartphones by 2019, or 13.5% of total global market
Telecom industry saw revenue growth slowing down in Q1 of FY17, owing to weak consumer spending and declining data revenue growth
Deepak, however, sought to dismiss notions of any dampness in the spectrum sale
But some of the charges against Trai could be unfounded
According to Telecom Minister Manoj Sinha in Lok Sabha, most number cases related to violation of MNP norms were reported in 2013-14 and their number declined sharply to 9 in 2015-16
Telcos plan to move court on interconnect charge review
Gross block of investments includes both tangible and intangible assets of telecom operators