Falling debt levels and an expected doubling of earnings in the coming year are expected to improve the health of the Indian telecom sector. But legacy issues such as the payment of AGR dues and the exorbitant cost of 5G spectrum will have to be resolved for the sector to once again become one of the engines of India’s growth.
Exorbitant spectrum prices, $20-billion on account of SC judgment on AGR dues and the need to link thousands of telecom towers with fibre are issues Indian telcos will have to tackle before they can unleash the potential of the new 5G technology. In short, internet reliability is the immediate priority across the country.
The Supreme Court's verdict on telecom dues has, at least, brought the looming uncertainty over the future of India’s 2d and 3rd-largest telcos to an end. And as the regulatory approval for sale of Reliance’s mobile telecom tower business shows, thanks to a mammoth pitch by Singapore's GIC, the Modi government is walking the talk on making life easier for businesses.
All stakeholders are to blame for the mess India’s telecom companies find themselves in, and it's damaging India’s efforts to project an investor friendly image abroad, writes India Inc. Founder and CEO Manoj Ladwa. Highlights: India’s Department of Telecommunications' unreasonable demand of $21 billion from the country’s ailing telecom companies will cripple India's burgeoning telecom sector. All stakeholders – the telecom companies, public sector companies, the Government of India and the Supreme Court of India – are responsible for this [...]