Worst over in telecom, but still need government help: Mittal

NEW DELHI: Long-standing legal disputes and regulatory levies are dragging down the performance of Indian telecom companies who are yet to “emerge out of the woods,” Bharti group chairman Sunil Mittal said."While it’s clear that the worst may be behind for India’s telecom industry, we are yet to emerge from the woods. India still has some of the lowest data tariffs globally and the industry is barely able to cover the cost of capital.," Mittal said in a message to Airtel shareholders in its annual report for FY19-20 released Tuesday. "It requires much more support to repair the deep damage to its finances and make it viable for telecom operators to invest in future technologies." 77224329Mittal said that operators are still below the levels of making the industry viable, although the recent tariff hikes have provided some cushion."The company…is of the view that the telecom price-wars changed the landscape of the industry we have known and operated in till date and the Adjusted Gross Revenue (AGR) dues have caused significant distress in business sustainability for industry players," he said.Despite extensive consolidation in the telecom space over the years leading to a 3+1 player market, Bharti Airtel is confident of holding its ground, the Chairman said in the report."Given the commendable job it (telecom industry) has done to keep India connected, I hope the Government will look into the urgent needs of the operators," said Mittal.India’s number two telco Bharti Airtel had at the end of March-20, reported a total subscriber base of 283 million subscribers and an average revenue per user (ARPU) of Rs 154. Chairman Sunil Mittal has previously highlighted the need for industry ARPUs to reach Rs 200 for operators to at least generate a return on the capital employed.

from Economic Times https://ift.tt/2D07alt