As penalties loom, how true is telecom's financial distress narrative?

According to sources, the DCC asked the Trai to consider reducing recommended penalties on the violators of licence conditions "in view of the health of the sector"

The narrative of financial stress has once again started circulating in India’s telecom sector, in the run-up to key decisions being taken on penalties and the 5G spectrum auction.
 
For instance, on Wednesday, the Digital Communication Commission (DCC), formerly known as the telecom commission, will meet to consider reducing proposed penalties on incumbent telecom operators for violation of interconnection related licence conditions as the industry is in poor financial health.
 
According to sources, the DCC asked the Telecom Regulatory Authority of India (Trai) to consider reducing recommended penalties on the violators of licence conditions “in view of the