 "Telecom, Telecom sector")
The telecom sector has been in crisis for quite some time. The warning signs have been clear as daylight: Exit of the smaller firms, RCom going into bankruptcy, huge losses of incumbent firms, mounting debt and stressed bank assets. The government’s insouciance and inaction defies all logic.
Consider the industry-level facts. Revenues normally grew at a steady clip of 5-9 per cent per annum. In the past four years, however, the industry’s revenues fell by 20 per cent. The telcos debt (excluding the tower business) has tripled and is now a whopping Rs 4.3 trillion. The debt is now 2.6
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