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Shyam Ponappa: A market structure for Digital India

In communications, if delivery is priced below the cost, the services will be unsustainable and ineffective

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Digital India

Shyam Ponappa 

Shyam Ponappa

The stress in the telecom sector is evident from the data. The market capitalisation of listed telecom operators has been stagnant since the 3G auction in 2010, while the government collected Rs 2.83 lakh crore of non-tax charges from them.1 In March 2010 before the auction, the capitalisation was Rs 1.84 lakh crore; in March 2016, it was Rs 1.71 lakh crore, with the BSE Sensex up nearly 60 per cent.

A larger share of earnings has gone to government rather than shareholders, and also to banks as interest (Rs 2.08 lakh crore). The irony is that no operator has bid so far for the most useful ...

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First Published: Wed, October 05 2016. 21:50 IST
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