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BJP, INC not pledging any significant policy reforms for telecom: Fitch

Press Trust of India  |  New Delhi 

Leading political parties Bharatiya Party and Indian National have not pledged any significant policy reform for debt-ridden telecom sector, Macro Research said Tuesday.

However, their popular poll promises may help the sector by pushing up consumer spending on communications services, it said.

"Neither the Bharatiya Party (BJP) nor Indian National (INC) are pledging significant policy reform in the telecom sector, which will continue to suffer from depressed earnings and elevated debt levels in the near term.

"Populist measures could lend tailwinds to increased short-term spending on communications services," said in its industry trend analysis.

The firm said that mobile subscription growth in is likely to outperform with its compound annual growth rate (CAGR) of 1.7 per cent over the 2019-28 compared to the average of 1 per cent due to support that is expected to come from the populist measures proposed by both the leading political parties and continued price-led competition, which will attract first-time subscribers.

Both have committed to provide national connectivity to every village in

The nationwide BharatNet project was officially launched in 2011 under the Congress-led United Progressive Alliance (UPA) government to connect all 2.5 lakh village panchayats in the country.

"That administration itself made little progress towards rollout, with most of the infrastructure deployed by the successor BJP-led government instead. The initiative itself, however, has missed several deadlines, and as of December 2018 the government announced that about half of the village blocks were connected to the ?bre network," said.

The firm said that both parties are keen to deliver on their pledges in order to shore up electoral support.

The BJP has promised to double incomes by 2022 from 2014 levels, while the has proposed steps to raise expenditures and slash taxes, it added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 16 2019. 22:35 IST