India Inc's highest-ever loss underlines state, corporate failure
The government aims to attract $100 bn investments in the sector in 5 years, Aruna Sundararajan says that the telecom sector is robust enough to achieve the objective despite the current slump
Vodafone-Idea and Reliance Jio will be the key gainers of the government's decision to remove the cap on holding spectrum
With consolidation in the Indian telecom sector accelerating over the past two years, the sector is now headed towards a three player oligopoly with Bharti Airtel, Vodafone-Idea Cellular and Reliance Jio, controlling 95 per cent of the revenues. Analysts attribute the faster pace of consolidation to reasons including very spectrum costs and intense pricing pressures following the entry of Reliance Jio in September 2016."Consolidation in the India telecom industry has accelerated over the past two years, with the top three operators gaining as much revenue market share (580bps) over FY15-1QFY18 as they did over FY10-15. This has been driven by high spectrum costs and intense pricing pressure due to the entry of Reliance Jio," CLSA said in a report.High spectrum cost paid to the government is one of the key reasons for consolidation in the sector. While big telecom operators, buoyed by larger balance sheets, were able to participate actively in the spectrum auctions, smaller operators ..