While ARPU decline will impact all the operators, the sector given RJio's revenues could post a sequential uptick in revenue
Due to the decline in revenue, licence fee and spectrum charges paid to the government also fell in the quarter
With three private players dominating the sector soon, equipment providers feel they need will to ramp with infra to tackle 40% growth in data traffic
The sector's gross revenues contracted by 7% in the quarter ended September, over the same period in the previous year
Sinha said the government is implementing programmes to improve connectivity through BharatNet
Some relief is in the offing for telecom operators as the Telecom Commission (TC) will meet tomorrow to consider the measures proposed by inter-ministerial group for easing the financial stress in the sector.The Commission, which is also the highest decision making body of Department of Telecommunications (DoT), has already approved increasing the timeframe for deferred spectrum payments to 16 years as well as a change in calculating interest for delayed payments. In the meeting tomorrow, a decision will be taken regarding the spectrum caps. The Telecom Regulatory Authority of India (Trai) has recommended raising the 25 per cent overall spectrum limit to 35 per cent whereas the 50 per cent intra-band cap has been removed. In place of it, the regulator has proposed having a cap of 50 per cent on the combined spectrum holding in the sub-1 GHz bands (700, 800 and 900 MHz). The move for relaxing caps will benefit operators such as Vodafone and Idea Cellular to retain their airwaves after .
To improve ease of doing business, the Telecom Regulatory Authority of India (Trai) has proposed some new measures.These include approval to a merged entity within 30 days of a go-ahead from the National Company Law Tribuunal (NCLT), giving telcos up to a year to surrender or trade excess airwaves in the case of a merger, permitting trading in all bands which have been put on auction, plus easier penalty norms.If the department of telecommunications (DoT) agrees, the proposed mergers of Bharti Airtel-Telenor, Vodafone-Idea Cellular and Bharti Airtel-Tata Teleservice's mobile business would all get approval in a short span. In the past, DoT had taken several months for approving mergers between companies even after a NCLT okay.For instance, after NCLT approval, the Airtel-Qualcomm merger approval from DoT took six to seven months. That of Reliance Communications and Sistema Shyam Teleservices took around four months. Industry representatives say this delay increases the uncertainty ...
How the fifth generation mobile telephony pans out will be determined by the revenue model the government offers the industry
Ongoing M&As have triggered fears that potential job losses could be in offing
Govt needs to hand-hold the industry at a difficult time
The telecom sector is undergoing a lot of stress and the bank is making extra provisions for this, said Arundhati Bhattacharya
Inability to hire new employees, train old ones could have an adverse effect on other aspects of biz
The study said the existing manpower in the sector may not match up to the upcoming demand
The inter-ministerial group (IMG), formed to address the stress in telecom sector, today undertook an internal meeting to discuss and finalise its report.During the meeting, the panel explored on various options like extending the deferred payment schedule, change in interest rate among others. However, no final decision was taken and another meeting is likely on August 16 to further deliberate on the matter.According to sources, a few members raised the point that financial health of the industry has started to improve and it can be seen with the numbers reported by operators in the first quarter. However, not everybody in the meeting agreed to it. The panel is likely to come out with its recommendations before August 27. The recommendation of the group will be placed before the Telecom Commission and ultimately to the Cabinet. The panel is also debating if some relief can be given to operators in terms of licence fee, which currently stands at 8 per cent of telcos adjusted gross ...
The govt is taking initiatives to promote manufacturing in the telecommunication sector in India
Analysts see three big players with market share of 30% each after 12-24 months
The Indian telecom industry is locked in an intense tariff war following entry of Reliance Jio
At present, telecom companies pay an average of 8% of adjusted gross revenue (AGR) as licence fee
However, the company said the mergers will lead to short-term tanacies
IMG was set up to examine issues affecting viability and repayment capacity of telecom companies